Trade, structural transformation and productivity growth in China
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2019-07-19
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This paper studies the recent experience of the Chinese economy from the perspective of a model with structural transformation and trade lib- eralization. The final objective is to quantify the contributions of the main drivers of Chinese experience, namely: the high investment rate, the strong productivity growth in each sector, the reallocation of labor across sectors and public sector expenditures. We construct a standard dynamic general equilibrium model of structural transformation for the Chinese economy, but add government and an external sector.