How Does the Productivity and Economic Growth Performance of China and India Compare in the Post-Reform Era, 1981-2011?

Applying an aggregate production possibility frontier (APPF) framework for growth accounting a la Jorgenson et al. to economy-wide Chinese and Indian industry productivity accounts, constructed in the spirit of the KLEMS principle, we estimate and compare growth and productivity performance in China...

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Bibliographic Details
Published in:International productivity monitor 2017-09 (33), p.91-113
Main Authors: Wu, Harry X, Krishna, K.L, Das, Deb Kusum, Das, Pilu Chandra
Format: Article
Language:English
Subjects:
Accounting
aggragate production possibility frontier
appf
china
Construction industry
Economic crisis
Economic development
Economic growth
Economic models
Economics
Estimates
GDP
Global economy
Gross Domestic Product
india
International finance
Labor productivity
labour productivity
Manufacturing
post-reform
Productivity
Productivity measurement
Reforms
total factor productivity
Value added
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Summary:Applying an aggregate production possibility frontier (APPF) framework for growth accounting a la Jorgenson et al. to economy-wide Chinese and Indian industry productivity accounts, constructed in the spirit of the KLEMS principle, we estimate and compare growth and productivity performance in China and India over their post-reform period from 1981 to 2011. We show that during this period China grew over 50 per cent-faster than India in value added (9.4 versus 6.1 per cent per annum) but about 25 per cent-slower than India in TFP (0.83 versus 1.13 per cent per annum). The two economies also experienced very different growth and productivity performances over sub-periods distinguished by special policy regimes and governing systems. While both countries appeared to enjoy their best performances in the 2002-2007 period following China's WTO entry, China faltered much more in terms of total factor productivity growth in the wake of the global financial crisis.
ISSN:1492-9759
1492-9767