China and Global Imbalances from a View of Sectorial Reforms

15 Pages Posted: 24 Jan 2013  

Hiro Ito

Portland State University - Department of Economics

Ulrich Volz

University of London - School of Oriental and African Studies (SOAS) - Economics; Deutsches Institut für Entwicklungspolitik (DIE) - German Development Institute (DIE)

Date Written: February 2013

Abstract

This article examines the impact of sectorial reforms on current account imbalances, with a special focus on China. In particular, we investigate to what extent reforms pertaining to the financial sector, social protection, and healthcare may contribute to a rebalancing of China's persistent current account imbalances. Our forecasting results suggest that reforming the financial sector would be a significant contributor to the country's rebalancing with an effect much larger than that of capital account liberalization. Strengthened provisions of social protection and publicly‐funded healthcare are also found to contribute to a rebalancing of the Chinese economy.

Suggested Citation

Ito, Hiro and Volz, Ulrich, China and Global Imbalances from a View of Sectorial Reforms (February 2013). Review of International Economics, Vol. 21, Issue 1, pp. 57-71, 2013. Available at SSRN: https://ssrn.com/abstract=2206162 or http://dx.doi.org/10.1111/roie.12020

Hiro Ito (Contact Author)

Portland State University - Department of Economics ( email )

Portland, OR 97207-0751
United States
503-725-3930 (Phone)
503-725-3945 (Fax)

HOME PAGE: www.econ.pdx.edu

Ulrich Volz

University of London - School of Oriental and African Studies (SOAS) - Economics

London, WC1E 7HU
United Kingdom

Deutsches Institut für Entwicklungspolitik (DIE) - German Development Institute (DIE) ( email )

Tulpenfeld 4
Bonn, 53113
Germany

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