China and Global Imbalances from a View of Sectorial Reforms

Ito, Hiro; Volz, Ulrich

Abstract

This article examines the impact of sectorial reforms on current account imbalances, with a special focus on China. In particular, we investigate to what extent reforms pertaining to the financial sector, social protection, and healthcare may contribute to a rebalancing of China's persistent current account imbalances. Our forecasting results suggest that reforming the financial sector would be a significant contributor to the country's rebalancing with an effect much larger than that of capital account liberalization. Strengthened provisions of social protection and publicly‐funded healthcare are also found to contribute to a rebalancing of the Chinese economy.

Citation

Ito, H., & Volz, U. (2013). China and Global Imbalances from a View of Sectorial Reforms. Review of International Economics, 21(1), 57-71. https://doi.org/10.1111/roie.12020

• Journal Article Type: Article
• Publication Date: Jan 1, 2013
• Deposit Date: Jan 29, 2013
• Journal: Review of International Economics
• Print ISSN: 0965-7576
• Electronic ISSN: 1467-9396
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 21
• Issue: 1
• Pages: 57-71
• DOI: https://doi.org/10.1111/roie.12020