The authors wish to thank Huw McKay for help with the data in this article.
China's Approach to Rebalancing: A Conceptual and Policy Framework
Version of Record online: 28 FEB 2012
© 2012 The Authors China & World Economy © 2012 Institute of World Economics and Politics, Chinese Academy of Social Sciences
China & World Economy
Special Issue: Rebalancing of China's Growth
Volume 20, Issue 1, pages 1–26, January-February 2012
How to Cite
Deer, L. and Song, L. (2012), China's Approach to Rebalancing: A Conceptual and Policy Framework. China & World Economy, 20: 1–26. doi: 10.1111/j.1749-124X.2012.01270.x
- Issue online: 28 FEB 2012
- Version of Record online: 28 FEB 2012
- economic imbalances;
- economic policy;
- institutional reform;
- structural change
This article seeks to develop a conceptual and policy framework for understanding China's role in the global economic imbalances. China's contribution to these imbalances via recurrent trade and financial surpluses corresponds with a phase of deepening structural risks to China's economic growth and development. These structural challenges include: the composition of growth resulting from China's dynamic internal transformation, China's trade orientation, the trajectory of resource use and CO2 emissions, welfare problems relating to distribution and international constraints. This article develops a conceptual framework for examining the relationship between the processes of long-run structural transformation in China, its economic imbalances, and the role of institutional reform in dealing with these structural challenges. As such, economic policy should extend beyond short-term macro management to pursue an institutional reform agenda to facilitate broader structural change to mitigate constraints to future growth and to improve economic welfare.