Post‐socialist transformation and growth regime: some comments about the Chinese case

Abstract

Purpose

This paper attempts to show that Chinese post‐socialist transformation has involved a deep change in growth regime.

Design/methodology/approach

The authors begin by detailing the institutional background of the study: the Chinese post‐socialist transformation. They compare growth regimes both in Maoist and post Maoist eras. Therefore, by using official data, the paper deals with the difficulties and challenges of the current growth regime.

Findings

The new growth regime could be particularly difficult to manage regarding China's dependence on external demand in a context of low domestic demand. In particular, the main difficulty to which this growth regime could be confronted with concerns the occurrence of an external contraction in the US. The authors then try to assess why such an event may appear by providing a list of external risks to emphasize the economic vulnerability of China.

Practical implications

This paper is essentially intended for Chinese policy‐makers who wish to adopt a more balanced growth strategy in the long‐run.

Originality/value

The paper develops an alternative view on the macroeconomic situation of China. In particular, it insists on its vulnerability through external demand.

Citation

Charles, S. and El Karouni, I. (2008), "Post‐socialist transformation and growth regime: some comments about the Chinese case", International Journal of Development Issues, Vol. 7 No. 2, pp. 120-135. https://doi.org/10.1108/14468950810909105