| Since China's reform, the economy grows quickly, the open degree has deepened, but at the meantime, the internal-external unbalance in China is becoming a big problem . In this paper, The internal unbalance is viewed from two aspects: high investment with low consumption, the output from investment can't be absorbed by consumption; another aspect is that high investment with higher savings, the savings can't be transformed into investment. The external unbalance is the double favorable balance phenomenon of the international payment balance.This paper demonstrated the relationship between internal variables such as consumption ,investment ,savings, price and external variables such as export&import balance, foreign exchange reserves. The internal unbalance as an internal cause inherently induces the external unbalance, consumption, investment ,savings all has their own way to affect the external economy. Furthermore ,the investment is a positive variable which could increase the export&import surplus, it shows that the policy of encouraging investment and export is the political reason of external unbalance .On the other hand, the savings'relative surplus has direct relation with the Export&Import balance, and the balance between China's savings and investment almost equal to the net export on amount. But viewing from the contrary direction, we find that the external unbalance has smaller affection to internal economy ,the reaction to consumption and investment can't be certified by Granger causality analysis, but the unbalance has positive affection to price level and savings etc. by raising foreign-exchange reserves .After inspecting China's economy from the angle of internal and external unbalance, we get the basic reason of the presently dilemma still is low consumption level. In order to lighten or remove the internal-external unbalance , we first have to restructure domestic economy, stabilizing the investment and encouraging the consumption should still be sustained. |
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