China's Economic Transformation: Unlocking Unprecedented Growth through Capital and Innovation
In China, the economy grows mainly through saving money and getting better at making things, like a team of bros working together. Most economic theories focus on saving OR making things better. But this study combines both, showing that China does both to grow. They made a model where saving is classic, and making things better comes from within. The researchers looked at China's growth and found that both saving money and improving skills are key in the way China's economy grows.