Growth in China 1978-2008 : Factor Accumulation, Factor Reallocation, and Improvements in Productivity

China's economic success over the past three decades can be decomposed into three broad contributions to growth; accumulation of labor and capital, growth induced by structural transformation (i.e. the reallocation of labor and capital across...

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Main Authors:	Bulman, David, Kraay, Aart
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	labor productivity capital accumulation total factor productivity GROWTH THEORY
Online Access:	http://documents.worldbank.org/curated/en/2011/05/20370815/growth-china-1978-2008-factor-accumulation-factor-reallocation-improvements-productivity http://hdl.handle.net/10986/20783

id	okr-10986-20783
recordtype	oai_dc
spelling	okr-10986-207832021-04-23T14:03:58Z Growth in China 1978-2008 : Factor Accumulation, Factor Reallocation, and Improvements in Productivity Bulman, David Kraay, Aart labor productivity capital accumulation total factor productivity GROWTH THEORY China's economic success over the past three decades can be decomposed into three broad contributions to growth; accumulation of labor and capital, growth induced by structural transformation (i.e. the reallocation of labor and capital across sectors and ownership units), and growth in total factor productivity. Understanding the evolution of these three growth determinants is important for understanding China s future growth potential. For example, in the neoclassical growth model, rapid growth through factor accumulation eventually slows with the onset of diminishing returns. And growth achieved through the reallocation of factors of production from less efficient to more efficient uses will also eventually peter out as marginal products of factors are equated across units. In this paper we perform a growth accounting exercise for China which allows us to separate these three broad contributions to growth. The main novelty of our exercise lies in our efforts to understand the role of reallocation of both capital and labor across major sectors (agriculture, industry, and services), and across ownership forms (state, collective, and other). 2014-12-17T23:23:30Z 2014-12-17T23:23:30Z 2011-05-17 http://documents.worldbank.org/curated/en/2011/05/20370815/growth-china-1978-2008-factor-accumulation-factor-reallocation-improvements-productivity http://hdl.handle.net/10986/20783 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research East Asia and Pacific China
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	labor productivity capital accumulation total factor productivity GROWTH THEORY
spellingShingle	labor productivity capital accumulation total factor productivity GROWTH THEORY Bulman, David Kraay, Aart Growth in China 1978-2008 : Factor Accumulation, Factor Reallocation, and Improvements in Productivity
geographic_facet	East Asia and Pacific China
description	China's economic success over the past three decades can be decomposed into three broad contributions to growth; accumulation of labor and capital, growth induced by structural transformation (i.e. the reallocation of labor and capital across sectors and ownership units), and growth in total factor productivity. Understanding the evolution of these three growth determinants is important for understanding China s future growth potential. For example, in the neoclassical growth model, rapid growth through factor accumulation eventually slows with the onset of diminishing returns. And growth achieved through the reallocation of factors of production from less efficient to more efficient uses will also eventually peter out as marginal products of factors are equated across units. In this paper we perform a growth accounting exercise for China which allows us to separate these three broad contributions to growth. The main novelty of our exercise lies in our efforts to understand the role of reallocation of both capital and labor across major sectors (agriculture, industry, and services), and across ownership forms (state, collective, and other).
format	Publications & Research :: Working Paper
author	Bulman, David Kraay, Aart
author_facet	Bulman, David Kraay, Aart
author_sort	Bulman, David
title	Growth in China 1978-2008 : Factor Accumulation, Factor Reallocation, and Improvements in Productivity
title_short	Growth in China 1978-2008 : Factor Accumulation, Factor Reallocation, and Improvements in Productivity
title_full	Growth in China 1978-2008 : Factor Accumulation, Factor Reallocation, and Improvements in Productivity
title_fullStr	Growth in China 1978-2008 : Factor Accumulation, Factor Reallocation, and Improvements in Productivity
title_full_unstemmed	Growth in China 1978-2008 : Factor Accumulation, Factor Reallocation, and Improvements in Productivity
title_sort	growth in china 1978-2008 : factor accumulation, factor reallocation, and improvements in productivity
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2011/05/20370815/growth-china-1978-2008-factor-accumulation-factor-reallocation-improvements-productivity http://hdl.handle.net/10986/20783
_version_	1764446601507504128

Growth in China 1978-2008 : Factor Accumulation, Factor Reallocation, and Improvements in Productivity

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