Growth in Chinas New Economy

This paper analyzes socially optimal shares of output invested in research and development (R&D), education and physical capital to sustain Chinas economic growth as population growth slows. Chinas high human capital income share closes the gap between individual skill and the technology frontier. The long run level of output per person is independent of population size. Chinas spending on R&D and education contributes more than physical capital investment to economic growth