Modernizing China's Growth Paradigm

Eswar Prasad and Raghuram Rajan

No 2248, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: China has achieved tremendous economic progress in the last three decades, but there is much work to be done to make the economy resilient to large shocks, ensure the sustainability of its growth, and translate this growth into corresponding improvements in the economic welfare of its citizens. We discuss the complex challenges that Chinese policymakers face in striking the right balance in terms of speed and coordination of reforms. We argue that China’s current stage of development, along with its rising market orientation and increasing integration with the world economy, may make the incremental and piecemeal approaches to reforms increasingly untenable and, in some cases, could even generate risks of their own. The present favorable domestic and external circumstances provide an excellent window of opportunity for bolder reforms and for tackling some deep-rooted problems without causing much economic disruption.

Keywords: policy complementarities; market-oriented economy; trade and financial integration; policy reforms (search for similar items in EconPapers)
JEL-codes: F3 P2 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2006-08
New Economics Papers: this item is included in nep-cna, nep-sea and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

Published - published in: American Economic Review, 2006, 96 (2), 331-336

Downloads: (external link)
https://docs.iza.org/dp2248.pdf (application/pdf)

Related works:
Journal Article: Modernizing China's Growth Paradigm (2006)
Working Paper: Modernizing China's Growth Paradigm (2006)
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:iza:izadps:dp2248

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().