Brandt, Loren; Zhu, Xiaodong - Institute for the Study of Labor (IZA) - 2010
China has achieved impressive growth over the last three decades. However, there has been debate over the sources of … quantifying their contributions to growth. In this paper, we develop a three-sector dynamic model to quantify the sources of China …-agricultural sector as the key driver of growth. We also find significant misallocation of capital: The less efficient state sector …