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Australia’s vulnerablity to China

Summary:
China’s successful industrialization was built on export oriented growth polices that enticed Western companies–US in particular–to relocate production to China. Unlike the rest of the developed world, China ensured that it got ownership of the capital as well as employment. But China’s recent growth may reflect more of a credit-bubble than export-led or domestic demand ...

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China’s successful industrialization was built on export oriented growth polices that enticed Western companies–US in particular–to relocate production to China. Unlike the rest of the developed world, China ensured that it got ownership of the capital as well as employment.



But China’s recent growth may reflect more of a credit-bubble than export-led or domestic demand led growth, which could make Australia vulnerable to a credit-induced slowdown in China.



Steve Keen
Steve Keen (born 28 March 1953) is an Australian-born, British-based economist and author. He considers himself a post-Keynesian, criticising neoclassical economics as inconsistent, unscientific and empirically unsupported. The major influences on Keen's thinking about economics include John Maynard Keynes, Karl Marx, Hyman Minsky, Piero Sraffa, Augusto Graziani, Joseph Alois Schumpeter, Thorstein Veblen, and François Quesnay.

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