07412oam 22015854 450 991077959360332120230802005915.01-61635-791-61-4755-9471-21-283-94781-1(CKB)2550000001003746(EBL)1607078(SSID)ssj0000941841(PQKBManifestationID)11505437(PQKBTitleCode)TC0000941841(PQKBWorkID)10971261(PQKB)10580696(MiAaPQ)EBC1607078(Au-PeEL)EBL1607078(CaPaEBR)ebr10644334(CaONFJC)MIL426031(OCoLC)819710438(IMF)WPIEE2012277(IMF)WPIEA2012277(EXLCZ)99255000000100374620020129d2012 uf 0engurcn|||||||||txtccrIs China Over-Investing and Does it Matter? /Il Lee, Murtaza Syed, Liu XueyanWashington, D.C. :International Monetary Fund,2012.1 online resource (23 p.)IMF Working PapersIMF working paper ;WP/12/277"November 2012" -- verso of t.p.At head of title: Asia and Pacific Department -- verso of t.p.1-4755-6111-3 1-4755-6267-5 Includes bibliographical references.Cover; Contents; I. Introduction; Figure; Figure 1. Gross Capital Formation, in percent GDP; II. Investment in China: Literature Review; III. Neoclassical Model Approach; Figure 2. Capital- and Investment-to-Output Ratio; Figure 3a. Growth and Capital-to-Output Ratio; Figure 3b. Growth and Investment-to-Output Ratio; IV. A Theoretical Framework of Optimal Investment; Figure 4a. Capital- and Investment-to-Output Ratio; Figure 4b. Capital- and Investment-to-Output Ratio; Figure 5a. Contribution of Investment to GDP growth; Figure 5b. Contribution to Growth (in percent of total)Figure 6. Production Function V. What Can Aggregate Cross-Country Data Tell Us?; Table; Table 1. Investment Equations 1/ 2/; Figure 7. China: Investment-to-GDP; Table 2. Probit: Probability of crisis; Table 3. Evolution of variables in the lead-up to crisis (5-years); VI. Estimating the Hidden Costs of China's Investment; Figure 9. Profit Margin and Credit allocation between LCs and SMEs; Figure 10. Resource transfers and dead weight loss; Figure 11. Estimated Amount of Resource Transfer from Households to Large Corporate (In percent of GDP); VII. Conclusion; Data Appendix; ReferencesNow close to 50 percent of GDP, this paper assesses the appropriateness of China’s current investment levels. It finds that China’s capital-to-output ratio is within the range of other emerging markets, but its economic growth rates stand out, partly due to a surge in investment over the last decade. Moreover, its investment is significantly higher than suggested by cross-country panel estimation. This deviation has been accumulating over the last decade, and at nearly 10 percent of GDP is now larger and more persistent than experienced by other Asian economies leading up to the Asian crisis. However, because its investment is predominantly financed by domestic savings, a crisis appears unlikely when assessed against dependency on external funding. But this does not mean that the cost is absent. Rather, it is distributed to other sectors of the economy through a hidden transfer of resources, estimated at an average of 4 percent of GDP per year.IMF Working Papers; Working Paper ;No. 2012/277Investments, ChineseEconometric modelsEconomic developmentChinaEconometric modelsBanks and BankingimfFinance: GeneralimfMacroeconomicsimfMoney and Monetary PolicyimfIndustries: Financial ServicesimfInvestmentimfCapitalimfIntangible CapitalimfCapacityimfWelfare Economics: GeneralimfIntertemporal Consumer ChoiceimfLife Cycle Models and SavingimfBanksimfDepository InstitutionsimfMicro Finance InstitutionsimfMortgagesimfMacroeconomics: ConsumptionimfSavingimfWealthimfGeneral Financial Markets: General (includes Measurement and Data)imfInterest Rates: Determination, Term Structure, and EffectsimfMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralimfFinancial Institutions and Services: GeneralimfFinanceimfMonetary economicsimfConsumptionimfEmerging and frontier financial marketsimfReal interest ratesimfCreditimfFinancial sectorimfFinancial marketsimfNational accountsimfFinancial servicesimfMoneyimfEconomic sectorsimfFinancial services industryimfEconomicsimfInterest ratesimfChina, People's Republic ofimfInvestments, ChineseEconometric models.Economic developmentEconometric models.Banks and BankingFinance: GeneralMacroeconomicsMoney and Monetary PolicyIndustries: Financial ServicesInvestmentCapitalIntangible CapitalCapacityWelfare Economics: GeneralIntertemporal Consumer ChoiceLife Cycle Models and SavingBanksDepository InstitutionsMicro Finance InstitutionsMortgagesMacroeconomics: ConsumptionSavingWealthGeneral Financial Markets: General (includes Measurement and Data)Interest Rates: Determination, Term Structure, and EffectsMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralFinancial Institutions and Services: GeneralFinanceMonetary economicsConsumptionEmerging and frontier financial marketsReal interest ratesCreditFinancial sectorFinancial marketsNational accountsFinancial servicesMoneyEconomic sectorsFinancial services industryEconomicsInterest ratesLee Il1548097Syed Murtaza1462061Xueyan Liu1548098International Monetary Fund.Asia and Pacific Dept.DcWaIMFBOOK9910779593603321Is China Over-Investing and Does it Matter3804904UNINA