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An Empirical Analysis of Provincial Productivity in China (1979-2001)

Author

Listed:
  • Zheng, Jinghai

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

  • Hu, Angang

    (Center for China Studies, School of Public Policy and Management,)

Abstract

This study analyzes provincial productivity growth in China for the period of 1979-2001. The Malmquist Index approach allows us to decompose productivity growth into two components, technical progress and efficiency change. Considerable productivity growth was found for most of the data period, but it was accomplished mainly through technical progress rather than efficiency improvement. Although China’s capital stock has been accumulated at the speed of a historical record in recent years, our findings show that TFP growth slowed significantly during 1995-2001. The study thus raises serious questions on whether China’s recent growth pattern is consistent with its comparative advantages, and whether its reliance on capital accumulation can be sustained in the long run.

Suggested Citation

  • Zheng, Jinghai & Hu, Angang, 2004. "An Empirical Analysis of Provincial Productivity in China (1979-2001)," Working Papers in Economics 127, University of Gothenburg, Department of Economics, revised 22 Mar 2004.
    • Handle: RePEc:hhs:gunwpe:0127
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    File URL: http://hdl.handle.net/2077/2790
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    References listed on IDEAS

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    Cited by:

    1. Jun Zhang, 2008. "China's Economic Growth: Trajectories and Evolving Institutions," WIDER Working Paper Series RP2008-33, World Institute for Development Economic Research (UNU-WIDER).
    2. Ping HUA, 2005. "Real exchange rate and employment in the manufacturing sector in China," Working Papers 200528, CERDI.

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    More about this item

    Keywords

    Productivity; capital deepening; China;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • 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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