Measuring Economic Growth and Productivity

Chapter 8

Losing Steam?—An industry origin analysis of China's productivity slowdown

Harry X. Wu ^∗       National School of Development, Peking University, Beijing, China      Institute of Economic Research, Hitotsubashi University, Kunitachi, Japan

Abstract

Using the CIP/China KLEMS database, revised and updated in this study, I conduct a full-fledged total factor productivity (TFP) scrutiny in a growth accounting framework à la Jorgenson (2001) to investigate the industry origin of China's TFP slowdown. I confirm that China's aggregate TFP growth achieved its best performance in the late 1990s, but began to decelerate following China's World Trade Organization entry. It, however, turned significantly negative in the wake of the global ...