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Productivity Dynamics Of Chinese Manufacturing Firms

Author

Listed:
  • QU FENG

    (School of Social Sciences, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332, Singapore)

  • ZHIFENG WANG

    (#x2020;Center of Economics, Finance and Management Sciences, Hunan University, 403 Administration Building, North Campus, Yuelu District, Changsha, Hunan 41006, China)

  • GUIYING LAURA WU

    (School of Social Sciences, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332, Singapore)

Abstract

China has experienced high-speed catch-up growth with an average annual rate of over 8% in per capita GDP in the past four decades. Using growth accounting, Zhu (Understanding China’s growth: Past, present, and future. Journal of Economics Perspectives, 26(4), 103–124) finds that the growth of total factor productivity (TFP) accounts for 77% of China’s per capita GDP growth during 1978–2007, and argues that China’s TFP growth is mainly driven by resource reallocation due to market liberalization and institutional reforms. This paper aims to estimate China’s aggregate productivity growth by applying three leading methods of estimating firm-level production function on Chinese manufacturing firms during 1998–2007, and quantify the contribution of resource reallocation to productivity growth. In addition, we also empirically compare the three estimation methods in this large data set.

Suggested Citation

  • Qu Feng & Zhifeng Wang & Guiying Laura Wu, 2019. "Productivity Dynamics Of Chinese Manufacturing Firms," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(04), pages 899-919, September.
    • Handle: RePEc:wsi:serxxx:v:64:y:2019:i:04:n:s0217590817450047
    DOI: 10.1142/S0217590817450047
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    Cited by:

    1. Zhifeng Wang & Guiying Laura Wu & Qu Feng, 2020. "Productivity of core infrastructure investment in China: An input–output approach," The World Economy, Wiley Blackwell, vol. 43(12), pages 3384-3406, December.
    2. Qu, Jianying & Li, Ke & Ye, Ze & Shao, Shuai, 2022. "The impact of differential power pricing policy on firm productivity in China: Evidence from iron and steel firms," Journal of Asian Economics, Elsevier, vol. 80(C).

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    More about this item

    Keywords

    China’s economic growth; TFP growth; production function; resource reallocation;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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