| ID | 168357 |
| Title Proper | Hitting the Great Wall: Structural change and China's growth slowdown |
| Language | ENG |
| Author | Ye, Longfeng |
| Summary / Abstract (Note) | China is facing slowing growth rates, slowing rates of rural to urban migration and resistance to reforms that would liberalize internal migration restrictions (Hukou). We use a two sector Ramsey growth model and show that, allowing for endogenous capital accumulation, labour reallocation has accounted for approximately one fifth of China's per capita GDP growth over the last 30 years, and that Hukou reform could generate a significant boost to China's per capita GDP growth over the next decade. Our results contrast with conclusions drawn from the traditional growth accounting literature on labour reallocation effects in China because our simulation method allows for endogenous capital accumulation dynamics. |
| `In' analytical Note | China Economic Review Vol.56 , Aug 2019: p. 101302 |
| Journal Source | China Economic Review 2019-08 |
| Key Words | China ; Economic Growth ; Structural Change ; Dual Economy ; Capital Accumulation |