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Productivity Dynamics of Chinese Manufacturing Firms

Author

Listed:
  • Qu FENG

    (Department of Economics, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332.)

  • Zhifeng WANG

    (Department of Economics, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332.)

  • Guiying Laura WU

    (Department of Economics, Nanyang Technological University, 14 Nanyang Drive, Singapore 637332.)

Abstract
China has experienced high-speed catch-up growth with an average annual rate of over 8% in per capita GDP in the past four decades. Using growth accounting, Zhu (2012) nds that the growth of total factor productivity (TFP) accounts for 77% of Chinas per capita GDP growth during 1978-2007, and argues that Chinas TFP growth is mainly driven by resource reallocation due to market liberalization and institutional reforms. This paper aims to estimate Chinas aggregate productivity growth by applying three leading methods of estimating rm-level production function on Chinese manufacturing rms during 1998-2007, and quantify the contribution of resource reallocation to productivity growth. In addition, we also empirically compare the three estimation methods in this large data set.

Suggested Citation

  • Qu FENG & Zhifeng WANG & Guiying Laura WU, 2017. "Productivity Dynamics of Chinese Manufacturing Firms," Economic Growth Centre Working Paper Series 1706, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.
    • Handle: RePEc:nan:wpaper:1706
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    References listed on IDEAS

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    1. Nina Pavcnik, 2002. "Trade Liberalization, Exit, and Productivity Improvements: Evidence from Chilean Plants," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 69(1), pages 245-276.
    2. Commission on Growth and Development, 2008. "The Growth Report : Strategies for Sustained Growth and Inclusive Development," World Bank Publications - Books, The World Bank Group, number 6507.
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    6. Brandt, Loren & Van Biesebroeck, Johannes & Zhang, Yifan, 2012. "Creative accounting or creative destruction? Firm-level productivity growth in Chinese manufacturing," Journal of Development Economics, Elsevier, vol. 97(2), pages 339-351.
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    Cited by:

    1. Zhifeng Wang & Guiying Laura Wu & Qu Feng, 2020. "Productivity of core infrastructure investment in China: An input–output approach," The World Economy, Wiley Blackwell, vol. 43(12), pages 3384-3406, December.
    2. Qu, Jianying & Li, Ke & Ye, Ze & Shao, Shuai, 2022. "The impact of differential power pricing policy on firm productivity in China: Evidence from iron and steel firms," Journal of Asian Economics, Elsevier, vol. 80(C).

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    More about this item

    Keywords

    Chinas economic growth; TFP growth; production function; resource reallocation;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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