An Empirical Analysis of Provincial Productivity in China (1979-2001)
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.
|Date of creation:||12 Mar 2004|
|Date of revision:||22 Mar 2004|
|Publication status:||Published in Journal of Chinese Economic and Business Studies, 2006, pages 221-239.|
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NBER Working Papers
5935, National Bureau of Economic Research, Inc.
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