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A value-added analysis of China's economy

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Author

Date

2026

Volume

20

Issue No.

4

Pages

368-384

Abstract

Using an econometric model based on the value-added approach for measuring gross domestic product (GDP), this study examines how productivity, economic structure, labour rate, and urbanisation rate affected China's GDP per capita from 1978 to 2023. The regression results indicate that labour rate and industrial productivity contributed the most to China's economic development. Economic structure and urbanisation also significantly impacted China's economic growth. Furthermore, we explore how these variables will impact China's economic growth and GDP per capita in the future. Finally, we discuss relevant strategies and policies for maintaining sustainable and stable economic growth in China.