The recent slowdown in the Chinese economy is interpreted in two dimensions: a long-run, structural shift toward a moderation in China’s earlier high growth pace, and a short-run, mainly cyclical, adjustment to the earlier economic overheating. Main causes of the long-run shift are export...

China's central government undertook major tax regime reform in 1994 that was characterized by fiscal federalism. In hindsight, this reform might be viewed as being more emphatic towards the revenue side than the expenditure side. The reform has resulted in certain success both for revenue...

In responding to a view that attributes sharp downturns in the Chinese economy in late 2008 and early 2009 to the "collapse of external demand," the present paper scrutinizes three relevant issues: How have large Chinese importers behaved in a demand-price setting? How have Chinese commodity...

The consumer price index (CPI) and producer price index (PPI) are interrelated but significantly different concepts. Relationships between the two indices may be that of causality or non-causality. The paper conducts a Granger-causality test on China’s CPI and PPI data for the period from...

The Chinese economy has been growing with an average of 10 per cent during the last 25 years. Walking in downtown Shanghai or Beijing, you can find some spots that are so luxurious that they are unrivalled in the world. China does not fit the picture of an average developing country. However,...