TY - JOUR
T1 - High-skilled services and development in China
AU - Fang, Lei
AU - Herrendorf, Berthold
N1 - Publisher Copyright:
© 2021 Elsevier B.V.
PY - 2021/6
Y1 - 2021/6
N2 - We document that the employment share of high-skill-intensive services is much lower in China than in countries with similar GDP per capita. We build a model of structural change with goods and low- and high-skill-intensive services to account for this observation. We find that large distortions limit the size of high-skill-intensive services in China. If they were removed, both high-skill-intensive services and GDP per capita would increase considerably. We document a strong presence of state-owned enterprises in high-skill-intensive services and suggest that this leads to important distortions.
AB - We document that the employment share of high-skill-intensive services is much lower in China than in countries with similar GDP per capita. We build a model of structural change with goods and low- and high-skill-intensive services to account for this observation. We find that large distortions limit the size of high-skill-intensive services in China. If they were removed, both high-skill-intensive services and GDP per capita would increase considerably. We document a strong presence of state-owned enterprises in high-skill-intensive services and suggest that this leads to important distortions.
KW - China
KW - High-skill-intensive services
KW - State-owned enterprises
KW - Structural change
UR - http://www.scopus.com/inward/record.url?scp=85104924922&partnerID=8YFLogxK
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U2 - 10.1016/j.jdeveco.2021.102671
DO - 10.1016/j.jdeveco.2021.102671
M3 - Article
AN - SCOPUS:85104924922
SN - 0304-3878
VL - 151
JO - Journal of Development Economics
JF - Journal of Development Economics
M1 - 102671
ER -