Why is China Growing so Fast?

July 1, 1996

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Format: Chicago

Mohsin S. Khan, and Zuliu Hu. Why is China Growing so Fast?, (USA: International Monetary Fund, 1996) accessed September 19, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

China has been growing at a spectacular rate in recent years, enabling per capita incomes to almost quadruple in only the last decade and a half This paper identifies the sources of economic growth in China from 1953 to 1994. While capital accumulation played an important role in China’s economic growth throughout the period, it is basically the sharp and sustained increase in productivity that accounts for the unprecedented economic growth observed during the reform period. The productivity gains largely reflect market-oriented reforms, especially the expansion of the nonstate sector, as well as China’s “open door” policy that brought about a dramatic expansion in foreign trade and foreign direct investment.

Subject: Financial institutions, Labor, Production, Production growth, Productivity, Stocks, Total factor productivity

Keywords: Aggregate growth, Capital stock, China's TFP growth, East Asia, Economic reforms, Growth experience, National income, Nonagricultural economy, Open-door policy, Output, Production function, Production growth, Productivity, Stocks, TFP estimate, TFP rate, Total factor productivity, WP

Publication Details

Pages:

36
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1996/075
Stock No:

WPIEA0751996
ISBN:

9781451849684
ISSN:

1018-5941

Notes

Also published in Staff Papers, Vol. 44, No. 1, March 1997.

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