Consumption Recovery and Economic Rebalancing in China

Yiping Huang, Jian Chang () and Lingxiu Yang ()
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Jian Chang: Barclays Capital Asia Limited
Lingxiu Yang: Barclays Capital Asia Limited

Asian Economic Papers, 2013, vol. 12, issue 1, 47-67

Abstract: Boosting consumption has been a policy strategy for rebalancing the Chinese economy. The official statistics, however, show persistently declining consumption as a share of GDP during the past decade. In this paper, we provide a more complete picture of Chinese consumption by piecing together data from official and unofficial sources. Our estimations suggest that the consumption share rebounded from 2008, after a period of decline. This may provide the first piece of evidence that the rebalancing of the Chinese economy is already under way as a result of changes in factor markets, especially rapid increase in labor income, that have resulted in increases in household income as a share of GDP and improvement in income distribution across households. © 2013 The Earth Institute at Columbia University and the Massachusetts Institute of Technology.

Keywords: consumption; economic rebalancing; China (search for similar items in EconPapers)
JEL-codes: E21 O53 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (15)

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