Virtual Capital Accumulation and Economic Growth - Theoretical Analysis and Empirical Research on China

Author: Xu Zhangyong
Publisher:
Publish Date: 2006-08-01
Features: This book takes the relationship between virtual capital accumulation and economic growth as its main thread, employing a combination of normative and preliminary evaluation analysis methods. It provides systematic theoretical analysis of the institutional conditions for the emergence of virtual capital, its accumulation mechanisms, economic effects, and the operation of a bubble economy that arises from excessive accumulation. Additionally, it conducts empirical tests on the effects of virtual capital accumulation since China's reform and opening-up. According to different operational modes, modern economies can be divided into the real economy, which is primarily based on the operation of physical products, and the virtual economy, which is primarily based on the operation of virtual capital. Since Adam Smith, economists have been studying the growth of the real economy, while research on the growth of the virtual economy has been relatively weak. Since the starting point of the virtual economy is virtual capital, the accumulation and expansion process of virtual capital is the growth process of the virtual economy. Therefore, this paper follows the logic of the emergence of virtual capital (institutional analysis) — the accumulation of virtual capital (expansion mechanism analysis) — the results of virtual capital accumulation (effect analysis) — the extreme state of virtual capital accumulation (bubble economy analysis) to theoretically explain the institutional conditions, accumulation mechanisms, economic effects, and the operation of a bubble economy that arises from excessive accumulation. On this basis, it attempts to offer its own judgments on two practical issues: first, how is the relationship between China's virtual capital accumulation process and economic growth since the reform and opening-up? Second, what major issues does China's virtual capital market still need to address in the future, and how can they be resolved? Clearly, research on these issues undoubtedly holds significant theoretical and practical implications.