Capital inputs in the Chinese economy: Estimates for the total economy, industry and manufacturing

This paper presents new estimates of capital inputs in the Chinese economy. Estimates are made for the total economy (1953-2007), for the industrial sector (1953-2007) and for manufacturing (1985-2007). The capital input estimates for industry and manufacturing are also broken down by thirty regions. The paper makes a systematic attempt to apply SNA (System of National Accounts) concepts to the estimation of capital inputs, according to the Perpetual Inventory Method. It makes a clear distinction between capital services from a productivity perspective and wealth capital stocks. The paper provides a detailed analysis of the relevant Chinese statistical concepts and data. It provides an explanation of the procedures followed in constructing the new national and regional capital input series.

► This paper presents new estimates of Chinese capital inputs. ► Estimates for manufacturing and industry are broken down by 30 regions. ► We distinguish productive capital services from wealth capital stocks. ► The paper provides a detailed discussion of Chinese investment concepts and data. ► Compared to other estimates, the growth rates of our estimates are lower before 1970, higher after 1980.