China & World Economy | VOL. 18
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Employment Effectiveness of China's Economic Stimulus Package

Publication Date Jan 17, 2010

Abstract

Using an input-output method, this paper simulates the impacts of the global financial crisis and the decline of exports on China's economy and employment. With shrinking external demand, boosting domestic demand becomes crucial for maintaining economic growth and promoting employment. Our simulated results indicate that an investment scenario with employment as a priority can achieve the objective of employment maximization without significantly reducing growth. Public investment should focus on employment, education, health, housing and social security to rebalance China's economy so that it can realize sustained and stable economic growth.

Concepts
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Economic Stimulus Package
China's Economy
Decline Of Exports
Stable Economic Growth
Investment Scenario
Input-output Method
Public Investment
Objective Of Maximization
Economic Growth
Sustained Economic Growth

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