How China Grows: Investment, Finance, and Reform

Investment and financial reform are essential for China's continued economic well-being, as they have been the engine of growth and technological progress. However, weaknesses in China's financial system undermine efficiency in investment allocation and threaten future growth. How China Grows is a book that explains the relation between investment, finance, and growth in China and argues that financial-sector reform and development are necessary for sustaining long-term growth and maintaining macroeconomic stability.

Format: Paperback / softback
Length: 224 pages
Publication date: 06 June 2023
Publisher: Princeton University Press

Although China's economy has experienced remarkable growth over the past twenty-five years, economists hold differing views on its short- and long-term prospects. Some argue that China's reliance on investment, which may yield diminishing returns, has overshadowed the importance of technological change. This concern is addressed in the first book on the relationship between investment, finance, and growth in China, How China Grows. Authored by James Riedel, Jing Jin, and Jian Gao, the book argues that investment has not only driven growth but also been a key catalyst for technological progress and structural transformation in China.

However, the authors emphasize that the weaknesses of China's financial system pose a greater threat to future growth. They argue that inadequate investment allocation efficiency is undermining the country's ability to sustain long-term growth and maintain macroeconomic stability. Therefore, financial-sector reform and development are deemed essential for both sustaining long-term growth and ensuring macroeconomic stability.

While How China Grows includes some technical economic analysis, it is accessible to individuals outside the field of economics and can be of interest to a wide range of professionals, including economists, political scientists, bankers, and business people. The book provides valuable insights into development finance, particularly in the context of China's economic growth, and offers valuable perspectives for policymakers and stakeholders.

Weight: 308g
Dimension: 139 x 216 x 16 (mm)
ISBN-13: 9780691248066