Has the Importance of Capital Accumulation for China's Economic Growth Changed?

This article analyzes marginal capital output ratio in the G20 countries from 1980 to 2011. The results suggest that capital accumulation is often efficient in low-income countries and the process of capital accumulation is likely to be associated with technological progress,for new capital often contains new technology. China's marginal capital output ratio is relatively high and shows the long-term stable upward trend. It has no obvious diminishing trend of marginal output of capital. This means that China's rapid capital accumulation is accompanied with technological progress and efficiency improvement. China's capital level is far away from the steady state. The importance of capital accumulation for economic growth does not change. Capital accumulation is still the central task of China's economic growth.