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China's Provincial Capital Stock by Types: 1985-2011
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TitleChina's Provincial Capital Stock by Types: 1985-2011  
AuthorHuang Shaoqing,Shi Hao and Ye Bing  
OrganizationShanghai Jiao Tong University,; 
Key WordsInfrastructure; Production Capital; Estimated Stock of Capital 
AbstractTaking into account the large impacts of changes in statistical standards and different price indices on estimating capital stock, we re-estimate the stock of infrastructure at the provincial level for China over the period 1985-2011 using the perpetual inventory method. Meanwhile, we also construct the stock of production capital at the provincial level for China over the same periodby subtracting infrastructure investment and the other investments that are not directly used in production from the total investment. Using the stock of infrastructure and production capital in this study, we find that the output elasticities of these two types of capital are very similar in China,and that the sum of them is very close to the capital income share in China. Using the stock of total capital and infrastructure from other studies in the literature, however, we find that the output elasticity of infrastructure is underestimated, and that of production capital overestimated, with the sum of them far above the capital income share in China. Our further analysis shows that large differences exist in the extent and even in the direction of misallocation between productioncapital and infrastructure based on different stock of capitals. Such differences can lead to entirely different policy implications. 
Serial NumberWP689 
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