Chinas great convergence and beyond

Abstract

A recent wave of economic research has studied the transformation of China from a poor country in the 1970s to a middle-income economy today. Based on this literature, we discuss the factors driving Chinas development process. We provide a historical account of Chinas rise, fall, and resurgence. We then discuss the stylized facts associated with Chinas growth process and review a comprehensive theory of its economic transition. Finally, we discuss Chinas future. In particular, we review some recent studies about technological and politico-economic factors that may foster or hinder its future economic performance. © 2014 by Annual Reviews. All rights reserved.