Dissecting the China Puzzle: Asymmetric Liberalization and Cost Distortion

作者：Huang Yiping^*

来源：Asian Economic Policy Review, 2010, 5(2): 281-295.

DOI：10.1111/j.1748-3131.2010.01172.x

• asymmetric market liberalization
• China puzzle
• cost distortion
• imbalance
• E010
• E250
• E510

We attempt to explain the China Puzzle, the coexistence of accelerating economic growth, and a worsening growth outlook. The root cause lies in China's unique liberalization approach, that is, the combination of a complete liberalization of product markets and continued distortions in factor markets. Repressed costs of labor, capital, land, and resources artificially raise the profits of production, increase the returns to investment, and improve the international competitiveness of Chinese products. The asymmetric liberalization approach not only promoted economic growth, but also caused structural risks. It also contributed to global imbalances as well as regional integration. Therefore, future reform policies should focus on the liberalization of the factor markets and the elimination of cost distortions.

• 出版日期2010-12
• 单位北京大学