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Sustaining Growth of the People's Republic of China

Author

Listed:
  • Justin Yifu Lin

    (National School of Development of Peking University)

  • Fan Zhang

    (National School of Development of Peking University)

Abstract

This paper reviews economic growth theory in the framework of economic development and explores the possibility of sustained growth in the People's Republic of China (PRC) in the long run. We argue that the PRC has the potential to sustain relatively high growth rates. First, since the technological gap with major developed countries still exists, the PRC can continue to enjoy its “advantage of backwardness” in the near future. Second, large-scale infrastructure investment, which began several decades ago, may possibly extend to the future and provide the country a basis for further growth. Third, structural readjustment, which is needed in many areas, should similarly be able to support the Chinese economy. This paper argues that to sustain long-term growth in the PRC, a number of general preconditions need to be fulfilled—these include well-functioning markets, a minimum amount of investment, continued structural upgrading, and effective government.

Suggested Citation

  • Justin Yifu Lin & Fan Zhang, 2015. "Sustaining Growth of the People's Republic of China," Asian Development Review, MIT Press, vol. 32(1), pages 31-48, March.
    • Handle: RePEc:tpr:adbadr:v:31:y:2015:i:2:p:31-48
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    References listed on IDEAS

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    Cited by:

    1. Jesus Felipe & John McCombie, 2023. "Is Anything Left of the Debate about the Sources of Growth in East Asia Thirty Years Later?," Economics Working Paper Archive wp_1029, Levy Economics Institute.
    2. Felipe, Jesus & Lanzafame, Matteo, 2020. "The PRC's long-run growth through the lens of the export-led growth model," Journal of Comparative Economics, Elsevier, vol. 48(1), pages 163-181.
    3. Chun-kei Tsang & Sung-ko Li, 2020. "Allocation of resources within subgroups of an industry: a case study in the Chinese industrial sector," Journal of Productivity Analysis, Springer, vol. 53(1), pages 125-139, February.
    4. Gloria Claudio-Quiroga & Luis Alberiko Gil-Alana & Andoni Maiza Larrarte, 2025. "Persistence in China’s household consumption level: implications for the new growth model," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 49(1), pages 283-298, March.
    5. Jong-Wha Lee, 2017. "China's economic growth and convergence," The World Economy, Wiley Blackwell, vol. 40(11), pages 2455-2474, November.
    6. Hickey, Gordon M. & Pouliot, Mariève & Smith-Hall, Carsten & Wunder, Sven & Nielsen, Martin R., 2016. "Quantifying the economic contribution of wild food harvests to rural livelihoods: A global-comparative analysis," Food Policy, Elsevier, vol. 62(C), pages 122-132.
    7. Huang, Yiping, 2016. "Understanding China's Belt & Road Initiative: Motivation, framework and assessment," China Economic Review, Elsevier, vol. 40(C), pages 314-321.

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    Keywords

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    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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