The analysis will concentrate upon a selection of major reforms of this era. In this study, we examine the determinants of the growth rate of real output for China with an emphasis on institutional, social, and political changes and developments. The sample consists of annual data ranging from 1954 to 1992.
Empirical results are interesting.
The coefficients of deficit financing, the openness of the economy, and dummy variables for economic and agricultural reforms are found to be insignificant. This paper considers the interdependence between the level of investment and the riskiness of investment. It provides a unified approach to the study of genuinely risky and risk-reducing investment. It shows that there is a simple means of characterizing a given investment project as either genuinely risky or risk-reducing. The results of this paper can be applied to broaden the study of self-insurance and portfolio choice.