Working Paper

China's Productivity Slowdown and Future Growth Potential

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Brandt, Loren
dc.contributor.author
Litwack, John
dc.contributor.author
Mileva, Elitza
dc.contributor.author
Wang, Luhang
dc.contributor.author
Zhang, Yifan
dc.contributor.author
Zhao, Luan
dc.date.accessioned
2020-06-25T15:51:02Z
dc.date.available
2020-06-25T15:51:02Z
dc.date.issued
2020-06
dc.date.lastModified
2022-07-01T00:10:12Z
dc.description.abstract
China’s economy grew by an impressive 10 percent per year over four decades. Productivity improvements within sectors and gains from resource reallocation between sectors and ownership groups drove that expansion. However, productivity growth has declined markedly in recent years. This paper extends previous macro and firm-level studies to show that domestic factors and policies contributed to the slowdown. The analysis finds that limited market entry and exit and lack of resource allocation to more productive firms were associated with slower manufacturing total factor productivity growth. Earlier reforms led to state-owned enterprises catching up to private sector productivity levels in manufacturing, but convergence stalled after 2007. Furthermore, the allocation of a larger share of credit and investment to infrastructure and housing led to lower returns to capital, a rapid buildup in debt, and higher risks to growth. China’s growth potential remains high, but its long-term growth prospects depend on reversing the recent decline in total factor productivity growth.
en
dc.identifier
http://documents.worldbank.org/curated/en/839401593007627879/Chinas-Productivity-Slowdown-and-Future-Growth-Potential
dc.identifier.uri
http://hdl.handle.net/10986/33993
dc.language
English
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper;No. 9298
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
PRODUCTIVITY GROWTH
dc.subject
RESOURCE ALLOCATION
dc.subject
STATE-OWNED ENTERPRISES
dc.subject
LOCAL GOVERNMENT
dc.subject
PRODUCTIVITY
dc.subject
ECONOMIC GROWTH
dc.subject
TOTAL FACTOR PRODUCTIVITY
dc.title
China's Productivity Slowdown and Future Growth Potential
en
dc.type
Working Paper
en
okr.crossref.title
China's Productivity Slowdown and Future Growth Potential
okr.date.disclosure
2020-06-24
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.docurl
http://documents.worldbank.org/curated/en/839401593007627879/Chinas-Productivity-Slowdown-and-Future-Growth-Potential
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-9298
okr.identifier.externaldocumentum
090224b087ac97cf_1_0
okr.identifier.internaldocumentum
32168371
okr.identifier.report
WPS9298
okr.imported
true
en
okr.language.supported
en
okr.pdfurl
http://documents.worldbank.org/curated/en/839401593007627879/pdf/Chinas-Productivity-Slowdown-and-Future-Growth-Potential.pdf
en
okr.region.administrative
East Asia and Pacific
okr.region.country
China
okr.statistics.combined
12411
okr.statistics.dr
839401593007627879
okr.topic
Macroeconomics and Economic Growth :: Economic Growth
okr.topic
Macroeconomics and Economic Growth :: Economic Theory & Research
okr.topic
Private Sector Development :: Private Sector Economics
okr.unit
Macroeconomics, Trade and Investment Global Practice

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