Accounting for Growth of the China Economy Along with an Unorthodox Methodology
Cracow University of Economics Working Paper No. 25/KR/1/09/S/489
19 Pages Posted: 6 Nov 2009
Date Written: November 4, 2009
Abstract
It is a common knowledge that productivity is a factor, which leads nations to welfare state and it determines the economic growth rate as well. The higher productivity the better welfare of citizens. In respect to growth and productivity the economic research are for the most part focused on the econometric approach where total factor productivity is the central category. Another way of the productivity research presented here is focused on a cost approach and natural production function. This function describes relation between independent variables of outlays and product as dependent variable so that differential analysis is a natural tool of research. In that case the productivity concept appears naturally in form of the labour productivity ratio. The aim of this paper is a presentation of the new approach and its application to the productivity analysis. The China’s economy in context of international environment is a chief objective of the presented research.
Keywords: growth of capital, production function, models of growth, total factor productivity, labour productivity, China’s economy growth
JEL Classification: 011, 015, 047
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