an empirical analysis of Chinese structural transformation in three sectors
Open Access
Author:
Kuang, Baoqi
Area of Honors:
Economics
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
James R. Tybout, Thesis Supervisor David Shapiro, Thesis Honors Advisor
Keywords:
development growth TFP labor reallocation
Abstract:
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.
