A Drive up the Capital Coast? Contributions to Post-Reform Growth Across Chinese Provinces

Posted: 18 Sep 2007

See all articles by Daniel J. Henderson

Daniel J. Henderson

University of Alabama; Institute for the Study of Labor (IZA); Xiamen University - Wang Yanan Institute for Studies in Economics (WISE)

Kiril Tochkov

Texas Christian University - Department of Economics

Oleg Badunenko

German Institute for Economic Research

Abstract

We use nonparametric production-frontier methods to decompose the growth of labor productivity of Chinese provinces in the post-reform period. These techniques, combined with kernel density estimates, allow us to decompose the shift in the distribution of labor productivity without the need for many assumptions common in the empirical growth literature. We find that (1) the distribution of output per worker across Chinese provinces is multimodal, (2) technological change is decidedly nonneutral, (3) physical capital accumulation has been the major driving force behind the growth performance of Chinese provinces and (4) it attempts to drive convergence between provinces, but (5) minimal technological progress and human capital accumulation are key factors responsible for the regional disparities in China.

Keywords: Convergence, Data Envelopment Analysis, Growth, China, Nonparametric

JEL Classification: C14, O50, P27

Suggested Citation

Henderson, Daniel J. and Tochkov, Kiril and Badunenko, Oleg, A Drive up the Capital Coast? Contributions to Post-Reform Growth Across Chinese Provinces. Journal of Macroeconomics, Vol. 29, No. 3, pp. 569-594, 2007, Available at SSRN: https://ssrn.com/abstract=1013907

Daniel J. Henderson (Contact Author)

University of Alabama ( email )

P.O. Box 870244
Tuscaloosa, AL 35487
United States
205-348-8991 (Phone)

HOME PAGE: http://cba.ua.edu/~djhender

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

HOME PAGE: http://www.iza.org/index_html?lang=en&mainframe=http%3A//www.iza.org/en/webcontent/personnel/photos/

Xiamen University - Wang Yanan Institute for Studies in Economics (WISE)

A 307, Economics Building
Xiamen, Fujian 10246
China

Kiril Tochkov

Texas Christian University - Department of Economics ( email )

Box 298510
Fort Worth, TX 76129
United States
817-257-7554 (Phone)
817-257-5058 (Fax)

HOME PAGE: http://personal.tcu.edu/ktochkov

Oleg Badunenko

German Institute for Economic Research ( email )

Mohrensrt. 58
Belrin, 10117
Germany

HOME PAGE: http://obadunenko.googlepages.com

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