Analyzing Productivity Growth: Evidence from China’s Manufacturing Industries

Abstract

This article examines the growth attributes of manufacturing industries in China for the sample period of 1999-2007. All manufacturing industries are grouped into and four main industry groups and four geographical regions. A revised Solow’s growth method is used to decompose the growth attributes into input growth, scale effect, technical progress, and technical efficiency change. A stochastic frontier model is applied to the translog production function. The empirical findings show a strong presence of technical progress, while labor input has rapidly been replaced by human capital. Structural transformation in the industrial sector is evident, so as regional imbalances.China industries, productivity, efficiency, technical progress, stochastic frontier model