Market-oriented economic transition since 1978 has led to remarkable economic development in China. In this study, we use the National Economic Research Institute (NERI) Index of Marketization and a panel data model...Market-oriented economic transition since 1978 has led to remarkable economic development in China. In this study, we use the National Economic Research Institute (NERI) Index of Marketization and a panel data model to investigate the quantitative contributions of marketization to China's total factor productivity (TFP) and economic growth. Our results indicate that marketization contributed 1.45 percentage points on average to China's annual economic growth rate during the period from 1997 to 2007 and accounted for 39.2 percent of the increase in TFP. Marketization significantly improved resource allocation. However, economic transition in China has not yet been completed and sustainability of future growth will depend on further market-oriented reforms.展开更多
文摘Market-oriented economic transition since 1978 has led to remarkable economic development in China. In this study, we use the National Economic Research Institute (NERI) Index of Marketization and a panel data model to investigate the quantitative contributions of marketization to China's total factor productivity (TFP) and economic growth. Our results indicate that marketization contributed 1.45 percentage points on average to China's annual economic growth rate during the period from 1997 to 2007 and accounted for 39.2 percent of the increase in TFP. Marketization significantly improved resource allocation. However, economic transition in China has not yet been completed and sustainability of future growth will depend on further market-oriented reforms.