Distorted Factor Markets, Government Intervention, and Excess Capital Accumulation: The Case of China
Read full paper at: http://www.scirp.org/journal/PaperInformation.aspx?PaperID=52093#.VIVBwmfHRK0 Author(s) Tao Gu Affiliation(s) Faculty of Economics, Meikai University, Urayasu, Japan . ABSTRACT 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. KEYWORDS Factor Markets , Government Intervention , Excess Capital Accumulation , Inefficiency of Economic Growth ...