Supply-Side Structural Reforms and China's Potential Economic Growth Rate

This paper examines the effect of supply-side structural reforms on China＇s potential economic growth rate in the coming decade according to the data the authors have gathered. Under the rapid growth scenario with the implementation of supply-side structural reforms, China＇s potential economic growth rate will reach an average of 6.5% and 5.8% respectively in the 13th Five-year Plan （2016-2020） and 14th Five-year Plan （2021-2025） periods. These rates are 0.2 and 0.3 percentage points higher, respectively, than that under the baseline scenario with the inertia of historic trends. In implementing supply-side structural reforms, China must transform governmental functions, break monopolies, create a comprehensive competitive market environment, foster the creation of pro-innovation mechanisms, refocus on quality and efficiency, and raise capital utilization and labor productivity.

China’s Potential Economic Growths during 2015-2025 under Different Scenarios~

China has entered a crucial period of further growth and restructuring that will last until 2025. Based on a review of the major factors affecting China＇s potential economic growth, this paper has created an integrated economic system model consisting of system dynamics, econometrics, and input-output for the forecast of China＇s economic size and structure by 2025. Analysis shows that prior to 2025, China will be able to maintain a potential annual economic growth rate of 5.7%-7.2%. Faced with an international environment of a possible slowdown of advanced economies and diminishing demographic dividends, China needs to further expedite its urbanization process, enhance R＆D and education spending, increase total factor productivity （TFP）, vigorously develop the tertiary sector, and expand consumption in order to achieve the optimistically estimated growth of 6.6%-7.4% during the period of 2015-2025. Economic growth should be accompanied by the upgrade of industry structure and improvement of investment and consumption structures.

The Impacts of the Growth of the Three Industries and Industrial Price Structural Changes on China’s Economic Growth between 1952 and 2019

This paper focuses on the impacts and effects of China’s growth of the three industries and price structural change on the real GDP growth rate.First of all,it presents a new accounting method for decomposing growth rates on the basis of existing accounting method for decomposing growth rates.By using this method,we can identify the impacts and effects of structural changes on the growth rate.The paper uses a new decomposition method to recalculate China’s industry-based real GDP growth rates between 1952 and 2019,focuses on the driving effect of growth of the three industries on the real GDP growth,and the impacts of price structural change on GDP growth rate and the contributin of the growth of the three industries on GDP growth rate.By analysis,this paper shows that between 1952 and 2019 China’s economic growth was mainly driven by the secondary industry,which had contributed to the economic growth by over 50%,the role of the tertiary industry in driving economic growth rose,but that of the secondary industry declined over the time;in the short run,the overall effect of the price structural changes of the three industries has a little impact on the economic growth,but the price change of each industry has strong effects,and the price structural change has signifi cantly changed the effect of the growth of the three industries on the real economic growth;in the long term,the price structural change plays a relatively big hindering effect on economic growth due to the Baumol’s cost disease.

Elasticity Ratio of Resource Consumption and the Resource Consumption

Today the resources are becoming scarcer, which should not be regarded as unexhausted any more. Correspondingly, the production would be constrained by the scarcity of resources clearly. Then the economic researchers would pay much more attention to reducing the consumption of natural resources in the future. Therefore this paper brings foreword the conception of elasticity ratio of resource consumption based on the concept of elasticity and analyzes the relationship between the parameters. For the certain relationships between the elasticity ratio of resource consumption and resource consumption, this paper will try to reveal, to keep economy growing while resource consumption reducing, what conditions should be met as to the relationships among resource productivity, its growth rate, energy saving efficiency, economic growth rate and elasticity ratio of resource consumption. This paper proves the relationship between the China＇s energy consumption and economy growth using statistic data from 1978 to 2003.

The Labor Market and China＇s Economic Cycle： A Discussion of Okun＇s Law in Relation to China

In recent years, the Chinese economy has been facing downward pressure from slowing growth, but there has not been a significant rise in the registered/surveyed unemployment rate. The combination of these factors shows yet again that Okun＇s law does not fit China. Based on empirical observation of the relationship between China＇s economic cycle and its 1 abor market transition, we put forward a broader version of Okun＇s law which is applicable to analyses of the Chinese transition. The specific applications of the broad version of the law are connected with stages of economic development. The standard Okun model, which includes only the unemployment variable, is suited to developed countries in which labor transfer is complete. The broader version of Okun＇s law, which is applicable to transitional economies, introduces a variable for the transfer of agricultural labor. Using Chinese and cross-country panel data, we find that, compared with long-term trends, short-term changes in the transfer of agricultural 1 abor are significantly correlated with the economic cycle. This finding broadens our understanding of the general pattern of the relationship between the labor market and the economic cycle and provides scientific support for employment policy adjustments that takes ＂new urban jobs and the surveyed unemployment rate as an important indicator of macro-adjustment and control.＂