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Article
Publication date: 22 December 2020

Taiyan Huang

The purpose of this paper is based on China’s economic fundamentals. Factor input, structural optimization and institutional reform, which determine the fundamentals of…

Abstract

Purpose

The purpose of this paper is based on China’s economic fundamentals. Factor input, structural optimization and institutional reform, which determine the fundamentals of China's economic development, will actively prop up long-term, sustained and stable growth of the Chinese economy and keep China's potential economic growth rate stabilized within a reasonable growth range in the long term.

Design/methodology/approach

The fundamentals of economic development of a country are the basic situation of economic operation determined by the country's main factors and the long-term trend thereof, and they have such characteristics as stability, internality and persistence.

Findings

Stability refers to economic operation that remains relatively stable within a reasonable growth range at a certain stage of development, and this does not rule out exceptional economic fluctuations in certain years due to the impact of unexpected short-term factors. For instance, the fundamentals of the Chinese economy during the period after the reform and opening-up are characterized by a sustained high growth rate.

Originality/value

Internality refers to the intrinsic quantity and quality of all factors supporting the economic development of a country, especially the quantity and quality of the factors that play a decisive role in the economic development of a country at a specific stage. For instance, demographic dividend and capital formation have bolstered the high-speed growth of the Chinese economy since the reform and opening-up.

Details

China Political Economy, vol. 3 no. 2
Type: Research Article
ISSN: 2516-1652

Keywords

Content available
Article
Publication date: 13 December 2019

Baoping Ren and Wei Jie

Constant or decreasing returns and increasing returns to scale are two kinds of mechanism in economic growth. The goal of supply-side structural reform is to promote the…

Abstract

Purpose

Constant or decreasing returns and increasing returns to scale are two kinds of mechanism in economic growth. The goal of supply-side structural reform is to promote the establishment of the mechanism with increasing returns to scale. The paper aims to discuss this issue.

Design/methodology/approach

This paper argues that the overall economic structure of the developing economy has been divided into the sector of constant or decreasing returns to scale and the sector of increasing returns to scale due to the dual economic structure. Among them, the supply-side structural reform is mainly to reduce the sector of decreasing returns to scale and increase the sector of increasing returns to scale. Based on the hypothesis of such two-sector economic structure in the supply side of developing economies and on the industrial data, this paper empirically tests the returns to scale of China’s supply structure. The result suggests that so far the sector of constant or decreasing returns to scale dominates the supply structure of China’s economic growth, which results in the state of decreasing returns to scale in China’s overall economy.

Findings

Therefore, to realize the long-term sustained growth and transformation of the development pattern of China’s economy, the authors must carry out the supply-side structural reform, vigorously develop the modern industrial sectors characterized by modern knowledge and technology, and promote the development of an innovation-driven economy.

Originality/value

Besides, the authors must accelerate the transformation from traditional industrial sectors to modern industrial sectors, actively promote China’s industrial structure toward rationalization and high gradation, as well as build a modern industrial system so as to facilitate the formation of the mechanism of increasing returns to scale and accelerate the transformation of the driving force of China’s economic growth.

Details

China Political Economy, vol. 2 no. 2
Type: Research Article
ISSN: 2516-1652

Keywords

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Article
Publication date: 5 July 2011

Wang Hongwei and Li Ping

This paper aims to reflect the quality of Chinese economic growth and analyze its influential factors through measuring the change rate of technological progress and its…

Abstract

Purpose

This paper aims to reflect the quality of Chinese economic growth and analyze its influential factors through measuring the change rate of technological progress and its contribution rate to economic growth between 1978 and 2008.

Design/methodology/approach

In this paper, an all factor productivity (AFP) method is taken. AFP is essentially a weighted sum of all input factors' productivity. Besides, general hypotheses for production function, such assumptions are not required as neutral technological progress, constant returns to scale and producer equilibrium in method of AFP. Furthermore, specific forms of production function are not needed and can be calculated directly. This method tries to relax the assumptions to make the estimated rate of technological progress closer to the reality in China.

Findings

Empirical research using the AFP method shows a contribution rate of AFP to economic growth has been significantly improved since reform and opening‐up; however, that AFP fluctuates during different periods. China's economic growth is driven by investment and mainly depends on accumulation of capital input and moderate technological progress. Generally speaking, China's change of technological progress is consistent with its economic growth and technological progress plays an important role in its economic growth. The paper concludes that it is becoming significant for China to speed up its large‐scale technological progress, strengthen indigenous innovation, accelerate human resource development, and to facilitate promotion of system reform in an in‐depth manner.

Originality/value

First, in order to ensure the accuracy measurement, and taking into account the impact of macro‐economic control policies, the rate of change of technological progress and its contribution to economic growth are measured, according to the stages of China's economic cycles. Second, the perpetual inventory method is taken to calculate the annual value of fixed asset investment, and price deflated index is used to convert fixed asset investment into comparable data of the base year, 1978. Since the data of fixed assets price index began to be released from 1992, data from 1978 to 1991 are obtained by mathematical method through extension. Third, the theoretical model of AFP is transformed into an empirical one to estimate the change rate of technological progress and its contribution to economic growth in China.

Details

Journal of Knowledge-based Innovation in China, vol. 3 no. 2
Type: Research Article
ISSN: 1756-1418

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Article
Publication date: 17 June 2013

Zhang Zhiming, Zhang Xin and Cui Riming

– The purpose of this paper is to measure the effects of WTO accession on the economic growth of China, and the paths of those effects.

Abstract

Purpose

The purpose of this paper is to measure the effects of WTO accession on the economic growth of China, and the paths of those effects.

Design/methodology/approach

This article carries out a theoretical and empirical analysis on the effect on China's economic growth from WTO accession. First is about the theoretical analysis of the paths of those effects which WTO accession has on China's economic growth. Next is to make empirical test about the effects through dummy variable regression and cross variable analysis.

Findings

WTO accession has a remarkable and a positive effect on China's economic growth through the following specific paths, i.e. foreign trade path, economic system reform path and FDI path. But so far entry into WTO has not positively influenced China's economic growth through technological innovation.

Originality/value

Based on the theoretical and empirical analysis, this article puts forward relative policies and suggestions on what China should do in the future.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 6 no. 2
Type: Research Article
ISSN: 1754-4408

Keywords

Content available
Article
Publication date: 27 July 2020

Kai Liu

What is the relation between the land system with Chinese characteristics and the country's high-speed economic growth in the past decades? There is a lack of rigorous…

Abstract

Purpose

What is the relation between the land system with Chinese characteristics and the country's high-speed economic growth in the past decades? There is a lack of rigorous academic research based on the general equilibrium theory of macroeconomics on this issue.

Design/methodology/approach

By building a multisector dynamic general equilibrium framework with land system, this paper explores how the land supply mode with Chinese characteristics affects China's economic growth as well as its transmission mechanism.

Findings

This paper confirms the importance of land system with Chinese characteristics in explaining the mystery of China's high-speed economic growth. Counterfactual analysis shows that if China adopts a land system similar to that of other developing countries, GDP will drop 36% from the current level under the baseline model.

Originality/value

As the industrial sector shrinks relatively and the output elasticity of infrastructure decreases, this inhibitory effect will become more apparent. China should improve its land supply mode, especially expand the supply of commercial and residential land and reduce the cost of land in the service sector. This can promote better economic development in the future and thus improve household welfare and the structure of aggregate demand, replace “land-based public finance” and thus inhibit the “high leverage” risks of local governments.

Details

China Political Economy, vol. 3 no. 1
Type: Research Article
ISSN: 2516-1652

Keywords

Content available
Article
Publication date: 13 December 2019

Xinhua Jian and Jiang Yu

The purpose of this paper is to review the four large and two small fluctuations in China’s economic growth since the reform and opening up, which can be further divided…

Abstract

Purpose

The purpose of this paper is to review the four large and two small fluctuations in China’s economic growth since the reform and opening up, which can be further divided into five periods of economic upturn and six periods of economic downturn.

Design/methodology/approach

This paper also analyzes the performance, causes and practical countermeasures of these fluctuations and summarizes the experience and lessons from the eight aspects of dealing with economic downturn and stabilizing growth since the reform and opening up.

Findings

At last, the paper puts forward some measures to cope with economic downturn and stabilize growth under the new normal in the new era.

Originality/value

Any country’s economic growth is a tortuous process with many fluctuations. The rate of economic growth cannot rise or go down straight for a long time, and China’s economic growth is no exception. The drastic fluctuations of economic growth can lead to serious overproduction, waste of resources, increased unemployment, decreased income or supply shortages, rising prices and decline of living standards.

Details

China Political Economy, vol. 2 no. 2
Type: Research Article
ISSN: 2516-1652

Keywords

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Article
Publication date: 9 February 2010

Guobing Shen

The purpose of this paper is to improve the measurement of nominal level and actual strength of China's intellectual property protection (IPP), and examine whether the…

Abstract

Purpose

The purpose of this paper is to improve the measurement of nominal level and actual strength of China's intellectual property protection (IPP), and examine whether the increase of actual protection strength (APS) is positive or negative impact on China's provincial economic growth.

Design/methodology/approach

A modified approach, based on Ginarte‐Park's (GP's) and HL's approaches, is used to measure nominal level and APS of China's intellectual property rights (IPR) from 1995 to 2007. The pooled EGLS method (cross‐section fixed effect) is used to estimate the effect of China's IPP and other variables on provincial economic growth.

Findings

The paper proves that China's APS appears an increase with a phase. China's IPP level by GP approach is on the high side, whereas China's IPP level by HL approach is slightly on the low side. Nominal level of China's IPP is largely influenced by the legislation level, whereas APS mostly embodies the effect of implementing law level. The increase of China's APS has significant positive impact on provincial economic growth. However, at the outset of building an independent innovation country, too strong IPP is bad for the development of innovation capability, and bad for provincial economic growth.

Research limitations/implications

Because the APS is unknown, it is impossible to use APS as the dependent variable to estimate the weights of the main influencing factors. The method that the paper assumes three main factors the same weights is second best choice. Thus, several different weights are supplemented to measure the distribution values of China's APS.

Practical implications

China's APS quantified by a modified approach and strong evidences can be used to estimate the effect on economic growth. Policy effectiveness could be maximized at seeking the endogenous benefit balance between strengthening IPP and promoting economic development.

Originality/value

The paper proposes a modified approach to measure the APS of China's IPR, and proves that the reinforcement of China's APS is beneficial to promoting provincial economic growth. However, at the outset, too strong IPP is harmful.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 3 no. 1
Type: Research Article
ISSN: 1754-4408

Keywords

Content available
Article
Publication date: 27 July 2020

Fusheng Xie, Ling Gao and Peiyu Xie

This paper examines the different features of China's economic development in different stages of economic globalization. The study finds that the investment- and…

Abstract

Purpose

This paper examines the different features of China's economic development in different stages of economic globalization. The study finds that the investment- and export-based growth model drove China's high-speed economic growth between 2000 and 2007, which came into existence around 2000 when China plugged into the global production network.

Design/methodology/approach

This paper also finds that China slowed down to the New Normal because of the disruption to the socio-economic underpinnings of this growth model. As China adapts to and steers the New Normal, supply-side structural reforms can channel excess capacity to the construction of underground pipe networks in rural areas of central China and fix capital while advance rural revitalization.

Findings

At the same time, enterprises must strive to build a key component development platform for key component innovation and the standard-setting power in global manufacturing.

Originality/value

The establishment of a domestic production network integrating the integrated innovation-driven core enterprises and modular producers at different levels can satisfy the dynamic demand structure of China in which standardized demands and personalized demands coexist.

Details

China Political Economy, vol. 3 no. 1
Type: Research Article
ISSN: 2516-1652

Keywords

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Article
Publication date: 2 October 2009

Longyue Zhao and Yan Wang

World Trade Organization (WTO) accession marked a new beginning for China's economic, legal and institutional reforms and rapid integration with the rest of the world. The…

Abstract

Purpose

World Trade Organization (WTO) accession marked a new beginning for China's economic, legal and institutional reforms and rapid integration with the rest of the world. The purpose of this paper is to review China's post‐WTO transition experience, synthesize and update studies on China's pattern of trade and structural transformation, and provide both positive and negative lessons for other developing countries.

Design/methodology/approach

The paper has broadly reviewed the latest policy changes after China's WTO accession, and literatures on China's trade and economic development issues in order to understand the Chinese success and its speciality, and draw some useful lessons for both China's decision‐makers and other developing countries.

Findings

There are two main findings: first, market liberalization alone is not sufficient, and economic system reform and the liberalization are closely related and complement and promote each other. Second, experimentations via special economic zones (SEZs) and opening to foreign direct investment (FDI), which facilitated and supported cluster development and learning‐by‐doing, are needed for industrial upgrading and export competitiveness.

Originality/value

The paper demonstrates the wisdom of China's simultaneous pursuit of domestic economic system reform, and opening to the international market. However, China has also paid a high social and environmental cost for its rapid growth. It is important for developing countries to have an exclusive, balanced and sustainable strategy in the future development.

Details

Journal of Chinese Economic and Foreign Trade Studies, vol. 2 no. 3
Type: Research Article
ISSN: 1754-4408

Keywords

Content available
Article
Publication date: 5 November 2020

Dan Qiao, Shuifa Ke, Xiaoxiao Zhang and Qiya Feng

The paper aims to explore the impact of marketization on forestry economic growth. Firstly, the development process of forestry marketization was summarized. Secondly…

Abstract

Purpose

The paper aims to explore the impact of marketization on forestry economic growth. Firstly, the development process of forestry marketization was summarized. Secondly, from the three dimensions of forestry production factor marketization, production marketization and product marketization, the framework of marketization is constructed by the authors.

Design/methodology/approach

Based on the yearbook data from 1978 to 2016, the relationship between forestry marketization and forestry growth was demonstrated through multiple regression and Granger test in this paper.

Findings

The results showed that forestry marketization was one of the important driving factors that impacted on China's forestry economic growth. Since the reform and opening up, China's forestry marketization degree has been constantly strengthened, but there is still room for improvement. China has provided an important model as forestry marketization reform and development sample for the world.

Social implications

Many useful references and inspirations have been provided from China such as gradually promoting market-oriented reforms; paying attention to the important role of reform and opening up in the construction of market mechanism; dynamic coordination of market and government relations; developing and connecting the relationship between domestic and international market; and coordinating the development of forestry state-owned economy, private economy and mixed ownership economy.

Originality/value

This paper creates a measure index of forestry marketization from three dimensions of forestry production factor marketization, production marketization and product marketization.

Details

Forestry Economics Review, vol. 2 no. 1
Type: Research Article
ISSN: 2631-3030

Keywords

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