Research on Optimal Consumption Rate and Steady Economic Growth in China

China's economy has maintained a high annual growth rate of 9.72%, since the Reform and Opening up. Contrary to the high economic growth and improved stability, consumption has declined year by year. This book analyzes whether there is an optimal consumption rate under which the economy can achieve long-term stable growth.

Since the Reform and Opening up, China's economy has maintained high growth rates, known as the 'Chinese growth miracle'. Over this period, the stability of economic growth has also gradually improved. According to Lin Jianhao and Wang Jinmei (2013), Since 1996, the Chinese economy has been oscillating between relative volatility and relative stability achieving a kind of 'overall stability'. By contrast, consumption rate, the most important measure of the national economic welfare and of the stabilizing effects of steady economic growth, has declined year by year between 1978 and 2016. What does this mean for the role of consumption in China's long-term economic growth? Is there an optimal consumption rate, under which the economy can achieve long-term steady growth? What is the optimal consumption rate for China? Is the optimal consumption rate conducive to sustainable economic growth? These are some of the important theoretical and practical questions to be answered in this book.

Autorentext

Zhao Xincheng is Associate Research Fellow and doctor of economics at Yunnan University Development Research Institute. He is mainly engaged in macroeconomic operation and economic growth research. In recent years, he has published twenty-seven papers in academic journals and presided over eight projects, including the National Social Science Foundation Project, Yunnan Science and Technology Development Planning Project and Yunnan Philosophy and Social Science Foundation Project. In 2013, he was selected to the fourth batch of "young and middle-aged backbone teacher training plan" of Yunnan University. In addition, he has received two awards from Yunnan Research Excellence Awards in Philosophy and Social Sciences.

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List of Figures List of Tables Preface Introduction China's Consumption Rate and Economic Growth Steadiness: Stylized Facts Economic Dynamic Efficiency and Optimal Consumption Rate Optimal Consumption Rate in the SolowSwan Model Optimal Consumption Rate in the RamseyCassKoopsman Model Optimal Consumption Rate in an Open Economy Optimal Consumption Rate in the Dynamic Stochastic General Equilibrium (DSGE) Model Evaluation of the Steadiness of China's Economic Growth and Analysis of the Factors Affecting It Analysis of the Impact of Final Consumption Rate on Economic Growth and Its Steadiness Conclusion and Outlook Appendix.