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
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...
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...
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.
carnegieendowment.org/2013/06/10/how…
carnegieendowment.org/2013/06/10/how…
