Now close to 50 percent of GDP, this paper assesses the appropriateness of China's current investment levels. It finds … that China's capital-to-output ratio is within the range of other emerging markets, but its economic growth rates stand out …, partly due to a surge in investment over the last decade. Moreover, its investment is significantly higher than suggested by …

Real estate investment accounts for a quarter of total fixed asset investment (FAI) in China. The real estate sector … estate investment in China though a low-probability event would be sizable, with large spillovers to a number of China … and the rest of the G20 economies, we find that a 1-percent decline in China's real estate investment would shave about 0 …

China is to rebalance growth towards relying more on consumption and less on exports and investment, banking sector reforms …This paper uses the standard one-sector neoclassical growth model to investigate why China''s consumption has been low … and investment high. It finds that the low cost of capital has been quantitatively an important factor. Theory predicts …

Investment has grown rapidly in China in recent years, reaching more than 40 percent of GDP. Despite good progress on … bank and enterprise reforms, weaknesses remain that could contribute to inefficient investment decisions. Manufacturing …, infrastructure, and real estate have been the drivers of fixed asset investment. Econometric analysis presented in the paper suggests …

This paper examines possible segmentation of the internal capital market in China. We employ two standard tools from … similar (and somewhat surprising) picture: capital mobility within China is low! Furthermore, the degree of internal financial …

direct investment is also substantial. We explain these features in terms of a conventional neoclassical growth model-with no …

that some types of investment are becoming excessive in China, particularly in inland provinces. In these regions, private … existing trends continue, valuable resources could be wasted at a time when China’s ability to finance investment is facing …This paper proposes a possible framework for identifying excessive investment. Based on this method, it finds evidence …