Research project on the stability of the Chinese economic model
Enormous growth rates over decades: The Chinese economy has been booming for a long time, but growth rates have slowed down recently. Is there a risk of a „middle income trap“? Are the reforms introduced under the Xi Jinping government taking effect? These are questions that Tobias ten Brink, Professor for Chinese Economy and Society at the English-medium Jacobs University Bremen, asks in the project on the stability of the Chinese economic model funded by the German Research Foundation (DFG).
Strong growth is accompanied by rising incomes and a higher standard of living. If the per capita income reaches a certain level, however, there’s a risk of the „middle income trap“. This is because production costs are also rising, thereby diminishing competitiveness. The economy can no longer compete with the low-wage countries, but it is not yet developed enough to be able to compete fully with the industrialized countries in terms of product quality. „We are looking at how the Chinese government is tackling these challenges and trying to assess the impact of these measures,“ says ten Brink.
This is done in three comparative case studies in regions of different economic power and dynamics. These are the highly developed coastal province of Guangdong, the increasingly developing inland province of Hubei and the structurally weak province of Liaoning, the Chinese version of the US rust belt. „We want to get the most comprehensive, balanced picture possible,“ emphasizes Dr. Alexandre de Podestá Gomes. The Brazilian holds a doctorate from SOAS University in London, which specializes in the study of societies in Asia, Africa and the Middle East. As a postdoctoral fellow, he transferred to Jacobs University for a research project on the stability of the Chinese economic model.
About Jacobs University Bremen:
Studying in an international community. Obtaining a qualification to work on responsible tasks in a digitized and globalized society. Learning, researching and teaching across academic disciplines and countries. Strengthening people and markets with innovative solutions and advanced training programs. This is what Jacobs University Bremen stands for. Established as a private, English-medium campus university in Germany in 2001, it is continuously achieving top results in national and international university rankings. Its more than 1,500 students come from more than 120 countries with around 80% having relocated to Germany for their studies. Jacobs University’s research projects are funded by the German Research Foundation or the EU Research and Innovation program as well as by globally leading companies.
For more information: www.jacobs-university.de
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Prof. Dr. Tobias ten Brink
Professor of Chinese Economy and Society
Director, China Global Center at Jacobs University