The Factor Contribution to the Chinese Industry Growth:1952-2009

Using the parameter estimation method and latent variable approach,this paper investigates China's industrial output elasticity and TFP growth,and estimates the contribution of various factors to output growth from 1952 to 2009.The main findings are that the growth mode of industrial is extensive from 1952 to 2009.But the importance of each factor to growth has phased characteristics,especially between 1996 and 2009,the contribution of intelligence factors exceeds that of primary inputs in the first time.This shows that the growth mode starts the transformation from extensive to intensive in China's industry.In order to provide the continuous driving force for Chinese industry growth by technological progress,it is necessary to keep the elasticity of capital from falling.At the same time,we should fulfill the effect of human capital.