Institutional Foundations of China’s Structural Problems
Chenggang Xu
Additional contact information
Chenggang Xu: University of Hong Kong
Chapter 12 in The Chinese Economy, 2012, pp 272-290 from Palgrave Macmillan
Abstract:
Abstract Rapid economic growth in the past thirty years has transformed China into the second-largest economy in the world. This achievement is spectacular from the perspective of post-war history. The influence of China’s thirty-year economic growth and its contribution to long-term global economic growth, owing to China’s huge population, seem comparable with that of the USA in the late 19th century. However, this comparison could be misleading without considering the fact that at this time the USA had better institutions than most other countries and was a leading country during the second industrial revolution. Thus, not only did the USA surpass Great Britain to become the largest economy in the world, but it also became the richest in terms of per capita GDP. In comparison, the current GDP per capita of China only accounts for one-eleventh (by the market exchange rate) or one-sixth (by purchasing power) of the USA, ranking it 94th in the world after Thailand (IMF 2011). As China is a relatively poor country that has just entered the low- to medium-income category, with severe institutional problems and overall relatively backward technologies compared with advanced countries, the questions of how far China can reach and whether its growth is sustainable are most challenging to address.
Keywords: Central Government; Structural Problem; Labor Income; Institutional Reform; Chinese Economy (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations:
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:pal:intecp:978-1-137-03429-8_13
Ordering information: This item can be ordered from
http://www.palgrave.com/9781137034298
DOI: 10.1057/9781137034298_13
Access Statistics for this chapter
More chapters in International Economic Association Series from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().