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.