Another look at the rate of increase in TFP in China

Abstract

There has been some controversy concerning the rate of growth of total factor productivity after economic reform started in China in 1978. It is the purpose of this note to present evidence to show that an annual rate of increase of about 2.7% is reliable and that the capital elasticity of output is close to 0.6. I first present time series evidence and then supporting evidence from other sources.

Keywords:

• China
• total factor productivity