Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/80897
Authors: 
Yang, Ling
Thurlow, James
Lahr, Michael L.
Year of Publication: 
2012
Series/Report no.: 
WIDER Working Paper 2012/83
Abstract: 
Current explanations for private consumption's diminished role in China focus on the expansion of exports and investments. Using structural path analysis, we find additional contributing factors. First, growth patterns during 1997-2007 favoured sectors with low production multipliers. Secondly, income multipliers fell in most sectors, especially in fast growing sectors and partly due to urbanization. This means less trickledown from growth to household incomes. Thirdly, households became less important in sustaining domestic production processes. Together, these deep structural changes suggest that enhancing private consumption's role in China will require new (services-oriented) growth patterns and a significant realignment of industry-household linkages.
Subjects: 
structural path analysis
economic growth
private consumption
China
JEL: 
O12
R11
R15
ISBN: 
978-92-9230-547-5
Document Type: 
Working Paper

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