Why is China Growing so Fast?

Author/Editor:

Mohsin S. Khan ; Zuliu Hu

Publication Date:

July 1, 1996

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 has been growing at a spectacular rate in recent years, enabling per capita incomes to almost quadruple in only the last decade and a half This paper identifies the sources of economic growth in China from 1953 to 1994. While capital accumulation played an important role in China’s economic growth throughout the period, it is basically the sharp and sustained increase in productivity that accounts for the unprecedented economic growth observed during the reform period. The productivity gains largely reflect market-oriented reforms, especially the expansion of the nonstate sector, as well as China’s “open door” policy that brought about a dramatic expansion in foreign trade and foreign direct investment.

Series:

Working Paper No. 96/75

Subject:

Notes:

Also published in Staff Papers, Vol. 44, No. 1, March 1997.

English

Publication Date:

July 1, 1996

ISBN/ISSN:

9781451849684/1018-5941

Stock No:

WPIEA0751996

Format:

Paper

Pages:

36

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