Export Dependence and Sustainability of Growth in China Yılmaz Akyüz

The author argues that the main reason for China’s excessive dependence on foreign markets is underconsumption. That, in turn, is more due to a low share of household income and a high share of profits. In the present circumstances, China can no longer maintain such high growth rates for its exports, and, therefore, needs to turn to consumption-led growth by expanding the share of wages and household income in GDP and accelerating public spending in social infrastructure.

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