About Yu Li
Yu Li is an assistant research fellow at Chinese Academy of International Trade and Economic Cooperation, and a non-resident research fellow at National Institution for Finance and Development, China.Distortions, growth catch-up, and the middle-income trap
In theory, a distortion refers to a departure from the perfect competitive equilibrium with no externalities and in which resources have been optimally allocated so that each economic agent maximizes his or her own welfare. Thus, distortions are closely associated with market imperfections. In reality, an economy with no distortions does not exist—both advanced and developing economies use government interventions, such as stabilization policies, development strategies, industrial policies, administrative regulations, and so forth, which can be viewed as distortions, broadly defined.
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Recent Posts
- Transforming ASEAN: Advancing Regional Integration, Social Inclusion, and Environmental Sustainability
- Development of the Creative Economy in Asia and the Pacific
- Kashima City’s Great Transformation: Where Industry Meets Community
- Mechanization Driving the Future of Agriculture in Asia
- Natural Capital: Valuing Nature to Protect and Restore Ecosystem Services for Sustainable Development
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