In response to the 2008 financial crisis, the performance of the Chinese construction industry seems to be more successful, especially in total factor productivity growth (TFPG) and its contribution (TFPGC). Hence, the purpose of this paper is to investigate and reveal the potential successful lessons in this regard.
This study is conducted innovatively based on a special comparative analysis of TFPG and TFPGC between pre- and post-2008 financial crisis. Solow Residual Approach is used to measure TFPG and TFPGC for the period 2002–2016. Given that the crisis hit China at the end of 2008, the pre-2008 financial crisis period is from 2002 to 2008, and the post-2008 financial crisis period is limited to 2009–2016.
The results indicate that the industry indeed has better performance in promoting TFPG and TFPGC, TFP thus achieved significant accumulative growth before and after the crisis. However, from an evolutionary perspective, both TFPG and TFPGC presented an overall downward trend from before the crisis to after the crisis. Further, the game between the centrally planned economy and the market-oriented economy was identified and revealed as the essential reason behind the evolution of TFPG and TFPGC.
Some valuable lessons for policies and practices in promoting TFPG and TFPGC were summarized and learned from the Chinese experience, such as reducing administrative intervention and making the construction market play a decisive role.
This study provides some new empirical evidence to enrich the overall body of knowledge on growth theory, especially in promoting TFPG and TFPGC.
The funding of this research from the Fundamental Research Funds for the Central Universities (2019CDSKXYJSG0041), Graduate Scientific Research and Innovation Foundation of Chongqing, China (CYB18065) and Social Science Planning Project of Chongqing, China (2018YBGL055) is acknowledged. We are also very grateful to anonymous referees and the Editorial Office for their insightful comments. Conflicts of Interest: The authors declare no conflict of interest.
Wang, Y., Ye, G., Zhang, Y., Mu, P. and Wang, H. (2020), "Total factor productivity growth and its contribution: lessons from the Chinese construction industry pre- and post-2008 financial crisis", Engineering, Construction and Architectural Management, Vol. 27 No. 10, pp. 2911-2929. https://doi.org/10.1108/ECAM-11-2019-0659Download as .RIS
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