*Growth accounting and the impact of investment rate on long-run growth!

*Always express growth rate as annual average growth rate, and calculate the growth rate of a variable x(t) as ln[x(t+1)]-ln[x(t)]

My Question 1:

Do a conventional growth accounting by decomposing China's real GDP growth between 1991 and 2011 into the contributions from capital accumulation, employment growth, increase in average human capital level and TFP growth. According to this decomposition, which is the main source of China's GDP growth during this period?

Question 2 by following above

the capital accumulation is endogenous and depends on the growth of the other three variables. Do a theory-based growth accounting that decomposes the GDP growth into the growth in capital-output ratio, growth in employment, growth in average human capital level and growth in TFP. According to this alternative decomposition, which is the main source of China's growth? Explain why the conclusion from this decomposition is different from the standard decomposition in I.

Y K h h L 1991 9812.8064 15231.144 1.8913804 1992 11358.302 15925.449 1.9245287 1993 12335.543 16990.752 1.9582579 1994 13597.396 18402.704 1.9925781 1995 14752.168 20205.993 2.0274999 1996 16315.958 22346.205 2.0596139 1997 17798.071 24700.461 2.0922363 1998 19321.285 27166.004 2.1253757 1999 20887.657 29934.071 2.1590397 2000 22417.992 32896.143 2.1932371 2001 24545.894 36259.415 2.2107418 2002 27160.188 40036.829 2.2283859 2003 30110.322 44489.779 2.246171 2004 33494.48 50035.915 2.2640982 2005 37530.121 56492.514 2.2821681 2006 42851.799 63690.626 2.2940023 2007 49968.119 72093.893 2.3058977 2008 55180.257 82092.609 2.3178549 2009 61701.435 93235.912 2.329874 2010 69220.262 107727.91 2.3419554 2011 76557.35 124433.91 2.3731925 I/Y 65491 0.1511104 66152 0.1549954 66808 0.176732 67455 0.191309 68065 0.209561 68950 0.2178623 69820 0.2201638 70637 0.217096 71394 0.2235621 72085 0.2255981 72797 0.230833 73280 0.2325305 73736 0.2409648 74264 0.2585626 74647 0.2653632 74978 0.2602595 75321 0.2573963 75564 0.2726571 75828 0.2737341 76105 0.3036468 76420 0.3167162 Y K h h L 1991 9812.8064 15231.144 1.8913804 1992 11358.302 15925.449 1.9245287 1993 12335.543 16990.752 1.9582579 1994 13597.396 18402.704 1.9925781 1995 14752.168 20205.993 2.0274999 1996 16315.958 22346.205 2.0596139 1997 17798.071 24700.461 2.0922363 1998 19321.285 27166.004 2.1253757 1999 20887.657 29934.071 2.1590397 2000 22417.992 32896.143 2.1932371 2001 24545.894 36259.415 2.2107418 2002 27160.188 40036.829 2.2283859 2003 30110.322 44489.779 2.246171 2004 33494.48 50035.915 2.2640982 2005 37530.121 56492.514 2.2821681 2006 42851.799 63690.626 2.2940023 2007 49968.119 72093.893 2.3058977 2008 55180.257 82092.609 2.3178549 2009 61701.435 93235.912 2.329874 2010 69220.262 107727.91 2.3419554 2011 76557.35 124433.91 2.3731925 I/Y 65491 0.1511104 66152 0.1549954 66808 0.176732 67455 0.191309 68065 0.209561 68950 0.2178623 69820 0.2201638 70637 0.217096 71394 0.2235621 72085 0.2255981 72797 0.230833 73280 0.2325305 73736 0.2409648 74264 0.2585626 74647 0.2653632 74978 0.2602595 75321 0.2573963 75564 0.2726571 75828 0.2737341 76105 0.3036468 76420 0.3167162