The Economist published this worth reading article (Wasted investment: China's $6.8-trillion hole?) based on a research done by two Chinese government researchers. The topic is simple: based on the Chinese investment, the researchers calculated the efficiency of investment through incremental capital investment ratio (ICOR), and interestingly they found that China has made worthless investment of $6.8 trillion over 2009-2013 for building bridges and other infrastructure investments. With this ICOR analysis, they tried to show how Chinese investment has been becoming less efficient in the recent past.
While the Economist analysed the research findings of Chinese government researchers, and also it provided alternative analysis. Based on a coherent and using more realistic approaches to research, the Economist tried to show how Chinese researchers miscalculated the whole thing and what were the missing areas in their research that should be considered.
Researchers, who often get involved in debate, must read this article, at least, to know how an economic debate should take place.
While the Economist analysed the research findings of Chinese government researchers, and also it provided alternative analysis. Based on a coherent and using more realistic approaches to research, the Economist tried to show how Chinese researchers miscalculated the whole thing and what were the missing areas in their research that should be considered.
Researchers, who often get involved in debate, must read this article, at least, to know how an economic debate should take place.
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