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Implications of GDP accounting for factor income share in China

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  • Qian, Zhenjie

Abstract

This paper investigates changes in GDP accounting in China that may cause movement in factor income share from three aspects: industry reclassification, value-added measure, and the accounting method of income components at institutional unit level. Particularly, this paper discusses the impacts on factor income share caused by the accounting of net interest payment and multi-industry businesses for enterprises, and the accounting of income components in individual economy. As a quantitative assessment, accounting method change in individual economy has caused the aggregate labor share of income to increase by 3–4.2 percentage points from 2007 to 2009.

Suggested Citation

  • Qian, Zhenjie, 2014. "Implications of GDP accounting for factor income share in China," China Economic Review, Elsevier, vol. 30(C), pages 370-382.
    • Handle: RePEc:eee:chieco:v:30:y:2014:i:c:p:370-382
    DOI: 10.1016/j.chieco.2014.06.012
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    References listed on IDEAS

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    1. Douglas Gollin, 2002. "Getting Income Shares Right," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 458-474, April.
    2. Chang-Tai Hsieh & Peter J. Klenow, 2009. "Misallocation and Manufacturing TFP in China and India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(4), pages 1403-1448.
    3. A. B. Atkinson, 2009. "Factor shares: the principal problem of political economy?," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 25(1), pages 3-16, Spring.
    4. Alwyn Young, 1995. "The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 641-680.
    5. BAI, Chong-En & QIAN, Zhenjie, 2010. "The factor income distribution in China: 1978-2007," China Economic Review, Elsevier, vol. 21(4), pages 650-670, December.
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    More about this item

    Keywords

    GDP accounting; Factor income share; Labor share in income; Income component; NBS;
    All these keywords.

    JEL classification:

    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution

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