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The Chinese Growth Miracle

In: Handbook of Economic Growth

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  • Yao, Yang

Abstract

This chapter provides a review of China’s economic growth since 1978. Studying China’s economic success may shed new light on the political economy of growth, the impacts of the ascent of large countries on the rest of the world, and the relationship between inequality and economic growth. The chapter starts with a review of the characteristics of China’s economic growth and compares it with those of several similar economies. Then it shows how China’s economic success has been created by innovative institutional arrangements as well as adherence to the policy advice prescribed by neoclassical economics. After that, the chapter describes China’s export-led growth model and analyzes its causes and the structural imbalances associated with it. Lastly, the chapter presents data for income inequality in China and discusses how inequality may affect China’s prospect of avoiding the middle-income trap.

Suggested Citation

  • Yao, Yang, 2014. "The Chinese Growth Miracle," Handbook of Economic Growth,in: Handbook of Economic Growth, edition 1, volume 2, chapter 7, pages 943-1031 Elsevier.
  • Handle: RePEc:eee:grochp:2-943 DOI: 10.1016/B978-0-444-53540-5.00007-0
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    Cited by:

    1. Prema-chandra Athukorala & Zheng Wei, 2015. "Economic Transition and Labour Market Dynamics in China: An Interpretative Survey of the ‘Turning Point’ Debate," Departmental Working Papers 2015-06, The Australian National University, Arndt-Corden Department of Economics.
    2. repec:eee:chieco:v:44:y:2017:i:c:p:203-226 is not listed on IDEAS
    3. repec:eee:jpolmo:v:39:y:2017:i:4:p:712-728 is not listed on IDEAS

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    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies
    • F3 - International Economics - - International Finance
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • D3 - Microeconomics - - Distribution

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