The Chinese Economy: Transitions and Growth Barry Naughton
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The Chinese Economy: Transitions and Growth by Barry Naughton. Naughton, Barry, 2007, The Chinese Economy Transitions and Growth, Boston, Massachusetts: MIT Press. That conclusion is supported by two key factors which suggest that China's transition from high trend growth to lower trend growth is probably already underway. Contrary to the conventional wisdom that China's economic growth has been driven by exports, it is investment that actually contributes the most. In fact, the economy is already domestically driven, but it's being propped up by government investment spending – uncertain foundations even for a country as cash-rich as China – rather than consumers themselves. China is making the transition from cheap exporter to a consumer-led economy. Emphasis on urbanisation, services and social development, and consequently also greater reliance on private consumption as a source of economic growth. China is likely the site of world economic growth's last stand. Naughton, Barry (2007), The Chinese Economy: Transitions and Growth. Download The Chinese Economy: Transitions and Growth. The slowdown makes this transition all the more urgent, because GDP growth in China's service sector produces more jobs than does the industrial sector. Naughton's most recent book is The Chinese Economy: Transitions and Growth, a comprehensive survey of the Chinese economy. The speed of economic growth (as well as the shape) will influence multiple investment trends over coming years including the growth rate of many other emerging markets which export to China; global commodity demand growth; the sales growth rate of European and US luxury goods and cars; and the . The government is attempting a shift away from cheap exports and towards an economy fuelled by Chinese's growing ranks of consumers. Since its departure from Communism and the liberalization of its economy, China has experienced extremely high economic growth rates, raised hundreds of millions of people out of poverty, and has become a central component of the global economy due to its high degree of integration and essential role in the supply chain (Sachs, 2005, 165-169). This nation, together with Founded in 2003, Post Carbon Institute is leading the transition to a more resilient, equitable, and sustainable world. The Chinese Economy: Transitions and Growth. Many economists have overestimated China's ability to rebound from the global economic slump. Philip highlights three mutually reinforcing paths of transformation ahead in the Chinese economy. First, a structural slowdown of growth looks clearly to be in the cards.