Decomposing Productivity Growth in Chinese Manufacturing

Bin Wang, Guangnan Zhang and James Peoples

Asian Journal of Empirical Research, 2016, vol. 6, issue 11, 279-293

Abstract: In an increasingly globalized business environment, sustaining relatively high productivity growth is essential for maintaining an international competitive advantage. Economists typically identify manufacturing companies in China as prime examples of firms attaining cost competitiveness through productivity growth. This study contributes to the analysis of productivity growth in China by estimating unexplained technological change, scale and infrastructure investment’s contribution to annual productivity growth for 27 manufacturing industries. A flexible form cost equation for manufacturing industries classified at the two-digit industry code level for the 1998-2005 sample period is used to investigate each factor’s impact on productivity growth. The findings suggest that for all industries excluding furniture manufacturing, unexplained technological change contributes to productivity growth. Infrastructure investment and scale contribute to such growth for 16 and 5 of the 27 industries respectively.

Keywords: Productivity; Chinese Manufacturing; Decomposition; Translog (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:

Downloads: (external link)
https://archive.aessweb.com/index.php/5004/article/view/3944/6209 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:asi:ajoerj:v:6:y:2016:i:11:p:279-293:id:3944

Access Statistics for this article

More articles in Asian Journal of Empirical Research from Asian Economic and Social Society
Bibliographic data for series maintained by Robert Allen ().