Economic Growth In China Case Study

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1. Consider how these differing processes may be compared to the Chinese growth experience since 1980. Is China different and if so, in what ways? In particular, consider the role of economic policy and the technological upgrading strategies adopted in China from the 1980s onwards Overview Walking through labor-intensive, industry-led and consumption-led growth (Lo and Zhang), China has made a significant economic development and the growth has shifted people's life from poverty to a better level, such has improved health, higher education level and social welfare. Global trade had remarkable impact on the economic transition of China, because Chinese focused on rural reform at the beginning of economic development, which did not provide such…show more content…
Firstly, industrialization dominated the economic growth. Secondly, during early 1990s, capital-deepening growth replaced with labor-intensive growth. Thirdly, investment-led growth supplanted consumption-led growth and became a main drive force for the economic development. To be mentioned, mainland of China developed economy by promoting export as well as Taiwan and Indonesia did. However, different from Taiwan, China (mainland) was guided basically by capital deepening in its industrialization process, rather than the principle of comparative advantage which applied by Taiwanese government (Lo, 2006) . Plus, Rodrik (2006) also pointed that government policies instead of comparative advantage and free markets have helped China succeed in export…show more content…
Three periods of events should be mentioned, and as noticed China survived from these tough economic stages. Firstly, in the 1980s, most of the developing countries were in "lost decades of development" during globalization, the average annual growth rate of per capita income for all low- and middle- income countries were lower than that of high-income countries (Lo 2006); which means high-income economies were getting much richer while low- and middle-income economies were not, but even poor. Surprisingly, at this period, China as a developing country widened the gap from those developing countries in economic growth. Secondly, between 1980s and 1990s, former Soviet bloc was disintegrated into several independent countries, which changed world economic structure seriously. Economy was stagnated due to this. Thirdly, during late 1990s, Asian financial crisis destroyed most of Asian countries' economies; however, the crisis did not affect Chinese economy to a large

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