Factors Behind Industrial Profit Growth
发布: 2008-3-15 09:49 | 作者: CE | 来源: China Economist
ZHENG Yuxin1( 郑玉歆) and LI Yuhong2( 李玉红)
1Research Fellow and Advisor for Ph.D. Candidates, Institute of Quantitative and Technical Economics, CASS
2Research Associate and Ph.D. in Economics, Institute of Quantitative and Technical Economy, CASS
I. Introduction
Since 1998, China’s industrial enterprise profitability has experienced tremendous growth, reversing profit declines. In 2005, China’s industrial sectors registered a 9-fold (RMB 1.3 trillion) and 2.4-fold (RMB 1 trillion) increase in profits over 1998 and 2000 respectively. Indeed, the study of China’s returns on capital has emerged as a hot topic of discussion in academic communities, grabbing worldwide attention (World Bank, 2006; Dan Weijian, 2006; Xiao Geng, 2006; Bai Chongen 2007; Song Guoqing 2007). Whether or not China’s rate of return, or ROR, is high or low remains a topic of debate. Nevertheless, it is undeniable that the profitability of industrial enterprises has increased since 1998. To illustrate this point, one only needs to refer to the fact that China’s industrial profit margin, measured by profits divided by costs and expenses, rose from 2.35% in 1998 to 6.42% in 2005.
