The Growth of Productivity

Chris Bramall

in Sources of Chinese Economic Growth, 1978-1996

Published in print September 2000 | ISBN: 9780198296973
Published online November 2003 | e-ISBN: 9780191596018 | DOI:

Series: Studies on Contemporary China

The Growth of Productivity

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A central feature of orthodox explanations of East Asian growth is that they assign at best a subordinate role to productivity growth. Part of the reason is the use of total factor productivity, a concept both theoretically flawed and empirically unreliable. Single‐factor productivity measures and more qualitative evidence on innovation are much more reliable indicators, and in China's case these all show significant across‐the‐board productivity gains. Even state‐owned industry, whether based in the cities or newly set up by local government, enjoyed significant gains. The literature notwithstanding, the Chinese evidence demonstrates that state ownership is compatible with dynamic efficiency.

Keywords: industry; innovation; productivity; state‐owned

Chapter.  12485 words. 

Subjects: Economic Development and Growth

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