Sources of China's Economic Growth, 1952-99 : Incorporating Human Capital Accumulation

China's performance in economic growth, and poverty reduction has been remarkable. There is an ongoing debate about whether this growth is mainly driven by productivity, or factor accumulation. But few past studies have incorporated informatio...

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Main Authors:	Wang, Yan, Yao, Yudong
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ABSOLUTE POVERTY ABSOLUTE TERMS AGED AGGREGATE OUTPUT AGGREGATE PRODUCTION FUNCTION AGRICULTURE ANNUAL GROWTH ANNUAL GROWTH RATE ANNUAL REPORT AVERAGE ANNUAL GROWTH BASE YEAR BASIC EDUCATION CAPACITY BUILDING CAPITAL ACCUMULATION CAPITAL INCOME CAPITAL INVESTMENT CAPITAL STOCK CENTRAL PLANNING COLLEGE EDUCATION CONSTANT RETURNS CONSTANT RETURNS TO SCALE DATA AVAILABILITY DECENTRALIZATION DEFLATORS DEPRECIATION RATE OF CAPITAL DEVELOPED COUNTRIES DEVELOPING COUNTRIES DISTRIBUTION DATA DOMESTIC SAVING ECONOMIC CHANGE ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICY EDUCATION EDUCATIONAL ATTAINMENT EDUCATIONAL OPPORTUNITIES ELASTICITIES EMPIRICAL STUDIES EMPIRICAL WORK EXTERNALITIES FACTOR ACCUMULATION FAMILIES FINANCIAL AID FOREIGN DIRECT INVESTMENT FUNCTIONAL FORMS GDP GDP DEFLATOR GROSS FIXED CAPITAL FORMATION GROSS OUTPUT GROWTH ACCOUNTING GROWTH ANALYSIS GROWTH OF LABOR GROWTH PERFORMANCE GROWTH RATE GROWTH RATE OF OUTPUT GROWTH RATES HOUSING HUMAN CAPITAL ILLITERACY INCOME SHARE INFLATION INNOVATION INSTITUTIONAL CHANGE INSURANCE INVENTORIES KNOWLEDGE ECONOMY LABOR FORCE LABOR FORCE GROWTH LABOR INPUT LOW-INCOME COUNTRIES MARGINAL PRODUCTS MEAN INCOME MIGRATION MORTALITY MPS NATIONAL ACCOUNTS NATIONAL INCOME NATIONAL INCOME ACCOUNTING OUTPUT GROWTH OWNERSHIP STRUCTURE PARTNERSHIP POLICY RESEARCH POPULATION GROWTH POVERTY REDUCTION PRICE INDEXES PRIMARY EDUCATION PRIVATE CONSUMPTION PRIVATE SECTOR PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION PROCESS PRODUCTIVITY PRODUCTIVITY GROWTH RAPID GROWTH REAL GDP REGIONAL DISPARITIES RELATIVE IMPORTANCE SAVING RATE SCHOOLS SECONDARY SCHOOLS SEX SHARE OF LABOR SOCIAL SERVICES STATE-OWNED ENTERPRISES STATISTICAL DATA SURPLUS LABOR TECHNOLOGICAL PROGRESS TERTIARY EDUCATION TFP TIME SERIES TOTAL FACTOR PRODUCTIVITY TOTAL LABOR FORCE TOTAL OUTPUT TRANSITION ECONOMIES UNEMPLOYMENT URBAN AREAS VALUE ADDED VOCATIONAL TRAINING WAGE LEVEL WAGES WORKERS
Online Access:	http://documents.worldbank.org/curated/en/2001/07/1552026/sources-chinas-economic-growth-1952-99-incorporating-human-capital-accumulation http://hdl.handle.net/10986/19587

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recordtype	oai_dc
spelling	okr-10986-195872021-04-23T14:03:43Z Sources of China's Economic Growth, 1952-99 : Incorporating Human Capital Accumulation Wang, Yan Yao, Yudong ABSOLUTE POVERTY ABSOLUTE TERMS AGED AGGREGATE OUTPUT AGGREGATE PRODUCTION FUNCTION AGRICULTURE ANNUAL GROWTH ANNUAL GROWTH RATE ANNUAL REPORT AVERAGE ANNUAL GROWTH BASE YEAR BASIC EDUCATION CAPACITY BUILDING CAPITAL ACCUMULATION CAPITAL INCOME CAPITAL INVESTMENT CAPITAL STOCK CENTRAL PLANNING COLLEGE EDUCATION CONSTANT RETURNS CONSTANT RETURNS TO SCALE DATA AVAILABILITY DECENTRALIZATION DEFLATORS DEPRECIATION RATE OF CAPITAL DEVELOPED COUNTRIES DEVELOPING COUNTRIES DISTRIBUTION DATA DOMESTIC SAVING ECONOMIC CHANGE ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICY EDUCATION EDUCATIONAL ATTAINMENT EDUCATIONAL OPPORTUNITIES ELASTICITIES EMPIRICAL STUDIES EMPIRICAL WORK EXTERNALITIES FACTOR ACCUMULATION FAMILIES FINANCIAL AID FOREIGN DIRECT INVESTMENT FUNCTIONAL FORMS GDP GDP DEFLATOR GROSS FIXED CAPITAL FORMATION GROSS OUTPUT GROWTH ACCOUNTING GROWTH ANALYSIS GROWTH OF LABOR GROWTH PERFORMANCE GROWTH RATE GROWTH RATE OF OUTPUT GROWTH RATES HOUSING HUMAN CAPITAL ILLITERACY INCOME SHARE INFLATION INNOVATION INSTITUTIONAL CHANGE INSURANCE INVENTORIES KNOWLEDGE ECONOMY LABOR FORCE LABOR FORCE GROWTH LABOR INPUT LOW-INCOME COUNTRIES MARGINAL PRODUCTS MEAN INCOME MIGRATION MORTALITY MPS NATIONAL ACCOUNTS NATIONAL INCOME NATIONAL INCOME ACCOUNTING OUTPUT GROWTH OWNERSHIP STRUCTURE PARTNERSHIP POLICY RESEARCH POPULATION GROWTH POVERTY REDUCTION PRICE INDEXES PRIMARY EDUCATION PRIVATE CONSUMPTION PRIVATE SECTOR PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION PROCESS PRODUCTIVITY PRODUCTIVITY GROWTH RAPID GROWTH REAL GDP REGIONAL DISPARITIES RELATIVE IMPORTANCE SAVING RATE SCHOOLS SECONDARY SCHOOLS SEX SHARE OF LABOR SOCIAL SERVICES STATE-OWNED ENTERPRISES STATISTICAL DATA SURPLUS LABOR TECHNOLOGICAL PROGRESS TERTIARY EDUCATION TFP TIME SERIES TOTAL FACTOR PRODUCTIVITY TOTAL LABOR FORCE TOTAL OUTPUT TRANSITION ECONOMIES UNEMPLOYMENT URBAN AREAS VALUE ADDED VOCATIONAL TRAINING WAGE LEVEL WAGES WORKERS China's performance in economic growth, and poverty reduction has been remarkable. There is an ongoing debate about whether this growth is mainly driven by productivity, or factor accumulation. But few past studies have incorporated information on China's human capital stock, and thus contained an omission bias. The authors construct a measure of China's human capital stock from 1952 to 1999, and, using a simple growth accounting exercise, incorporate it in their analysis of the sources of growth, during the pre-reform (1952-77), and the reform period (1978-99). They find that the accumulation of human capital in China (as measured by the average years of schooling for the population aged 15 to 64) was quite rapid, and contributed significantly to growth, and welfare. After incorporating human capital, they also find that the growth of total factor productivity, still plays a positive, and significant role during the reform period. In contrast, productivity growth was negative in the pre-reform period. The results are robust to changes in labor shares in GDP. The recent declining rate of human capital accumulation is a cause for concern, if China is to sustain its improvements in growth, and welfare in the coming decade. Funding for basic education is unevenly distributed, and insufficient in some poor regions. 2014-08-21T19:13:34Z 2014-08-21T19:13:34Z 2001-07 http://documents.worldbank.org/curated/en/2001/07/1552026/sources-chinas-economic-growth-1952-99-incorporating-human-capital-accumulation http://hdl.handle.net/10986/19587 English en_US Policy Research Working Paper;No. 2650 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research East Asia and Pacific China
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ABSOLUTE POVERTY ABSOLUTE TERMS AGED AGGREGATE OUTPUT AGGREGATE PRODUCTION FUNCTION AGRICULTURE ANNUAL GROWTH ANNUAL GROWTH RATE ANNUAL REPORT AVERAGE ANNUAL GROWTH BASE YEAR BASIC EDUCATION CAPACITY BUILDING CAPITAL ACCUMULATION CAPITAL INCOME CAPITAL INVESTMENT CAPITAL STOCK CENTRAL PLANNING COLLEGE EDUCATION CONSTANT RETURNS CONSTANT RETURNS TO SCALE DATA AVAILABILITY DECENTRALIZATION DEFLATORS DEPRECIATION RATE OF CAPITAL DEVELOPED COUNTRIES DEVELOPING COUNTRIES DISTRIBUTION DATA DOMESTIC SAVING ECONOMIC CHANGE ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICY EDUCATION EDUCATIONAL ATTAINMENT EDUCATIONAL OPPORTUNITIES ELASTICITIES EMPIRICAL STUDIES EMPIRICAL WORK EXTERNALITIES FACTOR ACCUMULATION FAMILIES FINANCIAL AID FOREIGN DIRECT INVESTMENT FUNCTIONAL FORMS GDP GDP DEFLATOR GROSS FIXED CAPITAL FORMATION GROSS OUTPUT GROWTH ACCOUNTING GROWTH ANALYSIS GROWTH OF LABOR GROWTH PERFORMANCE GROWTH RATE GROWTH RATE OF OUTPUT GROWTH RATES HOUSING HUMAN CAPITAL ILLITERACY INCOME SHARE INFLATION INNOVATION INSTITUTIONAL CHANGE INSURANCE INVENTORIES KNOWLEDGE ECONOMY LABOR FORCE LABOR FORCE GROWTH LABOR INPUT LOW-INCOME COUNTRIES MARGINAL PRODUCTS MEAN INCOME MIGRATION MORTALITY MPS NATIONAL ACCOUNTS NATIONAL INCOME NATIONAL INCOME ACCOUNTING OUTPUT GROWTH OWNERSHIP STRUCTURE PARTNERSHIP POLICY RESEARCH POPULATION GROWTH POVERTY REDUCTION PRICE INDEXES PRIMARY EDUCATION PRIVATE CONSUMPTION PRIVATE SECTOR PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION PROCESS PRODUCTIVITY PRODUCTIVITY GROWTH RAPID GROWTH REAL GDP REGIONAL DISPARITIES RELATIVE IMPORTANCE SAVING RATE SCHOOLS SECONDARY SCHOOLS SEX SHARE OF LABOR SOCIAL SERVICES STATE-OWNED ENTERPRISES STATISTICAL DATA SURPLUS LABOR TECHNOLOGICAL PROGRESS TERTIARY EDUCATION TFP TIME SERIES TOTAL FACTOR PRODUCTIVITY TOTAL LABOR FORCE TOTAL OUTPUT TRANSITION ECONOMIES UNEMPLOYMENT URBAN AREAS VALUE ADDED VOCATIONAL TRAINING WAGE LEVEL WAGES WORKERS
spellingShingle	ABSOLUTE POVERTY ABSOLUTE TERMS AGED AGGREGATE OUTPUT AGGREGATE PRODUCTION FUNCTION AGRICULTURE ANNUAL GROWTH ANNUAL GROWTH RATE ANNUAL REPORT AVERAGE ANNUAL GROWTH BASE YEAR BASIC EDUCATION CAPACITY BUILDING CAPITAL ACCUMULATION CAPITAL INCOME CAPITAL INVESTMENT CAPITAL STOCK CENTRAL PLANNING COLLEGE EDUCATION CONSTANT RETURNS CONSTANT RETURNS TO SCALE DATA AVAILABILITY DECENTRALIZATION DEFLATORS DEPRECIATION RATE OF CAPITAL DEVELOPED COUNTRIES DEVELOPING COUNTRIES DISTRIBUTION DATA DOMESTIC SAVING ECONOMIC CHANGE ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICY EDUCATION EDUCATIONAL ATTAINMENT EDUCATIONAL OPPORTUNITIES ELASTICITIES EMPIRICAL STUDIES EMPIRICAL WORK EXTERNALITIES FACTOR ACCUMULATION FAMILIES FINANCIAL AID FOREIGN DIRECT INVESTMENT FUNCTIONAL FORMS GDP GDP DEFLATOR GROSS FIXED CAPITAL FORMATION GROSS OUTPUT GROWTH ACCOUNTING GROWTH ANALYSIS GROWTH OF LABOR GROWTH PERFORMANCE GROWTH RATE GROWTH RATE OF OUTPUT GROWTH RATES HOUSING HUMAN CAPITAL ILLITERACY INCOME SHARE INFLATION INNOVATION INSTITUTIONAL CHANGE INSURANCE INVENTORIES KNOWLEDGE ECONOMY LABOR FORCE LABOR FORCE GROWTH LABOR INPUT LOW-INCOME COUNTRIES MARGINAL PRODUCTS MEAN INCOME MIGRATION MORTALITY MPS NATIONAL ACCOUNTS NATIONAL INCOME NATIONAL INCOME ACCOUNTING OUTPUT GROWTH OWNERSHIP STRUCTURE PARTNERSHIP POLICY RESEARCH POPULATION GROWTH POVERTY REDUCTION PRICE INDEXES PRIMARY EDUCATION PRIVATE CONSUMPTION PRIVATE SECTOR PRODUCTION FUNCTION PRODUCTION FUNCTIONS PRODUCTION PROCESS PRODUCTIVITY PRODUCTIVITY GROWTH RAPID GROWTH REAL GDP REGIONAL DISPARITIES RELATIVE IMPORTANCE SAVING RATE SCHOOLS SECONDARY SCHOOLS SEX SHARE OF LABOR SOCIAL SERVICES STATE-OWNED ENTERPRISES STATISTICAL DATA SURPLUS LABOR TECHNOLOGICAL PROGRESS TERTIARY EDUCATION TFP TIME SERIES TOTAL FACTOR PRODUCTIVITY TOTAL LABOR FORCE TOTAL OUTPUT TRANSITION ECONOMIES UNEMPLOYMENT URBAN AREAS VALUE ADDED VOCATIONAL TRAINING WAGE LEVEL WAGES WORKERS Wang, Yan Yao, Yudong Sources of China's Economic Growth, 1952-99 : Incorporating Human Capital Accumulation
geographic_facet	East Asia and Pacific China
relation	Policy Research Working Paper;No. 2650
description	China's performance in economic growth, and poverty reduction has been remarkable. There is an ongoing debate about whether this growth is mainly driven by productivity, or factor accumulation. But few past studies have incorporated information on China's human capital stock, and thus contained an omission bias. The authors construct a measure of China's human capital stock from 1952 to 1999, and, using a simple growth accounting exercise, incorporate it in their analysis of the sources of growth, during the pre-reform (1952-77), and the reform period (1978-99). They find that the accumulation of human capital in China (as measured by the average years of schooling for the population aged 15 to 64) was quite rapid, and contributed significantly to growth, and welfare. After incorporating human capital, they also find that the growth of total factor productivity, still plays a positive, and significant role during the reform period. In contrast, productivity growth was negative in the pre-reform period. The results are robust to changes in labor shares in GDP. The recent declining rate of human capital accumulation is a cause for concern, if China is to sustain its improvements in growth, and welfare in the coming decade. Funding for basic education is unevenly distributed, and insufficient in some poor regions.
format	Publications & Research :: Policy Research Working Paper
author	Wang, Yan Yao, Yudong
author_facet	Wang, Yan Yao, Yudong
author_sort	Wang, Yan
title	Sources of China's Economic Growth, 1952-99 : Incorporating Human Capital Accumulation
title_short	Sources of China's Economic Growth, 1952-99 : Incorporating Human Capital Accumulation
title_full	Sources of China's Economic Growth, 1952-99 : Incorporating Human Capital Accumulation
title_fullStr	Sources of China's Economic Growth, 1952-99 : Incorporating Human Capital Accumulation
title_full_unstemmed	Sources of China's Economic Growth, 1952-99 : Incorporating Human Capital Accumulation
title_sort	sources of china's economic growth, 1952-99 : incorporating human capital accumulation
publisher	World Bank, Washington, DC
publishDate	2014
url	http://documents.worldbank.org/curated/en/2001/07/1552026/sources-chinas-economic-growth-1952-99-incorporating-human-capital-accumulation http://hdl.handle.net/10986/19587
_version_	1764440094773608448

Sources of China's Economic Growth, 1952-99 : Incorporating Human Capital Accumulation

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