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Can China’s Growth be Sustained? A Productivity Perspective

Author

Listed:
  • Zheng, Jinghai

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Bigsten, Arne

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Hu, Angang

    (Center for China Studies, School of Public Policy and Management)

Abstract
China’s unorthodox approach to economic transition has resulted in sustained high growth. However, in recent years Chinese economists have increasingly referred to the growth pattern as “extensive”, generated mainly through the expansion of inputs. Our investigation of the Chinese economy during the reform period finds that reform measures often resulted in one-time level effects on TFP. China now needs to adjust its reform program towards sustained increases in productivity. Market and ownership reforms, and open door policies have improved the situation under which Chinese firms operate, but further institutional reforms are required to consolidate China’s move to a modern market economy.

Suggested Citation

  • Zheng, Jinghai & Bigsten, Arne & Hu, Angang, 2006. "Can China’s Growth be Sustained? A Productivity Perspective," Working Papers in Economics 236, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0236
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    File URL: http://hdl.handle.net/2077/2855
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    More about this item

    Keywords

    Growth; Productivity; China;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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