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Post‐Reform Productivity Performance And Sources Of Growth In Chinese Industry: 1980–85

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  • Robert H. McGuckin
  • Sang V. Nguyen
  • Jeffrey R. Taylor
  • Charles A. Waite

Abstract

This paper examines the productivity growth and its sources in 39 Chinese industries in the post‐reform period 1980–85. We use both the gross‐output and value‐added models to isolate the contributions of labor, capital, materials and technical efficiency to growth in industrial output. Using new data from the National Industrial Census of China (1988) for large and medium‐size enterprises, we find that Chinese industries, in particular, those in the manufacturing experienced sharp increases in total factor productivity growth in the 1984–85 period as compared to the 1980–84 period. Moreover, collective and private enterprises show higher output and total factor productivity gains than do state enterprises. Our regression results show that total factor productivity gains are closely tied to increases in retained profits and the proportion of total employees that are technical workers. However, labor bonuses have a negative effect on total factor productivity growth.

Suggested Citation

  • Robert H. McGuckin & Sang V. Nguyen & Jeffrey R. Taylor & Charles A. Waite, 1992. "Post‐Reform Productivity Performance And Sources Of Growth In Chinese Industry: 1980–85," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 38(3), pages 249-266, September.
    • Handle: RePEc:bla:revinw:v:38:y:1992:i:3:p:249-266
    DOI: 10.1111/j.1475-4991.1992.tb00424.x
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    Cited by:

    1. Wu, Zai Bin & Yeung, Godfrey & Mok, Vincent & Han, Zhaozhou, 2007. "Firm-specific knowledge and technical efficiency of watch and clock manufacturing firms in China," International Journal of Production Economics, Elsevier, vol. 107(2), pages 317-332, June.
    2. Huang, Yiping & Duncan, Ron, 1997. "How Successful Were China's State Sector Reforms?," Journal of Comparative Economics, Elsevier, vol. 24(1), pages 65-78, February.

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