The Determinants of Economic Growth and Policy Implications: The Case of China

Abstract

In this study, we examine the determinants of the growth rate of real output for China with an emphasis on institutional, social, and political changes and developments. The sample consists of annual data ranging from 1954 to 1992. Empirics! results are interesting. The growth rate of the output is positively correlated with employment grov..1:h or the change in employment to real output ratio, the investment/output ratio, and human capital, but negatively associated with the Great Leap Forward, the Gresl Cultural Revolution, and the death of Mao. The coefficients of deficit financing, the openness of the economy, and dummy variables for economic and agricultural reforms are found to be insignificant. (E2, 04, PS)