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Abstract
Industrial productivity is a measure of the efficiency of aggregate input (labor, capital, and raw materials) relative to output. If the economic objective of regional development is primarily to increase per capita income, its success depends upon increases in productivity. Despite the rapid growth of industrial output in China, there are increasing signs of a decline in the efficiency and profitability of industry, especially in state-owned firms. This has significantly changed the spatial distribution of regional industrial productivity. Most eastern coastal provinces have experienced faster decline than the rest of the country. As a result, the traditional east-west division is no longer the best description of the spatial pattern of productivity. Using data from the second and third censuses of industry, this research reveals regional disparities and changes in both labor and capital productivity in China during the 15-year period from 1980 to 1995. This paper also investigates factors that influence regional industrial performance.
