Chapter

The Role of Structural Change: Trade, Ownership, Industry

John Knight and Sai Ding

in China's Remarkable Economic Growth

Published in print April 2012 | ISBN: 9780199698691
Published online May 2012 | e-ISBN: 9780191739118 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780199698691.003.0007
The Role of Structural Change: Trade, Ownership, Industry

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This chapter explores some indirect determinants of China's growth success, including sectoral change, increased openness, and institutional change. All three forms of structural change are found to raise the growth rate. Each primarily represents an improvement in efficiency, moving the economy towards its production frontier. The chapter examines the growth impacts of openness (Section 7.2), institutional change (Section 7.3), and sectoral change (Section 7.4). In each of these sections the relevant theoretical and empirical literature is discussed, background information for China is provided, and empirical results are summarized. Section 7.5 concludes the chapter by considering various counterfactual simulation analyses in order to throw further light on the underlying question: why has China grown so fast?

Keywords: economic growth; sectoral change; openness; institutional change; counterfactual simulation analyses; efficiency

Chapter.  9974 words.  Illustrated.

Subjects: Business and Management

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