Estimating Capital Formation and Capital Stock by Economic Sector in China : The Implications for Productivity Growth
This paper aims to fill a gap in the literature on capital formation in China by estimating the capital stock in four economic sectors: business, infrastructure, government, and housing. Such a breakdown is necessary for the purpose of analysis of...
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/846601594661216544/Estimating-Capital-Formation-and-Capital-Stock-by-Economic-Sector-in-China-The-Implications-for-Productivity-Growth http://hdl.handle.net/10986/34126 |
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okr-10986-341262022-09-20T00:10:22Z Estimating Capital Formation and Capital Stock by Economic Sector in China : The Implications for Productivity Growth Herd, Richard CAPITAL MARKETS CAPITAL STOCK INCREMENTAL CAPITAL-OUTPUT RATIO FIXED ASSET INVESTMENT DEPRECIATION RATE FIXED CAPITAL FORMATION This paper aims to fill a gap in the literature on capital formation in China by estimating the capital stock in four economic sectors: business, infrastructure, government, and housing. Such a breakdown is necessary for the purpose of analysis of economic development in China, as the normal models of economic development are based on a competitive economy, which is clearly not the case for the country's infrastructure and government sectors. Moreover, the contribution of housing to gross domestic product in China is very poorly measured. Although the results of this analysis can only be approximate, as the required detailed information for a better estimate is not published, they nonetheless suggest that there has not been overinvestment in the Chinese business sector -- its capital-output ratio has risen only slightly over the past 40 years. Yet, there have been surges in the stocks of housing and infrastructure in the past decade. These sectors account nearly all the recent increase in the capital-output ratio in China. 2020-07-16T16:22:33Z 2020-07-16T16:22:33Z 2020-07 Working Paper http://documents.worldbank.org/curated/en/846601594661216544/Estimating-Capital-Formation-and-Capital-Stock-by-Economic-Sector-in-China-The-Implications-for-Productivity-Growth http://hdl.handle.net/10986/34126 English Policy Research Working Paper;No. 9317 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper 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 |
| topic |
CAPITAL MARKETS CAPITAL STOCK INCREMENTAL CAPITAL-OUTPUT RATIO FIXED ASSET INVESTMENT DEPRECIATION RATE FIXED CAPITAL FORMATION |
| spellingShingle |
CAPITAL MARKETS CAPITAL STOCK INCREMENTAL CAPITAL-OUTPUT RATIO FIXED ASSET INVESTMENT DEPRECIATION RATE FIXED CAPITAL FORMATION Herd, Richard Estimating Capital Formation and Capital Stock by Economic Sector in China : The Implications for Productivity Growth |
| geographic_facet |
East Asia and Pacific China |
| relation |
Policy Research Working Paper;No. 9317 |
| description |
This paper aims to fill a gap in the
literature on capital formation in China by estimating the
capital stock in four economic sectors: business,
infrastructure, government, and housing. Such a breakdown is
necessary for the purpose of analysis of economic
development in China, as the normal models of economic
development are based on a competitive economy, which is
clearly not the case for the country's infrastructure
and government sectors. Moreover, the contribution of
housing to gross domestic product in China is very poorly
measured. Although the results of this analysis can only be
approximate, as the required detailed information for a
better estimate is not published, they nonetheless suggest
that there has not been overinvestment in the Chinese
business sector -- its capital-output ratio has risen only
slightly over the past 40 years. Yet, there have been surges
in the stocks of housing and infrastructure in the past
decade. These sectors account nearly all the recent increase
in the capital-output ratio in China. |
| format |
Working Paper |
| author |
Herd, Richard |
| author_facet |
Herd, Richard |
| author_sort |
Herd, Richard |
| title |
Estimating Capital Formation and Capital Stock by Economic Sector in China : The Implications for Productivity Growth |
| title_short |
Estimating Capital Formation and Capital Stock by Economic Sector in China : The Implications for Productivity Growth |
| title_full |
Estimating Capital Formation and Capital Stock by Economic Sector in China : The Implications for Productivity Growth |
| title_fullStr |
Estimating Capital Formation and Capital Stock by Economic Sector in China : The Implications for Productivity Growth |
| title_full_unstemmed |
Estimating Capital Formation and Capital Stock by Economic Sector in China : The Implications for Productivity Growth |
| title_sort |
estimating capital formation and capital stock by economic sector in china : the implications for productivity growth |
| publisher |
World Bank, Washington, DC |
| publishDate |
2020 |
| url |
http://documents.worldbank.org/curated/en/846601594661216544/Estimating-Capital-Formation-and-Capital-Stock-by-Economic-Sector-in-China-The-Implications-for-Productivity-Growth http://hdl.handle.net/10986/34126 |
| _version_ |
1764480366153826304 |