Currently,the economic growth of China is mainly driven by investment and net export.The reason behind this is the distortion of our income distribution mechanism.The expansion of income gap and the uncertainty of exp...Currently,the economic growth of China is mainly driven by investment and net export.The reason behind this is the distortion of our income distribution mechanism.The expansion of income gap and the uncertainty of expectation lead to a high savings rate,while the high savings rate should be balanced by investment and high export.As a matter of fact,the situation of high profit and tow wage in first the distribution induce the fast growth of investment and export.This will definitely bring excess capacity,an adverse selection of industries and affect the sustainable development of economy.To support the above argument,quantitative analysis is made with macro-economy indices.and suggestions to improve economy are provided.展开更多
China’s ballooning current account surplus has caused a plethora of adverse effects on the healthy development of its economy.Based on an in-depth analysis of the contributory factors to the swelling current account ...China’s ballooning current account surplus has caused a plethora of adverse effects on the healthy development of its economy.Based on an in-depth analysis of the contributory factors to the swelling current account surplus,this paper purports to demonstrate theoretically and empirically that while the chronic savings-consumption imbalance is an important contributor to China’s huge trade surplus,the fundamental underlying contributor is the income structure and savings structure imbalance stemming from the disproportionate increase in retained earnings relative to stagnant wage bills.Corporate retained earnings keep growing rapidly because corporate profit margins are"overstated"and state-owned enterprises"do not pay dividends."Only when these issues are resolved at the institutional level can the savings rate be reduced to an appropriate level with domestic demand boosted to eliminate excess trade surpluses and fundamentally fix internal and external economic imbalances.展开更多
文摘Currently,the economic growth of China is mainly driven by investment and net export.The reason behind this is the distortion of our income distribution mechanism.The expansion of income gap and the uncertainty of expectation lead to a high savings rate,while the high savings rate should be balanced by investment and high export.As a matter of fact,the situation of high profit and tow wage in first the distribution induce the fast growth of investment and export.This will definitely bring excess capacity,an adverse selection of industries and affect the sustainable development of economy.To support the above argument,quantitative analysis is made with macro-economy indices.and suggestions to improve economy are provided.
基金funded and supported by the China Reform Foundation and the Ministry of Commerce
文摘China’s ballooning current account surplus has caused a plethora of adverse effects on the healthy development of its economy.Based on an in-depth analysis of the contributory factors to the swelling current account surplus,this paper purports to demonstrate theoretically and empirically that while the chronic savings-consumption imbalance is an important contributor to China’s huge trade surplus,the fundamental underlying contributor is the income structure and savings structure imbalance stemming from the disproportionate increase in retained earnings relative to stagnant wage bills.Corporate retained earnings keep growing rapidly because corporate profit margins are"overstated"and state-owned enterprises"do not pay dividends."Only when these issues are resolved at the institutional level can the savings rate be reduced to an appropriate level with domestic demand boosted to eliminate excess trade surpluses and fundamentally fix internal and external economic imbalances.
