Cost Distortions and Structural Imbalances in China

作     者：Yiping Huang Bijun Wang 

作者机构：China Center for Economic Research Peking University Beijing China 

出 版 物：《China & World Economy》 (中国与世界经济（英文版）)

年 卷 期：2010年第18卷第4期

页      面：1-17页

核心收录：

学科分类：120202[管理学-企业管理（含：财务管理、市场营销、人力资源管理）] 12[管理学] 1202[管理学-工商管理] 070207[理学-光学] 07[理学] 08[工学] 0803[工学-光学工程] 0702[理学-物理学] 

主　　题：cost distortion production factor structural imbalance 

摘      要：This paper attempts to explain the fundamental cause of China＇s growing imbalanee problems. Economic data confirm that the key structural imbalance problems, such as overinvestment, large current account surpluses, low consumption share of GDP and income inequality, have all deteriorated over the past few years, despite continuous policy efforts to correct these problems. We argue that the key determining factor is repressed factor cost, which is associated with heavily distorted markets for labor, capital, land, resources and the environment. These are like implicit subsidies for producers, investors and exporters. They boost growth and, at the same time, lift investment and exports. Previous policy efforts have focused more on administrative measures, which have not been sustainable. Therefore, a more fundamental solution to the imbalance problem lies in completing market-oriented re forms for production factors and allowing free markets to determine prices of labor, capital, land and resources.