A More In-Depth Look As with any national economy, China has unique characteristics that the researcher must properly account for. When this is done, there is no change to the pre productivity growth estimate and a modest increase in the post-reform productivity growth rate, which corroborates the general story.
The major economies with high growth rates of state investment China, India have high rates of economic growth. Author Information Zuliu Hu received his Ph.
In contrast, the slowly growing Western economies rely on private investment with no rapid growth of state investment. At present, infrastructure spending is about 6 percent of the gross domestic product, which needs to be increased to 9 percent to make a yearly growth rate of 8 percent sustainable over a long term.
For countries with a large segment of the population underemployed in agriculture, the Chinese example may be particularly instructive.
Decollectivization and higher prices for agricultural products also led to more productive family farms and more efficient use of labor. Rapidly rising state investment is associated with high economic growth China and India ; over-reliance on private investment is associated with low growth U.
It is unlikely, therefore, that performance in the post era has been overstated relative to earlier eras. They also propel the most rapid rates of growth of household and total consumption.
This was then supported by a series of reports by top Indian economic thinkers. Despite significant obstacles relating to the measurement of economic variables in China, these findings hold up after various tests for robustness.
Part of the reason for this is the extremely slow growth of the international economy. In one final area, price reform, the Chinese have proceeded cautiously, granting a fair amount of autonomy to producers of consumer goods and agricultural products but much less to other sectors.
He was an economist in the Research Department of the IMF when he wrote the article on which this pamphlet is based. Figures for Chinese economic growth consequently vary depending on how an analyst decides to account for them.
The piecemeal character of price reform--with some sectors liberalized and others not--means that selecting an appropriate deflator for the post period is difficult.
First, many researchers cite the periodic political crises that seized China before as a factor obscuring pre economic strength. If the post-reform period is broken into three distinct phases, each associated with a different set of reforms, sizable productivity gains are evident in each subperiod.
In particular, are the capital-stock data calculated properly and were there any measurement errors relating to the input data? Another more significant problem with capital-stock data is that Chinese asset surveys do not produce capital stock estimates consistent with the investment data in the national accounts.
These trends are especially apparent in the more than one dozen open coastal areas where foreign investors enjoy tax advantages.
The raw material of the series is drawn mainly from IMF Working Papers, technical papers produced by Fund staff members and visiting scholars, as well as from policy-related research papers. Inflation may pose the single greatest threat to Chinese growth, though thus far it has been largely contained.
Indeed, by the level of fixed investment across the OECD countries, was still below its level in ! The reforms also gave greater room for private ownership of production, and these privately held businesses created jobs, developed much-wanted consumer products, earned important hard currency through foreign trade, paid state taxes, and gave the national economy a flexibility and resiliency that it did not have before.So was the good luck of having coal deposits close to Europe’s centres of industry; China’s coal and its factories were separated by thousands of kilometres, a problem that remains trying today.
China is no longer an underdeveloped country which was previously always associated with poverty due to its closed-door policy. More than three decades since China initiated its economic reforms inChina is now one of the fastest growing economies in the world as well as the largest economy in among the developing nations.
Rapidly growing state investment plays a significant role in China and India's economic expansion, while private investment is either growing very slowly or declining. In contrast, the slowly growing Western economies rely on private investment with no rapid growth of state investment.
This paper will offer a summary of two articles entitled, China Pushes for Bigger Role in Reshaping the World Economy and Singapore sees India, China Role Growing, which discusses China’s transformation into a dynamic private sector-led economy and its integration into the global economy. In this essay I will therefore analyse the reasons why the Chinese economy was able to grow so fast in the s and s up untilnamely: the development of Special Economic Zones (SEZs), Town and Village Enterprises (TVEs), increased productivity 3/5(2).
The third quarter data on China’s economic growth, released by China’s National Bureau of Statistics (NBS) on October 19, showed that China’s GDP grew at percent.
Although the growing pace was percent slower than that in the second quarter, it still met the Chinese government’s expectations.Download