Functional Distribution of Income and Economic Growth in the Chinese Economy, 1978-2007
This paper seeks to analyse the relationship between functional distribution of income, aggregate demand and growth in Chinese reform economy. For this purpose the Bhaduri-Marglin Model is used, stating the theoretical possibility of both profit-led and wage-led growth regimes. Subsequently, the principal literature on the evolution of factor's shares in China is reviewed. The statistical series for the period 1978-2007 are reconstructed in order to carry out our analysis of the relations between capital's share and investment, on one hand; and labour's share and consumption, on the other. Supported by the Model's preliminary estimations, it is argued that Chinese growth has been largely profit-driven. Finally, the implications are presented vis-a-vis concerning Chinese economic prospects.
|Date of creation:||Feb 2011|
|Date of revision:|
|Contact details of provider:|| Postal: Thornhaugh Street, London WC1H OXG|
Web page: http://www.soas.ac.uk/economics/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Minami, Ryoshin & Hondai, Susumu, 1995. "An Evaluation of the Enterprise Reform in China: Income Share of Labor and Profitability in the Machine Industry," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 36(2), pages 125-143, December.
- Engelbert Stockhammer & Özlem Onaran & Stefan Ederer, 2007.
"Functional income distribution and aggregate demand in the Euro-area,"
Department of Economics Working Papers
wuwp102, Vienna University of Economics and Business, Department of Economics.
- Engelbert Stockhammer & Özlem Onaran & Stefan Ederer, 2009. "Functional income distribution and aggregate demand in the Euro area," Cambridge Journal of Economics, Oxford University Press, vol. 33(1), pages 139-159, January.
- Eckhard Hein & Lena Vogel, 2008. "Distribution and growth reconsidered: empirical results for six OECD countries," Cambridge Journal of Economics, Oxford University Press, vol. 32(3), pages 479-511, May.
- Ravallion, Martin & Chen, Shaohua, 2007.
"China's (uneven) progress against poverty,"
Journal of Development Economics,
Elsevier, vol. 82(1), pages 1-42, January.
- Xinhua He & Yongfu Cao, 2007. "Understanding High Saving Rate in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 15(1), pages 1-13.
- N/A, 2007. "The World Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 200(1), pages 7-30, April.
When requesting a correction, please mention this item's handle: RePEc:soa:wpaper:168. 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: (Duo QIN)The email address of this maintainer does not seem to be valid anymore. Please ask Duo QIN to update the entry or send us the correct email address
If references are entirely missing, you can add them using this form.