China: Sensitivity Analysis of TFP Estimates
(Average annual percentage changes)
|Central Planning Period 1953-78||Economic Reform Period 1979-94|
|a. Alternative TFP estimates|
|Li, et al. (1993)1||-0.8||2.5|
|Sachs and Woo (1996)2||—||1.7|
|Borensztein and Ostry (1996)||-0.7||3.8|
|b. Alternative measures of capital input3|
|Excluding residential investment||1.1||4.4|
|Reducing initial capital stock4||-0.9||3.7|
|c. Assumed values of labor shares5|
|α = 0.3||0.7||3.2|
|α = 0.5||1.1||3.7|
|α = 0.6||1.8||4.6|
The economic reform period covered is 1979-90.
The economic reform period covered is 1978-93. Sachs and Woo (1996) also report TFP estimates of 3.3 percent and 0.8 percent for sub-periods 1978-84 and 1985-93, respectively.
Using authors’ own estimates of output growth, input growth and factor shares.
Setting initial capital stock at 58.9 billion in 1952 yuan, which reduces the initial capital/output ratio from 2.5 to 1 in 1952.
Using authors’ own estimates of output growth and input growth.