Sustainability of the Chinese economic growth: a review from the institutional theory

Abstract

The evolution of Chinese economic growth correlates with more or less inclusive politic and economic institutions at different points of history. At 13 century, China stood as the most technologically advanced nation in the world, where economic institutions motivates innovation and trade. In 20th century China experienced some industrialization policy by the regime, the Great Leap Forward, while in the last three decades economic growth has been pushed by an abundant workforce, implementation of economic reforms aimed at the market and promotion of domestic consumption. However, China has driven its economic activity into an authoritarian context, political and economic constraints where we could assume that sustainability of Chinese economic model with high growth rates tends to stagnate in the coming years, if political reforms are not carried out.