CHINESE INDUSTRIAL PRODUCTIVITY - TRENDS, MEASUREMENT ISSUES, AND RECENT DEVELOPMENTS

This paper extends measures of total factor productivity (TFP) for Chi na's state and collective industry to cover the period 1980-1992, anal yzes issues raised by critics of previous studies, and evaluates the r obustness of productivity results. TFP increased in both major segment s of Chinese industry throughout 1980-1992. The analysis of measuremen t issues confirms earlier results showing moderate TFP growth for stat e industry. Data bias may undercut the common observation of different ial TFP growth favoring collective industry. TFP growth declines after 1988, especially in the state sector, where partial productivity of f ixed capital drops. Differential rates of capacity utilization and, in state industry, selection bias and an unresponsive system of investme nt finance may have retarded the measured growth of productivity durin g 1988-1992. (C) 1996 Academic Press, Inc.