Balancing act: Adjustment of China's economy to secure sustainable growth

Shi Yutian, John Hicks, P. K. Basu, Kishor Sharma, Yapa Bandara, Tom Murphy

Research output: Contribution to journalArticlepeer-review

Abstract

This paper uses income accounting techniques to assess, counterfactually, the implied impact over the last 10 years of a hypothetical government policy to constrain investment growth in order to raise the share of consumption in GDP and to bring about a balance on current account. We find that both target variables are very sensitive to changes in investment and that a policy of careful reform is called for. In the light of this finding, we review Chinese government policy pronouncements and activity with a view to assessing their appropriateness.
Original languageEnglish
Pages (from-to)1097-1114
Number of pages18
JournalSingapore Economic Review
Volume62
Issue number5
Early online dateSep 2015
DOIs
Publication statusPublished - 2017

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