Introduction
The global economic environment has experienced rapid development over the last decades integrated with the liberalization and substantial policy reforms. Many developing countries benefitted from international trade agreement and globalization and actively engaged in implementing suitable economic policies to lower trade barriers and provide market access to bolster their economy. Among these emerging markets, China is a prime example.
The economic performance of China has been undoubtedly impressive. It has one of the fastest-growing economies in the world averaging 9% GDP growth over the last 30 years. The country is now the second largest economy as well as the second largest trading nations behind the US. Following the reform at the beginning of the 1980s, China has successfully transformed itself from a primarily agricultural based economy to manufacturing and services oriented. The structural changes took place at the state and firm level led to massive transformation in the structure of economic and social life in china. The economic growth creates a large number of job opportunities and brings a great deal of foreign currency, which leads to considerably improved living standards.
Production Output Performance Analysis
The Gross Domestic Product (GDP) measures the market value of overall output of goods and services produced in a nation domestically in a single year (Hubbard et al., 2010). From 2004 to 2013,China’s real GDP grew steadily from 1640 to 8230 billion US dollars. A much smoother rise was found during the period of 2004 to 2008. Then, it experienced a sharp increase from 2010 to 2013. Generally, the GDP performance of China is strong relative to the rest of the world economy.
The GDP growth rate indicates a country’s economic health, and how fast the economy is growing. From 2004 to 2013, China’s average annual growth rate is 10.2% and the GDP reached its peak during 2007 at nearly 14 percent. However, It is worth...