The Effects of Industrial Structure Change on Economic Growth in China –Based on LMDI Decomposition Approach

Abstract

In this paper, the total effect of economic growth changes is decomposed into three industry growth effect and structural change effect through LMDI decomposition method in order to probe Chinese industrial structure change since the 2008 financial crisis on the contribution of economic growth. The results show that the contribution share and proportion of the tertiary industry growth are positively to the correlation, and the proportions of the primary and secondary industry growth are negative correlation.