Conundrum with Distorted Urbanisation

Yazhuo Zheng and Kent Deng
Additional contact information
Yazhuo Zheng: Beijing Enlightenment Institute for Economic and Social Research
Kent Deng: London School of Economics

Chapter 5 in State Failure and Distorted Urbanisation in Post-Mao's China, 1993–2012, 2018, pp 87-112 from Palgrave Macmillan

Abstract: Abstract This chapter reveals the negative impacts of distorted urbanisation, that is the excessive currency quantitative easing, the high-risk housing bubble and the recession in farming and manufacturing. All of our observations indicate that China has chosen an imbalanced growth model after material production lost its growth momentum. The rise of the real estatereal estate market has compensated to a great extent the decline in farmingfarming and manufacturingmanufacturing but with a heavy price to pay: firstly, there is a sack-in effectsack-in effect on liquidityliquidity that is channelled to the housing markethousing market; secondly, there is the heavy indebtedness among local governments and private households and, thirdly, there is an elbow-out effectelbow-out effect on household consumptionhousehold consumption budgets due to a zero-sum gamezero-sum game between food and shelter.

Keywords: Urbanisation; Quantitative easing; State-fuelled housing market; State-owned leasable land; Land-for-loans; Local government debt; Housing price (search for similar items in EconPapers)
Date: 2018
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:palscp:978-3-319-92168-6_5

Ordering information: This item can be ordered from
http://www.palgrave.com/9783319921686

DOI: 10.1007/978-3-319-92168-6_5

Access Statistics for this chapter

More chapters in Palgrave Studies in Economic History from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().