An Empirical Analysis of Provincial Productivity in China (1979-2001)

Jinghai Zheng () and Angang Hu ()
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Jinghai Zheng: Department of Economics, School of Economics and Commercial Law, Göteborg University, Postal: Box 640, SE 40530 GÖTEBORG
Angang Hu: Center for China Studies, School of Public Policy and Management,, Postal: Tsinghua University, Beijing, China

No 127, Working Papers in Economics from University of Gothenburg, Department of Economics

Abstract: This study analyzes provincial productivity growth in China for the period of 1979-2001. The Malmquist Index approach allows us to decompose productivity growth into two components, technical progress and efficiency change. Considerable productivity growth was found for most of the data period, but it was accomplished mainly through technical progress rather than efficiency improvement. Although China’s capital stock has been accumulated at the speed of a historical record in recent years, our findings show that TFP growth slowed significantly during 1995-2001. The study thus raises serious questions on whether China’s recent growth pattern is consistent with its comparative advantages, and whether its reliance on capital accumulation can be sustained in the long run.

Keywords: Productivity; capital deepening; China (search for similar items in EconPapers)
JEL-codes: D24 O47 O53 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2004-03-12, Revised 2004-03-22
New Economics Papers: this item is included in nep-dev, nep-his, nep-ino, nep-mac, nep-sea and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in Journal of Chinese Economic and Business Studies, 2006, pages 221-239.

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