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Factor Costs, Structural Distortions and Productivity Performance of the Chinese Economy

Research Project

Project/Area Number 24330076
Research Category

Grant-in-Aid for Scientific Research (B)

Allocation TypePartial Multi-year Fund
Section一般
Research Field Applied economics
Research InstitutionHitotsubashi University

Principal Investigator

WU Harry Xiaoying  一橋大学, 経済研究所, 教授 (90571464)

Research Collaborator MILANA Carlo  University of London, Birkbeck College, Professor of Management
VRIES Gaaitzen De  University of Groningen, Groningen Growth and Development Center, Assistant Professor
LIM Steven  University of Waikato, Waikato Management School, Senior Lecturer of Economics
SHIU Alice  Hong Kong Polytechnic University, School of Accounting and Finance, Assistant Professor of Economics
TIMMER Marcel  University of Groningen, Faculty of Economics and Business, Professor of Economic growth and development
JORGENSON D.W.  Harvard University, The Samuel W. Morris University Professor
ARK Bart Van  The Conference Board, Chief Economist and Vice President
XU Xianchun  National Bureau of Statistics of China, Deputy Director
LI Shi  Beijing Normal University, The School of Economics and Business, Professor of Economics
Project Period (FY) 2012-04-01 – 2015-03-31
Project Status Completed (Fiscal Year 2014)
Budget Amount *help
¥8,710,000 (Direct Cost: ¥6,700,000、Indirect Cost: ¥2,010,000)
Fiscal Year 2014: ¥2,600,000 (Direct Cost: ¥2,000,000、Indirect Cost: ¥600,000)
Fiscal Year 2013: ¥2,730,000 (Direct Cost: ¥2,100,000、Indirect Cost: ¥630,000)
Fiscal Year 2012: ¥3,380,000 (Direct Cost: ¥2,600,000、Indirect Cost: ¥780,000)
KeywordsInput-Output accounts / factor cost / productivity growth / resource allocation / structural change / government intervention / Chinese economy / China / National Accounts / income accounts / factor input / growth accounting / technical progress / technical efficiency / structural distortion / Factor cost / Efficiency / Resource allocation / the Role of the State / Productivity / 要素コスト / 効率性 / 資源配分 / 国家の役割 / 生産性
Outline of Final Research Achievements

This research project was motivated by China's structural distortions and their productivity implications. We argue that structural distortions are caused by the misallocation of resources due to government interventions and institutional deficiencies which have significant bearing on industry-level productivity performance. A sensible investigation in the problem requires a proper measure of factor costs and based on which, an economy-wide industry-level productivity analysis. We show that China's productivity only grew by 0.8% per year, much slower than its East Asian counterparts at the same development stage. Industries less prone to government intervention, e.g. “semi-finished & finished” manufacturing industries, appear to have a faster productivity growth than those subject to more government interventions. We also show that while the reallocation of labor made a positive contribution to aggregate productivity growth, the reallocation of capital indeed played a negative role.

Report

(4 results)
  • 2014 Annual Research Report   Final Research Report ( PDF )
  • 2013 Annual Research Report
  • 2012 Annual Research Report
  • Research Products

    (30 results)

All 2015 2014 2013 2012 Other

All Journal Article (8 results) (of which Peer Reviewed: 8 results,  Acknowledgement Compliant: 2 results) Presentation (22 results) (of which Invited: 10 results)

  • [Journal Article] Has China’s Fast Industrial Growth Been Efficient? - An Industry-level Investigation with a Newly Constructed Data Set2015

    • Author(s)
      Harry X. WU, Esther Y.P. Shea and Alice Shiu
    • Journal Title

      Applied Economics

      Volume: forthcoming Issue: 40 Pages: 4275-4298

    • DOI

      10.1080/00036846.2015.1026589

    • Related Report
      2014 Annual Research Report
    • Peer Reviewed / Acknowledgement Compliant
  • [Journal Article] Banking Structure and Industrial Growth: Evidence from China2015

    • Author(s)
      Harry X. WU, Justin Lin and Xifang Sun
    • Journal Title

      Journal of Banking and Finance

      Volume: forthcoming Pages: 131-143

    • DOI

      10.1016/j.jbankfin.2015.02.012

    • Related Report
      2014 Annual Research Report
    • Peer Reviewed / Acknowledgement Compliant
  • [Journal Article] 中国工業化道路的再思考ー対国家或政府作用的経済学解放(Rethinking China’s Path of Industrialization ー The Role of State and Institutions)2014

    • Author(s)
      Harry X. WU
    • Journal Title

      《比較》(Comparative Studies)

      Volume: No. 75 Pages: 1-34

    • Related Report
      2014 Annual Research Report
    • Peer Reviewed
  • [Journal Article] The growth of “non-material services” in China ー Maddison’s “zero-labor-productivity-growth” hypothesis revisited2014

    • Author(s)
      Harry X. WU
    • Journal Title

      The Economic Review, Institute of Economic Research, Hitotsubashi University

      Volume: Vol. 65 (3) Pages: 265-283

    • Related Report
      2014 Annual Research Report
    • Peer Reviewed
  • [Journal Article] Measuring Industry Level Employment, Output and Labor Productivity in The Chinese Economy, 1987-20082013

    • Author(s)
      Harry X. Wu
    • Journal Title

      経済研究

      Volume: 64 (1) Pages: 42-61

    • Related Report
      2012 Annual Research Report
    • Peer Reviewed
  • [Journal Article] Rethinking China's Path of Industrialization2013

    • Author(s)
      Harry X.Wu
    • Journal Title

      Pathways to Industrialization in the 21st century - New challenges and emerging paradigms

      Pages: 155-192

    • Related Report
      2012 Annual Research Report
    • Peer Reviewed
  • [Journal Article] Growth, Institutions, and Entrepreneurial Finance in China : A Survey2012

    • Author(s)
      Carlo Milana, Harry X. Wu
    • Journal Title

      Strategic Change

      Volume: 21 (3-4) Issue: 3-4 Pages: 83-106

    • DOI

      10.1002/jsc.1897

    • Related Report
      2012 Annual Research Report
    • Peer Reviewed
  • [Journal Article] Deconstructing the BRICs : Structural Transformation and Aggregate Productivity Growth2012

    • Author(s)
      Gaaitzen de Vries, Abdul A Erumban, Marcel P Timmer and Ilya B. Voskoboynikov, Harry X. Wu
    • Journal Title

      Journal of Comparative Economics

      Volume: 40 (2) Issue: 2 Pages: 211-227

    • DOI

      10.1016/j.jce.2012.02.004

    • Related Report
      2012 Annual Research Report
    • Peer Reviewed
  • [Presentation] China’s Growth and Productivity Performance Debate Revised ー Accounting for China’s Sources of Growth in 1949-2012 (updated to 2014)2015

    • Author(s)
      Harry X. WU
    • Organizer
      EAI (East Asia Institute) Distinguished Public Lecture
    • Place of Presentation
      East Asia Institute (EAI), National University of Singapore (Kent Ridge, Singapore)
    • Year and Date
      2015-03-27
    • Related Report
      2014 Annual Research Report
    • Invited
  • [Presentation] China’s productivity and growth performance updated2015

    • Author(s)
      Harry X. WU
    • Organizer
      Macquarie China Policy Forum 2015
    • Place of Presentation
      The Conference Board China Center (Beijing, China)
    • Year and Date
      2015-03-19
    • Related Report
      2014 Annual Research Report
    • Invited
  • [Presentation] 測算和解読中国全要素生産率(Measuring and Interpreting China’s Total Factor Productivity (TFP), and Policy Implications)2014

    • Author(s)
      Harry X. WU
    • Organizer
      CASS (Chinese Academy of Social Sciences) Symposium on “New Normal”
    • Place of Presentation
      Chinese Academy of Social Science (中国社会科学院) (Beijing, China)
    • Year and Date
      2014-12-18
    • Related Report
      2014 Annual Research Report
    • Invited
  • [Presentation] On China’s Strategic Move for a new Stage of Development ー A Productivity Perspective2014

    • Author(s)
      Harry X. WU
    • Organizer
      Peking University NSD (National School of Development) Seminar
    • Place of Presentation
      Peking University (Beijing, China)
    • Year and Date
      2014-12-11
    • Related Report
      2014 Annual Research Report
    • Invited
  • [Presentation] On China’s Strategic Move for a new Stage of Development ー A Productivity Perspective2014

    • Author(s)
      Harry X. WU
    • Organizer
      IWEP (Institute of World Economics and Polotics) Seminar
    • Place of Presentation
      The Conference Board China Center (Beijing, China)
    • Year and Date
      2014-12-08
    • Related Report
      2014 Annual Research Report
    • Invited
  • [Presentation] How Competitive Is Chinese Economy?-Unit Factor Costs Analysis in an Input-Output Table Framework2014

    • Author(s)
      Harry X. WU
    • Organizer
      Development Forum of the 16th China International Industry Fair
    • Place of Presentation
      WTO Affairs Consultation Center (Shanghai, China)
    • Year and Date
      2014-11-05
    • Related Report
      2014 Annual Research Report
    • Invited
  • [Presentation] Productivity Hurdle to the Sustainability of China’s Industrial Growth2014

    • Author(s)
      Harry X. WU
    • Organizer
      ADB (Asian Development Bank) Seminar
    • Place of Presentation
      Asian Development Bank (Manila, Phillippines)
    • Year and Date
      2014-10-20
    • Related Report
      2014 Annual Research Report
  • [Presentation] On China’s Strategic Move for a new Stage of Development - A Productivity Perspective2014

    • Author(s)
      Harry X.WU
    • Organizer
      CEPII (Centre d'Etudes Prospectives et d'Informations Internationales)Economics Seminar
    • Place of Presentation
      OECD (The Organization for Economic Co-operation and Development) (Paris, France)
    • Year and Date
      2014-09-25
    • Related Report
      2014 Annual Research Report
    • Invited
  • [Presentation] On China’s Strategic Move for a new Stage of Development - A Productivity Perspective2014

    • Author(s)
      Harry X. WU
    • Organizer
      OECD(Organisation for Economic Co-operation and Development) Economics Seminar
    • Place of Presentation
      CEPII (Centre d'Etudes Prospectives et d'Informations Internationales) (Paris, France)
    • Year and Date
      2014-09-23
    • Related Report
      2014 Annual Research Report
    • Invited
  • [Presentation] Towards an Integrated Estimation of China’s Employment, Capital Stock and GDP in 1861-20122014

    • Author(s)
      Harry X. WU
    • Organizer
      4th Asian Historical Economics Conference
    • Place of Presentation
      Bogazici University (Istanbul, Turkey)
    • Year and Date
      2014-09-19
    • Related Report
      2014 Annual Research Report
  • [Presentation] Measuring Capital Stock and Capital Services in China 1949-20122014

    • Author(s)
      Harry X. WU
    • Organizer
      33rd IARIW General Conference
    • Place of Presentation
      Conference centre De Doelen (Rotterdam, Netherlands)
    • Year and Date
      2014-08-29
    • Related Report
      2014 Annual Research Report
  • [Presentation] How Competitive is Chinese Industry? Unit Factor Costs Analysis in Input-Output Table Framework2014

    • Author(s)
      Harry X. WU and Keiko Ito
    • Organizer
      The 22nd International Input-Output Conference
    • Place of Presentation
      Convento das Inglesinhas (Lisbon, Portugal)
    • Year and Date
      2014-07-16
    • Related Report
      2014 Annual Research Report
  • [Presentation] Accounting for the Sources of Growth in Chinese Industry 1980-20102014

    • Author(s)
      Harry X. WU
    • Organizer
      the China Update 2014
    • Place of Presentation
      Australian National University (Canberra, Australia)
    • Year and Date
      2014-07-11
    • Related Report
      2014 Annual Research Report
    • Invited
  • [Presentation] China’s Post-reform Growth, Structural Change and Productivity Performance2014

    • Author(s)
      Harry X. WU
    • Organizer
      APPC 2014
    • Place of Presentation
      University of Queensland (Brisbane, Australia)
    • Year and Date
      2014-07-09
    • Related Report
      2014 Annual Research Report
  • [Presentation] The "Productivity Race" between India and China in Manufacturing in the Reform Era2012

    • Author(s)
      Harry X. Wu
    • Organizer
      Macroeconomic and financial issues in China
    • Place of Presentation
      Aix-Marseille University, Marseille, France
    • Year and Date
      2012-07-20
    • Related Report
      2012 Annual Research Report
  • [Presentation] Measuring China’s total and Industry Level Capital Stock

    • Author(s)
      Harry X. Wu
    • Organizer
      UWA (The University of Western Australia) Economic Seminar
    • Place of Presentation
      University of Western Australia (Perth)
    • Related Report
      2013 Annual Research Report
  • [Presentation] 看清経済-資本回復率

    • Author(s)
      Harry X. Wu
    • Organizer
      The Lujiazui Forum
    • Place of Presentation
      Pudong shanghai-La (Shanghai)
    • Related Report
      2013 Annual Research Report
  • [Presentation] 全要素生産率

    • Author(s)
      Harry X. Wu
    • Organizer
      China Finance 40 Forum
    • Place of Presentation
      China Finance 40 Forum (Beijing)
    • Related Report
      2013 Annual Research Report
    • Invited
  • [Presentation] Accounting for Productivity Growth in Chinese Industry ‐ Towards the KLEMS Approach

    • Author(s)
      Harry X. Wu
    • Organizer
      the 2nd Asia KLEMS Conference
    • Place of Presentation
      Bank of Korea (Seoul)
    • Related Report
      2013 Annual Research Report
  • [Presentation] Rethinking China’s Path of Industrialization ; The Role of the State and Institutions

    • Author(s)
      Harry X. Wu
    • Organizer
      the Core Seminar in Economic and Social History
    • Place of Presentation
      University of Cambridge (Cambridge, UK)
    • Related Report
      2013 Annual Research Report
  • [Presentation] China’s Productivity Performance in the Government-Engineered Growth ; A 'True' Index Number Approach

    • Author(s)
      Carlo Milana and Harry X. Wu
    • Organizer
      IARIW-UNSW Conference on Productivity: Measurement, Drivers and Trends
    • Place of Presentation
      University of New South Wales (Sydney)
    • Related Report
      2013 Annual Research Report
  • [Presentation] China’s Productivity Performance in Government-Engineered Growth ; A 'True' Index Number Approach

    • Author(s)
      Carlo Milana and Harry X. Wu
    • Organizer
      ASSA (Allied Social Science Associations)-CES Meetings
    • Place of Presentation
      Pennsylvania Convention Center (Philadelphia)
    • Related Report
      2013 Annual Research Report

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Published: 2012-04-24   Modified: 2019-07-29  

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