【正文】 iveness edited by Dale Jenson, Masahiro Kuroda and Kazuyuki Motohashi, published by Edward Elgar Publishing in 2021. The current presntation is based on a chapter on the China subproject in the book. Goals ? Mostly existing studies of China TFP use aggregate data and are carried out in a traditional framework ? This paper estimated TFP based on industry data ? Pursue the guidelines about the policy making for improving industry international petitiveness ? Analyze the industry contribution to aggregate TFP ? Find what is the predominant source of China economic growth (input growth or productivity) Goals ? Compute industry TFP based on the estimation of output, capital input, labor input and intermediate input index ? Quantify input and TFP contributions to output growth for each industry ? Quantify industry contributions to China aggregate TFP ? Quantify input and TFP contributions to China valueadded growth based on aggregate data ? Highlight data and conceptual issues with industry data Tradeoffs with Industry Data ? Advantages ? Trace aggregate trends to industry origins ? Less restrictive assumptions ? Disadvantages ? Difficult to assemble data at the same level of detail ? Less timely and more volatile data Industry Productivity ? Our discussion on the method used in this study is mainly based on the following study: ? Ho, Mun S. and Dale W. Jenson, (2021), Productivity Growth in China, 198195, Kennedy School of Government, unpublished draft. Industry Productivity ? Gross output of sector j is assumed to be produced with a Hicksneutral production function: ? Productivity growth l n l n l n l n l nK jt L jt Z jtjt jt jt jt jtd Y v d K v d L v d Z d A? ? ?? ? ? ?1 1 1( , . . . . , , . . . . , , . . . . )1 3 3jt jt jt k jt jt lj t jt n jtY A f K K L L Z Zj in d u st ri e s??Valueadded Function ? The real value added of sector j is defined as output less an index of intermediate inputs : ? The following identity is implied: l n l n l nj t V j t j t Z j t j td Y v d V v d Z??l n l n l n l nV jt jt Kjt jt Ljt jt jtKjt jt Ljt jtV jtY jt jtv d V v d K v d L d AP K P LvPY? ? ??? Input Index ? Express the growth rate of each input as the weighted average of the growth rates of individual ponents: ? Weights are given by the average shares of each ponent ?The economy is broken down into 33 sectors 11l n l n ( l n l n ) X = {K , L , Z } tt t t tiiiiX X X Xv??? ? ? ??????InputOutput Time Series ? The critical innovation in this data set is the construction of internally consistent ine, product, and wealth accounts and also the construction of internally consistent input output tables, labor input and capital input measurement . InputOutput Time Series ? The data for the study have been constructed in the 3 substudies: ? A time series of inputoutput tables, which will provide the data on output and intermediate input for productivity measurement。 ? A labor input index data (manhour and wage) ? A capital input index data (capital stock and rental price, or service price, cost of capital) InputOutput Time Series ? Constructed 4 current value benchmark IO tables (1981,1987, 1992, 1997) including A tables and U tables ? Consistent with the coverage and definitions of the 1997 IO table and scaled to the latest GDP series Constructed the 19812021 current value U tables based on the 4 benchmark table ? Interpolating the Use tables time series by using Kuroda minimization of errors approach InputOutput Time Series ? Constructed the 19812021 real value U tables based on the current value U tables and sectoral price indices ? Estimated output and intermediate input index time series based on the IO tables Industry Output Index Results ? Wide range of industry output growth rates ? varies from %(oil and gas extraction) to %(electrical machinery) ? Average annual output growth across industries ? % over 198184 ? % over 198488 ? % over 198894 ? % over 19942021 0 . 0 01 . 0 02 . 0 03 . 0 04 . 0 05 . 0 06 . 0 07 . 0 08 . 0 09 . 0 01 0 . 0 01 1 . 0 01 2 . 0 01 3 . 0 01 4 . 0 01 5 . 0 01 6 . 0 01 7 . 0 01 8 . 0 01 9 . 0 02 0 . 0 02 1 . 0 02 2 . 0 02 3 . 0 02 4 . 0 0Oil and gas extractionPublic serviceAgriculture Coal miningPetroleum and coal productsTransportationTextile mill productsElectrical utilitiesFinance Insurance and Real EstateConstructionMisc manufacturingFood and kindred productsMetal and nonmetallic miningTradeRubber and misc plasticsPrimary metalOther private servicesPrinting,publishing and alliedChemicalsGas utilitiesFabricated metalMachinery, nonelectFurniture and fixturesLumber and woodMotor VehiclesInstrumentsStone, clay, glasstransportation equipment