The investment-intensive growth model of the People's Republic of China (PRC) is often viewed as state-driven and … ultimately unsustainable. But largely unnoticed, a shift has taken place. This paper examines the changes in investment patterns … economy-wide data with various breakdown. Significant shifts in investment patterns across sectors and ownership forms have …

it driven by investment and capital accumulation. By 2014, gross capital formation had reached 46 percent of aggregate … expenditures. This paper documents the role of investment in driving economic growth in China, questions how much longer China can … sustain a relatively high investment rate, and examines the arguments that have been offered for an impending drastic …

more favourable loan package; that it is associated with over-investment even when investment does not create collateral …

the market. Suppose that a higher investment level makes the realization of high quality more likely. Then, if consumers … observe the investment (but not the realization of product quality) before purchase, they can infer the probability … investment can avoid adverse selection and, second, an efficiency effect according to which a larger investment reduces the …