China's remarkable economic growth / John Knight and Sai Ding.

Format:

Book

Author/Creator:

Knight, John B.

Contributor:

Ding, Sai.

Language:

English

Subjects (All):

Economic development--China.

Economic development.

China.

China--Economic conditions--1976-2000.

Economic conditions.

China--Economic conditions--2000-.

China--Economic policy--1976-2000.

Economic policy.

China--Economic policy--2000-.

Physical Description:

xvii, 336 pages : illustrations ; 24 cm

Edition:

First edition.

Place of Publication:

Oxford : Oxford University Press, 2012.

Summary:

How has the Chinese economy managed to grow at such a remarkable rate (no less ten percent per annum) for over three decades? This well-integrated book combines economic theory, empirical estimation, and institutional analysis to address one of the most important questions facing contemporary economists. A common thread that runs throughout the book is the underlying political economy: why China became a 'developmental state', and how it has maintained itself as a developmental state.

The book examines the causal processes at work in the evolution of China's institutions and policies. It estimates cross-country and cross-province growth equations to shed light on the proximate, and some of the underlying, determinants of the growth rate. It explores important consequences of China's growth, posing a series of key questions, such as: is the economy running out of unskilled labour; why and how has inequality risen; has economic growth raised happiness; can China continue to grow rapidly, or will the maturing economy, or the macroeconomic imbalances, or financial crisis, or social instability, bring it to an end?

Based mainly on original research, this book will be of interest to growth economists, development economists, transition economists, China specialists, policy-makers, and indeed all those who are intrigued by the Chinese growth phenomenon. Book jacket.

Contents:

Part I Introduction / John Knight Knight, John

1 Setting the Stage 3

1.1 The Issues 3

1.2 China's Economic History 4

1.3 The Data 6

1.4 The Methodology 8

1.5 Outline of the Book 9

2 Approaches to Understanding Economic Growth 11

2.1 Models of Economic Growth 11

2.2 Empirical Approaches to Economic Growth 14

2.3 Economic Growth and Economic Development 16

2.4 Economic Growth and Inequality 19

2.5 Looking Ahead 20

3 The Evolution of Institutions and Policies 24

3.1 Introduction 24

3.2 Central Planning 25

3.3 Rural Reform 28

3.4 Urban Reform 35

3.5 Economy-Wide Reform 39

3.6 The Political Economy of Economic Reform 43

3.7 Conclusion 50

Part II The Determinants of China's Economic Growth / Sai Ding Ding, Sai, John Knight Knight, John

4 China in a Cross-Country Growth Perspective 57

4.1 Introduction 57

4.2 Background to China's Growth 58

4.3 Augmenting the Solow Model 62

4.4 Data and Sample 65

4.5 Empirical Methodology 67

4.6 Empirical Results 69

4.7 Explaining China's Relative Performance 76

4.8 Conclusion 81

Appendix 4.1 82

Appendix 4.2 83

5 The Basic Cross-Province Growth Equation 92

5.1 Introduction 92

5.2 Methodology 94

5.3 The Data 98

5.4 Model-Selection Results 100

5.5 The Baseline Model 102

5.6 Conclusion 105

Appendix 5.1 107

6 The Role of Physical and Human Capital Formation 112

6.1 Introduction 112

6.2 Physical Capital Accumulation 113

6.3 Human Capital Accumulation 119

6.4 Illustrative Counterfactual Predictions 122

6.5 How was Rapid Capital Accumulation Possible? 124

6.6 Conclusion 125

Appendix 6.1 127

7 The Role of Structural Change: Trade, Ownership, Industry 131

7.1 Introduction 131

7.2 Increasing Openness 132

7.3 Institutional Change 137

7.4 Sectoral Change and Industrialization 141

7.5 Conclusion 147

Appendix 7.1 149

8 Why Does China Invest so Much? 155

8.1 Introduction 155

8.2 The Demand for Investment 156

8.3 The Supply of Investment: Resources 160

8.4 The Supply of Investment: Funds 165

8.5 The Efficiency of Investment: Static 171

8.6 The Efficiency of Investment: Dynamic 172

8.7 Conclusion 177

Part III The Consequences of China's Economic Growth / John Knight Knight, John

9 Economic Growth and the Labour Market 185

9.1 Introduction 185

9.2 The Lewis Model 186

9.3 Trends in the Chinese Labour Market 187

9.4 Literature Survey 189

9.5 The Data 190

9.6 Migrant Wage Behaviour 191

9.7 The Pool of Potential Migrants 200

9.8 Projections into the Future 206

9.9 Conclusion 210

10 Economic Growth and Inequality 215

10.1 Introduction 215

10.2 The Rise in Inequality 216

10.3 Inequality of Wealth 220

10.4 The Rise in Inequality and the Relation to Poverty 220

10.5 The Components of Rising Inequality: Urban Income 221

10.6 The Components of Rising Inequality: Rural Income 226

10.7 The Components of Rising Inequality: Spatial Income 227

10.8 Rising Inequality: the Policy Issues 230

10.9 Conclusion 232

11 Economic Growth and Happiness 236

11.1 Introduction 236

11.2 Background on Subjective Well-Being 237

11.3 Survey, Data, and Method 239

11.4 Rural Happiness 240

11.5 Urban Happiness 244

11.6 A Rural-Urban Comparison 247

11.7 Migrant Happiness 248

11.8 Aspiration Income and Happiness 254

11.9 Conclusion 258

Part IV Conclusion / John Knight Knight, John

12 Economic Growth in China: Prospect 265

12.1 Introduction 265

12.2 The Maturing Economy 266

12.3 Macroeconomic Imbalances 269

12.4 Political Shocks 295

12.5 Conclusion 306

13 Economic Growth in China: Retrospect 311

13.1 Introduction 311

13.2 The Causes of China's Growth 311

13.3 The Consequences of China's Growth 317

13.4 Lessons for Growth Research 319

13.5 Lessons for China 321

13.6 Lessons for Other Developing Countries 323.

Notes:

Includes bibliographical references and index.

ISBN:

9780199698691

0199698694

OCLC:

757930917