• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

China and Economic growth, Case Study

Extracts from this document...


Case Study - China Characteristics Of China The Chinese Economy, the world's fourth largest economy (in nominal US dollar terms), is classed to be an emerging economy. It is the fastest growing economy in the world over the past two decades by achieving a sustained average rate of growth in real GDP by approximately 10% per annum. China is currently reforming its economy to become more market driven and becoming more integrated into the global economy through international trade and foreign investment. This results in greater increases in per capita income and living standards alongside a reduction in poverty. Statistics of the Chinese Economy: Nominal GDP (US$b) - 5,878 (2010) HDI - 0.663 (2010) Unemployment - 5.4% (2010) Section One: Overview Of The Impact Of Globalisation 1. Quality Of Life Indicators Improvements in human and economic development over the past 20 years have caused China's HDI value to rise, from 0.368 in 1980, to 0.663 in 2010 as illustrated in figure 1.1 below. This ranked China 89th out of 169 countries on the UNDP's HDI list. 1980 1990 1995 2000 2005 2009 2010 0.368 0.460 0.518 0.567 0.616 0.655 0.663 Figure 1.1: Trends in China's HDI from 1980 to 2010 Despite these improvements, China had an estimated proportion of 28.4% of its population being classed as being below the international poverty line (less than US$1.25 per day) ...read more.


Globalisation has caused increased growth and production in China as well as increased trade. This resulted in increased resource usage, resource depletion problems and resource allocation issues. This has also increased negative externalities, for example: air pollution. This threatens human health and biodiversity by reducing air quality. A report by the OECD also found that as many as 300 million people in China are drinking contaminated water every day. 4. Economic Growth The Chinese Economy has achieved an average rate of annual growth of 10% between 2005 and 2008. This growth slowed to 9.2% in 2009 due to the GFC. The Chinese Government implemented a US$568b fiscal stimulus package in November 2008 to ensure the growth rate did not fall below 8%. China has begun to industrialise by driving growth through foreign investment and international trade. This has transformed the Chinese Economy in two main ways: 1. China has moved from being a planned economy to a market economy. 2. China has moved from being an agricultural economy to an industrialised economy; and a peasant based society to an urban based society. This has driven China to become the fourth largest economy in the world as measured by nominal GDP ($US). ...read more.


However, due to the Chinese economy being a net lender to the rest of the world, it lessened the effects of the GFC and this was mainly due to globalisation. Due to a fall in growth, there was a rise in unemployment levels. As previously mentioned, there was an estimated 10 million workers who were made redundant as a secondary effect of the GFC; the primary effect being a lack of growth and a lack of finance. Conclusion The Chinese economy's shift from a planned economy to a market economy has strengthened its annual growth rate and this is largely dependent on the advantages of globalisation. The US$568b fiscal package developed by the Chinese government was largely effective on the economy with growth only declining 0.8%; however, there was an approximated 10 million workers who were made redundant throughout this period and this raised unemployment levels. The Chinese economy is quickly becoming one of the largest producing economies in the world and has become a net lender to the entire world. This will be an advantage in years to come and with China having influence on the European economies; it would be interesting to see if China were to lend money to Italian economy as it did to the Australian economy during the GFC. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. The development strategies which have been adopted by India and China over the last ...

    Foreign portfolio investors had recognised the strength and potential of the Indian capital market and invested US$7 billion into the market in 2003 (Jafri 2004). Its stock market also registered 80% growth in 2003. From 1990 - 2001, India has also enlarged its share in world exports.

  2. An Empirical Investigation into the Causes and Effects of Liquidity in Emerging

    A negative 'information shock' causes a flight to quality as investors substitute safe assets for risky assets. This could be extremely relevant for policy implications because trading activity in one market could predict trading activity, and in turn liquidity in another.

  1. Economic growthis refers to the increase in real GDP per capita in one year. ...

    Mass microeconomic reform occurred in the ninety-eighties, and we are just recently seeing their impact on our Economy. However, even though micro policies take years in action - they are policy options that must be enacted to actually improve the Australian Economy for the long-term through an efficient allocation of the country's resources.

  2. Case Study: The Home Depot

    Then in terms of their customer service, they posses high skilled and helpful personnel. They give professional clinics and demonstrations of methods and techniques of performing a job safely and efficiently. Their personnel is in some stores 24 hours a day available.

  1. Free essay

    In this case study, I will be doing research on how is Chinas economy ...

    Here is IMF research team conclusion: New factories, manufacturing machines, communication systems and the amount of Chinese workers, increase in productivity were the factors that putting them as one of the strongest economy country. Automobile Industry China was rank third in the automobile industry by 2006 after Japan and US.

  2. Free essay

    From an economic perspective should my council do more to recycle a greater proportion ...

    I will also find out which materials save the most energy when recycled, so these will take priority in recycling and will show whether it is worth it. I will also investigate what proportions of the land fill waste consists of which materials.

  1. GDP and Growth

    In addition, 'Real' GDP is used to measure the standard of living in the country. The calculation is the GDP divided by the population and it is known as the GDP per capita. The advantages to use GDP per capita as an indicator of standard living are that most countries

  2. Explain how economic growth and the operation of a market economy impact on the ...

    full private and social costs in his price.[True!] Me as a consumer I also have my part of the Christopher Neill Y312545X responsibility for externalities, if I want cheap fish then the person who fishes has to cut costs to meet my needs.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work