The Estimate of Capital Services by Sector in China

摘要

Measuring the contribution of capital to productivity is always an important issue in economics. With the concept of capital service introduced in SNA2008, there are some changes in capital accounting itself. Particularly, R&D expenditure has been recognized as part of capital formation for the first time in SNA2008. This part new capital formation changes the size of GDP. It has a profound impact on capital accounting. In this paper, the hyperbolic age-efficiency profile model is applied to measure the capital input of 86 sectors in China from 2002 to 2012. Endogenous rate of return and exogenous rate of return are used respectively to measure six fixed assets capital service index including R&D assets. Meanwhile, the implement of the sensitivity analysis for different assets and rates of return is used to identify the key factors that can affect the measurement of capital services. Moreover, this paper can also provide data and literature reference for researches on quantifying the capital's contribution to economic growth.