LEADER 07412oam 22015854 450 001 9910779593603321 005 20230802005915.0 010 $a1-61635-791-6 010 $a1-4755-9471-2 010 $a1-283-94781-1 035 $a(CKB)2550000001003746 035 $a(EBL)1607078 035 $a(SSID)ssj0000941841 035 $a(PQKBManifestationID)11505437 035 $a(PQKBTitleCode)TC0000941841 035 $a(PQKBWorkID)10971261 035 $a(PQKB)10580696 035 $a(MiAaPQ)EBC1607078 035 $a(Au-PeEL)EBL1607078 035 $a(CaPaEBR)ebr10644334 035 $a(CaONFJC)MIL426031 035 $a(OCoLC)819710438 035 $a(IMF)WPIEE2012277 035 $a(IMF)WPIEA2012277 035 $a(EXLCZ)992550000001003746 100 $a20020129d2012 uf 0 101 0 $aeng 135 $aurcn||||||||| 181 $ctxt 182 $cc 183 $acr 200 10$aIs China Over-Investing and Does it Matter? /$fIl Lee, Murtaza Syed, Liu Xueyan 210 1$aWashington, D.C. :$cInternational Monetary Fund,$d2012. 215 $a1 online resource (23 p.) 225 1 $aIMF Working Papers 225 0$aIMF working paper ;$vWP/12/277 300 $a"November 2012" -- verso of t.p. 300 $aAt head of title: Asia and Pacific Department -- verso of t.p. 311 $a1-4755-6111-3 311 $a1-4755-6267-5 320 $aIncludes bibliographical references. 327 $aCover; 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) 327 $aFigure 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; References 330 3 $aNow close to 50 percent of GDP, this paper assesses the appropriateness of China?s current investment levels. It finds that China?s capital-to-output ratio is within the range of other emerging markets, but its economic growth rates stand out, partly due to a surge in investment over the last decade. Moreover, its investment is significantly higher than suggested by cross-country panel estimation. This deviation has been accumulating over the last decade, and at nearly 10 percent of GDP is now larger and more persistent than experienced by other Asian economies leading up to the Asian crisis. However, because its investment is predominantly financed by domestic savings, a crisis appears unlikely when assessed against dependency on external funding. But this does not mean that the cost is absent. Rather, it is distributed to other sectors of the economy through a hidden transfer of resources, estimated at an average of 4 percent of GDP per year. 410 0$aIMF Working Papers; Working Paper ;$vNo. 2012/277 606 $aInvestments, Chinese$xEconometric models 606 $aEconomic development$zChina$xEconometric models 606 $aBanks and Banking$2imf 606 $aFinance: General$2imf 606 $aMacroeconomics$2imf 606 $aMoney and Monetary Policy$2imf 606 $aIndustries: Financial Services$2imf 606 $aInvestment$2imf 606 $aCapital$2imf 606 $aIntangible Capital$2imf 606 $aCapacity$2imf 606 $aWelfare Economics: General$2imf 606 $aIntertemporal Consumer Choice$2imf 606 $aLife Cycle Models and Saving$2imf 606 $aBanks$2imf 606 $aDepository Institutions$2imf 606 $aMicro Finance Institutions$2imf 606 $aMortgages$2imf 606 $aMacroeconomics: Consumption$2imf 606 $aSaving$2imf 606 $aWealth$2imf 606 $aGeneral Financial Markets: General (includes Measurement and Data)$2imf 606 $aInterest Rates: Determination, Term Structure, and Effects$2imf 606 $aMonetary Policy, Central Banking, and the Supply of Money and Credit: General$2imf 606 $aFinancial Institutions and Services: General$2imf 606 $aFinance$2imf 606 $aMonetary economics$2imf 606 $aConsumption$2imf 606 $aEmerging and frontier financial markets$2imf 606 $aReal interest rates$2imf 606 $aCredit$2imf 606 $aFinancial sector$2imf 606 $aFinancial markets$2imf 606 $aNational accounts$2imf 606 $aFinancial services$2imf 606 $aMoney$2imf 606 $aEconomic sectors$2imf 606 $aFinancial services industry$2imf 606 $aEconomics$2imf 606 $aInterest rates$2imf 607 $aChina, People's Republic of$2imf 615 0$aInvestments, Chinese$xEconometric models. 615 0$aEconomic development$xEconometric models. 615 7$aBanks and Banking 615 7$aFinance: General 615 7$aMacroeconomics 615 7$aMoney and Monetary Policy 615 7$aIndustries: Financial Services 615 7$aInvestment 615 7$aCapital 615 7$aIntangible Capital 615 7$aCapacity 615 7$aWelfare Economics: General 615 7$aIntertemporal Consumer Choice 615 7$aLife Cycle Models and Saving 615 7$aBanks 615 7$aDepository Institutions 615 7$aMicro Finance Institutions 615 7$aMortgages 615 7$aMacroeconomics: Consumption 615 7$aSaving 615 7$aWealth 615 7$aGeneral Financial Markets: General (includes Measurement and Data) 615 7$aInterest Rates: Determination, Term Structure, and Effects 615 7$aMonetary Policy, Central Banking, and the Supply of Money and Credit: General 615 7$aFinancial Institutions and Services: General 615 7$aFinance 615 7$aMonetary economics 615 7$aConsumption 615 7$aEmerging and frontier financial markets 615 7$aReal interest rates 615 7$aCredit 615 7$aFinancial sector 615 7$aFinancial markets 615 7$aNational accounts 615 7$aFinancial services 615 7$aMoney 615 7$aEconomic sectors 615 7$aFinancial services industry 615 7$aEconomics 615 7$aInterest rates 700 $aLee$b Il$01548097 701 $aSyed$b Murtaza$01462061 701 $aXueyan$b Liu$01548098 712 02$aInternational Monetary Fund.$bAsia and Pacific Dept. 801 0$bDcWaIMF 906 $aBOOK 912 $a9910779593603321 996 $aIs China Over-Investing and Does it Matter$93804904 997 $aUNINA