Deceleration of China's Economic Growth: Causes and Countermeasures

Guoqiang Tian

Frontiers of Economics in China-Selected Publications from Chinese Universities, 2019, vol. 14, issue 1, 3-25

Abstract: China's economic growth has been declining continuously at a rapid rate since 2011. It dropped to 6.7% in 2016 by more than 3% from nearly 10% average growth rate during 1979¨C2010. As for its causes, there are different interpretations among Chinese economists. One of the interpretations, which is held by some scholars including Justin Yifu Lin, is that external and cyclical factors are the main causes for the decline. The author disagrees with this viewpoint and holds that the root cause of economic deceleration is the delay in deep institutional reforms. An inclusive economy and state coercive capacity are two essential ingredients for sustaining economic prosperity. China must further enhance economic inclusiveness, and accelerate its transition into an efficiency-driven and innovation-driven economy through deepened comprehensive marketization reforms. Meanwhile, it should further strengthen the rule of law to build a limited government that is capable, accountable, effective and caring.

Keywords: China's economic growth; causes and countermeasures; deep institutional reforms; deceleration; inclusive economy; efficiency-driven; innovation-driven; external and cyclical factors (search for similar items in EconPapers)
JEL-codes: F43 O17 O38 O47 P11 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (3)

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