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China Meets Global De-Industrialization: Industrial Structural Transformation of China

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  • Akira Kohsaka

    (Osaka School of International Public Policy, The University of Osaka)

Abstract

This paper examines China's industrial structural transformation over the past several decades, comparing it with Japan, Korea and the US. Using expanded sets of international comparable databases, we decompose aggregate productivity growth into sectoral productivity growth and inter- sector resource reallocation. Our findings reveal notable trend changes in labor shares across sectors with significant time differences, earlier de-industrialization in the US and latest industrialization in China. Notably, in the US, manufacturing has lagged behind trade, finance and business services in labor share, and ICT in productivity for years. In contrast, in China, while these service sectors remain minimal in labor share, their relative productivities surpass those of manufacturing. Despite her remarkable productivity growth, significant gaps persist in all sectoral productivity levels between China and the others. We explore how fast these gaps could be narrowed by current sectoral productivity growth trends.

Suggested Citation

  • Akira Kohsaka, 2026. "China Meets Global De-Industrialization: Industrial Structural Transformation of China," OSIPP Discussion Paper 26E002, Osaka School of International Public Policy, Osaka University.
    • Handle: RePEc:osp:wpaper:26e002
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    Keywords

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    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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