China’s Sources of Growth
Below is chart from the Harvard Business Review Blog posting entitled “China’s Economy, in Six Charts”. The blog covers areas such as:
GDP, GDP per Capita, Sources of Growth, the Labour Market, Productivity and R&D Expenditure.
Sources of Growth
Decomposing China’s GDP growth over the last three decades, we assessed the drivers behind it such as labor, capital, and total factor productivity (TFP), which is a more precise measure of efficiency in the use of inputs other than labor and capital. As shown in the chart “China’s Sources of Growth” below, capital has been the key driver of China’s growth over the last three decades. Capital accumulation accounted for 6.9 percentage points of the 10.5 percent average annual increase in GDP in the last decade, 5.7 percentage points of the 10.1 percent average annual increase in GDP in 1990 to 2002, and 7.2 percentage points of the 9.7 percent average annual increase in GDP in 1979 to 1989.