Abstract

China’s transformation into a dynamic private-sector-led economy and its integration into the world economy have been among the most dramatic global economic developments of recent decades. This paper provides an overview of some of the key aspects of recent developments in China’s macroeconomy and economic structure. It also surveys the main policy challenges that will need to be addressed for China to maintain sustained high growth and continued global integration.

References

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    • Search Google Scholar
    • Export Citation
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    • Search Google Scholar
    • Export Citation
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    • Search Google Scholar
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    • Search Google Scholar
    • Export Citation
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    • Search Google Scholar
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Cited By

  • Adhikari, Ramesh, and Yongzheng Yang, 2002, “What Will WTO Membership Mean for China and Its Trading Partners?Finance and Development, Vol. 39, No. 3, September, pp. 2225.

    • Search Google Scholar
    • Export Citation
  • Ahmad, Ehtisham, 1997, “China,” in Fiscal Federalism in Theory and Practice, ed. Teresa Ter-Minassian (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Ahmad, Ehtisham, Li Keping, Thomas Richardson, and Raju Singh, 2002, “Recentralization in China?IMF Working Paper No. 02/168 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Ahmad, Ehtisham, Mario Fortuna, and Raju Singh, 2004, “Towards More Effective Redistribution: Reform Options for Intergovernmental Transfers in ChinaIMF Working Paper, forthcoming (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Ahmed, Shaghil, 2003, “Sources of Economic Fluctuations in Latin America and Implications for Choice of Exchange Rate Regimes,” Journal of Development Economics, Vol. 72, No. 1 (October), pp. 181202.

    • Search Google Scholar
    • Export Citation
  • Alberola, Enrique, Susana G. Cervero, J. Humberto Lopez, and Angel Ubide, 1999, “Global Equilibrium Exchange Rates—Euro, Dollar, ‘Ins,’ ‘Outs,’ and Other Major Currencies in a Panel Cointegration Framework,” IMF Working Paper No. 99/175 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Balassa, Bela, 1964, “The Purchasing Power Parity Doctrine: A Reappraisal,” Journal of Political Economy, Vol. 72 (December), pp. 58496.

    • Search Google Scholar
    • Export Citation
  • Banker, 2003, “Top 1000 World Banks,” Vol. 153, Issue 929 (July), p. 143.

  • Bayoumi, Tamim, Hamid Faruqee, and Jaewoo Lee, 2003, “A Fair Exchange? Theory and Practice of Calculating Underlying Exchange Rate Trends” (unpublished; Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Bell, Michael W. Hoe Ee Khor, and Kalpana Kochhar, 1993, China at the Threshold of a Market Economy, IMF Occasional Paper No. 107 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Blanchard, Olivier, and Danny Quah, 1989, “The Dynamic Effects of Aggregate Demand and Supply Disturbances,” American Economic Review, Vol. 79 (September), pp. 65573.

    • Search Google Scholar
    • Export Citation
  • Blanchard, Olivier, and Shleifer, Andrei 2001, “Federalism With and Without Political Centralization: China Versus Russia,” IMF Staff Papers, Vol. 48 (Special Issue), pp. 17179.

    • Search Google Scholar
    • Export Citation
  • Borda, Patrice, Olivier Manioc, and Jean Gabriel Montauban, 2000, “The Contribution of U.S. Monetary Policy to Caribbean Business Cycles,” Social and Economic Studies, Vol. 49 (Special Issue), June/September, pp. 22550.

    • Search Google Scholar
    • Export Citation
  • Bottelier, Pieter, 2002, “Implications of WTO Membership for China’s State-Owned Banks and the Management of Public Finances: Issues and Strategies,” paper presented at the Annual Meetings of the Asian Development Bank, Shanghai.

    • Search Google Scholar
    • Export Citation
  • Brooks, Ray, and Ran Tao, 2003, “China’s Labor Market Performance and Challenges,” IMF Working Paper No. 03/210 (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Cai, F. W. Dewen and D. Yang, 2001Labor Market Distortions and Economic Growth: Examining Institutional Components of Regional Disparity in China,” Working Paper No. 10 (Beijing: Center for Human Resource Studies, Chinese Academy of Social Sciences).

    • Search Google Scholar
    • Export Citation
  • Chadha, Bankim, and Eswar Prasad, 1997, “Real Exchange Rate Fluctuations and the Business Cycle: Evidence from Japan,” IMF Staff Papers, Vol. 44, No. 3 (September), pp. 32855.

    • Search Google Scholar
    • Export Citation
  • Chen, Show-Lin, and Jyh-Lin Wu, 1997, “Sources of Real Exchange Rate Fluctuations: Empirical Evidence from Four Pacific Basin Countries,” Southern Economic Journal, Vol. 63 (January), pp. 77687.

    • Search Google Scholar
    • Export Citation
  • China Finance Yearbook, various issues.

  • China Industrial Statistical Year Book, various years.

  • China Statistical Year Book, various years.

  • Chinn, Menzie, and Eswar S. Prasad, 2003, “Medium-Term Determinants of Current Accounts in Industrial and Developing Countries: An Empirical Exploration,” Journal of International Economics, Vol. 59, No. 1 (January), pp. 4776.

    • Search Google Scholar
    • Export Citation
  • Chou, W.L and Y.C. Shih, 1998, “The Equilibrium Exchange Rate of the Chinese Renminbi,” Journal of Comparative Economics, Vol. 26 (March), pp. 16574.

    • Search Google Scholar
    • Export Citation
  • Clarida, Richard, and Jordi Gali, 1994, “Sources of Real Exchange Rate Fluctuations: How Important Are Nominal Shocks?NBER Working Paper No. 4658 (Cambridge, Massachusetts: National Bureau of Economic Research).

    • Search Google Scholar
    • Export Citation
  • Daniel, James, Tom Richardson, Raju Jan Singh, and George Tsibouris, 2003, “Medium-Term Fiscal Issues,” in China: Competing in the Global Economy—Policies for Sustained Growth and Financial Stability, ed. Tseng Wanda Markus Rodlauer (Washington: International Monetary Fund).

    • Search Google Scholar
    • Export Citation
  • Dibooglu, Selahattin, and Ali M. Kutan, 2001, “Sources of Real Exchange Rate Fluctuations in Transition Economies: The Case of Poland and Hungary,” Journal of Comparative Economics, Vol. 29, No. 2 (June), pp. 25775.

    • Search Google Scholar
    • Export Citation
  • Dorfman, Mark, and Yee Mun Sin, 2001, “China: Social Security Reform—Strategic Options” (unpublished; Washington: World Bank).

  • Findlay, Christopher, Harry X. Wu, and Andrew Watson, 1995, “Fiscal Decentralisation, Regionalism and Uneven Development in China,” Chinese Economy Research Unit Working Paper No. 95/5 (Adelaide, Australia: University of Adelaide).

    • Search Google Scholar
    • Export Citation
  • Funke, Michael, and Jörg Rahn, 2004, “By How Much Is the Chinese Renminbi Undervalued?” (unpublished; Hamburg: Hamburg University).

    • Search Google Scholar
    • Export Citation
  • Hertel, Thomas, and Terrie Walmsley, 2000, “China’s Accession to the WTO: Timing Is Everything” (West Lafayette, Indiana: Center for Global Trade Analysis, Purdue University).

    • Search Google Scholar
    • Export Citation
  • Hoffmaister, Alexander W. and Jorge E. Roldós, 2001, “The Sources of Macroeconomic Fluctuations in Developing Countries: Brazil and Korea,” Journal of Macroeconomics, Vol. 23, No. 2 (Spring), pp. 21339.

    • Search Google Scholar
    • Export Citation
  • Ianchovichina, Elena, and Will Martin, 2003, “Economic Impacts of China’s Accession to the World Trade Organization,” Policy Research Working Paper No. 3053 (Washington: World Bank).

    • Search Google Scholar
    • Export Citation
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