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Exploring the Sustainability of the Chinese Growth Model in Light of Some Key Structural Characteristics

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  • Arslan Razmi

Abstract

China's rapid economic growth and success in poverty reduction over the last three decades have inspired world-wide admiration. This paper analyzes structural developments in the Chinese economy and distributional consequences thereof with the help of simple identities and behavioral specifications. Possible sources of these distributional developments are then analyzed using a tradetheoretic approach. Macro and micro 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, although spectacularly successful in many ways, may have now outlived its utility both on economic and socio-political grounds. The present global economic crisis serves to bolster this conclusion.

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  • Arslan Razmi, 2010. "Exploring the Sustainability of the Chinese Growth Model in Light of Some Key Structural Characteristics," International Journal of Political Economy, Taylor & Francis Journals, vol. 39(1), pages 54-92.
    • Handle: RePEc:mes:ijpoec:v:39:y:2010:i:1:p:54-92
    DOI: 10.2753/IJP0891-1916390103
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    Cited by:

    1. Jue Wang & Yingqi Wei & Xiaming Liu & Chengang Wang & Hua Lin, 2014. "Simultaneous Impact of the Presence of Foreign MNEs on Indigenous Firms’ Exports and Domestic Sales," Management International Review, Springer, vol. 54(2), pages 195-223, April.
    2. 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.

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