Comments on Yang Yao and Mengqi Wang, Peking University, “Maximising
China’s growth potential”, 21/07/2017
While I agree with the general point of this post, it should
be pointed out that the statement that "Analysis shows that a region
should grow more slowly at high levels of GDP per capita and more quickly at
low levels" should be properly interpreted as a possibility to present a
potential rather than inevitability or definite. Otherwise the world would not
have the developed and developing regions/countries.
To realise that potential, there is a lot of hard and
intelligent work involved. Such as those proposed by the authors, to be adopted
and implemented by those involved and work hard for many years to come.
What assumptions are required for the follow statement:
"the lower GDP per capita — but higher growth rate — of the inland
provinces could actually increase China’s growth rate of GDP per capita by 11.7
per cent in the next 15 years." Alternatively, what would be the base case
scenario?
The numbers presented in the following statements are or
appear to be quite large: "Specifically, the central and western regions
would respectively grow 4.7 and 4.8 per cent faster on average in the coming 15
years, leading to an average of 2.6 per cent increase in the national growth
rate forecasted for 2016–30." Undoubtedly, technological will need to play
a key role to realise those numbers as the author argued.
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