In Economic Growth and Structural Evolution, the authors propose that China’s reform strategy is to promote capital accumulation through a gradual adjustment of its relative price system, enabling the industrial capital to obtain higher profits and thus unleashing the great potential of economic growth. Moreover, the Chinese government prioritizes the growth of different industries at different times through measures such as the dual-track price system leading to the rise of township and village enterprises and the opening up of eastern coastal areas resulting in rapid urbanization and the boom of the real estate industry. This growth pattern has effectively mobilized China’s huge labor resources and given full play to its comparative advantages. However, the pattern is not sustainable as government intervention and distorted factor prices have caused growth imbalance. Sustainable growth can only be achieved when the Chinese government shifts its focus from GDP growth to welfare improvement.

Benefits:

• Written by a group of prominent Chinese economists, the series represents a concerted eff ort bynative scholars to analyze the “Chinese Miracle” as well as predict its future development.
• Each volume examines diff erent aspects of the reform, such as structural reform, entrepreneurship, local governments, specialized markets, innovation and globalization.
• Contains numerous graphs and tables

Also available in Gale Virtual Reference Library (eBook)

© 2010. Available in February 2010

eBook ISBN: 9789814281928

This title is part of China's Reform Studies Series that include:

1. China’s Specialized Markets

2. Development of China in Modern World System

3. Economic Growth and Structural Evolution

4. Economic Reform and Institutional Innovation

5. Incentives and Governance: China’s Local Governments

6. The Micro-foundation of China’s Market Economy

7. Toward an Innovative Nation

8. Transformation of the Chinese Enterprises