Economic Growth – China Essay

Resource Description

ELSIE GILLEZEAU

Word Count: 2091 words

Assess the influence of trade in goods and services and financial flows on an economy other than Australia, including an evaluation of the strategies used to promote EG and development in this economy.

The process of globalisation has seen a transformation in the size and power of the world’s major economies. Stronger economic relationships facilitated through trade in goods and services (G+S) and financial flows have been a major influencing factor in the economic growth and development of these economies. Economic growth (EG) is the increase in the overall value of G+S produced by a given economy measured in the percentage rate of increase in real GDP. Comparatively, economic development (ED) refers to a country’s well being measured using trends in sustainability and quality of life as well as the Human Development Index (HDI), which involves education and life expectancy. 

China is a prime example for examining the impact of globalisation on an economy. Since the late 1970s China has employed multiple strategies to integrate into the global economy, which have significantly improved their EG. China has averaged a growth rate of 9.5% annually, surpassing the US in 2019 as the world’s largest economy when inflation-adjusted. China’s GDP, valued at US$14.2 trillion last quarter can be attributed to a plethora of economic agents, however financial flows and trade in G+S have had a major influence on this success. China’s ED has also benefited from these strategies that incorporate both trade and financial flows, however other more specific strategies have been employed to target certain social issues.