This dissertation consists of three essays that examine various important macroeconomic issues that are of concern to the Chinese economy. The analysis that supports the empirical work is inspired by post-Keynesian theory. The first chapter presents the mechanism of endogenous sterilization by extending the theory of demand-led money supply to the case of China. This view of money is confirmed by the fact that foreign reserves are not cointegrated with base money, meaning that there is no long-run relationship between foreign reserves and the supply of base money, whereas foreign reserves are long-run related with the claims of the central bank and the amount of bonds issued by the central bank.
The second chapter outlines Kaldor's laws and tests for the contributions of the manufacturing sector to labor productivity and overall output growth using the panel dataset of 29 Chinese regions during the period of 1986-2007. Empirical findings, taking advantage of spatial panel econometric techniques, provide significant support for the Kaldorian thesis, while the incorporation of spatial autocorrelation improves the performance of empirical models compared to traditional ones.
The third chapter analyzes the relationship between functional income distribution and Chinese economic growth from 1993 to 2007. Based on a demand-driven macroeconomic framework, there is a possibility of either profit-led or wage-led demand regime depending on the total effects of changes in the profit share on all components of final demand. Our results suggest that the Chinese economy presents a profit-led nature both for all 29 regions and for the coastal regions. We also find that while the expansion of interregional and international trade plays an important role, it is investment expenditure that determines the profit-led pattern of economic growth.
| Identifer | oai:union.ndltd.org:uottawa.ca/oai:ruor.uottawa.ca:10393/29918 |
| Date | January 2009 |
| Creators | Wang, Peng |
| Publisher | University of Ottawa (Canada) |
| Source Sets | Université d’Ottawa |
| Language | English |
| Detected Language | English |
| Type | Thesis |
| Format | 162 p. |
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