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Decomposition of Economic and Productivity Growth in Post-reform China

Kui-Wai Li (), Tung Liu () and Lihong Yun

No 200806, Working Papers from Ball State University, Department of Economics

Abstract: This paper examines and applies the theoretical foundation of the decomposition of economic and productivity growth to the thirty provinces in China’s post-reform economy. The four attributes of economic growth are input growth, adjusted economies of scale effect, technical progress, and efficiency growth. A stochastic frontier model is used to estimates the growth attributes, and a human capital variable is incorporated in the translog production function. The empirical results show that input growth is the major contributor to economic growth and human capital is inadequate even though it has a positive and significant effect on growth. Technical progress is the main contributor to productivity growth and the scale economies has become important in recent years, but technical efficiency has edged downwards in the sample period. The relevant policy implication for a sustainable post-reform China economy is the need to promote human capital accumulation and improvement in technical efficiency.

Keywords: technical progress; technical efficiency; economies of scale; human capital; China economy (search for similar items in EconPapers)
JEL-codes: C2 D24 O4 O53 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2008-12, Revised 2008-12
New Economics Papers: this item is included in nep-cna, nep-dev, nep-eff, nep-fdg, nep-hrm and nep-tra
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Citations: View citations in EconPapers (1)

Published see BSUECWP200904li.pdf

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http://econfac.bsu.edu/research/workingpapers/bsuecwp200806li.pdf First version, 2008 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:bsu:wpaper:200806

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