, 5 tweets, 3 min read
My Authors
Read all threads
One of the more questionable arguments made by China bulls a few years ago was that China’s poorer provinces would inexorably converge economically to the richer provinces, and that this process alone would guarantee 7-8% growth rates for...
scmp.com/economy/china-… via @scmpnews
@SCMPNews ...the next several years (and presumably even more if the richer provinces continued growing).
The “convergence” argument, however, assumes implicitly that growth is a linear process in which a set of “right” policies will have the same effect on any economy, regardless of...
@SCMPNews ...how its local institutions determine how productively workers and businesses can absorb these policies. It assumes that backwardness is linear rather than systemic, and for that reason more “backward” economies will grow faster as these policies are applied.
This was always...
@SCMPNews ...an ahistorical view of development. Now that growth in China is slowing, we see that the illusion of convergence that seems often to accompany liquidity bubbles is reversing, as we should have known all along that it would. “Convergence” is much less likely than economists...
@SCMPNews ...assume, and this has implications not just for China, but for developing countries more generally.
Missing some Tweet in this thread? You can try to force a refresh.

Enjoying this thread?

Keep Current with Michael Pettis

Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just three indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!