External Equilibrium Growth Rate: Evidence from China
Read
DownLoad |
| Title | External Equilibrium Growth Rate: Evidence from China
|
| Author | Wang Jinbin and Li Sha |
| Organization | School of Economics, Renmin University of China |
| Email | wjinbin@ruc.edu.cn. |
| Key Words | External Balance; Trade Elasticity; Thirlwall Law; Growth Rat |
| Abstract | Can Chinese economy maintain the high growth rate when its external imbalance is disappearing? Based on the related researches, this paper uses the Augmented Balance of Payment Constrained Growth Model (ABPC) and more reliable methods to gauge the trade elasticities, and the results indicate that there is also deviation between the real GDP growth rate and estimation outcome. So we should use the ABPC model carefully in analyzing China’s situation. Using strong version of Thirlwall’s Law, when China's exterior tends to be the state of equilibrium, the Chinese economy growth rate is about two times than the growth rate of world economy. |
| Serial Number | WP525 |
| Time | 2013-10-15 |
|