%0 Journal Article %1 Song:2011:0002-8282:196 %A Song, Zheng %A Storesletten, Kjetil %A Zilibotti, Fabrizio %D 2011 %J The American Economic Review %K capital_market frictions growth macro olg %N 1 %P 196-233 %R 10.1257/aer.101.1.196 %T Growing Like China %U http://www.ingentaconnect.com/content/aea/aer/2011/00000101/00000001/art00011 %V 101 %X We construct a growth model consistent with China's economic transition: high output growth, sustained returns on capital, reallocation within the manufacturing sector, and a large trade surplus. Entrepreneurial firms use more productive technologies, but due to financial imperfections they must finance investments through internal savings. State-owned firms have low productivity but survive because of better access to credit markets. High-productivity firms outgrow low-productivity firms if entrepreneurs have sufficiently high savings. The downsizing of financially integrated firms forces domestic savings to be invested abroad, generating a foreign surplus. A calibrated version of the theory accounts quantitatively for China's economic transition.

@article{Song:2011:0002-8282:196, abstract = {We construct a growth model consistent with China's economic transition: high output growth, sustained returns on capital, reallocation within the manufacturing sector, and a large trade surplus. Entrepreneurial firms use more productive technologies, but due to financial imperfections they must finance investments through internal savings. State-owned firms have low productivity but survive because of better access to credit markets. High-productivity firms outgrow low-productivity firms if entrepreneurs have sufficiently high savings. The downsizing of financially integrated firms forces domestic savings to be invested abroad, generating a foreign surplus. A calibrated version of the theory accounts quantitatively for China's economic transition.}, added-at = {2013-03-07T09:53:50.000+0100}, author = {Song, Zheng and Storesletten, Kjetil and Zilibotti, Fabrizio}, biburl = {https://www.bibsonomy.org/bibtex/243258da2bf9dd632a35dcd35855d9761/jp}, description = {ingentaconnect Growing Like China}, doi = {10.1257/aer.101.1.196}, interhash = {2b3a77c1f730d50f1b17473b1d876269}, intrahash = {43258da2bf9dd632a35dcd35855d9761}, journal = {The American Economic Review}, keywords = {capital_market frictions growth macro olg}, number = 1, pages = {196-233}, timestamp = {2013-03-07T09:53:50.000+0100}, title = {Growing Like China}, url = {http://www.ingentaconnect.com/content/aea/aer/2011/00000101/00000001/art00011}, volume = 101, year = 2011 }