英文pdf文件。Manish Pandey*
and
Xiao-yuan Dong**
May 15, 2007
Abstract
In this paper we undertake a comparative study of productivity in the manufacturing sector for China
and India using data from survey of manufacturing industries for the two countries. We find that
productivity of manufacturing industries in China relative to that in India improved substantially over
the 1998-2003 period. Specifically, the average total factor productivity (TFP) growth for the
manufacturing sector over this period was about 12 percent higher in China than in India. We
document two substantial changes in government policies in China that were not witnessed in India.
First, the late 1990s saw an enormous wave of ownership restructuring due to the formal endorsement
of private property rights by the Chinese central government. Second, in 1997 a large scale labor
retrenchment program was launched to address the long standing problem of labor redundancy in the
public sector. Using data from the Chinese survey of manufacturing industries, we quantify the impact
of these large scale institutional changes on TFP of Chinese manufacturing industries. We find that
these policy changes can explain about 30 percent of the growth in TFP of manufacturing industries.
Hence we conclude that these institutional changes in China can account for a significant part of the
gains in productivity of manufacturing industries in China relative to that in India over the 1998-2003
period.
Journal of Economic Literature Classification Numbers: O38, O40, O57
Keywords: Productivity, Ownership restructuring, Labor market reforms, China, IndiaManufacturing Productivity in China and India: The Role of Institutional Changes