Chapter

Why Does China Invest so Much?

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/9780199698691.003.0008
Why Does China Invest so Much?

Show Summary Details

Preview

China has had a remarkably high ratio of investment to output throughout the period of economic reform, surpassing almost all other economies. This chapter gathers together the available evidence to explain why investment is so high, looking at factors both on the demand and on the supply side, and in the latter case the availability of both resources and funds. The chapter is organized as follows. Section 8.2 analyses the demand for investment. Sections 8.3 and 8.4 discuss the supply side: resources for investment and funds for investment respectively. The implications of the analysis for the efficiency of investment, and its implications in turn, are examined in Section 8.5 from the static perspective and in Section 8.6 from a dynamic perspective. Section 8.7 summarizes and concludes.

Keywords: investment demand; investment supply; funds; resources; investment efficiency

Chapter.  12636 words.  Illustrated.

Subjects: Business and Management

Full text: subscription required

How to subscribe Recommend to my Librarian

Buy this work at Oxford University Press »

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.