IDEAS home Printed from https://ideas.repec.org/p/qmw/qmwecw/754.html
   My bibliography  Save this paper

Structural Change in Industrial Output: China 1995-2010

Author

Listed:
  • Jose-Miguel Albala-Bertrand

    (Queen Mary University of London)

Abstract

The aim of this paper is to learn about some patterns of sectoral and industrial structural change of the Chinese economy over the 1995-2010 period. To such a purpose, we set up a quantitative methodology via input-output modelling, which allows us to decompose gross output into some key demand sources or contributions. It can be shown that the trajectory of the main structural patterns over the period were both not smooth and pretty unbalanced and that they generally responded to both domestic policy and international shocks. Export demand and heavy industry appeared to be the main engines of the economy, which showed massive increases in their share of output, at the expense of domestic demand, services and agriculture. Despite the high growth rates over this period, the Chinese economy seemed to be in need of rebalancing. There is however some indication towards the end of our period that the economy was starting to go that way.

Suggested Citation

  • Jose-Miguel Albala-Bertrand, 2015. "Structural Change in Industrial Output: China 1995-2010," Working Papers 754, Queen Mary University of London, School of Economics and Finance.
    • Handle: RePEc:qmw:qmwecw:754
    as

    Download full text from publisher

    File URL: https://www.qmul.ac.uk/sef/media/econ/research/workingpapers/2015/items/wp754.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Eswar Prasad & Shang-Jin Wei, 2007. "The Chinese Approach to Capital Inflows: Patterns and Possible Explanations," NBER Chapters, in: Capital Controls and Capital Flows in Emerging Economies: Policies, Practices, and Consequences, pages 421-480, National Bureau of Economic Research, Inc.
    2. Nicholas R. Lardy, 2006. "China: Toward a Consumption-Driven Growth Path," Policy Briefs PB06-6, Peterson Institute for International Economics.
    3. Yueh, Linda, 2011. "Enterprising China: Business, Economic, and Legal Developments since 1979," OUP Catalogue, Oxford University Press, number 9780199205820.
    4. Wenqing Pan & Delin Yang & Min Lin, 2012. "Inter‐industry Technology Spillover Effects in China: Evidence from 35 Industrial Sectors," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 20(2), pages 23-40, March.
    5. World Bank, 2005. "China : Integration of National Product and Factor Markets, Economic Benefits and Policy Recommendations," World Bank Publications - Reports 8690, The World Bank Group.
    6. Jinghai Zheng, 2008. "On Chinese productivity studies," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 6(2), pages 109-119.
    7. Christine Wong, 2011. "The Fiscal Stimulus Programme and Public Governance Issues in China," OECD Journal on Budgeting, OECD Publishing, vol. 11(3), pages 1-22.
    8. Jinghai Zheng & Zheng Wang & Jinchuan Shi, 2008. "Industrial productivity performance in Chinese regions (1987-2002): a decomposition approach," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 6(2), pages 157-175.
    9. V. Bulmer-Thomas, 1982. "Application of Input-Output Analysis for Less Developed Countries (LDCs)," Working Papers 85, Queen Mary University of London, School of Economics and Finance.
    10. Jose Miguel Albala-Bertrand, 1999. "Structural Change in Chile: 1960-90," Economic Systems Research, Taylor & Francis Journals, vol. 11(3), pages 301-320.
    11. Erik Dietzenbacher & Bart Los, 1998. "Structural Decomposition Techniques: Sense and Sensitivity," Economic Systems Research, Taylor & Francis Journals, vol. 10(4), pages 307-324.
    12. He, Dong & Zhang, Wenlang, 2010. "How dependent is the Chinese economy on exports and in what sense has its growth been export-led?," Journal of Asian Economics, Elsevier, vol. 21(1), pages 87-104, February.
    13. Kong-Yam Tan, 2007. "Incremental Reform and Distortions in China's Product and Factor Markets," The World Bank Economic Review, World Bank, vol. 21(2), pages 279-299, March.
    14. Albala-Bertrand, José Miguel, 2006. "Changes in Chile's production structure, 1986-1996: output and industrial interdependence," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    15. Fu, Xiaolan, 2004. "Limited linkages from growth engines and regional disparities in China," Journal of Comparative Economics, Elsevier, vol. 32(1), pages 148-164, March.
    16. Cai, Fang & Wang, Meiyan, 2010. "Growth and structural changes in employment in transition China," Journal of Comparative Economics, Elsevier, vol. 38(1), pages 71-81, March.
    17. Linda Yueh, 2010. "The Economy of China," Books, Edward Elgar Publishing, number 3705.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jose-Miguel Albala-Bertrand, 2015. "Structural Change in Industrial Output: China 1995-2010," Working Papers 754, Queen Mary University of London, School of Economics and Finance.
    2. J.M. Albala-Bertrand, 2018. "Industrial interdependence: China 1995–2010," China Economic Journal, Taylor & Francis Journals, vol. 11(2), pages 170-193, May.
    3. Jose-Miguel Albala-Bertrand, 2016. "Industrial Interdependence: China 1995-2010," Working Papers 802, Queen Mary University of London, School of Economics and Finance.
    4. Jose Miguel Albala-Bertrand, 2013. "Evolution of Structural Indicators. China and Regions: 1981-2010," Working Papers 701, Queen Mary University of London, School of Economics and Finance.
    5. Maurice Obstfeld, 2007. "The Renminbi's Dollar Peg at the Crossroads," Monetary and Economic Studies, Institute for Monetary and Economic Studies, Bank of Japan, vol. 25(S1), pages 29-56, December.
    6. Anping Chen & Mark D. Partridge, 2013. "When are Cities Engines of Growth in China? Spread and Backwash Effects across the Urban Hierarchy," Regional Studies, Taylor & Francis Journals, vol. 47(8), pages 1313-1331, September.
    7. Maria Jesus Herrerias & Vicente Orts, 2011. "The driving forces behind China’s growth," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 19(1), pages 79-124, January.
    8. Justin Yifu Lin & Yan Wang, 2012. "China'S Integration With The World: Development As A Process Of Learning And Industrial Upgrading," China Economic Policy Review (CEPR), World Scientific Publishing Co. Pte. Ltd., vol. 1(01), pages 1-33.
    9. Eswar S. Prasad, 2011. "Rebalancing Growth in Asia," International Finance, Wiley Blackwell, vol. 14(1), pages 27-66, April.
    10. Deininger, Klaus & Jin, Songqing & Xia, Fang & Huang, Jikun, 2014. "Moving Off the Farm: Land Institutions to Facilitate Structural Transformation and Agricultural Productivity Growth in China," World Development, Elsevier, vol. 59(C), pages 505-520.
    11. Maurice Catin & Xubei Luo & Christophe van Huffel, 2005. "Openness, industrialization and geographic concentration of activities in China," Post-Print hal-01295839, HAL.
    12. Pontus Mattsson & Jonas Mansson & William H. Greene, 2018. "TFP Change and its Components for Swedish Manufacturing Firms During the 2008-2009 Financial Crisis," Working Papers 18-27, New York University, Leonard N. Stern School of Business, Department of Economics.
    13. Yanrui Wu & Zhao Dingtao, 2011. "Global Integration and Agricultural Productivity in China," Chapters, in: Matthew Tonts & M. A.B. Siddique (ed.), Globalisation, Agriculture and Development, chapter 7, Edward Elgar Publishing.
    14. Yifu, Justin & Wang, Yan, 2009. "China's Integration with the World: Development as a Process of Learning and Industrial Upgrading," Policy Research Working Paper Series 4799, The World Bank.
    15. Guariglia, Alessandra & Poncet, Sandra, 2008. "Could financial distortions be no impediment to economic growth after all? Evidence from China," Journal of Comparative Economics, Elsevier, vol. 36(4), pages 633-657, December.
    16. Duan, Yuwan & Dietzenbacher, Erik & Los, Bart & Yang, Cuihong, 2021. "How much did China's emergence as “the world's factory” contribute to its national income?," China Economic Review, Elsevier, vol. 69(C).
    17. Paul De Boer, 2008. "Additive Structural Decomposition Analysis and Index Number Theory: An Empirical Application of the Montgomery Decomposition," Economic Systems Research, Taylor & Francis Journals, vol. 20(1), pages 97-109.
    18. Prema†chandra Athukorala & Zheng Wei, 2018. "Economic Transition And Labour Market Dynamics In China: An Interpretative Survey Of The €˜Turning Point’ Debate," Journal of Economic Surveys, Wiley Blackwell, vol. 32(2), pages 420-439, April.
    19. Luigi Bonatti & Andrea Fracasso, 2010. "Global Rebalancing and the Future of the Sino-US Codependency," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 18(s1), pages 70-87.
    20. Lenzen, Manfred, 2006. "Decomposition analysis and the mean-rate-of-change index," Applied Energy, Elsevier, vol. 83(3), pages 185-198, March.

    More about this item

    Keywords

    China; Industrial structural change; Input-output decomposition; Trajectories over 1995-2010;
    All these keywords.

    JEL classification:

    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:qmw:qmwecw:754. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Nicholas Owen (email available below). General contact details of provider: https://edirc.repec.org/data/deqmwuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.