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What is Slowing Growth in China?

  • Vladimir PopovEmail author
  • K. S. Jomo
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Abstract

A small part of the slowdown of growth in China in the recent decade may be due to the decline in population growth. The major factor contributing to China’s growth slowdown has been the reversal of earlier policies resulting in foreign exchange reserve accumulation. The resulting pressure for the currency to appreciate undermined the international competitiveness of Chinese exports. This has led to the decline in China’s export/GDP and investment/GDP ratios besides reorienting growth towards domestic consumption, thus also reducing household savings.

Keywords

Chinese exchange rate Chinese competitiveness Chinese growth China–US relations 

Notes

References

  1. Polterovich, Victor, and Vladimir Popov. 2004. Accumulation of Foreign Exchange Reserves and Long Term Economic Growth. In Slavic Eurasia’s Integration into the World Economy, ed. S. Tabata and A. Iwashita, 2006. Updated version: Hokkaido University, Sapporo.Google Scholar
  2. Popov, Vladimir. 2010. Global Imbalances: An Unconventional View. IDEAs, 19 October. http://www.networkideas.org/featart/oct2010/Global_Imbalances.pdf.
  3. Popov, Vladimir. 2013. Currency Wars: Why Russia and China Are Rapidly Accumulating Foreign Exchange Reserves. PONARS Policy Memo 256. June. http://pages.nes.ru/vpopov/documents/PONARS-June_2013-accumulation%20of%20FOREX,%20Russia,%20China.pdf.
  4. Popov, Vladimir. 2019. Foreign exchange reserves and exchange rates: reaction to shocks in short-term and long-term economic growth. In Macroeconomic Policies in Countries of the Global South, ed. Anis Chowdhury and Vladimir Popov. Hauppauge, NY: Nova Science Publishers.Google Scholar

Copyright information

© Society for International Development 2020

Authors and Affiliations

  1. 1.Dialogue of Civilizations Research InstituteBerlinGermany
  2. 2.Central Economics and Mathematics Institute of the Russian Academy of Sciences (CEMI RAN)MoscowRussian Federation
  3. 3.Khazanah Research InstituteKuala LumpurMalaysia

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