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Understanding China’s New Dual Circulation Development Strategy: A Marxian Input-Output Analysis

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  • Lijun Su
  • Junshang Liang

Abstract

The Chinese government has proposed a new development model called Dual Circulation, which, we argue, is a response to the upsurge of trade protectionism in recent years, as well as an acceleration of China’s long-planned restructuring of its economy. Our input-output analysis reveals the inferior global distributional position of China and the dire consequences it faces from a counterfactual US-China trade decoupling. Specifically, China on average transferred out about 9 percent of its abstract labor during 2010–14, and it stands to lose 2.5 percentage points in its growth rate and over 10 million jobs if the United States and China completely transfer their bilateral trade to other partners. JEL classification : B51, O24, D57

Suggested Citation

  • Lijun Su & Junshang Liang, 2021. "Understanding China’s New Dual Circulation Development Strategy: A Marxian Input-Output Analysis," Review of Radical Political Economics, Union for Radical Political Economics, vol. 53(4), pages 590-599, December.
    • Handle: RePEc:sae:reorpe:v:53:y:2021:i:4:p:590-599
    DOI: 10.1177/04866134211021971
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    References listed on IDEAS

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    More about this item

    Keywords

    globalization; US-China trade conflict; Dual Circulation;
    All these keywords.

    JEL classification:

    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis

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