This article presents an econometric analysis of Mainland China’s attempts to promote industrial growth during the period 1952–83. Using annual time series data for the industrial sector, several Cobb-Douglas production functions are estimated for different periods, viz., 1952-83, 1952-65 and 1966–83.
The author concludes that the fluctuations in the efficiency of industrial production in Mainland China were mainly due to changes in the accumulation rate.
The policy implications of these findings are then discussed. The nature of the difficulties encountered and also the factors which will influence performance during the course of industrialization in Mainland China are also examined.
