China's economic productivity growth

Description:

China's economic growth story seems never-ending. It is driven by three things: more capital, more labour and more productivity. Above all, Productivity is everything that allows more output to be produced with the same inputs. China's economy has relied heavily on capital accumulation over the last 20 years, but in the future productivity growth will become more important.

Enablers:

- Technology imports
- Lots of 'learning by doing'
- Better education
- More efficient financial institutions
- More rule of law
- Better infrastructure

Inhibitors:

Gradual falling of China’s natural growth rate, from around 9-10% a year over the first two decades of reform, to 7-8% during the 2000-10 period, and to 5-7% over the following decade.

Paradigms:

Serious structural reforms such as privatization, liberalization of the financial sector, investment in education and supporting the indigenous private sector, are being preceded.

Experts:

http://www.chinadaily.com/

Timing:

China's first seventeen years of economic reform, 1978 through 1995

Web Resources:

http://www.cctr.ust.hk/articles/pdf/WorkingPaper8.pdf
http://english.people.com.cn/200407/15/eng20040715_149647.html

World Bank Report