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Rebalancing China's Economic Growth: Some Insights from Japan's Experience

Author

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  • Tomoyuki Fukumoto
  • Ichiro Muto

Abstract

One of the greatest challenges China faces is how to reshape its heavily investment-driven mode of economic growth. By investigating how the rebalancing of Japan's economic growth mode was realized in the 1970s, we indicate that it is essential in the rebalancing to correct the distortions in the factor cost (labor cost and capital cost) in a harmonious way. In addition, we refer to Japan's experience to indicate that achieving domestic rebalancing does not necessarily lead to external rebalancing.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Tomoyuki Fukumoto & Ichiro Muto, 2012. "Rebalancing China's Economic Growth: Some Insights from Japan's Experience," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 20(1), pages 62-82, January.
  • Handle: RePEc:bla:chinae:v:20:y:2012:i:1:p:62-82
    DOI: j.1749-124X.2012.01273.x
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    File URL: http://hdl.handle.net/10.1111/j.1749-124X.2012.01273.x
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    References listed on IDEAS

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    Cited by:

    1. repec:bla:chinae:v:25:y:2017:i:1:p:32-57 is not listed on IDEAS
    2. repec:ilo:ilowps:470934 is not listed on IDEAS
    3. Guonan Ma & Robert McCauley & Lillie Lam, 2013. "The Roles of Saving, Investment and the Renminbi in Rebalancing the Chinese Economy," Review of International Economics, Wiley Blackwell, vol. 21(1), pages 72-84, February.
    4. Nicholas R. Lardy & Nicholas Borst, 2013. "A Blueprint for Rebalancing the Chinese Economy," Policy Briefs PB13-2, Peterson Institute for International Economics.
    5. Gunther Schnabl, 2017. "Exchange Rate Regime, Financial Market Bubbles and Long-term Growth in China: Lessons from Japan," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 25(1), pages 32-57, January.
    6. Luke Deer & Ligang Song, 2012. "China's Approach to Rebalancing: A Conceptual and Policy Framework," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 20(1), pages 1-26, January.
    7. Sun Xuegong, . "China: Searching for a New Development Modal," Chapters, Economic Research Institute for ASEAN and East Asia (ERIA).
    8. van Treeck, Till. & Sturn, Simon., 2012. "Income inequality as a cause of the Great Recession? : A survey of current debates," ILO Working Papers 994709343402676, International Labour Organization.
    9. Damien Cubizol, 2017. "Rebalancing in China: a taxation approach," Working Papers 1732, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    10. Yigang Wei & Patrick T. I. Lam & Yat Hung Chiang & Barbara Y. P. Leung, 2014. "The effects of monetary policy on real estate investment in China: a regional perspective," International Journal of Strategic Property Management, Taylor & Francis Journals, vol. 18(4), pages 368-379, December.
    11. Dorrucci, Ettore & Pula, Gabor & Santabárbara, Daniel, 2013. "China's economic growth and rebalancing," Occasional Paper Series 142, European Central Bank.
    12. Notermans Ton, 2015. "The EU's Convergence Dilemma," Baltic Journal of European Studies, De Gruyter Open, vol. 5(1), pages 36-55, February.
    13. Andrea Fracasso, 2015. "Economic Rebalancing and Growth: the Japanese experience and China’s prospects," DEM Discussion Papers 2015/07, Department of Economics and Management.

    More about this item

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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