An Econometric Analysis of Development Dynamics in Modern Chinese Industry

摘要

The aim of this paper is to develop an analytic representation of Chinese labor productivity as a function of various classic and newly considered parameters. Its econometrics-based approach uses an elaborated version of the Cobb–Douglas production function, and includes both classic parameters (capital，labor ratio, average firm size, time) and new ones (proportion of output produced by enterprises of various types of ownership, geographic location)characteristic of the Chinese transition process. The application of regression analysis to data collected from the Chinese Statistical Bureau for a period of ten years (1997–2007) resulted in five representative models of the Chinese economy; one for the entire country, and one for each of its four encompassing regions.