Since 2015, the supply-side structural reform has promoted the transformation of China’s economy to high-quality development with “capacity reduction, de-stocking, deleveraging, cost reduction and improving underdeveloped areas” as the main line. This paper constructs the supply-side composite index and the supply-side reform index to track the economic supply-side status and supply-side reform process at the national level and in 31 provinces (municipalities), and analyzes the relationship between supply-side structure and economic growth by combining the SOLOW model. Based on that, this paper proposes that the reform of “optimizing stock allocation” to achieve “capacity reduction, de-stocking, deleveraging, and cost reduction” has achieved remarkable results, and follow-up focus should be put on promoting the reform of “expanding quality increment” to “improve underdeveloped areas”, so that innovation-driven high-quality development can be truly realized.
Keywords: supply side, capacity reduction, de-stocking, deleveraging, cost reduction, structural reform
China Finance and Economic Review
Volume 7 Number 4 Winter 2018.P110