Prior to setting out the modeling work of Chinese economy for the present purpose of modelling of Asian developing countries, the author had endeavored to construct an econometric model of Soviet economy. In this work special attention was paid to the triangular trade-off relationships in the Soviet economy.1) The same tradeoff relationships must be carefully considered in modeling work of the Chinese economy. To lump consumption together as a whole is, however, usually misleading in the Soviet and Chinese economies, because both of them have a large share of agricultural sector, and the pattern of consumption is very different between rural and urban areas. Particularly in the rural areas consumers’ living conditions are very crude.
KeywordsReal Wage Final Demand Chinese Economy Domestic Supply Urban Worker
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