China’s economic growth model and progress under Gaige Kaifang David Dollar Senior Fellow Brookings Institution March 2014.

Slides:



Advertisements
Similar presentations
Growth: The Long-Term Economic Failure in Developing Countries
Advertisements

The Shape of Chinas Future Growth KC Kwok 8 September, 2008.
Dimitri B. Papadimitriou GLOBAL IMBALANCES AFTER THE ECONOMIC CRISIS Levy Economics Institute International Development Economics Associates (IDEAs) Conference.
Can China become the next economic superpower Zhihong Yu GEP, School of Economics University of Nottingham.
Sharing experiences between Asia and the Pacific and Western and Central Africa Achieving the Millennium Development Goal of Halving Poverty by 2015 Sharing.
Trade in Developing Countries 2/27/2012 Unit 2: Trade Policy.
Sense or nonsense? This year the UK will export to China 200,000 tons of…
Lecture: trade in developing countries. Trade in developing countries Infant industry argument (already introduced in previous lectures, here I will develop.
Development of China - An Economy in Transition. Introduction: Why do we look at China? Development – underdevelopment, less development, problems of.
Development of China - An Economy in Transition
Economic Growth in China SUMMARY BY: JOHN POWERS.
Rethinking Alternative Growth Paradigms  Mah-Hui LIM  South Centre Conference on The South in the Global Economic Crisis, Geneva  January 31,
19th November 2009 National Policy Dialogue 1 Growth, Income Poverty, and Economic Wellbeing of Households Donald Mmari REPOA.
Copyright © 2012 Pearson Addison-Wesley. All rights reserved. Chapter 11 Trade Policy in Developing Countries.
China: Confronting the Challenges of Rebalancing Growth This presentation is adapted from a presentation by Bert Hofman and Louis Kuijs of the World Bank.
The Rise of China Heh-Song Wang Ⅰ.Introduction Ⅱ.Recent Economic Developments Ⅲ.Balance of Payments Ⅳ.Financial Sector Reform Ⅴ.Development Issues and.
Chapter 25 Economic Growth McGraw-Hill/Irwin
Stodder: Financial Transition, July 1 Finance in Transitional and Developing Economies: China and Others Topics: Growth and Inequality in a ‘Dualistic’
CHINA: Class 2. Policy Change in the Reform Period q Initiated in December 1978 after a power struggle q emphasis on the 4 modernizations q of industry,
1 © 2010 South-Western, a part of Cengage Learning Chapter 17 Growth and the Less- Developed Countries Microeconomics for Today Irvin B. Tucker.
EAST AND SOUTHEAST ASIAN NIEs: 1. Achievements of these economies World Bank, The East Asian Miracle.
Structure of Indian Economy. EVEN THOUGH THE WORLD HAS JUST DISCOVERED IT, THE INDIA GROWTH STORY IS NOT NEW. IT HAS BEEN GOING ON FOR 25 YEARS OLD.
Global Economic Growth and Development
© John Tribe 13 Economic Development and Regeneration.
Competitiveness and Growth Robert Z Lawrence Harvard Kennedy School of Government.
ECONOMIC GROWTH AND INCOME INEQUALITY IN CHINA Chang LIU.
Copyright ©2002, South-Western College Publishing International Economics By Robert J. Carbaugh 8th Edition Chapter 1: The International Economy.
1 CASA ASIA Economic Congress 2004 ‘The Recovery of the Japanese Economy and Its Influence in Asia’ November, 2004 Takashi FUKAYA.
Elusive Quest for Growth: Is innovation engine of growth? Motoo Kusakabe, Senior Counselor to the President EBRD.
Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall Part Two Comparative Environmental Frameworks International Business Environments.
Changing Engines of Growth in China: From FDI and Privatization to Innovation and Knowledge Furong Jin, Keun Lee, and Yee-Kyoung Kim Dep’t of Economics,
Lessons and implications for agriculture and food Security in the region IFPRI-ADB POLICY FORUM 9-10 August 2007 Manila, Philippines Rapid Growth of Selected.
The Economics Of Developing Countries Chapter 39W McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Pro Poor Growth Manmohan Agarwal Centre for International Governance Innovation* * This research is part of a research project supported by the ORF.
The BRIC economies Dani Rodrik SW31/PED-233/Law School 2390 Spring 2013.
Strategy for Growth and Employment Main Motivation  Significance of growth as the most important enabler of development and poverty reduction  Bangladesh’s.
MIGRANT WORKERS AND ECONOMIC GROWTH IN CHINA Slides courtesy of: Prof. Andrew Watson University of Adelaide Lecture 10: Economic Development.
Easing the transition to More Open Economy: China's Agricultural and Rural Policy Jikun Huang Center for Chinese Agricultural Policy Chinese Academy of.
Stodder: Financial Transition, July 1 Finance in Transitional and Developing Economies: China and Others Topics: Growth and Inequality in a ‘Dualistic’
Chapter 8 Economic Growth Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent.
Economic Growth 8 McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
The Chinese Agricultural Sector after Admittance to the WTO Won W. Koo Director and Professor Center for Agricultural Policy and Trade Studies North Dakota.
The Setting: Economic. Mythbusters Trivia China’s currency is the…? a) Yen b) Renminbi c) Yuan d) Both b and c.
19th November 2009 National Policy Dialogue 1 Growth, Income Poverty, and Economic Wellbeing of Households Donald Mmari REPOA.
INTRODUCTION Output fell sharply Private enterprises overtook the state sector Exports rose-Moving toward industrial countries Poverty increased sharply.
Economic Reforms ( ). Incentives for High Growth International strategic vision at the top –links China’s security and global influence to its economy.
Comments on China and the Future of G 20 Yiping Huang Peking University Alok Sheel Secretary, Economic Advisory Council of the Prime Minister of India*
Policies Aimed at Raising the Income of the Poor Text extracted from: The World Food Problem Leathers & Foster, 2004
Nicaragua: agriculture in a Liberalization context Early stages of integration to global networks.
Economic Growth 8 McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
An East Asian Renaissance Philippines Manila June 4, 2007.
Export-Led Growth: Onwards Outward Orientation Financial Liberalization.
COUNTRY RISK ASSESSMENT China & Japan Eliza Bogucka Magdalena Mirek Dominika Dunin - Szpotańska.
Understanding China’s Growth: Past, Present and Future Xiaodong Zhu Department of Economics East Asia Seminar at Asian Institute, University of Toronto.
COUNTRY RISK ASSESSMENT China & Japan Eliza Bogucka Magdalena Mirek Dominika Dunin - Szpotańska.
6/10/2016 Fan He IWEP, CASS Structural Changes after the Global Financial Crisis： China's Perspective.
Economic Growth Chapter 25 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright © 2011 Pearson Education Part Two Comparative Environmental Frameworks International Business Environments and Operations Global Edition 4-1.
Vu Pham Productivity Comparison and Convergence in East Asia Hak K. Pyo Professor Emeritus School of Economics, Seoul National University Hak K. Pyo Productivity.
Growth achieves more than redistribution Source: World Bank WDI Database.
Trade Policy in Developing Countries
Trade Policy in Developing Countries
Presentation by Mustapha Nabli, Chief Economist, MENA Region
EIGHT THINGS YOU (MAY NOT) KNOW ABOUT AFRICA
Trade Policy in Developing Countries
Trade Policy in Developing Countries
China’s Belt and Road Initiative and Implications for GVCs
Economic Growth Chapter 25 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Trade Policy in Developing Countries
Sustainable Trade Index 2018
Presentation transcript:

China’s economic growth model and progress under Gaige Kaifang David Dollar Senior Fellow Brookings Institution March 2014

Outline Key features of China’s reform Some comparison with growth records of Japan, South Korea, Taiwan Economic and social outcomes China’s reform 2.0

GDP per capita in China and East Asian neighbors (Penn version 8)

China’s economic reform Household responsibility system Open up to foreign trade and investment (join WTO in 2001) Legalize the private sector Ease up on migration restrictions

Followed the export-led model of Japan, Korea, and Taiwan – but with some differences Slower movement of labor out of agriculture Even higher investment rate Large trade surplus at an earlier stage Very low household income and consumption

China’s agricultural share of the labor force is high for its per capita GDP

China’s investment rate has risen to unprecedented levels

China developed trade surpluses at an earlier stage of development

China’s household consumption is very low

Followed the export-led model of Japan, Korea, and Taiwan – but with some differences Slower movement of labor out of agriculture Even higher investment rate Large trade surplus at an earlier stage Very low household income and consumption

China’s unusual institutional features Household registration (hukou) Repressed financial system with undervalued exchange rate Open, competitive manufacturing but closed, uncompetitive services (SOEs) One-party rule

China’s exchange rate pegged to the dollar until 2005

Good economic outcomes, but… Extraordinary growth and poverty reduction But rising inequality Terrible air and water pollution Increasing corruption Old model economically and environmentally unsustainable

Poverty has declined dramatically

Inequality has risen

“Growth still is good for the poor” in a sample of 118 countries Correlation between average income growth and income growth in the Bottom 40% is robust over time – Slope ~1 in both time periods ( and )

Growth still is good for the poor No worldwide trend in bottom 40% share – in either direction Change in inequality uncorrelated with growth Growth explains 77% of the variation in income of the bottom 40% No institutional or policy variables are robustly correlated with change in quintile share

China’s corruption is high for its level of income (World Bank Control of Corruption Index, 2011)

China: structural reforms to improve efficiency of investment, spur innovation and encourage consumption Hukou reform SOE privatization or commercialization Financial liberalization Opening up of services more generally Incentives for local government

Premier Li Keqiang’s speech to the National People’s Congress, March 5, million urban registrations for migrants Financial liberalization Opening up services to foreign investment Broaden incentives for local government

Useful sources of data and information Brookings.edu (Thornton China Center) Penn world tables version 8 World Development Indicators World Governance Indicators

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2024 SlidePlayer.com Inc. All rights reserved.