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Rebalancing China's economy : what does growth theory tell us? /
This paper uses the standard one-sector neoclassical growth model to investigate why China's consumption has been low and investment high. It finds that the low cost of capital has been quantitatively an important factor. Theory predicts that the price of capital may have been significantly dis...
| Clasificación: | Libro Electrónico |
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| Autor principal: | |
| Autor Corporativo: | |
| Formato: | Electrónico eBook |
| Idioma: | Inglés |
| Publicado: |
[Washington, D.C.] :
International Monetary Fund, Asia and Pacific Dept.,
2006.
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| Colección: | IMF working paper ;
WP/06/291. |
| Temas: | |
| Acceso en línea: | Texto completo |
| Sumario: | This paper uses the standard one-sector neoclassical growth model to investigate why China's consumption has been low and investment high. It finds that the low cost of capital has been quantitatively an important factor. Theory predicts that the price of capital may have been significantly distorted in the 1990s and 2000s. The distortion could have been caused by nonperforming loans, borrowing constraints, and uncertainty over changes in government guidance in bank lending. If China is to rebalance growth towards relying more on consumption and less on exports and investment, banking sector reforms and financial market development could, therefore, turn out to be key. |
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| Descripción Física: | 1 online resource (34 pages) : illustrations |
| Bibliografía: | Includes bibliographical references (pages 32-34). |
| ISBN: | 1283513234 9781283513234 9781451910049 1451910045 1462376029 9781462376025 1452736006 9781452736006 9786613825681 6613825689 |
| ISSN: | 2227-8885 ; |