 Growth and Cycles in China's Unbalanced Development: Resource Misallocation, Debt Overhang, Economic Inequality, and the Importance of Structural ReformsKevin Huang () Frontiers of Economics in China-Selected Publications from Chinese Universities, 2019, vol. 14, issue 1, 53-71 Abstract: The recent China's growth slowdown is both cyclical and secular, driven by external and internal factors. In this article, I highlight several key internal factors that have hindered China's growth in recent years. These include worsening misallocation of resources and declining growth of total factor productivity, plus rising household income inequality and debt overhang in the face of tightened liquidity constraint. All of these show the urgency for deepening reforms in China's key macroeconomic landscapes in order to remove institutional barriers and distortions deep-rooted in the nation¡¯s economic and financial structure, and to correct fundamental imperfections of its social- economic system. I argue that such reforms are of critical importance for China's pursuit of healthy and sustainable growth and of balanced and adequate development going forward. Keywords: growth slowdown; distortion; resource misallocation; total factor productivity (TFP); debt overhang; income inequality; liquidity constraint; reform (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:fec:journl:v:14:y:2019:i:1:p:53-71 Access Statistics for this article Frontiers of Economics in China-Selected Publications from Chinese Universities is currently edited by LONG Jie More articles in Frontiers of Economics in China-Selected Publications from Chinese Universities from Higher Education Press |
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