Title Functional distribution of income, aggregate demand, and economic growth in the Chinese economy, 1978–2007
External publication No
Means Int. Rev. Appl. Econ.
Scope Article
Nature Científica
SJR Quartile 3
SJR Impact 0.38900
Area International
Web https://www.scopus.com/inward/record.uri?eid=2-s2.0-84931010707&doi=10.1080%2f02692171.2015.1016404&partnerID=40&md5=d9fe7181c58f2711499836ace27d2fb8
Publication date 01/01/2015
ISI 000362095200001
Scopus Id 2-s2.0-84931010707
DOI 10.1080/02692171.2015.1016404
Abstract 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. © 2015 Taylor & Francis.
Keywords consumption behavior; economic growth; economic reform; empirical analysis; income distribution; numerical model; China
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