Analysis on Economic Fluctuations and Coordination in China

Based on the coordination theory, this paper is aimed at analyzing the issues of China's economic fluctuations and coordination during 1954-2004. It has got two important results. Firstly, it has identified the total 13 economic cycles in China's economy during the 51 years. It has shown that 5 long economic fluctuations lasted more than 5 years, 4 short economic fluctuations lasted only two years, whereas other 4 middle economic fluctuations lasted 3 or 4 years. Secondly, it has defined two concepts of coordination coefficient and non-coordination coefficient. From comparing the ratios of the growth rate of the primary, second and tertiary industries to the aggregate GDP, the paper has discussed whether the China's economic growth is coordination or non-coordination between industries. It has found that the coordination between industries is significant for the development of China's economy. It suggests that the economic decision making is to maintain the coordination between industries.