Is China Going to be the World's Largest Economy?

Rapid economic growth in China has made China the world's 2nd largest economy in term of its gross domestic product (GDP) right after the U.S. (World Bank, 2019). Will Chinese economy surpass U.S. economy is a question many wonder. Some think that there is no debate whether Chinese economy will surpass U.S.'s, the only question is when will it happen (Bloomberg 2018). This book compares the economic growth in China and U.S. from 1982- 2016 in terms of their GDP per capita (standard of living) and examines whether Chinese economy will surpass U. S's in the next 20 years. The results indicate that independent variables such as capital, labor, saving and lagged GDP per capita have an effect on economic growth in China and variables like capital, FDI and lagged GDP per capita have an influence on economic growth in U.S. The result of this study suggests that in the next 20 years, China will not surpass U.S. in term of GDP per capita.

Autorentext

Esther Y. Peng: She holds a M.S. degree in Applied Economics from St. Cloud State University. Currently, she is an assistant professor at Bethany Lutheran College. Her research interests are in Economic Growth, Forecasting, Time Series Econometrics and Economics Education. Kuodi Jian: Holds a PhD degree and is an Associate Professor at MetroState.

Klappentext

Rapid economic growth in China has made China the world's 2nd largest economy in term of its gross domestic product (GDP) right after the U.S. (World Bank, 2019). Will Chinese economy surpass U.S. economy is a question many wonder. Some think that there is no debate whether Chinese economy will surpass U.S.'s, the only question is when will it happen (Bloomberg 2018). This book compares the economic growth in China and U.S. from 1982- 2016 in terms of their GDP per capita (standard of living) and examines whether Chinese economy will surpass U. S's in the next 20 years. The results indicate that independent variables such as capital, labor, saving and lagged GDP per capita have an effect on economic growth in China and variables like capital, FDI and lagged GDP per capita have an influence on economic growth in U.S. The result of this study suggests that in the next 20 years, China will not surpass U.S. in term of GDP per capita.