Looking inward for transformative growth

Date

2014

Authors

Tyers, Rod

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Journal ISSN

Volume Title

Publisher

Elsevier

Abstract

Export led growth has been very effective in modernising China's economy and establishing a large high-saving middle class. Notwithstanding political opposition from trading partners, this growth strategy has also offered the rest of the world improved terms of trade in both product and financial markets, in the form of cheaper light manufactures and cheaper credit. Yet slowing demand in export destinations has forced a transition to inward-sourced growth. This paper uses a numerical model of the Chinese economy with oligopoly behaviour to examine the available "inward" sources of transformative growth along with the policies needed to exploit them. The potential for further "transformative" growth is shown to be considerable though it will require accelerated skilled labour supply growth and the politically difficult extension of industry policy reform to heavy manufacturing and services.

Description

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Citation

Source

China Economic Review

Type

Journal article

Book Title

Entity type

Access Statement

License Rights

DOI

10.1016/j.chieco.2014.04.004

Restricted until

2037-12-31