Abstract
Everything is changing. Drastic changes also take place in the international situation. This paper elaborates that human being is currently in the downward phase of the fifth long-term cycle after the industrial revolution, which is the global political and economic background of China’s supply-side reform. Seen from the supply-side, the author thinks that the main driving force for economic growth is the combination of labor, capital, land and natural resources, technological innovation, and system and also their comprehensive efficiency therefrom. From the viewpoints of these five major factors and their motion rule, the paper establishes a theoretical model for these factors and their motion rule in the supply-side structural reform and then clarifies the position of the government and the enterprise clearly. Further, based on long-term view and the theoretical model, the paper put forward that the main driving force to promote economic and social development and upgrading under the background of China’s supply-side structural reform is to release the potential of supply-side factors, to foster the “new economy” with new technological revolution as the core and to optimize the overall economic structure in China. The paper also suggests that China’s supply-side structural reform shall be based on the current situation, take a long-term view and implement the “three step” strategy.
Highlights
In previous studies on new Supply-side economics[1], it is emphasized that the essentials of Supply-side structural reform is striving to overcome difficulties, that is, solving the problem of effective institutional supply through deepening the reform so as to further liberate the productive forces and support the times choice in the process of China’s modernization
1 This paper is one of the achievements of continuous research on new supply-side economics. For those who are interested in new supply-side economics, please refer to relative books of Jia Kang and his co-authors or visit the website of China Academy of New Supply-side Economics, http://www.newsupplyecon.org/ further explain the grand historical background of China’s Supply-side structural reform, establish the theoretical model for the structural reform based on the factors and their motion rule, define clearly the position of the government and the enterprise in the supply system and the Supply-side reform, and put forward the implementation path and direction of the Supply-side structural reform in China
The major lessons we have learned from the long-cycle theory is that in the past two hundred years, the economic growth and prosperity mainly originated from the industrial revolution brought by major technological breakthroughs that changed the history of the world and the consequent “leap” of the economic structure
Summary
In previous studies on new Supply-side economics[1], it is emphasized that the essentials of Supply-side structural reform is striving to overcome difficulties, that is, solving the problem of effective institutional supply through deepening the reform so as to further liberate the productive forces and support the times choice in the process of China’s modernization. The authors have been striving to establish a logical and systematic cognitive framework of new Supply-side economics from the perspective of combining theory and practice closely. Further explain the grand historical background of China’s Supply-side structural reform, establish the theoretical model for the structural reform based on the factors and their motion rule, define clearly the position of the government and the enterprise in the supply system and the Supply-side reform, and put forward the implementation path and direction of the Supply-side structural reform in China
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