Structural Analysis of Economic Growth in China: International Comparison Context

Abstract

The Chinese economy over the long term has shown relatively high average growth rates, even considering a gradual slowdown over the last several years. In this regard, it is important to identify features of this model and policies of economic growth in comparison with other countries. Purpose of this research is to conduct a structural analysis of the Chinese economic growth in comparison with the United States, Germany, Japan, and Russia, as well as to identify features of its structural dynamics and macroeconomic policy. The subject of investigation is models of economic growth in these countries, and approaches to macroeconomic growth policy in China and Russia that determine the contribution of GDP components and economic sectors to the rate of economic growth. The hypothesis is that the economy growth model is determined by the dominance of the components and sector in GDP. Three basic growth models are defined. The model based on the dominance of gross consumption in the USA and Russia, investment in China, and a mixed growth model in Germany and Japan. The Chinese economy is close to the “Schumpeterian” growth model. The Russian economy approximates the “Fisher” model, especially in terms of macroeconomic policy requirements. Therefore, to ensure the investment growth model, it is necessary, in addition to encouraging investments, to change the characteristics of structural dynamics, including change in macroeconomic policy instruments.