Required Institutional Reform-risk that measure to increase income equality will compromise efficiency-anti-corruption will reduce wealth at top end and improve public and private sector incentives whileboosting efficiency-need to strengthen the rule of law-reduce admin powers enabling markets to play more determining role – fair competition = fairer wage structure-policy makers with vested interests and benefit from monopolies not likely to support changesConclusions-policy changes needed to reduce income inequality in china-ownership of financial and real estate capital in unequal and rapid econ growth favours those with it-policy designs need consider efficiency and equity trade-offSupplementary CCTV News: The Gap between China’s Rick and PoorSupplementary Does grassroots democracy reduce income inequality in China?
Supplementary Economic transformation and income inequality in urban China: evidence from paneldataWeek 7Required Outward direct investment from China Recent trend and development-FDI accelerates economic growth and development-China increased FI in 2015 while most nations reduces their overseas spending-FDI is closely related with cross-border knowledge spill over and economic development-China is attracted to nations with rich natural resources and poor institutions-China has only recently become a recipient of FDI compared to its global contributions-7.7% of inward FDI in 2015 and 9% of outward FDI in 2015-2001 – implementation of ‘Going Out’ strategy-2015 – only US and JAP had higher outward FDI flows-2013 – one belt one road connect Asian and European economies -movement from investment to consumer driven economy in China-M&A activity surge recently-Outbound investment from China, through M&A, provides fast entry into a new market-2011-2014 has seen an increase in outbound investment from Chinaohealthcareoentertainmentohigh techoreal estateEarly development and ‘going out’ strategy-China wants to attract FDI flows-Stimulate domestic enterprises to join and compete in global market-Encourage investment in foreign markets and increase international cooperation through supportivepolicies-Reform Chinese economy and enhance economic development-Stimulate Chinese economy growth and improve efficiency in domestic firms-Going out was an important step to increasing engagement in global marketsoHaier acquisition of SANYODriving Forces of OFDI by Chinese Firms-OFDI driven by search for; new markets, natural resources and strategic assets-Supporting government policies have a role to play-M&A = quick est., improve international competitiveness and est. brand reputation in global market-Undertake purchases globally to ensure position in international markets is diversified – Anbang-Much OFDI motivated by the need to access natural resources for domestic industrialisationRecent Development and Opportunities-“one belt one road” expected to provide opportunity for development economies along the path-
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- Economics, Gini coefficient, SOE