2014 Fiscal Year Final Research Report
Factor Costs, Structural Distortions and Productivity Performance of the Chinese Economy
| Project/Area Number |
24330076
|
|---|
| Research Category |
Grant-in-Aid for Scientific Research (B)
|
| Allocation Type | Partial Multi-year Fund |
|---|
| Section | 一般 |
|---|
| Research Field |
Applied economics
|
|---|
| Research Institution | Hitotsubashi University |
|---|
Principal Investigator |
|
|---|
| 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
|
| Keywords | Input-Output accounts / factor cost / productivity growth / resource allocation / structural change / government intervention / Chinese economy |
|---|
| 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.
|
| Free Research Field |
経済発展論／中国経済／経済政策
|
