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Assumption about China economy 3

  • Author:Brenda Chang
  • Source:Kekenet
  • Release on:2014-12-14
After read the whole article,the authors do offer one reason for believing China’s growth rate is unsustainable: “institutional inadequacies”, particularly the failure to control corruption. To some, the argument is an old saw dressed up in new data: the country cannot keep growing because it is not democratic. Still, the regression to mean theory provides a powerful corrective to mechanical extrapolation. The authors are right. Any time you hear the words, “based on current growth trends”, you should pause for thought.

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