Structural change in China /

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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China’s reform period which began in the late 1970s has been attractive both for the developing countries in the sense of taking the Chinese economic development as a model and the developed countries because of the new strategic position China has gained in the global power relations as a consequence of its economic growth, while the academic interest has also been rising. Focusing on the Chinese state as one of the most important actors of the reform process, without treating it as controlling and shaping...
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Citation Formats
F. Taşdemir, “Structural change in China /,” M.S. - Master of Science, Middle East Technical University, 2014.