TFP - the driver of China’s future growth. But how can TFP in China be explained?
This paper breaks new ground by employing a VECM approach to investigate the relationships between TFP and five other variables in China during the period 1980-2014. Even though the method is commonly used in other research, it is absent in the literature covering Chinese TFP. The results indicate that the VECM is useful for this purpose. Granger causality and significant long-run relationships ar