The Measurement, Impact, and Promotion Methods of the Organic Integration between Expanding Domestic Demand and Deepening Supply-Side Structural Reform

Abstract

This paper measures the degree of organic integration between expanding domestic demand and deepening supply-side structural reform in China. It examines the effects of this integration on China’s economy, analyzes its driving factors, and proposes policy recommendations to promote it. The findings indicate that in recent years, the organic integration between expanding domestic demand and deepening supply-side structural reform in China has experienced a phased decline, adversely affecting output, consumption, prices, and net exports. Enterprise-level influencing factors include the industrial capacity utilization rate, operating costs of enterprises above designated size, leverage ratio of non-financial corporations, and gross capital formation. Other influencing factors include household consumption, real estate development, and infrastructure development. To foster the organic integration between expanding domestic demand and deepening supply-side structural reform and promote China’s economic development, it is recommended to guide enterprises to increase investment, raise the capacity utilization rate, lower operating costs and leverage ratios, enhance the level and quality of household consumption, optimize the housing market structure, and strengthen infrastructure development.

Keywords

expanding domestic demand / deepening supply-side structural reform / measurement / driving factors / influencing effects

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Higher Education Press