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Viewing the Economic Development from the Perspective of Long-term Growth Drivers’ Structure: General Rules and China’s Experience (No.33, 2019)

2019-05-08

By Hou Yongzhi & Jia Shen, Department of Development Strategy and Regional Economy, DRC

Research Report, No.33, 2019 (Total 5533) 2019-3-15

Abstract: The re-accounting results based on lower middle-level income earners as samples show that the difference in labor productivity among developing countries mainly result from the differences in per-capita capital stock. Therefore, capital deepening is an important force driving the growth of developing countries. The late developers are faced with low savings capability, insufficient development of basic industries and weak profitability of enterprises in the stage of lower-middle-level income stage, while in the upper-middle-level income stage, they will face the problem of over-reliant on a certain pathway of technology development which would make it hard to transform the structure of growth drivers timely. Viewing from the perspective of growth drives’ structure, China’s economic development mainly relies on capital deepening through internal accumulation. By adopting the industrialization strategy conducive to long-term development, China has focused on enhancing enterprise development, sharpening enterprise competitive edge and attaching importance to the independent capability of scientific and technological innovation. Looking to the future, it is advisable for the government to further promote the capital deepening on the basis of improving the quality and efficiency of investment, advance the coordinated development of basic industries and key industries, continue to optimize the structure of market entities, accelerate the cultivation of leading enterprises, strengthen the weak links in basic research and strive to facilitate original innovation.

Key words: accounting of development cost, growth drivers, China’s experience

 
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