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Yes, Virginia, there is an economic recovery
Author(s) -
Lipsher Laurence E.
Publication year - 2009
Publication title -
thunderbird international business review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.553
H-Index - 37
eISSN - 1520-6874
pISSN - 1096-4762
DOI - 10.1002/tie.20312
Subject(s) - china , economic recovery , incentive , dilemma , work (physics) , business , stimulus (psychology) , debt , economics , economy , market economy , finance , engineering , political science , macroeconomics , mechanical engineering , psychology , philosophy , epistemology , law , psychotherapist
More factories seem to be at work in the Pearl River Delta than there have been in a recent eight‐month period. Maybe the economy is improving. If pollution means more work, then China just might be on an economic rebound. China has done a few things to speed a possible recovery; among them, it acted fast, engaging in a massive CNY 4 trillion stimulus package combined with bank lending at higher levels than ever by the state‐owned Chinese banks. But the news comes with some caveats, including the increased risk of corruption and triangular debt. China also continues to export but less than before, due to increasing consumer demand at home. Of course, you can create economic incentives to export (assuming there are importers available to the extent there were previously). But what you cannot do is change a culture that understands there is no more “iron rice bowl,” and therein lies the real dilemma for China and an economic recovery. © 2010 Wiley Periodicals, Inc.