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Some considerations on China’s long-run economic growth: 1952–2015 from the analysis of factor contributions to that of the profit rate

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  • Long, Zhiming
  • Herrera, Rémy

Abstract

This article offers methodological reflexions on China’s long-term economic growth. We first construct time series of physical capital stocks going from 1952, close to the date of formation of the People’s Republic, until 2015, by taking into account the latest yearbooks (I). Then, we test this new database to estimate the contributions of the production factors to GDP growth within the framework of various neoclassical models, highlighting the limitations of the latter (II). After that, an original framework is mobilized, in the spirit of the recent researches provided by Thomas Piketty, who combines mainstream references with components borrowing from Keynesian as well as neoinstitutionalist formalisations. Here, several problems associated with such researches are identified (III). Finally, we move the discussion towards a more promising approach, involving profit rate indicators, to deepen future studies of China’s long-run economic growth (IV).

Suggested Citation

  • Long, Zhiming & Herrera, Rémy, 2018. "Some considerations on China’s long-run economic growth: 1952–2015 from the analysis of factor contributions to that of the profit rate," Structural Change and Economic Dynamics, Elsevier, vol. 44(C), pages 14-22.
    • Handle: RePEc:eee:streco:v:44:y:2018:i:c:p:14-22
    DOI: 10.1016/j.strueco.2018.01.004
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    References listed on IDEAS

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    1. Rémy Herrera, 2014. "Some Problems (and Paradoxes) Related to the Internationalization of China's Economy," Post-Print halshs-01066012, HAL.
    2. Long, Zhiming & Herrera, Rémy, 2016. "Building original series of physical capital stocks for China's economy methodological problems, proposals for solutions and a new database," China Economic Review, Elsevier, vol. 40(C), pages 33-53.
    3. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
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    6. López-Villavicencio, Antonia & Mignon, Valérie, 2011. "On the impact of inflation on output growth: Does the level of inflation matter?," Journal of Macroeconomics, Elsevier, vol. 33(3), pages 455-464, September.
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    8. Tony Andreani & Rémy Herrera, 2014. "Quel modèle économique pour la Chine ? Analyse critique sur La Voie chinoise de Michel Aglietta et Guo Bai," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01066007, HAL.
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    Cited by:

    1. Xueli Zhong & Yongfeng Li, 2023. "Mediating Effect and Suppressing Effect: Intermediate Mechanism of Urban Land Use Efficiency and Economic Development," Land, MDPI, vol. 12(6), pages 1-22, May.
    2. Liu, Yajuan & Wang, Yutao & Mi, Zhifu & Ma, Zhongyu, 2018. "Carbon implications of China’s changing economic structure at the city level," Structural Change and Economic Dynamics, Elsevier, vol. 46(C), pages 163-171.

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    More about this item

    Keywords

    Time series; Capital stocks; Growth; Cycles; China;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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