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Analyzing Productivity Growth: Evidence from China’s Manufacturing Industries


  • Kui-Wai Li

    () (City University of Hong Kong, Hong Kong SAR)

  • Tung Liu

    () (Department of Economics, Ball State University)


This article examines the growth attributes of manufacturing industries in China for the sample period of 1999-2007. All manufacturing industries are grouped into and four main industry groups and four geographical regions. A revised Solow’s growth method is used to decompose the growth attributes into input growth, scale effect, technical progress, and technical efficiency change. A stochastic frontier model is applied to the translog production function. The empirical findings show a strong presence of technical progress, while labor input has rapidly been replaced by human capital. Structural transformation in the industrial sector is evident, so as regional imbalances.

Suggested Citation

  • Kui-Wai Li & Tung Liu, 2010. "Analyzing Productivity Growth: Evidence from China’s Manufacturing Industries," Working Papers 201003, Ball State University, Department of Economics, revised Dec 2010.
  • Handle: RePEc:bsu:wpaper:201003

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    Cited by:

    1. Acharya, Hem, 2013. "Employment Growth by Accelerated Manufacturing in India- A Comparative Study and Lessons to Be Learnt from China," MPRA Paper 46697, University Library of Munich, Germany.

    More about this item


    China industries; productivity; efficiency; technical progress; stochastic frontier model;

    JEL classification:

    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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