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Critical Analysis of Chinas Economy - Research Paper Example

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This essay focuses on comprehending the efforts applied in ensuring economic growth. In addition, potential setbacks that China may encounter in the near future will be discussed. Therefore, China faces a challenge of ensuring a maintained status quo…
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Critical Analysis of Chinas Economy
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Download file to see previous pages During the industrialization era, China dominated its lead in global technological discoveries. It is believed that China made its breakthrough in economic growth during the Song Dynasty. During this rule, China made gross investments in technologies, witnessed highest rates of urbanization as well producing large amounts of highly demanded iron. As a result, China acquired the global superpower rank in economic growth. However, the reign did not last very long after Western Europe emerged with bigger economic growths between 1500 and 1800. It is believed that China fall could be related to the tyranny of Ming (1368 –1644). In addition, trade and innovation received minimum focus during the dynasty of Qing (1644 –1911) (Chow and Kui-Wai 156).Significant growth in efficiency and productivity, physical capital, and labor contributed to economic growth prior to the year 1978 in China. Essentially, aggregate factor productivity reduced within the same period. Research indicates that the decrease registered scale of 1.07 percent. In addition, additional years of schooling in China resulted in increased growth in the annual human capital which reached 1.55 percent. As a result, the total factor productivity registered a partial decrease. In the later years, the actual input versus capital ratio maintained a constant figure. Therefore the roles of total factor productivity were inverted with those of accumulation of capital. Contrastingly, the growth rate in human capital registered a decrease. ...Download file to see next pagesRead More
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