Economics & the Rest
BSB 113 Economics Semester 2 2011
Assessment 2: Research Summary
Submission date: Friday 23rd September
Name: Michael Andrew Smith
Lecturer: Louisa Coglan
Tutor Name: Wasantha Athukorala
Student Number: N7408625
Word Count: 1086
Introduction
The purpose of this research report is to provide an overview of China’s economic growth in relation to the long term economic growth drivers. Critical assessment will be made on the growth drivers to determine whether they lead to long term economic growth.
China’s Economic Growth Since the market orientated economic reforms were introduced in 1978 (Khan, Hu (1997, P103) China’s economy has seen a 10% increase in Gross Domestic Product (GDP) Per year (Vincellete, Manoel, Hansson, Kuijs, (2010, P 4) which is extremely impressive considering all other developing countries have experienced a 4% increase annually (Vincellete, Manoel, Hansson, Kuijs, (2010, P 4). Prior to the global financial crisis in 2005, the economic growth had averaged 9.5% over the past 2 decades (Economic Surveys: China 2005, (September 2005, P2) During the global financial crisis in 2008-2009, exports shifted from 20 percent annual growth to an annualized contraction of more than 25 percent in early 2009 (Vincellete, Manoel, Hansson, Kuijs, (2010, P 4) However, prompt and vigorous policy actions, as well as swift adjustment in the labour market, helped growth pick up by the second quarter of 2009, putting China in the lead of the global recovery (Economic Survey of China 2010: Achievements, prospects and further challenges, ( February 2, 2010) The success of the Chinese Economy recently, especially during the economic , crisis has been speculated to be the cause of the popular government owned companies. Registered private businesses grew at a rate of 30% annually from 2000 to 2009 affecting different industry sectors from oil to banking (Entrepreneurship in China: Let a million flowers boom (March 10, 2011) and has been the
Assessment 2: Research Summary
Submission date: Friday 23rd September
Name: Michael Andrew Smith
Lecturer: Louisa Coglan
Tutor Name: Wasantha Athukorala
Student Number: N7408625
Word Count: 1086
Introduction
The purpose of this research report is to provide an overview of China’s economic growth in relation to the long term economic growth drivers. Critical assessment will be made on the growth drivers to determine whether they lead to long term economic growth.
China’s Economic Growth Since the market orientated economic reforms were introduced in 1978 (Khan, Hu (1997, P103) China’s economy has seen a 10% increase in Gross Domestic Product (GDP) Per year (Vincellete, Manoel, Hansson, Kuijs, (2010, P 4) which is extremely impressive considering all other developing countries have experienced a 4% increase annually (Vincellete, Manoel, Hansson, Kuijs, (2010, P 4). Prior to the global financial crisis in 2005, the economic growth had averaged 9.5% over the past 2 decades (Economic Surveys: China 2005, (September 2005, P2) During the global financial crisis in 2008-2009, exports shifted from 20 percent annual growth to an annualized contraction of more than 25 percent in early 2009 (Vincellete, Manoel, Hansson, Kuijs, (2010, P 4) However, prompt and vigorous policy actions, as well as swift adjustment in the labour market, helped growth pick up by the second quarter of 2009, putting China in the lead of the global recovery (Economic Survey of China 2010: Achievements, prospects and further challenges, ( February 2, 2010) The success of the Chinese Economy recently, especially during the economic , crisis has been speculated to be the cause of the popular government owned companies. Registered private businesses grew at a rate of 30% annually from 2000 to 2009 affecting different industry sectors from oil to banking (Entrepreneurship in China: Let a million flowers boom (March 10, 2011) and has been the