03172nam 2200709 a 450 991082631150332120200520144314.01-4623-7602-91-4527-3600-61-283-51323-497866138256811-4519-1004-5(CKB)3360000000443560(EBL)3012496(SSID)ssj0001484919(PQKBManifestationID)11766975(PQKBTitleCode)TC0001484919(PQKBWorkID)11437785(PQKB)11398817(OCoLC)568151134(IMF)WPIEE2006291(MiAaPQ)EBC3012496(EXLCZ)99336000000044356020090806d2006 uy 0engurcnu||||||||txtccrRebalancing China's economy what does growth theory tell us? /prepared by Jahangir Aziz1st ed.[Washington, D.C.] International Monetary Fund, Asia and Pacific Dept.20061 online resource (36 p.)IMF working paper ;WP/06/291"December 2006."1-4518-6551-1 Includes bibliographical references (p. 32-34).""Contents""; ""I. INTRODUCTION""; ""II. CONSUMPTION, INVESTMENT, AND SAVINGS IN CHINA""; ""III. THE CHINESE ECONOMY AS A NEOCLASSICAL GROWTH MODEL""; ""IV. CALIBRATING THE GROWTH MODEL""; ""V. SIMULATING THE MODEL: THE FIRST CUT""; ""VI. INTRODUCING INVESTMENT WEDGE""; ""VII. FINANCIAL FRICTIONS AS INVESTMENT WEDGES""; ""VIII. CONCLUSIONS""; ""REFERENCES""This paper uses the standard one-sector neoclassical growth model to investigate why China's consumption has been low and investment high. It finds that the low cost of capital has been quantitatively an important factor. Theory predicts that the price of capital may have been significantly distorted in the 1990s and 2000s. The distortion could have been caused by nonperforming loans, borrowing constraints, and uncertainty over changes in government guidance in bank lending. If China is to rebalance growth towards relying more on consumption and less on exports and investment, banking sector reforms and financial market development could, therefore, turn out to be key.IMF working paper ;WP/06/291.Business cyclesChinaEconometric modelsEconomic developmentChinaCapital marketChinaConsumption (Economics)ChinaInvestmentsChinaFinanceChinaChinaEconomic policyBusiness cyclesEconometric models.Economic developmentCapital marketConsumption (Economics)InvestmentsFinanceAziz Jahangir1647836International Monetary Fund.Asia and Pacific Dept.MiAaPQMiAaPQMiAaPQBOOK9910826311503321Rebalancing China’s Economy4025910UNINA