IDEAS home Printed from https://ideas.repec.org/a/taf/jocebs/v10y2012i4p301-312.html
   My bibliography  Save this article

China's rise as a new paradigm in the world economy: preliminaries

Author

Listed:
  • Liming Wang
  • Jianghai Zheng

Abstract

Drawing on the fast growing literature concerning Chinese development and transition, we sketch a general framework for understanding the ‘China Miracle’ that the ‘conventional wisdom’ and ‘Washington Consensus’ cannot fully explain. Reflecting upon the recent financial crisis and the subsequent worldwide economic downturn, an attempt is made to present a paradigm, inspired by Chinese practice over the past decades, from a historical perspective. We conjecture that a desirable China model may maintain the characteristics of a good economy as proposed in Phelps (2006) with full employment and rights to personal development. With regard to the functioning of freely competitive markets and macroeconomic policy, not only should a China model be able to mimic the rule of law and accountability of liberal western democracies, but it might also possess a mainstream ideology that is deeply rooted in Chinese culture with modern social sciences as theoretical foundations. To divest China of undesirable properties from the existing system, it is necessary to establish a principle-agent relationship that can provide stable governance structure for day-to-day efficient management of the economy and society, and protect the fundamental interests of its citizens when external challenges threaten to weaken social cohesion and political stability.

Suggested Citation

  • Liming Wang & Jianghai Zheng, 2012. "China's rise as a new paradigm in the world economy: preliminaries," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 10(4), pages 301-312, August.
  • Handle: RePEc:taf:jocebs:v:10:y:2012:i:4:p:301-312 DOI: 10.1080/14765284.2012.724979
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/14765284.2012.724979
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zhang, Wenlang & Zhang, Zhiwei & Han, Gaofeng, 2010. "How does the US credit crisis affect the Asia-Pacific economies?--Analysis based on a general equilibrium model," Journal of Asian Economics, Elsevier, pages 280-292.
    2. Franco Modigliani & Shi Larry Cao, 2004. "The Chinese Saving Puzzle and the Life-Cycle Hypothesis," Journal of Economic Literature, American Economic Association, pages 145-170.
    3. Fumio Hayashi, 1989. "Japan's Saving Rate: New Data and Reflections," NBER Working Papers 3205, National Bureau of Economic Research, Inc.
    4. Charles Yuji Horioka & Junmin Wan, 2007. "The Determinants of Household Saving in China: A Dynamic Panel Analysis of Provincial Data," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 39(8), pages 2077-2096, December.
    5. Jody Overland & Christopher D. Carroll & David N. Weil, 2000. "Saving and Growth with Habit Formation," American Economic Review, American Economic Association, pages 341-355.
    6. Steven A Barnett & Ray Brooks, 2010. "China; Does Government Health and Education Spending Boost Consumption?," IMF Working Papers 10/16, International Monetary Fund.
    7. Marcos D. Chamon & Eswar S. Prasad, 2010. "Why Are Saving Rates of Urban Households in China Rising?," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(1), pages 93-130, January.
    8. Shang-Jin Wei & Xiaobo Zhang, 2011. "The Competitive Saving Motive: Evidence from Rising Sex Ratios and Savings Rates in China," Journal of Political Economy, University of Chicago Press, vol. 119(3), pages 511-564.
    9. Angus Deaton & Christina Paxson, 2000. "Growth and Saving Among Individuals and Households," The Review of Economics and Statistics, MIT Press, vol. 82(2), pages 212-225, May.
    10. Yin Zhang & Guang Hua Wan, 2004. "Liquidity constraint, uncertainty and household consumption in China," Applied Economics, Taylor & Francis Journals, vol. 36(19), pages 2221-2229.
    11. Martin Browning & Annamaria Lusardi, 1996. "Household Saving: Micro Theories and Micro Facts," Journal of Economic Literature, American Economic Association, pages 1797-1855.
    12. Feng, Jin & He, Lixin & Sato, Hiroshi, 2011. "Public pension and household saving: Evidence from urban China," Journal of Comparative Economics, Elsevier, pages 470-485.
    13. Norman Loayza & Klaus Schmidt-Hebbel & Luis Servén, 2000. "What Drives Private Saving Across the World?," The Review of Economics and Statistics, MIT Press, pages 165-181.
    14. Fumio Hayashi, 1986. "Why Is Japan's Saving Rate So Apparently High?," NBER Chapters,in: NBER Macroeconomics Annual 1986, Volume 1, pages 147-234 National Bureau of Economic Research, Inc.
    15. Obstfeld, Maurice & Rogoff, Kenneth, 2009. "Global imbalances and the financial crisis: products of common causes," Proceedings, Federal Reserve Bank of San Francisco, pages 131-172.
    16. Deaton, Angus, 1992. "Understanding Consumption," OUP Catalogue, Oxford University Press, number 9780198288244.
    17. Obstfeld, Maurice & Rogoff, Kenneth, 2009. "Global imbalances and the financial crisis: products of common causes," Proceedings, Federal Reserve Bank of San Francisco, pages 131-172.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Efobi, Uchenna & Asongu, Simplice & Okafor, Chinelo & Tchamyou, Vanessa & Tanankem, Belmondo, 2016. "Diaspora Remittance Inflow, Financial Development and the Industrialisation of Africa," MPRA Paper 76121, University Library of Munich, Germany.
    2. Simplice A Asongu, 2013. "Modeling the future of knowledge economy: evidence from SSA and MENA countries," Economics Bulletin, AccessEcon, pages 612-624.
    3. Simplice Asongu & Jacinta C. Nwachukwu, 2016. "Is the Threat of Foreign Aid Withdrawal an Effective Deterrent to Political Oppression? Evidence from 53 African Countries," Working Papers 16/020, African Governance and Development Institute..
    4. Asongu, Simplice A, 2014. "Sino-African relations: a review and reconciliation of dominant schools of thought," MPRA Paper 66597, University Library of Munich, Germany.
    5. Asongu, Simplice A, 2014. "A Development Consensus reconciling the Beijing Model and Washington Consensus: Views and Agenda," MPRA Paper 58757, University Library of Munich, Germany.
    6. Simplice Asongu & John Ssozi, 2016. "Sino-African Relations: Some Solutions and Strategies to the Policy Syndromes," Journal of African Business, Taylor & Francis Journals, pages 33-51.
    7. Simplice A, Asongu, 2012. "Are Proposed African Monetary Unions Optimal Currency Areas? Real and Monetary Policy Convergence Analysis," MPRA Paper 36056, University Library of Munich, Germany.
    8. Simplice Asongu & Jacinta C. Nwachukwu & Gilbert A. A. Aminkeng, 2014. "China’s Strategies in Economic Diplomacy: A Survey of Updated Lessons for Africa, the West and China," Working Papers 14/036, African Governance and Development Institute..

    More about this item

    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:taf:jocebs:v:10:y:2012:i:4:p:301-312. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/RCEA20 .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.