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The Institutional Foundations of China’s Unbalanced Economy

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  • Guangdong Xu

Abstract

China has become a fast-growing economy with an unbalanced economic structure. Economic policies, especially fiscal and financial policies, contribute to the current growth model by depressing household disposable income and reducing the social services provided by the government. Laws that have been used by the government to subsidise investment and production by distorting factor markets are also to blame. Finally, rebalancing China’s growth pattern has proven to be extremely difficult due to political obstacles, including pressure from interest groups, gridlock caused by factional politics, and ideological discrimination against private entrepreneurs.

Suggested Citation

  • Guangdong Xu, 2015. "The Institutional Foundations of China’s Unbalanced Economy," Europe-Asia Studies, Taylor & Francis Journals, vol. 67(9), pages 1351-1370, October.
    • Handle: RePEc:taf:ceasxx:v:67:y:2015:i:9:p:1351-1370
    DOI: 10.1080/09668136.2015.1085493
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    References listed on IDEAS

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