New estimates and a decomposition of provincial productivity change in China |
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| Institution: | 1. Department of Economics, The Chinese University of Hong Kong, Hong Kong;2. Department of International Economics and Trade, Nanjing University, Hong Kong;3. Institute of Global Economics and Finance, The Chinese University of Hong Kong, Hong Kong;1. Capital University of Economics and Business, Beijing & Hong Kong Baptist University, Hong Kong, China;2. School of Economics and Management, Tsinghua University, Beijing, China;3. National Institute of Accounting, Beijing, China |
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| Abstract: | Productivity and efficiency change lies at the heart of achieving sustainable growth in China. This paper computes and decomposes provincial-level Färe–Primont TFP indexes for the period 1978 to 2010. On average across provinces, we find evidence of rapid TFP growth mostly due to technical change, but with changes in scale–mix efficiency also playing a supplementary role. Considerable heterogeneity from province to province is also documented both with respect to the rate of TFP growth and its components. Policy implications are discussed. |
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