Sources of China＇s Economic Growth： An Analysis Based on Nonparametric Accounting Method

• Published in: 中国经济学人：英文版 2017, Vol.12 (3), p.78-93
• Main Author: 梁泳梅 董敏杰
• Format: Article
• Language: English
• ISSN: 1673-8837

This paper improves the slacks-based method for estimating inefficiency, derives the criteria for the selection of the weights of output and input inefficiencies in the objective function, and creates a new nonparametric method for accounting economic growth. Based on this method, the paper estimates the sources of China＇s economic growth from 1978 to 2013. Our findings suggest that factor input and especially capital is a major source of economic growth for China as a whole and its major regions, and that economic growth in recent years is increasingly dependent on capital. For a rather long period of time before 2005, China＇s northeast, central and western regions lagged behind the eastern region in terms of economic growth, and TFP and factor input are major reasons behind such regional growth disparities. Although other regions have narrowed their disparities with and even overtaken the eastern region in terms of economic growth, the key driver is the rapid increase in the contribution of factor input. Advanced technologies of eastern region should be utilized to promote TFP progress in other regions, which is vital to economic growth in these regions and China as a whole.