Munich Personal RePEc Archive

Interregiona;Decomposition of labor productivity differences in China, 1987-1997

Yang, Ling and Lahr, Michael/L (2008): Interregiona;Decomposition of labor productivity differences in China, 1987-1997.

[img]
Preview
PDF
MPRA_paper_8313.pdf

Download (332Kb) | Preview

Abstract

The literature on regional disparities in China is both broad and deep. Nonetheless much of its focus has been on the effects of trade liberalization and national policies toward investment in interior provinces. Few pieces have examined whether the disparities might simply be due to differences in industry mix, final demand, or even interregional trade. Using multiregional input-output tables and disaggregated employment data, we decompose change in labor productivity growth for seven regions of China between 1987 and 1997 into five partial effects—changes in value added coefficients, direct labor requirements, aggregate production mix, interregional trade, and final demand. Subsequently we summarize the contributions to labor productivity of the different factors at the regional level. In this way, we present a new perspective for recent causes of China’s interregional disparity in GDP per worker.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.