China's Productivity Growth Surpasses Expectations, Driving Economic Transformation.
The article examines productivity growth in China from 1978 to 1998. By analyzing data from 30 provinces, the study found that technological advancements and efficiency improvements played a significant role in China's rapid GDP growth, contributing around 40% to the overall increase. The research used two models to estimate Total Factor Productivity (TFP) growth rates, which were higher than previous estimates. Additionally, the study revealed that capital investment had a greater impact on GDP growth than labor, and that technological advancements led to more efficient use of labor.