2018 Fiscal Year Research-status Report
China's State Capitalism and Its Implications for Growth and Productivity
| Project/Area Number |
17K03678
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| Research Institution | Hitotsubashi University |
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Principal Investigator |
ウー ハリー・シァオイン 一橋大学, 経済研究所, 特任教授 (90571464)
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| Project Period (FY) |
2017-04-01 – 2020-03-31
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| Keywords | China growth model / State capitalism / Underpaid factor costs / Resource misallocation / Regional accounts / Regional TFP growth |
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| Outline of Annual Research Achievements |
Research in 2018FY made the following progress:
a) Continued working on a joint paper about China’s state capitalism with Steven Lim (Waikato University, New Zealand), “State capitalism with Chinese characteristics - towards a theoretical explanation of the China model of growth”;
b) Improved Chinese regional productivity accounts data for 30 provinces and over the period 1992-2014, jointly with my PhD student Zhan Li (Hitotsubashi University), including output, prices, labor and capital accounts;
c) Constructed industry-by-region growth accounting framework for proper decomposing industry and regional effects, jointly with my PhD student Zhan Li (Hitotsubashi University)
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| Current Status of Research Progress |
Current Status of Research Progress
3: Progress in research has been slightly delayed.
Reason
The progress in 2018FY was slightly slower than planned. Major progresses made were in methodology and data rather than in theory. Regarding theoretical exploration, the Chinese economy is not yet under a typical market system, and state interventions at both the national and regional levels are rather common. This creates distortions that cannot be easily handled by the standard theories and hence requires developing new approaches to the problem. Data wise, official statistics do not provide ownership data sufficiently, especially at industry-by-region level, as the project requires. Thus, more time is needed to accomplish the ownership dimension of the data, a main task of the work in 2019FY.
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| Strategy for Future Research Activity |
To achieve both the theoretical and empirical objectives of the project, in the 2019FY, given difficulties encountered, I need to accomplish the followings with a revised plan:
a) further improve the theoretical model so that it can better address the research problem, leaving the calibration of the model to future;
b) complete the ownership dimension of the productivity accounts and develop the current industry-level data with an industry-by-ownership classification, leaving an integration of industries, ownership types and regions in data to future work;
c) given difficulties in developing data matrix by industry, ownership and region simultaneously, aim to separately estimate TFP growth with industry-by-ownership origin and TFP growth with industry-by-region origin, as well as separately estimate resource allocation across industries and ownership types, and across industries and regions simultaneously.
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