Is the Chinese Investment- and Export-Led Growth Model Sustainable? Some Rising Concerns
Abstract
China’s rapid growth and success in poverty reduction over the last three decades has inspired world-wide admiration. This paper uses a simple framework with a Kaleckian flavor to analyze structural developments in the Chinese economy, and to understand some of the distributional consequences. Some of the possible sources of these distributional developments are then further analyzed using a trade-theoretic approach. Other aspects of China’s investment- and export-led growth strategy are discussed along with the problems that the focused pursuit of such a strategy has raised. We conclude that China’s growth model may now have outlived its utility, both on economic and socio-political grounds. JEL Categories:Download Info
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Paper provided by University of Massachusetts Amherst, Department of Economics in its series UMASS Amherst Economics Working Papers with number 2008-09.Length:
Date of creation: Aug 2008
Date of revision:
Handle: RePEc:ums:papers:2008-09
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Keywords:This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-08-31 (All new papers)
- NEP-CNA-2008-08-31 (China)
- NEP-DEV-2008-08-31 (Development)
- NEP-PKE-2008-08-31 (Post Keynesian Economics)
- NEP-TRA-2008-08-31 (Transition Economics)
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