Economic Growth In China Research Articles

The Replicability of Chinas Economic Development in Smaller Economies

From one of the world's most impoverished countries to currently the world's most active international trade participant, China and its economic growth in the past few decades is a constantly discussed and debated topic amongst the world's most prestigious politicians and scholars. Aware of China's economic accomplishment, officials from developed and developing countries ponder if China's triumph can be replicated in developing countries that aim to repeat China's success. Although some developing countries, mostly ones that are limited in economic size, have great ambitions to follow the path China once took that led the latter to prosperity, many experts warn that China's economic growth was deeply reliant on the size of its economy and questions if such experience can be replicated outside of economies massive in size, for instance, Singapore. Therefore, this essay aims to determine if Singapore can be as developed as it is if China's past developmental plans were utilized in this relatively small economy.

The Economic Impact of Aging on Chinas Public Health: A Short-term Perspective

In today's world, the aging of the population is an absolute trend. The aging of the population is the result of the improvement of the medical level, the decline of the birth rate and the extension of the life expectancy. China is experiencing the largest and fastest population aging process in the world. Population aging has brought huge challenges to the stable operation of China's medical insurance system and put pressure on the Chinese government's fiscal expenditure. This paper constructs a VAR model on population aging, medical insurance expenditure and GDP growth, find that past data have shown that GDP growth and medical insurance expenditure have adverse reactions to the intensification of population aging. In the prediction of the future, the further deepening of population aging will bring challenges to China's economic growth and government finance. Chinese government should adjust the policy on medical insurance expenditure to solve the problem caused by deeper aging, to promote the sustainable development of China's medical insurance.

Analysis of Louis Vuitton's Marketing Strategies in Chinese Luxury Fashion Market

The rapid growth of China's economy has made the country one of the world's most important markets for high-end goods. In the meantime, China's economic growth has slowed since entering the new normal in 2014, and luxury consumers have become more practical. For this reason, many international luxury brands are fretting over how to break into China's opulent consumer market. The LVMH Group owns a number of luxury brands, including the ubiquitous Louis Vuitton. In light of the foregoing, this research examines the Louis Vuitton brand's marketing strategy in China, specifically its product strategy, pricing strategy, promotion strategy, and positioning strategy. Several suggestions are made to enhance Louis Vuitton's marketing strategy in China based on the findings of this study, such as a push to emphasize the brand's commitment to quality. Several suggestions are made in this report to better Louis Vuitton's marketing strategy in China, including expanding efforts to promote the quality-centered brand idea in the Chinese market, adjusting prices on a case-by-case basis, and bolstering the company's online sales channels. The marketing strategy of Louis Vuitton is examined in this article, which provides not only useful information for the company but also useful information for other domestic luxury businesses.

Research on the influence of digital finance on the economic efficiency of energy industry in the background of artificial intelligence

China's economic growth has reached a new plateau. It is no longer appropriate to use the old economic growth model, which relied on labor, land resources, mineral resources, and other economic considerations. Under the background of artificial intelligence, high-quality economic development is an inevitable trend. A new financial paradigm called "digital finance" integrates financial services with information technologies. Digital financial technology is thought to be a crucial foundation for fostering high-quality and sustainable economic and social development since it may offer more economic entities reduced cost of capital and more realistic financial service skills than in traditional financial models. In the era of artificial intelligence, how to reasonably release the momentum of digital finance for China's sustained economic growth has become a hot topic of discussion at this stage. This paper studies the impact of digital finance on the economic efficiency of the energy industry in the context of artificial intelligence. Relevant metrics were also calculated. The findings revealed that: The benchmark regression result of digital finance on the efficiency of the green economy was 0.4685 before adding the main restrictions; the benchmark regression result of digital finance on the efficiency of the green economy was 0.2243 after adding the main constraints. As a result, data finance had a favorable impact on the effectiveness of the green economy.

The impact of China's information infrastructure construction policy on green total factor productivity: moving towards a green world.

China's economic growth over the past two decades has led to severe environmental pollution in most of its cities. To address this issue, China has developed and implemented several strategies to increase its resource utilization efficiency and move towards a green production economy, such as the information infrastructure construction policy (IICP). To assess the extent to which green production is being achieved, this study first measured the green total factor productivity (GTFP) in Chinese prefecture-level cities using a combined super slacks-based measure and the global Malmquist-Luenberger index (SBM-GML) model. Then, to assess the effectiveness of the IICP, the paths affecting the GTFP were explored using a time-varying difference-in-difference (time-varying DID) model. It was found that the IICP had significantly contributed to urban GTFP through its green technology diffusion effects and improved employment structures, with its implementation resulting in an average increase of 0.201 in the pilot cities compared to the non-pilot cities. This research attempted to explain how IICP plays a role in improving green production, and policy makers should attach importance to the power of IICP.

Spillover effect of China's economic development on countries along “Maritime Silk Road” – Based on vector auto regression

Since the cooperation initiative of Maritime Silk Road was put forward, more and more countries and regions have joined maritime silk road trade. The shift of economic growth rate in China and the decline in import and export trade will inevitably have a certain impact on the economic growth of countries and regions along this route. Based on this, this study first analyzed the transmission channels of economic volatility spillover effects. And a transnational panel model and global vector auto-regression are used to study the spillover effect of China's economic development on economic variables of countries and regions along this line. After the 15th quarter, one standard deviation of China's real GDP has a significant positive impact on the real GDP of East Asian countries by 0.597%, averagely. And the autoregressive coefficient of economic spillover effecting of China's economic growth on these countries along Maritime Silk Road is 0.244, which is significant at 1%, indicating that the spillover effect is significant. The regression coefficient of spillover effect of China's economic development on GDP growth in countries along this route is 0.472, which is significant at 1%. And the regression coefficient of spillover effect of China's economic development on trade balance of countries along this line is 0.967, with a significance level of 1%. Based on these research results, suggestions are proposed in this study, China should first optimize its trade structure with countries and regions along the route, and customize different foreign trade policies based on the specific characteristics of countries along the route. While developing and improving trade relations with countries and regions along the route, we will further achieve outward direct investment in these countries and regions, reducing the negative impact of economic fluctuations on China's economic development. The research aims to promote the quality improvement of China's economic development and growth, and achieve win-win cooperation among countries along the Maritime Silk Road.

Urban expansion patterns and their driving forces analysis: a comparison between Chengdu-Chongqing and Middle Reaches of Yangtze River urban agglomerations.

Urban agglomerations have emerged as the primary drivers of high-quality economic growth in China. While recent studies have examined the urban expansion patterns of individual cities, a comparative study of the urban expansion patterns of urban agglomerations at two different scales is required for a more comprehensive understanding. Thus, in this study, we conduct a two-scale comparative analysis of urban expansion patterns and their driving factors of the two largest urban agglomerations in western and central China, i.e., Chengdu-Chongqing urban agglomeration (CCUA) and the Middle Reaches of Yangtze River urban agglomerations (MRYRUA) at both the urban agglomeration and city levels. We investigate the urban expansion patterns of CCUA and MRYRUA between 2000 and 2020 using various models, including the urban expansion rate, fractal dimension, modified compactness, and gravity-center method. Then we use multiple linear regression analysis and geographically weighted regression (GWR) to explore the magnitude and geographical differentiation of influences for economic, demographic, industrial structure, environmental conditions, and neighborhood factors on urban expansion patterns. Our findings indicate that CCUA experienced significantly faster urban growth compared to MRYRUA. There is an excessive concentration of resources to megacities within the CCUA, whereas there is a lack of sufficient collaboration among the three provinces within the MRYRUA. Additionally, we identify significant differences in the impacts of driving forces of CCUA and MRYRUA, as well as spatial heterogeneity and regional aggregation in the variation of their strength. Our two-scale comparative study of urban expansion patterns will not only provide essential reference points for CCUA and MRYRUA but also serve as valuable insights for other urban agglomerations in China, enabling them to promote sustainable urban management and foster integrated regional development.

Public spending and natural resources development: A way toward green economic growth in China

The economic rise of China over the past few decades has been nothing short of remarkable. This growth, however, has brought about significant challenges, particularly in terms of environmental sustainability and natural resource management. Through a comprehensive GARCH data analysis spanning 2008 to 2018, the research explores the intricate relationship between public spending patterns and the advancement of green technologies and industries. By focusing on the prudent allocation of resources, particularly in the realm of natural resource utilization, the study assesses China's progress toward fostering a greener economic landscape. This investigation offers insights into the intricate dynamics that underpin the nation's ongoing commitment to balancing economic expansion with ecological preservation. The findings shed light on the policy effectiveness and long-term implications of China's sustainable development initiatives, providing valuable considerations for both policymakers and researchers invested in the sustainable growth paradigms of emerging economies.

Officials' promotion expectation, corporate strategic deviance and corporate growth in China: The moderating effect of corporate ownership.

Government (especially local government) plays an important role in China's economic growth, the government is made up of officials, corporates are participants and the driving force of market economy, therefore, ignoring officials may not be able to directly explain the mechanism of corporate growth. This paper intends to discover how officials' promotion expectation may be beneficial for corporates-directly and/or indirectly via corporate strategic deviance-in terms of corporate growth. We conduct an empirical analysis of Chinese listed companies to test these arguments, the results show that officials' promotion expectation has a significantly positive impact on corporate growth; corporate strategic deviance has a mediating effect on the relationship between officials' promotion expectation and corporate growth; compared with non-state-owned enterprises, corporate strategic deviance has less influence on state-owned enterprises' growth. Our research generates a more comprehensive understanding of the political stakeholders-corporate growth relationship, provides direct evidence for the positive role of officials in corporate growth and expands the mediating research of corporate growth.

How does Financial Development Affect Regional Economic Growth in China? A Mediating Role of Industrial Structure Optimization

<p style="text-align: justify;">Financial development and industrial structure optimization are two-wheeled engines for promoting high-quality development, but the causal identification of the two is still poorly understood. This paper addresses this research gap by comprehensively analyzing the relationship between them. Regional economic growth is a necessary condition for achieving high-quality development. Taking China as an example, this study empirically examines the role of financial development and industrial structure optimization in high-quality development using the entropy method, fixed effects, mediation effects and instrumental variable regression. The study results show that (i) financial development has actively promoted regional economic growth. (ii) The driving effect on the central and western regions is greater than that on the eastern region. (iii) There are differences in the mediating effect of industrial structure optimization and rationalization between different levels of financial development and economic growth. (iv) In addition, the mediating effect of industrial structure optimization is larger in the eastern region than in the central and western regions. (v) The mediating effect of industrial structure rationalization is not obvious in the eastern region, but has a masking effect in the central and western regions. Our findings provide new strategies for financial development and industrial structure optimization in developing countries.</p>

Real output, fossil fuels, clean fuels and trade dynamics: New insights from structural break models in China

There are dire concerns of clean and green energy development with a sustainable economic growth in China. The present study aims to gauge the short term and long term relationship among the real economic output, labor, capital, energy and trade considering global financial crunch of 2008. There are two different models estimated in the production framework with fossil fuels and clean fuels in the economy of China. Specifically, there is indication of a long run association with convergence dynamics among real economic output, labor, capital, fossil fuel and trade before 2008 but not vice versa. The coefficient of fossil fuel with a greater magnitude is indicative of its huge role for higher real output growth, ceteris paribus. Likely, the findings turn out to be significant for real output, labor, capital, clean fuels and trade while long run elasticities corroborate that labor, capital, clean fuels and trade have a positive and significant impact on economic output. The sign and magnitude of the estimate of clean fuels is much higher than before crisis period indicating a paradigm shift in energy mix therein economic output growth. It is recommended that clean fuels should be promoted as their role is non trivial for economic-environmental sustainability in China.

Inferring the role of fiscal decentralization and carbon taxes through the ARDL approach

Abstract This paper first introduces the algorithmic steps of the ARDL model, explores the long-run relationship of variables using the cointegration test and estimates the long-run relationship, and then builds an error correction model to explore the short-run relationship in the model to estimate the model coefficients. Finally, we analyze the changes in carbon emissions and the relationship between carbon emissions and economic growth in China in time and space, respectively, and use the ARDL model to empirically test the correlation between fiscal decentralization and carbon tax Between 1978 and 2004, the growth rate of the economy remained above 10%, and the growth rate of carbon emissions also increased rapidly at this time, and carbon emissions were positively correlated with economic growth, and the growth rate of economic growth was positively correlated with the growth rate of carbon emissions. The growth rate of carbon emissions is positively correlated with economic growth, and the trend of the growth rate of economic growth and carbon emissions is roughly the same. The coefficient of fiscal decentralization degree on carbon tax expenditure is inhibited at a 1% significant level. The coefficient of the industrial structure plays a catalytic role in carbon tax expenditure at a 1% significant level, and for every 1% unit decrease in the proportion of secondary industry to GDP, carbon tax expenditure decreases by 2.473%. The implementation of a carbon tax can achieve the goal of energy saving and emission reduction, but we should also pay attention to the possible counter-effects of a carbon tax on economic development and reasonably levy carbon tax to make the economy and environment reach a balanced state.

Inequality and growth in China

We provide estimates of the effects that income inequality has on economic growth in China. Our empirical analysis is at the county level. Using data provided by the China Health and Nutrition Survey, we construct measures of inequality and the growth rates of household incomes per capita for 72 Chinese counties during the period 1989–2015. System-GMM estimates of panel models show that the within-county effect of inequality on economic growth is significantly decreasing in initial average income. For the relatively low levels of initial average incomes that were prevalent in China during the 1980s and 1990s, our model estimates imply that the increase in inequality that occurred in China during the 1980s and 1990s had a significant positive effect on economic growth. However, for current levels of average income, our panel model predicts that inequality has a negative effect on economic growth: a 1 percentage point increase in the Gini would reduce the per annum growth rate by around 1 percentage point.

Chinese economic growth and sustainable development: Role of artificial intelligence and natural resource management

The study's objectives are to examine the effect of artificial intelligence and natural resource on China's economic growth from 1981 to 2021, along with other explanatory variables, including interest rate, inflation, trade openness, and government expenditures. The research incorporates the asymmetric effect of artificial intelligence on economic progress. Using the Nonlinear Autoregressive Distributed Lag (NARDL) method and bound test, it is concluded that Artificial Intelligence and Natural Resource Management tend to increase economic growth. The asymmetric effects of artificial intelligence provide an increasing trend for the positive component whereas decreasing trend for the harmful constituent. In addition, interest rates and inflation were found to affect economic growth in the short and long run negatively. Trade openness and government expenditures show adverse effects in the short run but positive in the long run. The analysis of this study is pivotal for policymakers for efficacious monetary and fiscal policies, efficient utilization of resources, and exploration of more resources for increased sustainable economic growth.

Predict the effect of meteorological factors on haze using BP neural network

Rapid urbanization and economic growth in China have resulted in severe haze. PM2.5 is a key component of haze. Using machine learning to predict PM2.5 concentrations has become a research hotspot. There are few previous studies on the correlation between PM2.5 and meteorological factors, and the accuracy of other detection results is not high. This study investigates the correlation between six meteorological factors (temperature, dew point, humidity, barometric pressure, wind speed, and visibility) and hourly PM2.5 concentration in Beijing. Pearson correlation analysis was used to analyze and found that meteorological factors had a stable non-linear effect on the change in PM2.5 concentration. Additionally, a BP neural network model was employed to examine the influence of meteorological conditions on hazy weather, considering both univariate and multifactorial aspects. Experimental results reveal a strong correlation between PM2.5 concentration and the four seasons, exhibiting minimal deviation and varying prediction errors throughout the seasons, confirming the seasonal association with haze weather. Consequently, the utilization of the BP neural network model for air quality index prediction is considered feasible. This research serves as a valuable reference for understanding the formation mechanism, implementing control methods, and establishing a haze prediction system to effectively manage urban air quality.

Explaining and modeling the impact of industrial co-agglomeration on regional economic growth in China: integrated a quality concern of night-time light perspective.

The double-wheel drive of manufacturing industries and producer services industries is one of the key pathways to promote high-quality development relying on a modern industrial system. This paper explores the impacts of industrial co-agglomeration on regional economic growth in China with systematic consideration of static, dynamic, and spatio-temporal perspectives based on panel data for 285 prefecture-level cities from 2003 to 2020, employing the consolidated night-time light data. The empirical results show that industrial co-agglomeration significantly accelerates regional economic growth, especially high-tech intensity producer services industries, information industries, and finance industries. In addition, its spatial spillover effects are evidently established, which are characterized by cyclic accumulative, feedback features, and distance attenuation. Carrying out robustness tests, the preliminary regression results are verified. The heterogeneous influences are established across cities with different geographical locations, innovation capacities, and resource endowments. The further mechanism analysis indicates that industrial upgrading, technological progress, and efficiency enhancements account for the main channels for a sharp promotion in regional economic growth over the sample period. Furthermore, the government moderates this process more significantly than market forces do, especially when it comes to macroexogenous shocks that are regulated by the government. The findings of this study recommend policymakers to give full play to the positive externalities of industrial co-agglomeration and accelerate the industrial co-agglomeration process in a reasonable manner, so as to promote high-quality economic growth in China.

Asymmetric role of natural resources dependence, industrialization, and foreign direct investment in China’s economic growth

China’s industrial sector is performing continuously in economic activity, aiding its share in the economy's progression. This study aims to analyze the asymmetric positive-negative shocks' influence of industrial value-added, foreign direct investment, technological innovation and natural resources on China's economic growth. We take the data of the concerned indicators from 1986 to 2019 and apply N-ARDL on the model for empirical short and long-run asymmetric estimation. The findings illustrate the positive effect of industrial value-added on economic growth during positive shock and adverse during negative shock. Similarly, technological innovation is affirmative in the acquisition of economic growth in both conditions of positive-negative shock. In contrast, foreign direct investment and natural resource rents have no growth implication during positive shock, while adversative during negative shock in the short and long run. The error correction term has stabilized the error that arises from the short to the long run. At the same time, asymmetric multiplier plots demonstrate a new equilibrium equation of asymmetric adaptations of economic growth after the positive-negative shocks. In the end, result-based suggestions recommend government and policymakers' attention toward heavy and secondary industries, technology-intensive policies, and adaptation of sustainable resources.

The relationship between sustainable innovation efficiency and economic growth in China

ABSTRACT China has taken sustainable development strategies seriously in recent years, aiming at reducing energy consumption and environmental pollutants emissions. This research empirically evaluates the sustainable innovation efficiency (SIE) in Chinafrom the perspective of energy and environmental constraints. Furthermore, the relationship between SIE and economic growth is tested through Granger causality test. The results indicate that SIE in China varies obviously in different regions. Granger causality runs only from economic growth to SIE and not the other way round. Economic growth is causative factor of sustainable innovation, indicating that China's sustainable innovation has not yet achieved coordinated development with the economy. Our findings also provide useful decision-supporting insights for Chinese policymakers to promote coordinated development of regional sustainable innovation and economic growth.

A Multi-Regional Input–Output Model to Measure the Spatial Spillover of R&D Capital

Reallocating innovative capital elements can improve the growth of total factor productivity and promote high-quality economic development. The multi-regional multiplier model measures the spatial spillover effects of R&D capital to trace the interregional R&D flows and explore the engines of the longer-term economic growth in China. Results show that the direct R&D intensity in different regions is all concentrated in basic research sectors supported by government funds, and decreased from coastal areas to inland areas. Second, R&D gradually flowed from China’s coastal regions to inland regions, from upstream basic research sectors to downstream infrastructure construction sectors. Third, Guangdong, Jiangsu and Beijing are the main contributors, with R&D spillover intensities reaching 1.69%, 1.40%, and 1.37%, respectively. Xinjiang, Tibet, and Hainan are the main beneficiaries, with R&D inflow intensities reaching 0.49%, 0.53%, and 0.50%, respectively. Finally, the channel of R&D spatial spillover manifests a circular distribution and contact-type and jump-type modes.

Tracing surface water pollution in China’s supply chain

Decades of economic growth in China were enabled by rapid industrialization with insufficient water quality controls. Previous studies have traced water pollution discharges or grey water footprint using the multi-regional input–output (MRIO) model. However, there is a research gap in understanding the relation between surface water pollutant concentrations and final consumption of local and external basins. Here, we present the first national analysis to map surface water quality degradation in watersheds embedded in China’s supply chains. To do this, we developed a basin-specific relationship between surface water pollution concentration and discharge, and combined it with the MRIO model to trace the water pollution of different basins through the trade of products and services. We find that ∼50% chemical oxygen demand (COD) and ∼46% ammonium nitrogen (NH4+-N) discharges from production processes can be traced to consumer demands beyond the basin where the pollution was initially released. 0.3–2.2 mg/L COD and 0.03–0.31 mg/L NH4+-N water quality degradation (the range indicates pollution concentration in different basins) can be attributed to final consumption of commodities from other basins in China. International consumers contributed to increased degradation of water quality (0.43 mg/L COD in Huai River Basin and 0.07 mg/L NH4+-N in Hai River Basin). High pollution concentrations were often concentrated in dry North China, because water scarce basins in this region are more susceptible to human pollution loadings. Basins outsourcing water pollution were mainly developed economies that outsourced production and subsequent water quality impairments to other basins. This study highlights the interactions between water quality and supply chains.