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How Does the Productivity and Economic Growth Performance of China and India Compare in the Post-Reform Era, 1981-2011?

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  • Harry X. Wu
  • Deb Kusum Das
  • K. L. Krishna
  • Pilu Chandra Das

Abstract

Applying an aggregate production possibility frontier (APPF) framework for growth accounting à la Jorgenson et al. to economy-wide Chinese and Indian industry productivity accounts, constructed in the spirit of the KLEMS principle, we estimate and compare growth and productivity performance in China and India over their post-reform period from 1981 to 2011. We show that during this period China grew over 50 per cent-faster than India in value added (9.4 versus 6.1 per cent per annum) but about 25 per cent-slower than India in TFP (0.83 versus 1.13 per cent per annum). The two economies also experienced very different growth and productivity performances over sub-periods distinguished by special policy regimes and governing systems. While both countries appeared to enjoy their best performances in the 2002-2007 period following China's WTO entry, China faltered much more in terms of total factor productivity growth in the wake of the global financial crisis.

Suggested Citation

  • Harry X. Wu & Deb Kusum Das & K. L. Krishna & Pilu Chandra Das, 2017. "How Does the Productivity and Economic Growth Performance of China and India Compare in the Post-Reform Era, 1981-2011?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 33, pages 91-113, Fall.
    • Handle: RePEc:sls:ipmsls:v:33:y:2017:5
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    References listed on IDEAS

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    Cited by:

    1. Albert Berry, 2018. "India’s 1970s-1990s Step-wise Growth Acceleration: Causes and Impacts," Journal of Development Innovations, KarmaQuest International, vol. 2(1), pages 14-38, May.
    2. K. L. Krishna & J. V. Meenakshi, 2022. "Agricultural Productivity Growth and Structural Transformation in Rural India: Some Recent Evidence," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 20(1), pages 277-302, September.
    3. repec:kqi:journl:2018-2-1-2 is not listed on IDEAS
    4. K. L. Krishna & Bishwanath Goldar & Suresh Chand Aggarwal & Deb Kusum Das & Abdul A. Erumban & Pilu Chandra Das, 2018. "Productivity Growth and Levels - A comparison of Formal and Informal Manufacturing in India," Working papers 291, Centre for Development Economics, Delhi School of Economics.
    5. Hongzhong Fan & Md Ismail Hossain, 2018. "Technological Innovation, Trade Openness, CO2 Emission and Economic Growth: Comparative Analysis between China and India," International Journal of Energy Economics and Policy, Econjournals, vol. 8(6), pages 240-257.

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    More about this item

    Keywords

    Growth; Productivity; Total Factor Productivity; China; India.;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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