Abstract

Over the past nearly 50 years, Chinese economy has made remarkable development achievements. China's economic growth has not only greatly improved the living standards of its people and eliminated extreme poverty, but also had a broad and far-reaching impact on the development and pattern of the world economy. How to reasonably assess the contribution of the Chinese economy to the world economy has become a topic of widespread concern. Based on purchasing power parity-adjusted real economic measures from the International Comparison Program (ICP), the University of Queensland International Comparison Database (UQICD) and the Penn World Table, and using a recently developed methodology for measuring regional and sub-regional growth and inflation, this study systematically examines the contribution of the Chinese economy to the world economy since 1970, focusing on the following questions: On the aggregate side, what is the share of the Chinese economy in the world economy and its contribution to global growth, and what are the trends of changes; and on the structural side, what are the global shares of China's consumption, investment, and imports/exports, and how much they have contributed to the growth of global consumption, investment, and imports/exports. Next, we conduct a comparative analysis of China's results with the G20 economies to compare China's contribution to global growth with that of the world's major economies. Finally, using the growth accounting framework, we analyse the growth prospects of the world economy and the Chinese economy.