--- canonical_url: "https://csls.ca/ipm-archive/ipm-issue-15/measuring-productivity-performance-by-industry-in-china-1980-2005/" title: "Measuring Productivity Performance by Industry in China, 1980-2005" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-13T06:54:01+00:00" date_modified: "2026-07-13T06:54:01+00:00" post_type: "ipm" summary: "" ipm_issue_period: - "Fall 2007" ipm_keyword: - "capital accumulation" - "China" - "growth accounting" - "industry-level" - "investment-driven growth" - "manufacturing" - "productivity" - "reform" - "TFP" - "WTO" ipm_research_theme: - "Sectoral and firm-level dynamics" ipm_country_focus: - "China" - "International" featured_image: "https://csls.ca/wp-content/uploads/2026/06/IPM_50_banner.webp" status: "publish" --- # Measuring Productivity Performance by Industry in China, 1980-2005 Canonical URL: https://csls.ca/ipm-archive/ipm-issue-15/measuring-productivity-performance-by-industry-in-china-1980-2005/ # Measuring Productivity Performance by Industry in China, 1980-2005 [Download full PDF article](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-15-4-Wu.pdf) Cite this article × Cite this article as: Wu, Harry. 2007. “Measuring Productivity Performance by Industry in China, 1980-2005.” International Productivity Monitor, No. 15 (Fall 2007): 55–74. https://www.csls.ca/ipm-archive/ipm-issue-15/measuring-productivity-performance-by-industry-in-china-1980-2005/ ## Author: - Harry Wu Department of Accounting and Finance, The Hong Kong Polytechnic University ## IPM Issue 15 Fall 2007 pp. 55–74 ## Related IPM articles [Efficiency Adjustment of Hours Worked: Two Possible Modifications of a Jorgensen Production Model Barbara Fraumeni Fall 2025 | IPM Issue 49 | pp. 103–115](https://csls.ca/ipm-archive/ipm-issue-49/efficiency-adjustment-of-hours-worked-two-possible-modifications-of-a-jorgensen-production-model/) [Labour Productivity as a Measure of Technological Change Ulrich Kohli Fall 2025 | IPM Issue 49 | pp. 64–81](https://csls.ca/ipm-archive/ipm-issue-49/labour-productivity-as-a-measure-of-technological-change/) [The Relationship between Efficiencies Defenses for Mergers and TFP Growth Robin Shaban Fall 2025 | IPM Issue 49 | pp. 82–102](https://csls.ca/ipm-archive/ipm-issue-49/the-relationship-between-efficiencies-defenses-for-mergers-and-tfp-growth/) [Adult Skills and Productivity: New Evidence from PIAAC 2023 Dan Andrews, Balázs Égert, Christine de La Maisonneuve Fall 2025 | IPM Issue 49 | pp. 41–63](https://csls.ca/ipm-archive/ipm-issue-49/adult-skills-and-productivity-new-evidence-from-piaac-2023/) [The Potential Impact of Pro-competitive Regulatory Reforms on Productivity and Growth in Canada Gilbert Cette, Jimmy Lopez, Giuseppe Nicoletti, Océane Vernerey Fall 2025 | IPM Issue 49 | pp. 3–40](https://csls.ca/ipm-archive/ipm-issue-49/the-potential-impact-of-pro-competitive-regulatory-reforms-on-productivity-and-growth-in-canada/) [IPM Issue 49 Editors’ Overview Andrew Sharpe, Bart van Ark, Paul Schreyer Fall 2025 | IPM Issue 49 | pp. 1–2](https://csls.ca/ipm-archive/ipm-issue-49/) [De-industrialization and the Great Productivity Slowdown: What Comes Next? 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The approach is based on neoclassical assumptions on institutional settings and behavior of agents. Some of these assumptions are questionable in the case of China, but the results can be used as a starting point for further investigation. We find that the post-reform industrial growth in China had been largely investment-driven and inefficient until the 2000-05 period. Following China’s accession to WTO in 2001, Chinese industry experienced the best performance in TFP, accounting for 50 per cent of the growth of industrial value added. However, the mining sector had been most inefficient and had not yet shown a clear sign of improvement by 2005. Traditional labour intensive manufacturing did not appear to be efficient as suggested by the theory of comparative advantage, but there was a sign of significant improvement in 2000-05. By contrast, the capital and technology-intensive industries engaged in consumer goods manufacturing were most efficient throughout the entire period, apparently due to continuous foreign direct investment, high exposure to international competition and less state intervention. C HINA ’S POST- REFORM ECONOMIC growth is À l’aide d’un ensemble de données récemment constitué par l’auteur, cet article mesure la performance de productivité de 19 industries manufacturières chinoises, quatre industries minières et les services publics, sur la période de réforme 1980-2005. L’approche est fondée sur des hypothèses néoclassiques concernant les paramètres institutionnels et le comportement des agents. Certaines de ces hypothèses sont discutables dans le cas de la Chine, mais les résultats peuvent servir de point de départ pour des investigations ultérieures. Nous constatons que la croissance industrielle de la Chine après les réformes avait été en grande partie tirée par l’investissement et inefficiente jusqu’à la période 2000-2005. À la suite de l’adhésion de la Chine à l’OMC en 2001, l’industrie chinoise a connu sa meilleure performance en matière de PMF, représentant 50 % de la croissance de la valeur ajoutée industrielle. Cependant, le secteur minier avait été le plus inefficient et ne montrait pas encore de signe clair d’amélioration en 2005. [Download full PDF](https://csls.ca/wp-content/uploads/2026/07/IPM-Issue-15-4-Wu.pdf)