TY  - JOUR
AU  - Bosworth,Barry
AU  - Collins,Susan M.
TI  - Accounting for Growth: Comparing China and India
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12943
PY  - 2007
Y2  - February 2007
UR  - http://www.nber.org/papers/w12943
L1  - http://www.nber.org/papers/w12943.pdf
N1  - Author contact info:
Barry Bosworth
Senior Fellow
The Brookings Institution
1775 Massachusetts Avenue
Washington, DC   20036
E-Mail: bbosworth@brookings.edu

Susan M. Collins
Joan and Sanford Weill Dean of Public Policy
Gerald R. Ford School of Public Policy
Weill Hall, Suite 4300
735 South State Street
Ann Arbor, MI   48109-3091
Tel: 734-763-2258
Fax: 734-763-9181
E-Mail: smcol@umich.edu
AB  - We compare the recent economic performances of China and India using a simple growth accounting framework that produces estimates of the contribution of labor, capital, education, and total factor productivity for the three sectors of agriculture, industry, and services as well as for the aggregate economy.  Our analysis incorporates recent data revisions in both countries and includes extensive discussion of the underlying data series.  The growth accounts show a roughly equal division in each country between the contributions of capital accumulation and TFP to growth in output per worker over the period 1978-2004, and an acceleration of growth when the period is divided at 1993.  However, the magnitude of output growth in China is roughly double that of India at the aggregate level, and also higher in each of the three sectors in both sub-periods.  In China the post-1993 acceleration was concentrated mostly in industry, which contributed nearly 60 percent of China’s aggregate productivity growth.  In contrast, 45 percent of the growth in India in the second sub-period came in services.  Reallocation of workers from agriculture to industry and services has contributed 1.2 percentage points to productivity growth in each country.
ER  -