China’s Economic Growth: Evidence from Multiple-break Unit Root Tests
نویسنده
چکیده
This paper performs multiple-break unit root tests on the data of China’s national and sectoral output and labour productivity, with finite-sample critical values bootstrapped through Monte Carlo simulations. We find strong evidence against the unit-root hypothesis in favour of the segmentedtrend-stationarity alternative. Based on breaking trend functions, the steady-state and transitional growth rates of output and productivity are computed and compared. While slowdowns characterise the economy in the 1960s and 1970s, the last two decades feature faster steady-state growth of both output and productivity in most cases, indicating that China’s economic growth is sustainable. JEL classifications: C22, E30.
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