Has China's Growth Gone from Miracle to Malady?

Eswar Prasad

No 16140, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: China's remarkable run of persistently high growth in recent decades is all the more stunning in light of the country's low levels of financial and institutional development, state-dominated economy, and nondemocratic government. Notwithstanding the inefficient and risky growth model, the government has maneuvered the economy around various stresses without any major financial or economic crash. With a shrinking labor force and declining efficiency of investment, raising productivity growth is key to maintaining reasonable GDP growth. Unbalanced reforms, a schizophrenic approach to the role of the market versus the state, and strains in financial and property markets could result in significant volatility but a financial or economic collapse is not in the cards.

Keywords: growth rebalancing; sectoral reallocation; demographics; productivity growth; financial risks (search for similar items in EconPapers)
JEL-codes: F2 F3 F4 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2023-05
New Economics Papers: this item is included in nep-cna
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Citations: View citations in EconPapers (1)

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Journal Article: Has China's Growth Gone from Miracle to Malady? (2023)
Working Paper: Has China’s Growth Gone From Miracle to Malady? (2023)
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