Economics & the Rest Essay

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BSB 113 Economics Semester 2 2011

Assessment 2: Research Summary

Submission date: Friday 23rd September

Name: Michael Andrew Smith

Lecturer: Louisa Coglan

Tutor Name: Wasantha Athukorala

Student Number: N7408625

Word Count: 1086

Introduction
The purpose of this research report is to provide an overview of China’s economic growth in relation to the long term economic growth drivers. Critical assessment will be made on the growth drivers to determine whether they lead to long term economic growth.
China’s Economic Growth Since the market orientated economic reforms were introduced in 1978 (Khan, Hu (1997, P103) China’s economy has seen a 10% increase in Gross Domestic Product (GDP) Per year (Vincellete, Manoel,
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Government spending looks at the different areas the government spend money such as infrastructure (busways, trains, bridges). These decisions are made by the government and so paid for by the consumer. Government spending can be seen in China with the 1,200 square kilometre Liangjiang region in western China expected to become one of the nation's most significant development zones (Ryan, Wyatt (October 3, 2010). Imports and Exports are the commodities in which a country brings into a country (Import) and those domestic commodities that are sold to other countries (Export). Both economic drivers are crucial when increasing GDP due to their ability to strengthen the value of a countries commodity.

Key Economic Drivers in China
The Chinese president is looking to boost consumption and import as part of efforts to restructure its economy (Hu Looks to Boost China's Consumption, Imports, (April 15, 2011). The Chinese energy consumption has been predicted to soar to 68% higher than that of the USA by the year 2035(China, India to lead energy consumption, (September 20, 2011). Investment spending is also set to increase from $12,633 billion (2011, 48% of GDP) to $29,628 billion by 2030 (38% of GDP) (CHINA - Gross fixed investment (% of GDP) from 2011 to 2030, EIU Country Data). In 2006 China had a rating of 5.00 and was seen ranked at 101st in terms of the degree of economic freedom as measured
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