Munich Personal RePEc Archive

A Model of Economic Growth in China

Tabuchi, Takatoshi and Wang, Congcong and Zhu, Xiwei (2023): A Model of Economic Growth in China.

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We present a model of Chinese growth in a two-country economy with the manufacturing and natural resource sectors to analyze the impacts of the reform and opening-up policy, which promotes free trade and technological progress, on the net capital flows, net export, and social welfare. We show that manufacturing capital in China initially decreased before increasing. This corresponds with the fact that China was a net importer of manufactured goods initially and became a net exporter recently. These results are consistent with the data obtained after the reform and opening-up policy in 1978.

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