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Potential Output in a Rapidly Developing Economy: The Case of China and a Comparison with the United States and the European Union.
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- Author(s): Jinghai Zheng; Angang Hu; Bigsten, Arne
- Source:
Review (00149187). Jul/Aug2009, Vol. 91 Issue 4, p317-342. 26p. 6 Charts, 13 Graphs. - Source:
- Additional Information
- Subject Terms:
- Subject Terms:
- Abstract: The authors use a growth accounting framework to examine growth of the rapidly developing Chinese economy. Their findings support the view that, although feasible in the intermediate term, China's recent pattern of extensive growth is not sustainable in the long run. The authors believe that China will be able to sustain a growth rate of 8 to 9 percent for an extended period if it moves from extensive to intensive growth. They next compare potential growth in China with historical developments in the United States and the European Union. They discuss the differences in production structure and level of development across the three economies that may explain the countries' varied intermediate-term growth prospects. Finally, the authors provide an analysis of "green" gross domestic product and the role of natural resources in China's growth. [ABSTRACT FROM AUTHOR]
- Abstract: Copyright of Review (00149187) is the property of Federal Reserve Bank of St. Louis and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
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