 Growing and Slowing Down Like ChinaFabrizio Zilibotti Journal of the European Economic Association, 2017, vol. 15, issue 5, 943-988 Abstract: This article is based on the presidential address delivered at the EEA Annual Congress 2016. It discusses China's institutional and economic transformation through the lens of the model of growth and convergence developed in Acemoglu, Aghion, and Zilibotti (JEEA 2006), which emphasizes the dichotomy between investment- and innovation-led growth. The economic reforms introduced in the 1980s and 1990s have enabled the Chinese economy to grow at historically unprecedented rates through fostering investment, reallocation, and technology adoption from abroad. The Chinese stimulus package introduced in 2008 appears to have prolonged the longevity of China's investment-driven growth beyond its optimal point. Over the last decade, China has activated the engine of innovation-led growth. The article discusses the virtues and limits of such ongoing transition, based on research in progress using firm-level data on R&D and productivity growth. Finally, it provides an appraisal of the institutional and policy reforms that are necessary for China to continue on its path of rapid convergence. JEL-codes: H54 O11 O16 O25 O32 O33 O53 (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:oup:jeurec:v:15:y:2017:i:5:p:943-988. Access Statistics for this article Journal of the European Economic Association is currently edited by Romain Wacziarg More articles in Journal of the European Economic Association from European Economic Association |
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