Productivity Growth and Structural Change in Chinese Manufacturing, 1980 2002

Posted: 4 Aug 2008

See all articles by Lili Wang

Lili Wang

United Nations University (UNU-MERIT)

Adam Szirmai

Eindhoven University of Technology (TUE) - Faculty of Technology Management

Date Written: August 2008

Abstract

This article focuses on the contribution of structural change to aggregate manufacturing and industrial productivity in China. Using shift-share techniques, this article examines three types of structural change: changes in the sectoral structure of production, changes in the ownership structure, and changes in the regional structure of production. Overall productivity growth was slow in the 1980s, but accelerated dramatically from 1990 onwards. In 1980s, we found evidence of a structural change bonus, with sectoral shifts contributing 24% to overall productivity growth. However, when productivity growth accelerated in the 1990s, the contribution of the shift effect dropped to a mere 3.3%. In contrast to sectoral changes, changes in the ownership structure in the early 1980s contributed negatively to overall productivity growth. The contributions of ownership change turned positive after 1985, reaching 23% of productivity growth in the period 1992 1997. Shifts in ownership explain a substantial part of productivity growth during the productivity boom. Like shifts in ownership, regional shifts initially contributed negatively to productivity growth till 1992, and positively thereafter. However, the general contribution of regional shifts is lower than the contributions of sectoral and ownership shifts. Contrary to initial expectations, the regional analysis of productivity trends does not indicate regional divergence.

Suggested Citation

Wang, Lili and Szirmai, Adam, Productivity Growth and Structural Change in Chinese Manufacturing, 1980 2002 (August 2008). Industrial and Corporate Change, Vol. 17, Issue 4, pp. 841-874, 2008, Available at SSRN: https://ssrn.com/abstract=1194043 or http://dx.doi.org/dtn020

Lili Wang

United Nations University (UNU-MERIT) ( email )

Maastricht
Netherlands

Adam Szirmai

Eindhoven University of Technology (TUE) - Faculty of Technology Management ( email )

P.O. Box 513
5600 MB Eindhoven
Netherlands

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
507
PlumX Metrics