GTAP Resources: Resource Display
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"Rural Transformation, Structural Breaks and Total Factor Productivity Growth in China" by You, Ke Fei and Nicholas Sarantis Abstract Abstract This paper carries out an empirical investigation of the contribution of rural transformation, which can produce efficiency gains over and above those associated with technical progress, to total factor productivity in China during 1964-2008. For the first time for China, the role of rural transformation is examined whilst structural breaks are taken into account. We employ Bai and Perron (1998, 2003) methods which allow for multiple structural breaks at unknown dates and can be applied for both pure and partial structural changes. We use two alternative capital series that are extended from Chow (1993) and Bai et al (2005) respectively. Based on Cobb-Douglas production function, a break near the end of Cultural Revolution (1966-1976) is identified for both capital series and another one near the Tiananmen Square incident in 1989 is identified for capital series Chow (1993). We find the contribution of rural transformation to total factor productivity is significant in each sub-period and in contrast, technical progress is zero until the end of Cultural Revolution. We further investigate the contribution of rural transformation by applying the break dates within the framework of VES and CES production functions. The empirical evidence supports Cobb Douglas compared with VES and CES specifications. More importantly, we find that rural transformation remain a significant contributor to total factor productivity and output growth in China irrespective of the production function and capital series employed. Keywords: Rural transformation; Structural Breaks; Total factor productivity; VES; CES; Cobb-Douglas; China JEL classification: O30, O47, O53 |
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- Economic growth - Labor market issues - Technological change - Asia (East) |
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Public Access  2010 Conference Paper (188.4 KB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 2:05:45 PM
