From Reuters via CNN:
China should learn from Europe’s mistakes and promote innovation and entrepreneurship to avoid slipping into economic stagnation in the longer term, Edmund Phelps, the 2006 Nobel laureate for economics, said Tuesday.
Years of nearly double-digit growth have turned China into the world’s fourth-largest economy, but questions abound for how long the world’s most populous nation can sustain its rapid expansion.
China’s fast productivity and investment growth is bound to slow as its wages rise and it gets closer to closing the technology gap with the United States, Edmund Phelps told a conference in Hong Kong.[Full Text]