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Transformation of the Chinese Economy and Constraints for Innovative Development

Student: Elizaveta Moiseeva

Supervisor: Mikhail Karpov

Faculty: Faculty of World Economy and International Affairs

Educational Programme: Socioeconomic and Political Development of Modern Asia (Master)

Year of Graduation: 2018

The aim of the paper is to determine constraints for innovative development in China, while the objectives are to analyze Chinese current macroeconomic performance, to quantify the main macroeconomic indicators, to determine China’s current technological and innovative capabilities, innovative development constraints and the future of the Chinese innovation economy. In the paper, the answer to the research question of whether there is a positive correlation between technological advancement and economic growth in China is given. Here the macroeconomic and innovation performance of the Chinese economy is provided. The evaluation is conducted through mixed methodology with the implementation of causal, descriptive and historical research designs; in addition, for the purpose of revealing positive/negative correlation between innovations and economic development, econometric analysis is used.

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