scholarly journals Analysis on the Sources of China’s Economic Growth From the Perspective of Cleaner Production

SAGE Open ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 215824402199937
Author(s):  
Na Zhou ◽  
Jinkai Zhao ◽  
Kai Zhao ◽  
Dong Li
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Total Factor Productivity ◽  
Physical Capital ◽  
Cleaner Production ◽  
Environmental Cost ◽  
Factor Productivity ◽  
Factors Affecting ◽  
Natural Factors ◽  
Labor Quality

Since the reform and opening up to the outside world, China’s economy has created a remarkable growth miracle. However, as China enters the new normal economy, the world is full of doubts about its potential for economic growth. The article proper concerns an analysis on some factors affecting China’s economic growth, such as physical capital, labor quality, labor quantity, energy consumption, and environmental cost. Also embraced in this article is the measurement of the contribution of each factor to total factor productivity. The research is conducted on the basis of the provincial panel data of China over 2002–2016, from the perspective of cleaner production. The results reveal that (a) China’s economic growth had significant positive correlations with factor inputs, including traditional input elements (physical capital, labor quantity, labor quality) and natural elements (energy consumption and environmental cost); (b) the direct and indirect effects of physical capital, labor quality, and energy consumption on economic growth were significantly positive, while those of environmental cost were significantly negative; and (c) the contributions of the factors to the total factor productivity were ranked respectively as follows: physical capital (48.63%), energy consumption (16.81%), labor quality (14.85%), environmental cost (10.88%), and labor quantity (8.83%). China’s economic growth belonged to “perspiration.” In addition to the traditional input factors, natural factors also played an important role in boosting China’s economic development. It is urgent how to highlight the role of labor quality, while downplaying the contribution of natural factors, and then shift to cleaner production in China.

The Origins of Productivity Change and Economic Growth in China’s Cities between the Years 2001 and 2014

2018 ◽  
Vol 06 (02) ◽  
pp. 1850012
Author(s):  
Jiancui LIU ◽  
Shilin ZHENG
Keyword(s):  
Economic Growth ◽  
Total Factor Productivity ◽  
Statistical Data ◽  
Physical Capital ◽  
Productivity Change ◽  
Factor Productivity ◽  
Transitional Processes ◽  
Second Tier ◽  
Theory Research ◽  
Factor Inputs

Total factor productivity represents not only the core of neo-classical growth theory research, but is also a key component in the understanding of the transitional processes of China from a factor-driven to an innovation-driven economy. In this paper, relying on 2000–2014 year statistical data, drawn from China’s four centrally administered and 283 provincial-level cities, the paper’s authors apply Cobb–Douglas production function methods to the calculation of urban total factor productivity rates of increase, and to changes in differing factor inputs, to show how, during the period of interest, involved changes impacted China’s economic growth. The analysis finds that: (1) between the years 2001 and 2005, changes in total factor productivity represented an important source of economic growth, but that after 2005 China’s economic growth clearly exhibited physical capital-driven features; (2) from 2012 onwards, influenced by resource-based and heavy chemical industries, the decrease in total factor productivity of China’s central region cities was the greatest (among the various areas), revealing an “extensive” aspect, and in 2014 the contribution rates of the region’s cities’ physical capital and total factor productivity were 127.77% and [Formula: see text]36.6%, respectively; (3) examining the cities based on their differing classifications, after 2012, the contribution rates of the fourth-tier cities’ total factor productivities underwent severe declines, while in China’s first- and second-tier cities the contribution rates of their total factor productivities exhibited signs of recovery.

scholarly journals Physical capital, total factor productivity, and economic growth in sub-Saharan Africa

2019 ◽  
Vol 22 (1) ◽  
Author(s):  
Giampaolo Garzarelli ◽  
Yasmina Rim Limam
Keyword(s):  
Economic Growth ◽  
Total Factor Productivity ◽  
Physical Capital ◽  
Output Growth ◽  
Sub Saharan Africa ◽  
Total Output ◽  
Relative Importance ◽  
Factor Productivity ◽  
Sub Saharan ◽  
Ssa Countries

Background: A major question that received the attention of numerous theoretical and empirical studies during the past few decades relates to the issue of output growth decomposition and the sources of economic growth. The literature focuses on two sources of growth: factor accumulation (mainly physical capital) and total factor productivity (TFP) growth, presenting inconclusive results as to the relative importance of each.Aim: This article investigates the relative importance of physical capital accumulation and TFP in explaining output growth in 36 sub-Saharan African (SSA) countries over 1996–2014. The possibility of TFP-induced input effects is tested in order to better assess the role of TFP in total output growth.Setting: 36 SSA countries over the period 1996–2014.Method: The article uses a stochastic frontier analysis, an empirical methodology that decomposes total output growth into input growth, technological change and technical efficiency change.Results: The contribution of physical capital to total growth exceeds that of TFP in 22 out of the 36 countries. The result withstands issues of TFP-induced effects on inputs.Conclusion: A large share of growth in SSA is explained by factor inputs and not by TFP. There is therefore room for TFP to further increase growth in SSA. In order to create more opportunities for growth, SSA countries ought to invest in productivity-enhancing factors.

Total Factor Productivity Growth and the Role of Externalities

1997 ◽  
Vol 162 ◽  
pp. 99-111 ◽  
Author(s):  
Nicholas Oulton
Keyword(s):  
Economic Growth ◽  
Total Factor Productivity ◽  
Productivity Growth ◽  
Physical Capital ◽  
Total Factor Productivity Growth ◽  
Growth Accounting ◽  
Factor Productivity ◽  
New Evidence

This paper argues that the greater part of economic growth can be accounted for by the accumulation of human and physical capital. The role of externalities is relatively small. This view is defended by reviewing the most sophisticated growth accounting studies and also by presenting some new evidence on the growth of total factor productivity in 53 countries over the period 1965 to 1990.

scholarly journals The Sources of Economic Growth in Nigeria: A Growth Accounting Approach

2019 ◽  
Vol 5 (1) ◽  
pp. 89
Author(s):  
Emeka Nkoro ◽  
Aham Kelvin Uko
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Total Factor Productivity ◽  
Technological Development ◽  
Correlation Coefficients ◽  
Physical Capital ◽  
Growth Accounting ◽  
Factor Productivity ◽  
Foreign Investments ◽  
The Relationship

The study investigated the sources of growth in Nigeria for the period 1960 to 2017 using the growth accounting framework of the standard neoclassical production function.Specifically, the study focused on evaluating the contribution of capital, labour and total factor productivity to economic growth in Nigeria. Additionally, in order to establish the relationship between capital, labour and total factor productivity, and economic growth, correlation coefficients between the variables were estimated. The results correlation analysis showed that the growths of capital, labour and total factor productivity were positively correlated with economic growth. Furthermore, the results from the growth accounting framework revealed that capital was found to be the major driver of economic growth in Nigeria during the entire period, 1961-2017. In the case of the sub-periods, capital was the major driver of economic growth in Nigeria during the first sub-period, 1961-1980. However, during the period, 1981-2000, labour was the major driver of economic growth, followed by capital while TFP growth contribution deteriorated as it was negative. Also, TFP was the major driver of economic growth during the period 2001-2017. Based on the foregoing, the study therefore recommends that, policies that encourage physical capital, human capital and technological development through domestic and foreign investments should be adopted, nurtured, sustained and intensified, noting that capital, human capital and technological development are key to economic growth and development.

scholarly journals STUDY ON CHINA’S ECONOMIC DEVELOPMENT FROM THE PERSPECTIVE OF STRONG SUSTAINABILITY

2018 ◽  
Vol 65 (01) ◽  
pp. 161-192 ◽  
Author(s):  
WANPING YANG ◽  
JINKAI ZHAO
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Total Factor Productivity ◽  
Industrial Structure ◽  
Financial Structure ◽  
Environment Pollution ◽  
Factor Productivity ◽  
Short Term ◽  
Production Factors ◽  
Strong Sustainability

Theoretical researchers and policy makers have been using both traditional production factors and relatively new production factors to explain the different growth rates in different countries and regions. However, as pollution becomes more serious, the ecological environment gradually becomes an important part of the national (regional) development strategy. Few scholars have laid their hands on energy and environmental factors in the study of China’s economic growth. On the contrary, they have frequently considered physical and human capital accumulation as the main sources of China’s economic growth. Thus, strong sustainability should attract more attention from researchers. This article attempts to shed light on the sources of China’s economy from the perspective of strong sustainability. Employing a Cobb–Douglas production function, this paper introduces environment pollution, as a key natural capital, and energy consumption into the economic accounting framework. We also introduce government intervention, financial structure, industrial structure and degree of openness into the framework of total factor productivity to examine the effectiveness of the Chinese government’s direct and indirect participation in the markets. Then, we use the long-term growth accounting equation of China to decompose its economic growth and to analyze the decomposition results dynamically. In addition, this paper analyzes the short-term change of China’s economic growth by using a VAR model. The results revealed three facts. First, we find an inverted U-shaped relationship between the degree of openness and the industrial structure and their marginal growth effects, a U-shaped relationship between the financial structure and its marginal growth effect and a negative relationship between the government intervention and gross domestic product growth. Secondly, China’s economic development approach was still extensive and unsustainable, and it should follow a model that relies more on total factor productivity and relies less on ecological factors. China’s economic growth mainly depended on physical capital and energy consumption, and environment pollution was also a necessary byproduct of economic growth, however, the contribution of human capital and total factor productivity were small. Last but not the least, in the short term, the total factor productivity was an important source of China’s economic growth.

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