Productivity growth, technological progress, and technical efficiency change in china: A three-sector analysis1

Abstract

This paper examines total factor productivity growth, technological progress, and technical efficiency change in postreform China. Production functions are estimated for three sectors, state industry, rural industry, and agriculture, using panel data from 1985-1991. The major issues considered include (1) introducing a model in which productivity growth is decomposed into two components, technological progress and changes in technical efficiency, and (2) comparing productivity and efficiency performance among the regions as well as across the sectors. © 1995 Academic Press, Inc.