“Challenges to China’s Policy: Structural Change”

Helmut Wagner

in: Comparative Economic Studies, Vol. 55, 2013, pp. 721-736.

This paper focuses on the challenges China is confronted with in the context of structural change. It first shows that the service sector in China is ‘relatively small’ compared with other developed and developing countries in their historical context of structural change. Then it discusses – against the background of the experiences of former emerging economies that have, in the meantime, progressed towards ‘developed’ economies – why the service sector in China has to change. Afterwards it analyzes the challenges that China is confronted with in relation to ongoing structural change. Finally it draws some policy implications and then concludes.