How China Grows: Investment, Finance, and Reform / Edition 1

Hardcover (Print)
Used and New from Other Sellers
Used and New from Other Sellers
from $1.99
Usually ships in 1-2 business days
(Save 96%)
Other sellers (Hardcover)
  • All (12) from $1.99   
  • New (4) from $54.06   
  • Used (8) from $1.99   

Overview

"Challenging conventional theory, this excellent book argues that investment drives China's economic growth and technological development."—Franklin Allen, Wharton School, University of Pennsylvania

"How China Grows is a concise and systematic evaluation of the role of investment in China's economic growth since 1978. The authors argue that investment has been the main driver of China's growth but that future growth will require a more effective financial, particularly banking, system. This is the first book to systematically examine the investment—growth nexus in China, and those interested in understanding the dynamics of China's growth over the past three decades will certainly want to read it."—Nicholas R. Lardy, Institute for International Economics

Read More Show Less

Editorial Reviews

Choice - G.J. Wen
Using rich and much updated graphs and tables, the authors convincingly argue that China's spectacular growth has been driven mainly by its ability to channel domestic and foreign savings into restructuring its economy since the late 1970s.
International Affairs - Marc Lanteigne
Some parts of this work, especially the equation-heavy chapter on savings processes and investment rates, are best appreciated by those with solid economics backgrounds, but even non-experts interested in China's growth will appreciate the arguments made here.
The China Journal - Chunlai Chen
Overall, this is a very valuable book which systematically examines and analyzes the relationship between investment and growth in China over the past three decades. Using rich and up-to-date data and materials, it argues convincingly that China's spectacular growth has been driven mainly by its ability to channel domestic and foreign savings into restructuring its economy since 1978. . . . This book not only contributes to the existing academic literature in development finance but also provides valuable policy suggestions on China's financial sector reform and liberalization. Although it includes some technical economic analysis, it is written in a way that is easy to read and to understand. It is accessible to a broad range of readers, including academics, policy-makers, business people, students and non-economists. The book will benefit anyone who is interested in development finance in general and in China's economic growth and financial market development in particular.
Progress in Development Studies - Yu Chen
The book is accessible and informative to a broad readership: from a lay reader to those who work in the field of finance and development, China specialists and policy makers.
Economic Record - Ligang Song
The book does not break new ground, but its conceptual approach, its empirical analysis and its detailed up-to-date account of the ongoing reform programs and their policy background in China make it highly recommended for those working on or studying the Chinese economy. The book is especially useful for those interested in financial sector reform in China. As claimed by the authors, policy-makers in China will also find this book useful.
China Quarterly - Doug Guthrie
It is an excellent overview of the development of the financial system to date. . . . What is new and surprising is how succinctly and effectively the authors have brought together the technical literature with laymen's language to make this argument. It is one of the best treatises I have seen on financial reform.
From the Publisher
"Using rich and much updated graphs and tables, the authors convincingly argue that China's spectacular growth has been driven mainly by its ability to channel domestic and foreign savings into restructuring its economy since the late 1970s."—G.J. Wen, Choice

"Some parts of this work, especially the equation-heavy chapter on savings processes and investment rates, are best appreciated by those with solid economics backgrounds, but even non-experts interested in China's growth will appreciate the arguments made here."—Marc Lanteigne, International Affairs

"Overall, this is a very valuable book which systematically examines and analyzes the relationship between investment and growth in China over the past three decades. Using rich and up-to-date data and materials, it argues convincingly that China's spectacular growth has been driven mainly by its ability to channel domestic and foreign savings into restructuring its economy since 1978. . . . This book not only contributes to the existing academic literature in development finance but also provides valuable policy suggestions on China's financial sector reform and liberalization. Although it includes some technical economic analysis, it is written in a way that is easy to read and to understand. It is accessible to a broad range of readers, including academics, policy-makers, business people, students and non-economists. The book will benefit anyone who is interested in development finance in general and in China's economic growth and financial market development in particular."—Chunlai Chen, The China Journal

"The book is accessible and informative to a broad readership: from a lay reader to those who work in the field of finance and development, China specialists and policy makers."—Yu Chen, Progress in Development Studies

"The book does not break new ground, but its conceptual approach, its empirical analysis and its detailed up-to-date account of the ongoing reform programs and their policy background in China make it highly recommended for those working on or studying the Chinese economy. The book is especially useful for those interested in financial sector reform in China. As claimed by the authors, policy-makers in China will also find this book useful."—Ligang Song, Economic Record

"It is an excellent overview of the development of the financial system to date. . . . What is new and surprising is how succinctly and effectively the authors have brought together the technical literature with laymen's language to make this argument. It is one of the best treatises I have seen on financial reform."—Doug Guthrie, China Quarterly

"This book will be well received by researchers and policy makers. The focus of the book—how the Chinese economy has grown so far, and whether or not this growth will be sustainable—is an attractive topic given the great importance of the Chinese economy in the world, but also because the authors of the book provide an unconventional method of analysis."—Asian Affairs

"Although it includes some technical economic analysis, How China Grows is accessible to noneconomists and will benefit anyone who is interested in development finance in general and in China's economic growth in particular whether economists, political scientists, bankers, or business people."—World Book Industry

Choice
Using rich and much updated graphs and tables, the authors convincingly argue that China's spectacular growth has been driven mainly by its ability to channel domestic and foreign savings into restructuring its economy since the late 1970s.
— G.J. Wen
International Affairs
Some parts of this work, especially the equation-heavy chapter on savings processes and investment rates, are best appreciated by those with solid economics backgrounds, but even non-experts interested in China's growth will appreciate the arguments made here.
— Marc Lanteigne
Progress in Development Studies
The book is accessible and informative to a broad readership: from a lay reader to those who work in the field of finance and development, China specialists and policy makers.
— Yu Chen
Economic Record
The book does not break new ground, but its conceptual approach, its empirical analysis and its detailed up-to-date account of the ongoing reform programs and their policy background in China make it highly recommended for those working on or studying the Chinese economy. The book is especially useful for those interested in financial sector reform in China. As claimed by the authors, policy-makers in China will also find this book useful.
— Ligang Song
China Quarterly
It is an excellent overview of the development of the financial system to date. . . . What is new and surprising is how succinctly and effectively the authors have brought together the technical literature with laymen's language to make this argument. It is one of the best treatises I have seen on financial reform.
— Doug Guthrie
Asian Affairs
This book will be well received by researchers and policy makers. The focus of the book—how the Chinese economy has grown so far, and whether or not this growth will be sustainable—is an attractive topic given the great importance of the Chinese economy in the world, but also because the authors of the book provide an unconventional method of analysis.
The China Journal
Overall, this is a very valuable book which systematically examines and analyzes the relationship between investment and growth in China over the past three decades. Using rich and up-to-date data and materials, it argues convincingly that China's spectacular growth has been driven mainly by its ability to channel domestic and foreign savings into restructuring its economy since 1978. . . . This book not only contributes to the existing academic literature in development finance but also provides valuable policy suggestions on China's financial sector reform and liberalization. Although it includes some technical economic analysis, it is written in a way that is easy to read and to understand. It is accessible to a broad range of readers, including academics, policy-makers, business people, students and non-economists. The book will benefit anyone who is interested in development finance in general and in China's economic growth and financial market development in particular.
— Chunlai Chen
Read More Show Less

Product Details

  • ISBN-13: 9780691125626
  • Publisher: Princeton University Press
  • Publication date: 3/19/2007
  • Edition description: New Edition
  • Edition number: 1
  • Pages: 222
  • Product dimensions: 7.11 (w) x 8.53 (h) x 0.78 (d)

Meet the Author

James Riedel is Professor of International Economics at Johns Hopkins University's School of Advanced International Studies. Jing Jin is Director of China Strategy for UBS AG Hong Kong, and a professor at Beijing's Central University of Finance and Economics. Jian Gao is Vice-Governor of the China Development Bank in Beijing.

Read More Show Less

Table of Contents

Preface ix
Acknowledgments xi

Chapter 1: Overview of Economic Reforms and Outcomes 1
1.1 Agricultural Reform: 1979-85 4
1.2 Industrial Reform: 1978-93 6
1.3 Transition to a Market Economy: 1994-2003 11
1.4 Foreign Trade and Investment 13
1.5 Financial Sector 16

Chapter 2: The Source of Growth and the Role of Investment 18
2.1 Methodology of Growth Accounting 18
2.2 Measurement of TFPG in China 20
2.3 Production Function Estimates of TFPG in China 23
2.4 Explaining TFPG in China 25
2.5 The Contribution of Investment Reconsidered 28
2.6 Technological Change Reconsidered 32
2.7 Postscript: Investment versus Domestic Demand as a Source of Growth 35

Chapter 3: Saving and the Financing of Investment in China 36
3.1 Investment 38
3.2 Financing Investment 42
3.3 Financial Flows between Sectors 45
3.4 Household Saving 47
3.5 Government Saving and Investment 54
3.6 Foreign Saving 60
3.7 Summary and Conclusions 65

Chapter 4: Financial Sector Repression 70
4.1 Why Repress the Financial System? 71
4.2 How Repressed Is China's Financial System? 74
4.3 Finance and Growth in China 84
4.4 Strategy of Financial Development 90

Chapter 5: Banking Sector Reform 93
5.1 Key Features of the Banking Sector 93
5.2 Problems of the Banking Sector 95
5.3 Measures Taken to Strengthen the Banking Sector 101

Chapter 6: Developments in the Bond Market 115
6.1 The Role of a Bond Market 115
6.2 The Bond Market in China 116
6.3 Government Bonds 118
6.4 Corporate Bond Market 131
6.5 Conclusion 132

Chapter 7: The Rise and Fall of the Stock Market 134
7.1 The Rise 135
7.2 The Fall 140
7.3 Conclusion 148

Chapter 8: Macroeconomic Policy and Performance 150
8.1 Ups and Downs in the Macro Economy 151
8.2 Investment Spending as the Proximate Cause of Macroeconomic Cycles 152
8.3 Anatomy of Macro Cycles in China 155
8.4 Monetary Policy 165
8.5 Capital Flows and Exchange Rate Policy 171
8.6 Fiscal Policy 179
8.7 Conclusion 186

References 189
Index 199

Read More Show Less

Customer Reviews

Be the first to write a review
( 0 )
Rating Distribution

5 Star

(0)

4 Star

(0)

3 Star

(0)

2 Star

(0)

1 Star

(0)

Your Rating:

Your Name: Create a Pen Name or

Barnes & Noble.com Review Rules

Our reader reviews allow you to share your comments on titles you liked, or didn't, with others. By submitting an online review, you are representing to Barnes & Noble.com that all information contained in your review is original and accurate in all respects, and that the submission of such content by you and the posting of such content by Barnes & Noble.com does not and will not violate the rights of any third party. Please follow the rules below to help ensure that your review can be posted.

Reviews by Our Customers Under the Age of 13

We highly value and respect everyone's opinion concerning the titles we offer. However, we cannot allow persons under the age of 13 to have accounts at BN.com or to post customer reviews. Please see our Terms of Use for more details.

What to exclude from your review:

Please do not write about reviews, commentary, or information posted on the product page. If you see any errors in the information on the product page, please send us an email.

Reviews should not contain any of the following:

  • - HTML tags, profanity, obscenities, vulgarities, or comments that defame anyone
  • - Time-sensitive information such as tour dates, signings, lectures, etc.
  • - Single-word reviews. Other people will read your review to discover why you liked or didn't like the title. Be descriptive.
  • - Comments focusing on the author or that may ruin the ending for others
  • - Phone numbers, addresses, URLs
  • - Pricing and availability information or alternative ordering information
  • - Advertisements or commercial solicitation

Reminder:

  • - By submitting a review, you grant to Barnes & Noble.com and its sublicensees the royalty-free, perpetual, irrevocable right and license to use the review in accordance with the Barnes & Noble.com Terms of Use.
  • - Barnes & Noble.com reserves the right not to post any review -- particularly those that do not follow the terms and conditions of these Rules. Barnes & Noble.com also reserves the right to remove any review at any time without notice.
  • - See Terms of Use for other conditions and disclaimers.
Search for Products You'd Like to Recommend

Recommend other products that relate to your review. Just search for them below and share!

Create a Pen Name

Your Pen Name is your unique identity on BN.com. It will appear on the reviews you write and other website activities. Your Pen Name cannot be edited, changed or deleted once submitted.

 
Your Pen Name can be any combination of alphanumeric characters (plus - and _), and must be at least two characters long.

Continue Anonymously

    If you find inappropriate content, please report it to Barnes & Noble
    Why is this product inappropriate?
    Comments (optional)