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The Chinese Economy: Transitions and Growth by Barry Naughton
The Chinese Economy: Transitions and Growth Barry Naughton ebook
Publisher:
ISBN: 0262140950, 9781429455343
Format: pdf
Page: 504
First, China is on the cusp of becoming the world's largest economy. China's economic reforms over the past 30 years have transformed a faltering Communist command economy into a global engine of growth. The slowdown is expected as the China's economy is in transition and growth of 10 percent is not likely to be seen as the country is shifting from a low-income nation to a middle-income one. Contrary to the conventional wisdom that China's economic growth has been driven by exports, it is investment that actually contributes the most. China is on the verge of making a number of important economic transitions. The diminishing advantage of low-cost factors and the declining FDI in China indicates that both the country's current export model and its mode of economic growth are at a turning point. This is rare both in China and the world. Manufacturers in the United States, China and Europe struggled last month as demand fell, suggesting an ailing world economy that still needs a steady diet of central bank support. €China's growth rate has exceeded 10% while the inflation rate has been kept below 3% for four years running. As China accumulated economic and strategic clout, its neighbors benefited from its rapid GDP growth, which spurred their own economies. Naughton, Barry (2007), The Chinese Economy: Transitions and Growth. He feels that the US downgrade may lead to an acceleration of the economic transition in China. Depending on how you measure it, this could quite possibly happen by 2020.
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