Dissecting the China Puzzle: Asymmetric liberalization and cost distortion
We attempt to explain the China Puzzle, the coexistence of accelerating economic growth, and a worsening growth outlook. The root cause lies in China's unique liberalization approach, that is, the combination of a complete liberalization of product markets and continued distortions in factor markets. Repressed costs of labor, capital, land, and resources artificially raise the profits of production, increase the returns to investment, and improve the international competitiveness of Chinese...[Show more]
|Collections||ANU Research Publications|
|Source:||Asian Economic Policy Review|
|01_Huang_Dissecting_the_China_Puzzle:_2010.pdf||207.03 kB||Adobe PDF||Request a copy|
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