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Challenges for China’s Sustainable Growth

Author

Listed:
  • Laura Diaconu (Maxim)
  • Cristian Constantin Popescu
  • Andrei Maxim

Abstract

For more than a quarter of a century, China has experienced a significant economic growth. Yet, this rapid growth has brought on many economic, social and environmental challenges, which might negatively influence the future development of the country. The objective of this paper is to analyse the Chinese economic evolution in order to determine if its growth model is sustainable over time. The research methods consisted in an investigation of the specialized literature, which helped us formulate four research hypotheses, and in a statistical analysis of secondary data, which allowed us develop four models, in order to test the hypotheses. The conclusions show that, to sustain the growth rate, China needs to increase its human capital stock, to keep the pace of attracting the foreign investments, to reduce the size of the government, to diminish the public consumption and to invest in the renewable energy, for increasing the energy efficiency. JEL Codes - Q01; I25; F21; Q56

Suggested Citation

  • Laura Diaconu (Maxim) & Cristian Constantin Popescu & Andrei Maxim, 2020. "Challenges for China’s Sustainable Growth," Scientific Annals of Economics and Business (continues Analele Stiintifice), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 67(1), pages 117-137, March.
    • Handle: RePEc:aic:saebjn:v:67:y:2020:i:1:p:117-137:n:1
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    References listed on IDEAS

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    More about this item

    Keywords

    economic growth; education; environment; social climate; foreign investments;
    All these keywords.

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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