In this book, Dr. Jun Zhang rebuts the widely-held view that Chinese economic growth is unsustainable due to low consumption and a reliance on exports and enormous fixed-asset investments. Though many believe this “structural imbalance” of the Chinese economy will become a serious problem in...

Chapter 1. Information Costs, Limited Reasoning Ability and Simplifying Planning: A Theoretical Explanation of Traditional Chinese Planning -- Chapter 2. Socialist Government and Enterprise: An Analysis from the Perspective of “Exit -- Chapter 3. Monetary Incentive and Property Rights...

We document a process of rapid tertiarization of the Chinese economy since 2005. The employment and value-added shares of the service sector have increased significantly. Moreover, total factor productivity growth has increased faster in the service sector than in the manufacturing sector....