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Debunking the Myth of China’s Coming Productivity Bust
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Debunking the Myth of China’s Coming Productivity Bust

James Woudhuysen
GIS, 2015
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Editorial Rating

7

Qualities

  • Analytical
  • Eye Opening
  • Overview

Recommendation

Has the Chinese bubble burst? Many investors believe that China’s days of astounding growth have drawn to a close. The evidence seems bountiful – declining exports, an aging population and soaring wages that are sapping the country of its competitive advantage. In this succinct overview, professor James Woudhuysen concludes that it’s too soon to write the obituary of China’s economic miracle. He notes that increases in Chinese labor productivity have outpaced those of other developed nations. He also asserts that, because of its underinvestment in technology, China is just in the early stages of economic growth. getAbstract recommends this eye-opening report to investors and policy makers seeking a fresh analysis of the world’s second-largest economy.

Summary

It’s easy to believe that China’s economic boom is over. Pessimists need look no further than the empty homes and unused airports erected during its building boom, futile projects that provide ample evidence of mismanagement. Even its own National Development and Reform Commission admits that “nearly half of all the country’s investment from 2009 to 2013 failed to produce any results.” China is home to 150,000 state-owned enterprises, an army of “dinosaurs” with high debt loads, no innovation bona fides and little ability to spur a modern economy...

About the Author

James Woudhuysen is a professor at De Montfort University in Leicester, the United Kingdom.

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