China and Global Imbalances from a View of Sectorial Reforms
Portland State University - Department of Economics
University of London - School of Oriental and African Studies (SOAS) - Economics; Deutsches Institut für Entwicklungspolitik (DIE) - German Development Institute (DIE)
Review of International Economics, Vol. 21, Issue 1, pp. 57-71, 2013
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.
Number of Pages in PDF File: 15
Date posted: January 24, 2013