Functional distribution of income, aggregate demand, and economic growth in the Chinese economy, 1978–2007

This paper seeks to analyse the relationship between the functional distribution of income, aggregate demand and growth in the Chinese reform economy. For this purpose, the Bhaduri-Marglin Model is used to indicate the theoretical possibility of both profit-led and wage-led growth regimes. Previousl...

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Detalhes bibliográficos
Autor: Molero Simarro, Ricardo
Tipo de documento: artigo
Data de publicação:2015
País:España
Recursos:Universidad Loyola Andalucía
Repositório:Brújula
OAI Identifier:oai:repositorio.uloyola.es:20.500.12412/1302
Acesso em linha:http://hdl.handle.net/20.500.12412/1302
Access Level:Acceso aberto
Palavra-chave:China
Economic Reform
Factor Shares
Aggregate Demand
Profit-Led Growth
Descrição
Resumo:This paper seeks to analyse the relationship between the functional distribution of income, aggregate demand and growth in the Chinese reform economy. For this purpose, the Bhaduri-Marglin Model is used to indicate the theoretical possibility of both profit-led and wage-led growth regimes. Previously, the principal literature on the evolution of factor shares in China was reviewed. The statistical series for the period 1978–2007 are reconstructed to carry out our analysis of the relations between capital share and investment, on one hand, and labour share and consumption, on the other. Supported by empirical analysis and the model estimations, it is argued that Chinese growth has been profit-driven. Finally, the implications are presented concerning Chinese economic prospects.