Structural change in China /

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2014
Taşdemir, Fatma
China has sustained her high growth rate at approximately 10 percent annually during the last three decades. China is a unique case study which enables researchers to investigate the reasons behind her high growth rate. In addition to that sustaining a high growth rate over three decades, China also has maintained a relatively high share of manufacturing sector in GDP, which sets apart from the experiences of developed countries, and other developing countries which are still in transition like China. Most of the researchers associate China’s high growth rate to the high saving rate of Chinese people, and thus high capital accumulation. In fact, China’s high accumulation rate is not only due to high saving rate of Chinese people, but also the government’s. In this thesis, we will explain the reason of Chinese high share of manufacturing output in total output with infrastructure investment of government. Since China is a developing country, China needs the infrastructure investment of the government. In this thesis, we examine the long run growth and structural change experience of the Chinese economy with and without the incorporation of government infrastructure investment by using the three sector Ramsey growth model. The contribution of this thesis into the literature is the explanation of high manufacturing share of China with infrastructure investment of government.

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Citation Formats
F. Taşdemir, “Structural change in China /,” M.S. - Master of Science, Middle East Technical University, 2014.