Reports

Discussion Papers

No.638 Genuine Output and Genuine Productivity of China's Provinces: A Multiregional Input–Output Analysis

by Yuning GAO, Yufeng LU, Bo MENG, and Miao YU

March 2017

ABSTRACT

This paper recalculates value added, capital formation, capital stock, and related multifactor productivity for China’s provinces by expanding on the genuine savings method proposed by the World Bank. Specifically, we construct China’s time-series multiregional input–output tables to account for the natural resource depletion and environmental damage that affect genuine output when considering inter-provincial trade. The results show that although the loss of natural capital in China’s provinces in terms of value added and investment has declined, the impact on productivity during the past decades is still significant and has even increased during the past decades.

Keywords: Genuine savings method, Total factor productivity, Multiregional input–output method, China
JEL classification: D24, D57, O47, Q01

Please note that discussion papers are works in various stages of progress and most have not been edited and proofread and may contain errors of fact or judgment. Revised versions of these papers may subsequently appear in more formal publication series. The views expressed in this publication are those of the author(s). The IDE does not guarantee the accuracy of the data included and accepts no responsibility for any consequences arising from its use.