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Growth Accounting Analysis in China 1978-2009

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  • Kang, Lili
  • Peng, Fei

Abstract

This paper applies the growth accounting model to Chinese economy at region and province levels from 1978 to 2009. We measure the components in the growth accounting model such as capital services, labour inputs and Total Factor Productivity (TFP) using various data sources. The economic growth has been decomposed into the contribution of physical capital, labour inputs, labour composition index (LCI) and TFP. We find that Chinese economic growth was mainly pushed by the growth of physical capital, especially in the fastest growing Coastal region. Labour inputs and TFP growth contribute more in the Interior and West regions. Moreover, the contribution shares of physical capital in labour productivity have been declining for the Coastal region, as the TFP contributions have been increasing over the same period. Our results show that the human capital formation from technological and institutional shifts is becoming more and more important in the Coastal region.

Suggested Citation

  • Kang, Lili & Peng, Fei, 2013. "Growth Accounting Analysis in China 1978-2009," MPRA Paper 50827, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:50827
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    Cited by:

    1. Dariusz Kotlewski & Mirosław Błażej, 2020. "KLEMS growth accounting implemented in Poland," Statistics in Transition New Series, Polish Statistical Association, vol. 21(1), pages 95-122, March.

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    More about this item

    Keywords

    Growth Accounting; Total Factor Productivity; Labour Cost;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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