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China’s Dual Structure-Based Growth Accounting—Theoretical and Empirical Analysis of Introducing the Labor Employment Rate

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  • Zhao Wen

    (Institute of Population and Labor Economics, Chinese Academy of Social Sciences Beijing China)

Abstract

The role of the dual structure in economic growth is often weakened by the use of neoclassical growth models, resulting in the defect of strong theoretical but weak empirical evidence. We take the labor employment rate as an abstract attribute of the dual stage and construct a growth accounting equation that can conduct unified growth accounting among economies at different stages of development and among different stages of development of the same economy. On this basis, we measured the potential contribution of increasing the labor employment rate to economic growth in the future. The results show that the elimination of the dual structure will continue to be an important source of China’s medium and long term economic growth.

Suggested Citation

  • Zhao Wen, 2024. "China’s Dual Structure-Based Growth Accounting—Theoretical and Empirical Analysis of Introducing the Labor Employment Rate," China Finance and Economic Review, De Gruyter, vol. 13(4), pages 3-23.
    • Handle: RePEc:bpj:cferev:v:13:y:2024:i:4:p:3-23:n:1001
    DOI: 10.1515/cfer-2024-0019
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