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Industrial And Aggregate Measures Of Productivity Growth In China, 1982–2000

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  • Jing Cao
  • Mun S. Ho
  • Dale W. Jorgenson
  • Ruoen Ren
  • Linlin Sun
  • Ximing Yue

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.

Suggested Citation

  • Jing Cao & Mun S. Ho & Dale W. Jorgenson & Ruoen Ren & Linlin Sun & Ximing Yue, 2009. "Industrial And Aggregate Measures Of Productivity Growth In China, 1982–2000," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(s1), pages 485-513, July.
    • Handle: RePEc:bla:revinw:v:55:y:2009:i:s1:p:485-513
    DOI: 10.1111/j.1475-4991.2009.00328.x
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    Cited by:

    1. Cao, Jing & Ho, Mun S. & Hu, Wenhao & Jorgenson, Dale, 2020. "Effective labor supply and growth outlook in China," China Economic Review, Elsevier, vol. 61(C).
    2. Glawe, Linda & Wagner, Helmut, 2020. "China in the middle-income trap?," China Economic Review, Elsevier, vol. 60(C).
    3. Los, Bart & Timmer, Marcel P. & de Vries, Gaaitzen J., 2015. "How important are exports for job growth in China? A demand side analysis," Journal of Comparative Economics, Elsevier, vol. 43(1), pages 19-32.
    4. Jingfeng Zhao & Jianmin Tang, 2015. "Industrial Structural Change and Economic Growth in China, 1987–2008," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 23(2), pages 1-21, March.
    5. Masahiko Aoki, 2011. "The Five-Phases of Economic Development and Institutional Evolution in China and Japan," Development Economics Working Papers 23196, East Asian Bureau of Economic Research.
    6. Brondino, Gabriel, 2019. "Productivity growth and structural change in China (1995–2009): A subsystems analysis," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 183-191.
    7. Wolcott, Susan, 2010. "Explorations' contribution to the 'Asian Century'," Explorations in Economic History, Elsevier, vol. 47(3), pages 360-367, July.
    8. Zhao, Jingfeng & Tang, Jianmin, 2018. "Understanding agricultural growth in China: An international perspective," Structural Change and Economic Dynamics, Elsevier, vol. 46(C), pages 43-51.
    9. Xia, Fan & Xu, Jintao, 2020. "Green total factor productivity: A re-examination of quality of growth for provinces in China," China Economic Review, Elsevier, vol. 62(C).
    10. Thomas von Brasch & Ådne Cappelen & Diana‐Cristina Iancu, 2018. "Measuring Labour Services: Quality‐Adjusting the Entry and Exit of Workers," Scandinavian Journal of Economics, Wiley Blackwell, vol. 120(2), pages 597-623, April.
    11. Dai, Xiaoyong & Sun, Zao, 2021. "Does firm innovation improve aggregate industry productivity? Evidence from Chinese manufacturing firms," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 1-9.
    12. Harry X Wu, 2016. "China's Institutional Impediments to Productivity Growth," RBA Annual Conference Volume (Discontinued), in: Iris Day & John Simon (ed.),Structural Change in China: Implications for Australia and the World, Reserve Bank of Australia.
    13. Ye, Longfeng & Robertson, Peter E., 2019. "Hitting the Great Wall: Structural change and China's growth slowdown," China Economic Review, Elsevier, vol. 56(C), pages 1-1.
    14. Guanghua Wan & Peter J. Morgan & Harry X. Wu, 2016. "Sustainability of China's Growth Model: A Productivity Perspective," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 24(5), pages 42-70, September.

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