Alternative Estimates of TFP Growth in China: Evidence from Application of the Dual Approach

Nazrul Islam and Erbiao Dai ()
Additional contact information
Nazrul Islam: United Nations

Chapter 11 in Resurgent China, 2009, pp 289-331 from Palgrave Macmillan

Abstract: Abstract Whether or not Total Factor Productivity (TFP) growth is playing a significant role in China’s recent economic growth is an important issue from several points of view. The first concerns sustainability of growth. As emphasized by Young (1995), Krugman (1994), and others, growth driven by input accumulation may soon hit the limits of diminishing returns and prove not sustainable. By contrast, growth driven primarily by productivity growth may be more sustainable. Second, findings regarding relative contribution of input accumulation and productivity can be useful in formulating policies necessary to confront rising regional inequality that has now become a well recognized problem in China. A finding showing the importance of TFP growth may indicate that mere channeling of investment into lagging provinces may not ensure their faster growth unless the investment is associated with productivity growth.

Keywords: Capital Stock; Total Factor Productivity; Total Factor Productivity Growth; Wage Growth; Dual Approach (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:pal:palchp:978-0-230-23425-3_11

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230234253

DOI: 10.1057/9780230234253_11

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().