A Quantitative Analysis of China's Structural Transformation

Posted: 25 Sep 2009 Last revised: 9 Oct 2009

See all articles by Robert Dekle

Robert Dekle

University of Southern California - Department of Economics

Guillaume Vandenbroucke

Federal Reserve Banks - Federal Reserve Bank of St. Louis

Date Written: September 24, 2009

Abstract

The structural transformation of China - or the reallocation of resources from the agricultural sector to the nonagricultural sector - between 1978 and 2003 was truly remarkable. We develop a two-sector neoclassical growth model to quantitatively assess the driving forces of China's recent structural transformation. In addition to the forces currently emphasized in the literature - sectoral productivity growth - we show that China's transformation was accelerated significantly by the gradual reduction in the relative size of the Chinese government.

Keywords: Chinese economy, structural transformation, neoclassical growth model

JEL Classification: O41, O53

Suggested Citation

Dekle, Robert and Vandenbroucke, Guillaume, A Quantitative Analysis of China's Structural Transformation (September 24, 2009). Available at SSRN: https://ssrn.com/abstract=1477945

Robert Dekle (Contact Author)

University of Southern California - Department of Economics ( email )

3620 South Vermont Ave. Kaprielian (KAP) Hall, 300
Los Angeles, CA 90089
United States
213-740-8335 (Phone)

Guillaume Vandenbroucke

Federal Reserve Banks - Federal Reserve Bank of St. Louis ( email )

411 Locust St
Saint Louis, MO 63011
United States
+1 314 444 8717 (Phone)

HOME PAGE: http://www.guillaumevdb.net/

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