China's Macroeconomic Performance and Management During Transition

Abstract

Since reforms started in 1978, China has combined rapid growth with moderate price stability. This paper analyzes China's macroeconomic performance over the past fifteen years with special attention to factors responsible both for the pace of economic expansion and the periodic fluctuations. Regarding the former, the author identifies four sources of stimuli: administrative decentralization, high levels of fixed capital investment, the elastic supply and quality of the labor force, and the increasing volume of savings supplemented in recent years by a large inflow of foreign direct investment. Future growth with stability calls for controlling and implementing banking and fiscal reform.

Fiscal decentralization, revenue and expenditure assignments, and growth in China

“…This result is counter intuitive, but may be reconciled by the observation that when central government revenue is low, countries are more prone to macroeconomic instability, which may deter growth. (Ahamd, Gao, & Tanzi, 1995;Yusuf, 1994).…”

Employment, Emerging Labor Markets, and the Role of Education in Rural China

“…Naughton (1995) describes a complicated cycle of reform and retrenchment. Yusuf (1994) details a policy and inflation cycle. Zhu and Brandt (1995) blame financial and fiscal policy.…”

The Implications/Reflections of European Economic Integration in Kosovo’s Business Environment Managers’ Attitude towards European Economic Integration Process

“…So, Bleaney (1996) points out that there is a robust evidence that triggers us to believe that developing economic relationship between countries it does produce a macroeconomic stability though, which is certainly related with fostering economic growth and increasing the foreign direct investment as long as the economy is in expansion period. Moreover, other authors expand this argument by identifying the main channels that are solely related with macroeconomics stability that include: increasing foreign investment, reducing unemployment and deficit which are vital in ensuring this macroeconomic stability that in the last instance does provide huge opportunity for a real economic prosperity as a consequence of economic integration as well as are necessary in fostering economic growth, even though, over long period has substantial impact (Fischer, 1993: Yusuf, 1994). In addition, this sequential connection amid economic integration and macroeconomics stability is closely linked as long as the entire economic capillary are working properly and not having any possible fluctuation that puts at stake the whole economic chain that certainly spreads the consequences in other economies too (Oksanen & Rilla, 2009).…”