Productivity and long term growth

Chapter 2: China towards 2020: Growth performance and sustainability

 

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The chapter identifies the main drivers of China’s growth over the last 30 years based on a comprehensive econometric growth accounting exercise. The challenges for sustaining high growth in the future are discussed. Although China’s growth has been predominantly input driven, productivity gains contributed to more than 40% of output growth in the past.

Moving forward, maintenance of strong growth depends on further structural reforms, including those that can reduce social disparities and preserve the environment. China will be able to sustain high growth through 2020 if further structural reform is implemented.

Source:  China Statistics Yearbook, various years

 

This chapter was prepared by Gang Fan and Xiaolu Wang

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