Suchergebnisse

AbstractA reorientation towards emphasis on consumption has become a major issue in China, raising the question of the relationship between economic growth and the composition of output. The issue is addressed here, using insights from economic growth theories. These theories indicate that concentration on capital goods production generates the most rapid overall growth. With short‐term deviations and without explicit reference to any theory, Chinese practice in the past seems to have conformed. A shift to emphasizing output of consumption goods while resulting in an overall growth slowdown, will improve consumer welfare, suggesting the benefits of shifting to this criterion of economic success.

The explanation offered here for the high rates of saving in China is that much of the saving has been "forced" in two Benthamite senses. Involuntary saving, the first of Bentham's meanings, includes taxes which finance investment. These have made up more than half of the total savings in China in recent years. There is also forced saving in China in the form of Bentham's second sense, conduced saving, resulting from bank loans which have financed investment. While the existence of a savings glut has been suggested for China, a better characterization would be that it has had a high rate of investment. (China Q/GIGA)

AbstractThe explanation offered here for the high rates of saving in China is that much of the saving has been "forced" in two Benthamite senses. Involuntary saving, the first of Bentham's meanings, includes taxes which finance investment. These have made up more than half of the total savings in China in recent years. There is also forced saving in China in the form of Bentham's second sense, conduced saving, resulting from bank loans which have financed investment. While the existence of a savings glut has been suggested for China, a better characterization would be that it has had a high rate of investment.