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Can China’s Growth be Sustained? A Productivity Perspective

  • Zheng, Jinghai

    ()

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

  • Bigsten, Arne

    ()

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

  • Hu, Angang

    ()

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

China’s unorthodox approach to economic transition has resulted in sustained high growth. However, in recent years Chinese economists have increasingly referred to the growth pattern as “extensive”, generated mainly through the expansion of inputs. Our investigation of the Chinese economy during the reform period finds that reform measures often resulted in one-time level effects on TFP. China now needs to adjust its reform program towards sustained increases in productivity. Market and ownership reforms, and open door policies have improved the situation under which Chinese firms operate, but further institutional reforms are required to consolidate China’s move to a modern market economy.

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File URL: http://hdl.handle.net/2077/2855
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Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 236.

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Length: 32 pages
Date of creation: 28 Nov 2006
Date of revision:
Publication status: Forthcoming in World Development, 2009.
Handle: RePEc:hhs:gunwpe:0236
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Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden

Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/

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