Rebalancing China's Economic Growth: Some Insights from Japan's Experience

Tomoyuki Fukumoto and Ichiro Muto
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Tomoyuki Fukumoto: Bank of Japan

No 11-E-5, Bank of Japan Working Paper Series from Bank of Japan

Abstract: One of the greatest challenges China faces is how to reshape its heavily investment-driven mode of economic growth. By investigating how the rebalancing of Japan's economic growth mode was realized in the 1970s, we indicate that it is essential in the rebalancing to correct the distortions in the factor cost (labor cost and capital cost) in a harmonious way. In addition, we refer to Japan's experience to indicate that achieving domestic rebalancing does not necessarily lead to external rebalancing.

Keywords: China; Japan; Rebalancing; Factor Cost Distortion; Current Account Imbalance (search for similar items in EconPapers)
JEL-codes: E21 E22 E25 O11 O53 (search for similar items in EconPapers)
Date: 2011-07
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Rebalancing China's Economic Growth: Some Insights from Japan's Experience (2012)
Working Paper: Rebalancing China’s economic growth: some insights from Japan’s experience (2011)
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