APL (Ajiken Power Lunch)

APL (Ajiken Power Lunch) is a lunchtime workshop open to public, including IDE staffs, visiting research fellows, IDEAS students, outside researchers and graduate students. This workshop provides a platform for presentation of any work in progress where we can discuss in either English or Japanese.

Those who would attend a seminar are asked to announce yourself to receptionists on your arrival at the IDE and to obtain APL Organizers' signature on your admission card after the seminar.

June 8, 2015. (Monday) 12：30-14：00

Institute of Developing Economies, Japan External Trade Organization C23 Meeting Room 　

Measuring and Interpreting China's TFP Performance - An Industry Perspective

Using a newly constructed China Industry Productivity (CIP) data set, this study adopts the Jorgensonian aggregate production possibility frontier (APPF) framework incorporating Domar weights to account for the industry origin of China’s aggregate growth for the period 1980-2010.

We show that 7.1 percentage points of China’s GDP growth of 9.2 percent per annum can be attributed to the increase of labor productivity and 2.0 points to hours worked. The labor productivity growth can be further decomposed into 5.6 points of capital deepening, 0.4 points of labor quality improvement and 1.2 points of TFP growth. Across industries, those less prone to government intervention, such as agriculture and “semi-finished & finished” manufacturing industries, appear to have a faster productivity growth than those subject to more government interventions typically the “energy” industry group. The Domar aggregation scheme reveals that two thirds of the TFP growth is directly from TFP growth in industries and the remainder attributed to a net factor reallocation effect particularly from labor.

Dr. Harry Xiaoying WU (Professor, Research Division of Economic Measurement and Statistics)

Bo MENG

English