Hitting the Great Wall: Structural change and China's growth slowdown
Longfeng Ye and
Peter Robertson
China Economic Review, 2019, vol. 56, issue C, -
Abstract:
China is facing slowing growth rates, slowing rates of rural to urban migration and resistance to reforms that would liberalize internal migration restrictions (Hukou). We use a two sector Ramsey growth model and show that, allowing for endogenous capital accumulation, labour reallocation has accounted for approximately one fifth of China's per capita GDP growth over the last 30 years, and that Hukou reform could generate a significant boost to China's per capita GDP growth over the next decade. Our results contrast with conclusions drawn from the traditional growth accounting literature on labour reallocation effects in China because our simulation method allows for endogenous capital accumulation dynamics.
Keywords: Economic growth; Structural change; Dual economy; Capital accumulation; China (search for similar items in EconPapers)
JEL-codes: O1 O41 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (1)
Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1043951X19300550
Full text for ScienceDirect subscribers only
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:56:y:2019:i:c:1
DOI: 10.1016/j.chieco.2019.101302
Access Statistics for this article
China Economic Review is currently edited by B.M. Fleisher, K. X. D. Huang, M.E. Lovely, Y. Wen, X. Zhang and X. Zhu
More articles in China Economic Review from Elsevier
Bibliographic data for series maintained by Catherine Liu (repec@elsevier.com).