A reorientation toward emphasis on consumption has become a major issue in China, raising the question of the relation between economic growth and the composition of output. The issue is addressed here, using insights from economic growth theories. These theories indicate that concentration on...

The explanation offered here for the high rates of saving in China is that much of the saving has been in two Benthamite senses, “forced.” Involuntary saving, the first of Bentham's meanings, includes taxes which finance investment. These have been more than half of total saving in China in...