Factors Behind Industrial Profit Growth

摘要

This paper analyzes Chinese enterprise industrial profit distribution and profitability rise between 1998 and 2005. Looking at it from the perspective of drivers of total growth, this paper will provide an in-depth analysis of the origins and industry-level factors involved in this growth. It reaches the conclusion that structural change in profits was the main driving force for profit increases, to which heavy industry contributed greatly. Light and machine building industry profit rates improved due to increases in productivity levels, while energy and raw material industry profits increased due to increases in product prices. In addition, average wages grew slower than GDP, and wages among industries varied widely. In general however, this paper sets out to determine which enterprises gained from increases in industrial profitability, and how this gain came about.