In this study, we compute a new net capital stock data set following the perpetual
inventory method (PIM) introduced by Goldsmith (1951). In sum, the PIM consist of adding
the net investment data of the current year to an assumed base year of capital stock. The
capital stock series for Chinese industry are computed following Equation I, where K is
capital stock, I is net investment, δ is the depreciation rate and t denotes time.