an empirical analysis of Chinese structural transformation in three sectors

Open Access
Kuang, Baoqi
Area of Honors:
Bachelor of Science
Document Type:
Thesis Supervisors:
  • James R. Tybout, Thesis Supervisor
  • David Shapiro, Honors Advisor
  • development
  • growth
  • TFP
  • labor reallocation
Structural transformation refers to the reallocation of economic resources across sectors. Most papers in last decade have used two-sector models and have found that Chinese economic growth was mainly attributable to the development of the non- agricultural sector. Using a three-sector model and more recent data, I extend these findings. Among other things, I demonstrate that among the non-agricultural sectors, TFP growth in the manufacturing sector is the main driving force of labor productivity growth in China, while TFP growth in the service sector is the key driving force of labor reallocation between sectors.