Theorizing and Measuring High-Quality Economic Development: The Case of China

With the onset of the “New Normal” in the early 2010s, the Chinese economy has shifted from a period of rapid growth to a phase of high-quality economic development (HQED). This can be defined as a new phase in which regional coordination, environmental sustainability, trade and investment openness, and income redistribution are all directed toward enhancing the innovation potential of the economy. The objective of this research is twofold. First, it theoretically examines the inherent characteristics of HQED to uncover the causal relationships between its components. Second, this research utilizes the entropy weight method to develop a HQED index that encompasses the five dimensions of innovation, coordination, sustainable development, openness, and sharing. The findings indicate that the current stage of HQED markedly contrasts with the preceding period of high-speed growth. Additionally, China's pursuit of high-quality economic development has been progressively advancing over the past ten years. The theoretical model and empirical methodology used in this study can be applied to other middle-income countries facing similar challenges, making it relevant beyond the Chinese economy.