Fredrik Sjöholm focused on the issue of how one should measure TFP in the present context. He was concerned by the problems caused by imperfect factor and labor markets. Kiyohiko Nishimura agreed and argued that monopoly profits might be a particularly serious bias of the Chinese total factor productivity (TFP) figures. Michael Funke suggested that TFP might not be the best outcome variable considering the aim of the Chinese policymakers. The Chinese government, he argued, did not pursue their policies to maximize TFP but rather as a way to improve welfare, and TFP is obviously not equivalent to welfare. Deunden Nikomboriarak agreed with Funke and noted that all policies that were examined in the paper concern the economic side of Chinese society, and nothing on the social side. Moreover, she argued that a positive, rather than a normative, approach might be fruitful.
Deborah Swenson noted that the number of firms...