Functional Distribution of Income and Economic Growth in the Chinese Economy, 1978-2007

Ricardo Molero-Simarro

No 168, Working Papers from Department of Economics, SOAS University of London, UK

Abstract: This paper seeks to analyse the relationship between functional distribution of income, aggregate demand and growth in Chinese reform economy. For this purpose the Bhaduri-Marglin Model is used, stating the theoretical possibility of both profit-led and wage-led growth regimes. Subsequently, the principal literature on the evolution of factor's shares in China is reviewed. The statistical series for the period 1978-2007 are reconstructed in order to carry out our analysis of the relations between capital's share and investment, on one hand; and labour's share and consumption, on the other. Supported by the Model's preliminary estimations, it is argued that Chinese growth has been largely profit-driven. Finally, the implications are presented vis-a-vis concerning Chinese economic prospects.

Keywords: China; Economic Reform; Factor's Shares; Aggregate Demand; Profit-Led Growth. (search for similar items in EconPapers)
JEL-codes: C13 E25 O11 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2011-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
https://www.soas.ac.uk/sites/default/files/2022-10/economics-wp168.pdf (application/pdf)

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:soa:wpaper:168

Access Statistics for this paper

More papers in Working Papers from Department of Economics, SOAS University of London, UK Contact information at EDIRC.
Bibliographic data for series maintained by Chandni Dwarkasing ().