IDEAS home Printed from https://ideas.repec.org/a/bin/bpeajo/v54y2023i2023-01p243-270.html

Has China's Growth Gone from Miracle to Malady?

Author

Listed:
  • Eswar Prasad

    (Cornell University)

Abstract

China's remarkable run of persistently high growth in recent decades is all the more stunning in light of the country's low levels of financial and institutional development, state-dominated economy, and nondemocratic government. Notwithstanding the inefficient and risky growth model, the government has maneuvered the economy around various stresses without any major financial or economic crash. With a shrinking labor force and declining efficiency of investment, raising productivity growth is key to maintaining reasonable GDP growth. Unbalanced reforms, a schizophrenic approach to the role of the market versus the state, and strains in financial and property markets could result in significant volatility but a financial or economic collapse is not in the cards.

Suggested Citation

  • Eswar Prasad, 2023. "Has China's Growth Gone from Miracle to Malady?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 54(1 (Spring), pages 243-270.
    • Handle: RePEc:bin:bpeajo:v:54:y:2023:i:2023-01:p:243-270
    as

    Download full text from publisher

    File URL: https://www.brookings.edu/bpea-articles/emerging-market-challenges/
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Martins, António Miguel & Moutinho, Nuno, 2026. "Evergrande short-term effect on Chinese listed financial institutions," International Review of Economics & Finance, Elsevier, vol. 105(C).
    2. Wang, Yongdong & Zhao, Liangliang, 2026. "The inhibitory effect of Japan's shrinking labor force on financial development: A mediation analysis based on the innovation channel," Finance Research Letters, Elsevier, vol. 88(C).
    3. Akira Kohsaka, 2026. "China Meets Global De-Industrialization: Industrial Structural Transformation of China," OSIPP Discussion Paper 26E002, Osaka School of International Public Policy, Osaka University.
    4. Ron P. Smith, 2024. "Econometric Aspects of Convergence: A Survey," Open Economies Review, Springer, vol. 35(4), pages 701-721, September.
    5. Kohsaka, Akira, 2025. "The end of miracle? China's economic growth pattern," International Economics, Elsevier, vol. 183(C).
    6. Martins, António Miguel & Moutinho, Nuno, 2024. "The effect of the evergrande bankruptcy on Chinese real estate listed firms," The Quarterly Review of Economics and Finance, Elsevier, vol. 98(C).

    More about this item

    Keywords

    ;
    ;

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • F3 - International Economics - - International Finance
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bin:bpeajo:v:54:y:2023:i:2023-01:p:243-270. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Haowen Chen (email available below). General contact details of provider: https://edirc.repec.org/data/esbrous.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.