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TFP - the driver of China’s future growth. But how can TFP in China be explained?

Johansson, Ola LU (2019) NEKN03 20182
Department of Economics
Abstract
This paper breaks new ground by employing a VECM approach to investigate the relationships between TFP and five other variables in China during the period 1980-2014. Even though the method is commonly used in other research, it is absent in the literature covering Chinese TFP. The results indicate that the VECM is useful for this purpose. Granger causality and significant long-run relationships are found between the variables, which highlights the advantage of using a dynamic model. The variables found to be most related with TFP during the period are exports, FDI and tertiary education. These findings motivate that future research on TFP in China should use similar methods.
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author
Johansson, Ola LU
supervisor
organization
alternative title
A VECM approach
course
NEKN03 20182
year
type
H1 - Master's Degree (One Year)
subject
keywords
TFP, total factor productivity, China, VECM, vector error correction model
language
English
id
8969331
date added to LUP
2019-03-07 11:21:24
date last changed
2019-03-07 11:21:24
@misc{8969331,
  abstract     = {This paper breaks new ground by employing a VECM approach to investigate the relationships between TFP and five other variables in China during the period 1980-2014. Even though the method is commonly used in other research, it is absent in the literature covering Chinese TFP. The results indicate that the VECM is useful for this purpose. Granger causality and significant long-run relationships are found between the variables, which highlights the advantage of using a dynamic model. The variables found to be most related with TFP during the period are exports, FDI and tertiary education. These findings motivate that future research on TFP in China should use similar methods.},
  author       = {Johansson, Ola},
  keyword      = {TFP,total factor productivity,China,VECM,vector error correction model},
  language     = {eng},
  note         = {Student Paper},
  title        = {TFP - the driver of China’s future growth. But how can TFP in China be explained?},
  year         = {2019},
}