How Productive Is Chinese Industry?

This paper is posed on the following website: www.iariw.org Preliminary version; no citation please 2 In this still on-going exercise, we provide a fresh scrutiny of the productivity performance of Chinese industry for the period 1952-2000 using a newly constructed data set. We have relaxed most unrealistic neo-classical assumptions as used in other studies, such as profit maximisation, perfect competition and constant returns to scale and taken into account important issues such as industry heterogeneity, production function stability and heteroschedasticity and autocorrelation problems in panel regression analysis. The data used in this paper are the result of series unprecedented efforts on measuring industry-level inputs and output in Chinese industry together further improvements in this study. For output, a physical output index approach is used t