ABSTRACT
As a result of continuous economic reform starting from 1978, China presents a great pro forma economic success. Among a number of economic performance explanatory indicators, 1 a high savings rate, 2 large scale of public expenditures (especially in recent years), abundant foreign direct investment (FDI), 3 and buoyant exports, a relatively climbing total factor productivity (TFP) 4 contributes to the average annual GDP growth rate, which is over 8 percent during the last 20 years.
