Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/183362
Authors: 
Manu, Ana-Simona
McAdam, Peter
Willman, Alpo
Year of Publication: 
2018
Series/Report no.: 
ECB Working Paper 2180
Abstract: 
We offer a macroeconomic assessment of China's Reform Period, highlighting several neglected channels underlining its great expansion. Estimating the supply side of the post-Reform economy reveals the relatively high (above unity) value of the elasticity of factor substitution and the time-varying pattern of factor-saving technical change. The latter we relate to trade, human capital and reallocation factors. We then demonstrate how, in addition to factor accumulation and technical progress, the above-unity elasticity of substitution can be a source of growth (the 'de La Grandville hypothesis'). We then draw upon our estimated framework to rationalize China's high and rising savings ratio as well as the dynamic nature of its convergence path.
Subjects: 
China
Reform Period
Growth
TFP
Factor Substitution
de La Grandville hypothesis
Optimal Savings
JEL: 
D24
E13
O11
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-3285-1
Document Type: 
Working Paper

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