Enhancing China’s Medium-Term Growth Prospects : The Path to a High-Income Economy

Author/Editor: Malhar Nabar ; Papa M'B. P. N'Diaye
Publication Date: October 02, 2013
Electronic Access: Free Full text (PDF file size is 690KB).
Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate
Summary: China’s current growth model—which has delivered steady and robust growth for two decades and lifted some 500 million individuals out of poverty—has become too reliant on credit and investment, and has begun to experience diminishing returns. Delays in advancing the government’s reform agenda will mean that vulnerabilities continue to grow and the probability of stalled convergence increases. On the other hand, with reforms to accelerate TFP growth and shift the economy away from its continued reliance on capital accumulation, China can grow at a healthy pace and maintain its convergence toward the level of high income economies. Evidence from China’s provinces indicates that there is room to improve productivity and sustain such a convergence toward the level of more prosperous economies.
Series: Working Paper No. 13/204
Subject(s): Economic growth | China | Productivity | Capital accumulation

Notes Also available in Chinese
Publication Date: October 02, 2013
ISBN/ISSN: 9781484354957/1018-5941 Format: Paper
Stock No: WPIEA2013204 Pages: 20
US$18.00 (Academic Rate:
US$18.00 )
Please address any questions about this title to publications@imf.org