In order to increase China’s consumption, some current literatures come up with several policy suggestions to reduce China’s high savings rate and therefore stimulate China’s consumption. Anderson (2007) points out that the bulk of excess savings has come from Chinese firms as they “expropriate” market share and profits from the rest of the world. This implies that the sudden appearance of China’s imbalance over the past few years, the sharply rising trade surplus and the implied dramatic increase in domestic savings relative to the already very high mainland investment levels, was not caused by weak consumers. Instead, the bulk of the evidence points to Chinese companies and rising corporate savings as the source of the problem. In particular, the banking system data show that the household share in total deposits has fallen since the beginning of the decade, offset by a rise in the enterprise deposit share. This is confirmed by flow of funds estimates, which also indicate that while household and government saving rates are generally high, neither ratio has changed much over the past five years. Instead, the real driver of the recent Chinese "savings boom" is the corporate sector, in which the estimated gross saving rate has shot up by nearly 7 percentage points since the beginning of the decade By analyzing sectoral trends in investment and saving and the resulting sectoral saving-investment balances over, Kuijs (2005) also agree with Anderson’s argument: the China’s
Positive Impact of Consumption on China’s Economy
Diane Boccara
Palm Beach State College
ECO2013
Warren Smith
11/11/14
Abstract
This paper first gives a brief overview of the country of China and its economical background. Then, it focuses on consumption as a market determinant of China’s recent change in economic growth. The paper analyzes the impacts of consumption and how it influences macro outcomes by comparing statistics and linking them to an increase in consumption.
"Effect of Economic Growth in China on Energy Demand and the Environment"
Introduction
China has grown economically to be one of the most important countries in the world; with over 1.3 billion population and the sheer size of the country, this economic phenomenon is unprecedented. If only this were the only growth China has experienced, then it would really be a phenomenon, sadly, it is not. China 's drastic growth in the economy has also lead to a few other drastic growths, but it is not for
Title: Economic growth in china and its effect on the environment in china.
Abstract: Economic development is very critical for better future of any country and its residence but for one to gain something thing they must lose something. This has been the case with china’s economy and the environment. China’s growing manufacturing sector and increase in consumption has taken the country’s economy to new heights. Today china is one of the largest economic powerhouse in world, but at what cost. China’s
The Practicability of Consumption-Led Economy
Based on some basic statistics, such as per capita GDP and the growth rate of the urban population, Fukumoto and Muto focus on the likelihood that present-day China is roughly at the same stage of economic development as Japan during or prior to the early 1970’s. In the 1970’s, Japan transformed its economic growth model from investment-led to one led in a more balanced manner through investment, consumption, and exports. Thanks to the transformation
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
Background
In the case, background in 1990’s China Government open beer market to foreign investor. China is a huge, future potential market, a lot of foreign brewers enter to the Chinese market and making multi million dollar investment on production facilities as well as labor market. However a few years later most of the foreign brewers were still running at loss. On other hands the local brewers with untrained management, problematic human resource and poor quality product and weak marketing
economic growth is unstable, unbalanced, uncoordinated, and unsustainable. Since export and investment play unsustainable roles in increasing China’s real GDP, this study tries to testify how consumption enhances the sustainability of China’s real GDP in the short run over a long period of time. As Krugman (1994) suggests, increase in the economic growth rate in the steady state can only be attained by the technological progress. However, it is also true that the increase in consumption will increase
Background
In the case, background in 1990’s China Government open beer market to foreign investor. China is a huge, future potential market, a lot of foreign brewers enter to the Chinese market and making multi million dollar investment on production facilities as well as labor market. However a few years later most of the foreign brewers were still running at loss. On other hands the local brewers with untrained management, problematic human resource and poor quality product and weak marketing
ethical dilemma of global urbanization, especially as it relates to China; while providing examples of specific problems therein (namely environmental), and concluding that the ethical thing to do (consequentialism & utilitarianism), would be to use as many clean/green energy alternatives (mitigating coal use) to fuel developing economic & urban sprawls in the near future.
Keywords: Urbanization, Urban Sprawl, Coal, Nuclear, China, Development, Economics
Urbanization in the future of our ever expanding
Their average monthly consumption times are more than twice, and the consumption cost is also the highest in all age groups. The China Daily newspaper has reported that, younger Chinese luxury goods consumption has become a trend. In their survey of Chinese youth luxury goods consumption, more than 60% of young consumers indicated that in order to pursuit fashion and taste, they are willing to pay big bucks to buy luxury goods (Wu, 2014).
Miss Wang worked for a foreign bank branch in Beijing Financial