Looking Inward for Growth
AbstractExport led growth has been very effective in transforming China’s economy and establishing a large high-saving middle class. Notwithstanding political opposition from trading partners, this growth strategy has also offered the rest of the world an improved terms of trade and cheaper finance. Yet it is believed by China’s government that this convenient strategy has run its course and the transition has begun to a model that “looks inward” for growth, to be driven by expanding consumption and home investment. This paper uses a numerical model of the Chinese economy with oligopoly behaviour to examine the available “inward” sources of transformative growth along with the policies needed to exploit them. Success will require the redistribution of the considerable rents now accruing to connections of key state owned enterprises, suggesting the potential for political resistance and the yet-avoidable possibility that China could fall into a “middle incometrap”.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The University of Western Australia, Department of Economics in its series Economics Discussion / Working Papers with number 12-04.
Length: 30 pages
Date of creation: 2012
Date of revision:
Contact details of provider:
Postal: 35 Stirling Highway, Crawley, W.A. 6009
Phone: (08) 9380 2918
Fax: (08) 9380 1016
Web page: http://www.business.uwa.edu.au/school/disciplines/economics
More information through EDIRC
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-09-22 (All new papers)
- NEP-CMP-2012-09-22 (Computational Economics)
- NEP-FDG-2012-09-22 (Financial Development & Growth)
- NEP-TRA-2012-09-22 (Transition Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Don, H. & Gunasekera, B. H. & Tyers, Rod, 1990.
"Imperfect competition and returns to scale in a newly industrialising economy : A general equilibrium analysis of Korean trade policy,"
Journal of Development Economics,
Elsevier, vol. 34(1-2), pages 223-247, November.
- Don Gunasekera & Rod Tyers, 1989. "Imperfect Competition and Returns to Scale in a Newly Industrialising Economy: A General Equilibrium Analysis of Korean Trade Policy," School of Economics Working Papers 1989-04, University of Adelaide, School of Economics.
- Michael Dooley & David Folkerts-Landau & Peter Garber, 2005.
"Direct investment, rising real wages and the absorption of excess labor in the periphery,"
Proceedings, Federal Reserve Bank of San Francisco,
Federal Reserve Bank of San Francisco, issue Feb.
- Michael P. Dooley & David Folkerts-Landau & Peter Garber, 2007. "Direct Investment, Rising Real Wages and the Absorption of Excess Labor in the Periphery," NBER Chapters, in: G7 Current Account Imbalances: Sustainability and Adjustment, pages 103-132 National Bureau of Economic Research, Inc.
- Michael P. Dooley & David Folkerts-Landau & Peter Garber, 2004. "Direct Investment, Rising Real Wages and the Absorption of Excess Labor in the Periphery," NBER Working Papers 10626, National Bureau of Economic Research, Inc.
- Russell H. Hillberry & Edward J. Balistreri & Thomas F. Rutherford, 2007.
"Structural Estimation and Solution of International Trade Models with Heterogeneous Firms,"
DEGIT Conference Papers
c012_038, DEGIT, Dynamics, Economic Growth, and International Trade.
- Balistreri, Edward J. & Hillberry, Russell H. & Rutherford, Thomas F., 2011. "Structural estimation and solution of international trade models with heterogeneous firms," Journal of International Economics, Elsevier, vol. 83(2), pages 95-108, March.
- Edward J. Balistreri & Russell H. Hillberry & Thomas F. Rutherford, 2008. "Structural Estimation and Solution of International Trade Models with Heterogeneous Firms," CER-ETH Economics working paper series 08/89, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
- Edward J. Balistreri & Russell H. Hillberry & Thomas F. Rutherford, 2008. "Structural Estimation and Solution of International Trade Models with Heterogeneous Firms," Department of Economics - Working Papers Series, The University of Melbourne 1056, The University of Melbourne.
- C. Fred Bergsten & Charles Freeman & Nicholas R. Lardy, 2008.
"China's Rise: Challenges and Opportunities,"
Peterson Institute Press: All Books, Peterson Institute for International Economics,
Peterson Institute for International Economics, number 4174, July.
- C. Fred Bergsten & Charles Freeman & Nicholas R. Lardy, 2009. "China's Rise: Challenges and Opportunities," Peterson Institute Press: All Books, Peterson Institute for International Economics, Peterson Institute for International Economics, number 4341, July.
- Golley, Jane & Meng, Xin, 2011. "Has China run out of surplus labour?," China Economic Review, Elsevier, vol. 22(4), pages 555-572.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shane Standley).
If references are entirely missing, you can add them using this form.