Reports
Discussion Papers
No.490 Input–Output-Based Genuine Value Added and Genuine Productivity in China’s Industrial Sectors (1995-2010)
by Yuning GAO, Yunfeng ZHENG, Angang HU, Bo MENG
February 2015
ABSTRACT
The rapid growth of China’s economy has brought about huge losses of natural capital in the form of natural resource depletion and damages from carbon emissions. This paper recalculates value added, capital formation, capital stock, and related multifactor productivity in China’s industrial sectors by further developing the genuine savings method of the World Bank. The sector-level natural capital loss was calculated using China’s official input–output table and their extensions for tracing final consumers. The capital output elasticity in the productivity estimation was adjusted based on these tables. The results show that although the loss of natural capital in China’s industrial sectors in terms of value added has slowed, the impacts on their productivity during the past decades is still quite clear.
Keywords: Genuine savings method, Total factor productivity, Input–output method, China
JEL classification: C67, E01, O4
Please note that discussion papers are works in various stages of progress and most have not been edited and proofread and may contain errors of fact or judgment. Revised versions of these papers may subsequently appear in more formal publication series. The views expressed in this publication are those of the author(s). The IDE does not guarantee the accuracy of the data included and accepts no responsibility for any consequences arising from its use.