Economic Growth under Retrenchment—A Report on the Analysis of the Microeconomic Situation in the First Half of 1986

Abstract

The background of this report is the economic expansion in the first half of last year [1985] and the retrenchment in the first half of this year [1986]. By comparing the behavior of enterprises under different economic environments, the report draws a descriptive conclusion in regard to the quantitative and qualitative duality that is expressed by our country's enterprises following the upsurge and subsequent decline of the economy. This report demonstrates that changes in the micromechanism of the economy cause fundamental changes in the nature and shape of enterprise growth, and thereby proposes a strategy for dealing with and ameliorating the impact of the decline of economic efficiency.