INVESTMENT-LED DEVELOPMENT IN CHINA – FROM PAST ACCOMPLISHMENTS, TO FUTURE CHALLENGES
Sarmiza Pencea and
Iulia Oehler-Şincai ()
Romanian Economic Business Review, 2015, vol. 10, issue 2, 87-102
For over three decades, investment-driven development has generated great results in Chinese catching-up endeavour. China is now second only to the USA among the world’s largest economies, it ranks the first manufacturer and the top exporter and importer of goods globally, is the second most important destination for global investments, and it dominates many of the world’s markets. At the same time, following for too long a high investment rate development path, China has evolved into a highly unbalanced economy, that has accumulated vulnerabilities and distortions which signal that its investment-led development model is no longer sustainable, posing the economy to considerable risks. It, therefore, needs to be changed. Against this backdrop, the main questions we are trying to answer to in this paper are: first, if no longer relying so heavily on investments is a feasible development for China in the near to medium-term future, and secondly, what could be the expected impact of the Chinese investment wane on the other actors on the global stage. To this end, we will use the most recent data and statistics, as well as the accumulated knowledge on the subject from the scientific investigations carried out by other researchers, both westerners and Chinese, trying to push further our own previous research findings.
Keywords: China; development model; investment-driven; investment deceleration; external impact; investment-led development; consumption-led development; economic rebalancing (search for similar items in EconPapers)
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