The China Growth Model

-------------------------------------------------

-------------------------------------------------

-------------------------------------------------

-------------------------------------------------

CHINESE ECONOMY

-------------------------------------------------

-------------------------------------------------

ANALYSIS OF GROWTH MODELS APPLIED TO CHINA AND LEARNINGS FOR DEVELOPING COUNTRIES

STUDENT NAME: SHAUN VAN DER MERWE

SUBMISSION: 11TH JULY 2012

DECLARATION

This assignment is submitted in partial fulfillment for the course of Chinese Economy MBS593.

I declare that:

This work is entirely my own except where I have acknowledged the use of source material [Books, Journals, and Reports].

This assessment item has not been submitted before any other institution for academic credit elsewhere.

TABLE OF CONTENTS

1. INTRODUCTION5

2. MODERN CHINA’S ECONOMIC PERFORMANCE5

3. ECONOMIC GROWTH MODELS6

3.1 ROSTOW’S MODEL FOR DEVELOPMENT6

3.2 EXOGENOUS GROWTH MODEL8

3.3 LEWIS-RANIS-FEI GROWTH MODEL10

4. ECONOMIC GROWTH CHALLENGES14

5. LESSONS FOR DEVELOPING ECONOMIES15

6. REFERENCES16

7. BIBLIOGRAPHY16

LIST OF FIGURES

Figure 1 - GDP Growth per Capita (source World Bank Development Indicators, accessed July 2012) 6

Figure 2 - Phases of Economic Development according to Rostow (www.wikipedia.org accessed 2nd July 2012) 8

Figure 3 - China's Commodity Intensity as a function of GDP (source Xstrata, 2012) 8

Figure 4- Graphical Display of the Solow Growth Model, (www.oxfordjournals.org accessed 4th July 2012) 10

Figure 5 - Lewis-Fei-Ranis Phases of economic development (Ercolani and Wei, 2007) 11

Figure 6 - Graph of Agriculture and Non-agriculture sector to total GDP (Ercolani and Wei, 2010) 12

Figure 7 - Employment split from 1960-2000 (Ercolani and Wei, 2010) 13

Figure 8 - Rural-Urban Labour Migration (Zhang and Song 2003) 13

INTRODUCTION

This report attempts to analyse China’s growth...