Comparative performance in Chinese manufacturing, 1980-1992

Using an industry of origin methodology, USA-China average unit value ratio s (UVR) for 1985 are derived from the Chinese and US censuses of production . Apglying these UVRs to convert Chinese manufacturing GDP into US dollars results in a comparative labour productivity of 6.2 per cent of the US leve l in 1985. This is twice as high as the figure found using the 1985 exchang e rate as a conversion factor. In order to extrapolate the 1985 benchmark c omparison, time series are constructed for 15 branches of manufacturing. Be tween 1980 to 1992 GDP was growing at 7.6% per year, labour productivity at 3.4% per year. The process of rapid growth of manufacturing output and lab our productivity was not accompanied by catch-up compared to the USA. (C) 2 000 Elsevier Science Inc. All rights reserved.