The Measurement Of Capital Stock Of China’s Sub-industries

Measuring the capital stock as a commonplace has experienced a long time in our country. Looking at the existing literature, we find that most of those measured the capital stock of China’s total level and the provincial level data, but few results about sub-industries. The possible reason is that China’s statistics system is quite different with the SNA93system which is the requirement of PIM, the data of measuring sub-industrial capital stock is seriously lack. Since the reform and opening up, with its astonishing speed, China’s industry created the so-called "industrial miracle". However, many problems such as overcapacity exposed, which seriously affected the healthy development of China’s industry. Now, this article renewed focus on the measurement of the capital stock to measure the capital stock of38sub-industries, in order to provide a better data base for subsequent sub-industrial research. Firstly, this article sorted out the concept of the capital stock and the PIM theory, and defined range of the capital stock of38sub-industries, which accounted in this article. In the process of measurement, this article strictly follows the requirement of Perpetual Inventory Method (PIM), the selection of the indicators is the optimal choice made on the basis of reasonable analysis, especially for the two indicators of new investment and depreciation rate. In addition, because of the sub-industrial Classification adjustment and the change of statistics caliber, this article also made an adjustment of industry and data-caliber to form a longer time span (from1980to2010) data of the capital stock for the38sub-industries. On this basis, the article also compared the results with Yong-feng Huang et al (2002) and Shi-yi Chen (2011), and found that the results of this article showed the rapid growth after2000, which once again proved that industrial over-investment due to overcapacity. In order to use this capital stock data to analyze China’s industry, the article also constructed the input and output of all industrial caliber panel data of38sub-industries, including:industrial added value, capital stock, labor and energy consumption. The Empirical Analysis showed that:in the past30years, China’s industrial development heavily depended on capital investment and neglected technical progress; compared with input elements, the average annual growth rate of TFP was low. The growth of output significantly relied on investment. At this stage, industrial upgrading and eliminating backward production capacity is the new way of reform and development of China’s industry. The accounting result of this article about the capital stock of38sub-industries will help in-depth study and analysis of these issues.