Distorted Factor Markets, Government Intervention, and Excess Capital Accumulation: The Case of China

DOI: 10.4236/tel.2014.49102   PDF   HTML   XML   5,602 Downloads   6,290 Views   Citations


This paper develops a simple growth model that embeds distorted factor markets and government intervention that achieves high economic growth, low consumption, and high investment simultaneously. All of these phenomena are consistent with Chinese macroeconomic data since the 1990s, implying the inefficiency of economic growth.

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Gu, T. (2014) Distorted Factor Markets, Government Intervention, and Excess Capital Accumulation: The Case of China. Theoretical Economics Letters, 4, 806-814. doi: 10.4236/tel.2014.49102.

Conflicts of Interest

The authors declare no conflicts of interest.


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