We found a match
Your institution may have rights to this item. Sign in to continue.
- Title
The Tyranny of Numbers Revisited and the Case of China's Manufacturing Growth: Factor Allocation, Structural Adjustment and Productivity Dynamics.
- Authors
YONGWEI CHEN; WEI-MIN HU; RADEK SZULGA
- Abstract
In this paper we adopt the methodology proposed by Olley and Pakes to estimate total factor productivity in Chinese manufacturing industries using the 2001-2007 annual survey of manufacturing factories. The changes in TFP are decomposed both at the sectoral and the industry level using the Baily-Hulten-Campbell and Syrquin approaches. We find that the nature of growth of Chinese manufacturing has not changed fundamentally during the period, particularly in terms of the high dependence on intermediate inputs. At the inter-industry level, current changes in TFP mainly originate from the increase in the internal TFPs of different industries. Although the influence of structural adjustment on TFP is positive its value is still low, suggesting that significant potential for improvement in productivity in manufacturing through adjustments in structure still exists. At the intra-industry level, the improvement in TFP in different industries can be mainly attributed to the reallocation of resources and output quotas, which results from enhanced competition.
- Subjects
CHINA; INDUSTRIAL productivity; MANUFACTURED products; ECONOMIC competition; ECONOMIC development; CENTRAL economic planning; ECONOMICS; ECONOMIC conditions in China, 2000-; CHINESE politics &; government, 1949-
- Publication
Issues & Studies, 2014, Vol 50, Issue 2, p77
- ISSN
1013-2511
- Publication type
Article