Is Chinas Growth Real and Sustainable

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Is Chinas Growth Real and Sustainable?

• ECON6031
• The Chinese Economy
• TANG JIUXUAN

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Growth After 1978

• Most rapid growing economy.

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Growth Factors

• Structural Y AF(K, L)
• high investment
• growth of modern labor force
• Transitional
• gradualist
• market economy
• Traditional
• benefits of socialist past

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Problems with the Growth

• Income Inequality
• Rural urban discrepancy
• State-owned-enterprises
• Corruption
• Immature financial market
• Environmental concern
• Venerability to global economy

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Real Growth?

• Errors in GDP data
• Evidences
• Deflation and high growth rate. (1997-2002)
• Lower energy consumption
• Opposite opinions
• Supply effects

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Sustainable Growth?

• Major development indicators

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Contemporary Challenges

• Fiscal and financial policies
• Advanced market economy
• Fair and equal competition

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Future Growth?

• Recent adjustment in the global economy
• Natural disasters

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References

• Is Chinas Growth Real and Sustainable? Lin Yifu
  2004, China Center for Economic Research, Working
  Paper Series E2004003
• Is Chinas Economic Growth Sustainable? A
  Productivity Analysis. Wu Yanu 1999, China
  Economic Review, 2000, v11, iss. 2, pp. 278
  296.
• Woo, Wing Yhye. The Real Reasons of Chinas
  Growth, The China Journal, no.41(Jan. 1999), 115
  137.

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The End !

• Thank You !