This paper examines the size of the public sector in Mainland China and surveys. its growth. Total public sector expenditures as a percentage of GDP have shown a fairly steady upward trend since 1950. The trend was sharpest during the 1950s.
The economic development component of public sector expenditures has also increased over time. This rise in economic development funding has largely come at the expense of defense-related spending.
Low per capita income, high population density, and the changing attitudes of decision-makers are thought to be among the most important reasons behind the increasing GDP shares of public sector expenditures and its economic development component.
