The 37th“Theory and Policy” at RUC NADS

Demand-driven Growth Mode: Based on Supply Repression Perspective

Speaker: XU Zhaoyang, University of International Business and Economics (UIBE)

Moderator: LIU Ruiming, National Academy of Development and Strategy, Renmin University of China

Time: May 15, 2019 (Wednesday) 14:00-15:30

Venue: Meeting Room 815, Chongde Building West Wing (Keyan Building Block A）

Abstract: Traditional theory holds that economic growth depends on the supply side, while considering China’s typical demand-driven economy since the late 1990s, external demand plays a critical role in cyclical fluctuation of China’s macroeconomy. This paper noted that, supply repression policy restricting the inflow of productive factors exists in some critical economic field, especially service industry. This policy forces productive factors to flow into fields which are less regulated, whereas the growth of demand in these fields cannot meet the supply, resulting in excess capacity and idle productive factors, and thus bringing out the decisive function of external demand. We found that the model of this paper can imitate properly many important facts about China’s industrial restructuring since 1992 and about its macroeconomy, based on core parameter calibration using actual statistics.

Speaker Profile: Dr. XU Zhaoyang, graduated from National School of Development at Peking University, currently works as economic professor at School of International Trade and Economics, UIBE. His research features on macroeconomics, Development and Growth. He presided many national academic programs. He published over ten academic papers in top-level economic journals such as Social Sciences in China, Economic Research, Management World and China Economic Quarterly. He was selected into Program for New Century Excellent Talents and Program for Beijing Excellent Young Talents and won honorary titles for his outstanding contribution.