Some commentators on the chinese economy

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Some commentators on the Chinese economy have argued that the opportunities for investment based growth have run their course and that major problems of underutilised capital equipment and unemployment of workers are inevitable, especially when the global economy slows down, unless the Chinese government switches from a strategy of investment led growth to domestic market based growth on consumption expenditure. do you agree with the above statement? Explain the cost and benefits of adopting such a strategy for a country like China. Hint. Analyse this quesation in the context of the production possibilities frontier (PPF) of text chapter2

Reference no: EM13941416

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