China’s GDP Growth: 1952-2005. Economics Statistics Project

China’s GDP Growth Decomposition: 1952-2005
Name
Institution
Date
China’s GDP growth rates during the period 1952-2005,
Period

GDP growth

Fixed Capital

Labor

Human capital

TFP

1955-1965

3.80%

5.20%

1.40%

2.00%

0.40%

1966-1976

4.20%

7.50%

2.40%

3.10%

-0.80%

1978-1990

8.90%

8.30%

3.00%

3.90%

3.20%

1991-1999

10.60%

10.40%

1.10%

1.70%

5.10%

2000-2005

9.50%

12.60%

1.00%

1.80%

3.10%


Contribution to Measured GDP Growth from


Period

Fixed Capital

Labor

Human capital

TFP

1952-1978

54.0922

0.00%

31.0379

14.8700

1952-1957

12.7809

0.00%

14.8433

72.3758

1957-1978

69.3933

0.00%

37.0361

-6.4294

1978-2005

43.6934

0.00%

16.2027

40.1039

1978-1995

37.5241

0.00%

19.2734

43.2025

1995-2005

55.0142

0.00%

10.5678

34.4180


Contribution to Measured GDP Growth from


Period

Fixed Capital

Labor

Human capital

TFP

1955-1965

59.7649

0.00%

30.8775

9.3576

1966-1976

77.0830

0.00%

41.5284

-18.6114

1978-1990

39.8138

0.00%

24.6520

35.5342

1991-1999

42.4481

0.00%

9.3248

48.2271

2000-2005

57.1022

0.00%

10.6205

32.2773

China's economy has grown at high rates in the past four decades , which have improved the country’s economy and economic power. In the period 1952 to 1978, the growth rate was 4.7%, and form 1978 then on to 2005 the growth rate has averaged above 8%. Considering the decade by decade growth from 1955-1965 the growth rate was 3.8% and increased to 4.020% in the period 1966-1976. From the 50’s to 1978 the growth model was mainly based on central planning and China still remained a relatively poor country. 1978 was a year of reforms, and the growth rate accelerated as it was 8.90% in 1978-1990, then 10.60% in 1991-1999 and 9.50% in 2000-2005.
The characteristics of the Chinese growth model since the beginning of the 1978 reforms reflect changes in the Chinese the economy 1952 to 1978, China's economic growth was similar to the world average, but the gradual growth is notable for being high in the 2000s decade as growth ranged from 8.30% to 10.09%. Since 1978, the Chinese economy has been a mixed one rather than on a centrally planned economy as was the case from 1949-1978. The fixed capital grew gradually as it was 8.30% in 1978 compared to 5.20% in the 1955-1965 periods.
GDP at 2005 current prices has increased as reflected by the economic growth rate and increase in the total-factor productivity (TFP) for more than five decades. The growth of the Chinese economy is based on four key fac...