Development Of China Essay

Essays on economic *growth in China

Xiang Ao, University of Nebraska - Lincoln


China's real GDP grew at about 9% per year during the last two decades. The last two decades have seen great economic achievements in China. However, as the society advanced, many economic issues emerged and have remained unresolved. This thesis addresses three important issues. ^ Similar to the case of the “Four Asian Tigers”, a hotly debated question is raised in the literature: Is this extraordinary growth rate of China due only to factor accumulation or to a large degree due to improvement in technology and efficiency? In Chapter 2, I estimate TFP growth rates of Chinese provinces using two different models. The average TFP growth rate estimated by the fixed-effect model is 4.9%. However, this approach assumes full efficiency, i.e., the TFP growth rates we estimate includes both technical changes and technical efficiency changes. The average technical change rate estimated by a stochastic frontier model is estimated to be about 2.7%, higher than Young (2000)'s estimate of TFP growth rate. It shows that China has benefited significantly from technological improvement. ^ Chapter 3 addresses the question of convergence: Does conditional convergence exist among Chinese provinces? A neoclassical growth model is adopted and tested. Then an equation is formulated for testing convergence as a dynamic panel data model, and fixed-effect estimators are used to estimate it. Convergence is detected and the convergence rate is calculated. ^ Chapter 4 studies the relationship between regional inequality and economic growth in the case of China. In this study, I use a dataset consisting of the standard deviations of per capita income, per capita GDP growth rate, and the labor force of all the 30 provinces (metropolitan areas) from 1952 to 1998, to estimate the effect of regional disparity on economic growth of Chinese provinces during the reform period. A positive relationship is detected between regional inequality and economic growth of China. However, the positive relationship is not significant during the reform period. ^

Subject Area

Economics, General

Recommended Citation

Ao, Xiang, "Essays on economic *growth in China" (2002). ETD collection for University of Nebraska - Lincoln. AAI3064554.


Since April 22, 2005


China's Development Essay

China's development is praised by the whole world. Its developments are not only in the economic aspect, but as well in its foreign affairs. Compared with other developed countries, China is a relatively young country. It began constructing itself in 1949. After 30 years of growth, company ownership had experienced unprecedented changes. Entirely, non-state-owned companies can now be more involved in sectors that used to be monopolized by state-owned companies.
Its phenomenal success is because it developed some suitable public policies, which were the perfect fit for the situation in China. In the last few years, China has had a remarkable economic development and has come to play an increasingly significant role in our world economy.
When the new Chinese Government was set up in 1949, the new government faced a lot of problems. First on their agenda was how to re-build the country. As Communist Party of China (CPC) is a socialist party, their policies at the time were similar to that of the Soviet Union’s. Consequently, the CPC used a centrally planned strategy as its economic strategy when it first began. For a long time, the Chinese economy was a centrally planned economy in which none other than the state owned all companies. In fact, there were absolutely no entrepreneurs. As time went on, the problems of a centrally planned economy started to appear, such as low productivity, which was the key reason for restricting the development of China. With the population growing, the limitations of the centrally planned economy were clear. In 1978 China started its economic reform whose goal was to generate sufficient surplus value to finance the modernization of the Chinese economy. In the beginning, in the late 1970s and early 1980s, trade was opened to the outside world and the Contract Responsibilities System (CRS) was implemented in agriculture. The CRS gave farmers the right to make independent decisions on using a small piece of contracted land. This new system resulted in eight hundred million farmers gaining the decision-making power on farmland management. The household Contract Responsibilities System helped China’s agriculture step out of the long-term predicament it was in. The agricultural business grew fast toward specialization, commercialization, and socialization. Another positive outcome that resulted from the CRS was the Township-Village Enterprises that thrived from the Chinese farmers. These Township-Village Enterprises set up factories in the countryside, so the peasants could work at the factories as well as work on the land. In China at that time, most of the people were peasants, so this policy generated a lot of them to get employed. Even today, more people live in the countryside compared to those people who live in the city. All in all, the Township-Village Enterprises contributed a lot to the development of China during the reform.
By the end of the 1980s China had almost solved its food shortage problems. Around...

Loading: Checking Spelling


Read more

Opportunities and Challenges. Essay

2253 words - 9 pages Opportunities and ChallengesForChina' National Home Electrical Appliance Industry upon WTO EntrySummaryWith the entry WTO, China's national home electrical appliance industry is facing innumerous opportunities and challenges as well as the old nation itself. What's our advantages; where is our opportunities; how to confront our challenges; where is the way out we will discuss them in the following essay.Key...

The Impact of China's Modern Foreign Policies on Economic Growth

1113 words - 4 pages The Impact of China's Modern Foreign Policies on Economic Growth Recent Chinese economic policies have shot the country into the world economy at full speed. As testimony of this, China's gross domestic product has risen to seventh in the world, and its economy is growing at over nine percent per year (econ-gen 1). Starting in 1979, the Chinese have implemented numerous economic and political tactics to open the Chinese marketplace to...

WTO and China

3699 words - 15 pages 1.0 Introduction:Since its inception in 1995, the World Trade Organization (WTO) has regularly been in the news. There have been optimistic stories of expanding WTO membership that emphasize that freer trade generates numerous benefits for consumers. Newspapers report on the details of WTO entry negotiations for important countries like China and remind us of the gains...

China's Emergence As A Superpower

1585 words - 6 pages "The 19th century belonged to the British. The 20th century belonged to the United States. But the 21st century belongs to China," -- Jim Rogers, Hedge fund manager China's population is one of the greatest natural resources on the planet. Its citizens are becoming more educated, diligent, aspiring and comprise nearly a quarter of the world's population. The combination of China's massive size and rapid modernization is creating the...

Chinese Administration response to 2008 financial crisis

975 words - 4 pages Commodity boom, housing bubble, global imbalances, a subprime mortgage crisis and inflation led to the 2008 macroeconomic crisis and China's economy suffered, especially its exports industry (Yu, 2009; Zhang, 2009; Zhang, Li & Shi, 2009) . Its pre-crisis stable fiscal policy and tight monetary policy were substituted with expansionary policies. (Yang, 2011; Yu, 2009; Zhang, Tang & Lin; Zhang, Li & Shi, 2009). A fiscal package of 4...

Chine Interlaken Case Study

609 words - 2 pages IntroductionChina's Interlaken Village is a grand resort precisely imitating the Swiss village of Interlaken. After opening in mid-2007, China's Interlaken was successful to an extent, but there was concern that the resort's performance would drop heading into the third year of business. The resort was targeting the tourism...

Chinese Economy

3472 words - 14 pages China is everywhere these days. Powered by the world's most rapidly changing large economy, it is influencing our lives as consumers, employees and citizens. China's miracle economy, though largely initiated by Deng Xiaoping's market reforms in 1978, has resulted because of the current globalisation era in which barriers between nations have been reduced while economies have become increasingly converged leading to increased movement across...

What are the Implications of China as an Emerging Nuclear Power

4736 words - 19 pages IntroductionThe People's Republic of China has been an emerging nuclear power since its first nuclear explosion conducted in October of 1964. Since then China's nuclear stockpile has remained comparatively small with respect to that of the United States and Soviet Union. Long ago China's nuclear supply couldn't detect incoming missiles, had an undeveloped nuclear control system and command, and slow preparation launch times for its missiles....

The Import of China for Recent 10 Years

2413 words - 10 pages ECON910 Xi Song 3348532 IntroductionThe trade development of China has been rapidly expanded in recent two decade, and it has become a centre development in the globe economy. The Chinese economy is much more integrated with the world economy via international trade and investment, especially when...

China's economy growing so fast

2845 words - 11 pages China's rise from a "poor, stagnant country to a major economic power" within such a short time span has often been touted by many economic analysts as one of the world's greatest economic success stories (Elwell et al: 2007). China's rise is so celebrated, because while pre-1978 China experienced annual growth of "6 per cent a year, post-1978 China saw average real growth of more than 9 per cent a year" making it the envy of many of Asia's...

The effects of globalisation on China.

2690 words - 11 pages Globalisation is the process of increased integration between different economies of the world to create a unified global economy. Economists believe that this movement will lead to a more efficient allocation of resources as countries produce goods and services where they have a comparative advantage. For globalisation to work, it is necessary to promote free trade between nations to enable goods and services to flow between various...


Leave a Reply

Your email address will not be published. Required fields are marked *