INDUSTRIAL AND AGGREGATE MEASURES OF PRODUCTIVITY GROWTH IN CHINA, 1982–2000

Jing Cao, Mun Ho, Dale Jorgenson, Ruoen Ren, Linlin Sun and Ximing Yue

Review of Income and Wealth, 2009, vol. 55, issue s1, 485-513

Abstract: We estimate productivity growth for 33 industries covering the entire Chinese economy using a time series of input–output tables covering 1982–2000. Capital input is measured using detailed investment data by asset and labor input uses demographic information from household surveys. We find a wide range of productivity performance at the industry level. We then show how these industry growth accounts may be consistently aggregated to deliver a decomposition of aggregate GDP growth. For the 1982–2000 period aggregate TFP growth was 2.5 percent per year; decelerating from a rapid rate in the early 1980s to negative growth during 1994–2000. The main source of growth during the 1982–2000 period was capital accumulation, with a small negative contribution from the reallocation of factors across industries.

Date: 2009
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