Study on the Evolution of China’s Economic Structure (From 1952 to 2014) – Analysis of the Role of Profit Rate by Impulse Response Functions
Imperialism and Transitions to Socialism
ISBN: 978-1-80043-705-0, eISBN: 978-1-80043-704-3
Publication date: 30 September 2021
Abstract
This study first calculates a profit rate for China’s economy over the period 1952–2014; the rate shows a downward trend in the long term but also exhibits cyclical fluctuations. Then, structural vector autoregressive models are used to examine the Chinese economic structure and, thanks to impulse response functions, the role of the profit rate in investment, capital accumulation, and GDP growth rates. Then, based on a priori constraints relative to this structure, the study tests whether these assumptions are verified over the period studied in the context of the transformations of China. The impulse response functions are further examined by using Bayesian analysis. Finally, the authors conclude that the period from 1952 to 2014 should be divided into several sub-periods with distinct structural characteristics.
Keywords
Citation
Long, Z. and Herrera, R. (2021), "Study on the Evolution of China’s Economic Structure (From 1952 to 2014) – Analysis of the Role of Profit Rate by Impulse Response Functions", Herrera, R. (Ed.) Imperialism and Transitions to Socialism (Research in Political Economy, Vol. 36), Emerald Publishing Limited, Leeds, pp. 95-119. https://doi.org/10.1108/S0161-723020210000036006
Publisher
:Emerald Publishing Limited
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