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Rapid growth and changing economic structure: The expenditure side story and its implications for China


  • Perkins, Dwight H.


The purpose of this essay has not been to provide China with a detailed list of all of the things that the country must do to maintain a high growth rate. The purpose of this essay instead has been to analyze some of the most basic choices that China must make going forward, choices that are not yet fully understood either by government or private analysts. China has a very unusual economic structure at least on the aggregate demand side and that creates special challenges that other countries have not had to face to the same degree. How well China handles these challenges will determine whether it will continue to progress rapidly to middle income status and beyond.

Suggested Citation

  • Perkins, Dwight H., 2012. "Rapid growth and changing economic structure: The expenditure side story and its implications for China," China Economic Review, Elsevier, vol. 23(3), pages 501-511.
  • Handle: RePEc:eee:chieco:v:23:y:2012:i:3:p:501-511
    DOI: 10.1016/j.chieco.2010.09.005

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    References listed on IDEAS

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    Cited by:

    1. Wang, Lijian & Béland, Daniel & Zhang, Sifeng, 2014. "Pension financing in China: Is there a looming crisis?," China Economic Review, Elsevier, vol. 30(C), pages 143-154.
    2. Atella, Vincenzo & Brugiavini, Agar & Pace, Noemi, 2015. "The health care system reform in China: Effects on out-of-pocket expenses and saving," China Economic Review, Elsevier, vol. 34(C), pages 182-195.
    3. Du, Julan & Fang, Hongsheng & Jin, Xiangrong, 2014. "The “growth-first strategy” and the imbalance between consumption and investment in China," China Economic Review, Elsevier, vol. 31(C), pages 441-458.

    More about this item


    China; Future development; Role of government;

    JEL classification:

    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies


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