The difference between supply-side reform and demand-side reform

Supply-side reform:

1. Supply-side structural reform aims to adjust the economic structure to achieve optimal allocation of factors and improve the quality and quantity of economic growth.

2. Supply: Supply in economics refers to a certain amount of goods or services that producers are willing and able to provide at a certain price level in a certain period of time.

3. Supply-side structural reform is to start from improving the quality of supply, use reform methods to promote structural adjustment, correct distortions in factor allocation, expand effective supply, and improve the adaptability and adaptability of the supply structure to changes in demand. flexibility, improve total factor productivity, better meet the needs of the people, and promote sustained and healthy economic and social development.

Demand-side reform:

1. The demand-side reform mainly includes the troika of investment, consumption, and export, while the supply side includes factors such as labor, land, capital, institutional creation, and innovation. .

2. Demand side: Demand is the quantity of goods that consumers are willing and able to purchase at a given price level in a certain period of time.

Extended information:

Detailed content:

Adjust and improve population policies and consolidate the supply base. As far as the current economic decision-making of China's supply-side reform is concerned, adjusting and improving population policy is the key to consolidating the supply base and laying the foundation for China's economic adjustment, transformation, development and progress.

Promote the reform of the land system and release the vitality of supply. Since 2015, my country's cities and towns have faced increasingly severe pressures and challenges from destocking and "post-land finance", while rural areas have begun to enter the pilot stage of the separation of three rights reform and collective construction land and homesteads, promoting the reform of the urban and rural land systems. The synergy has basically formed, and the long-lag land system reform is expected to be accelerated.

Accelerate the reform of the financial system and lift financial repression. Since the reform and opening up, my country's financial market has grown from small to large, from weak to strong, from single to diversified. In the 1980s, the main content of my country's financial reform was to introduce the basic structure of the market economy financial system.

Implement innovation-driven strategy and open up supply space. During the "Thirteenth Five-Year Plan" period, if China wants to continue to tap into its huge economic potential and strong advantages, it must accelerate the transformation of its economic development model, focus on promoting supply-side structural reform, unswervingly implement the innovation-driven development strategy, improve the quality and efficiency of development, and accelerate the cultivation and formation of New growth drivers.

Deepen the reform of streamlining administration and delegating power to improve supply quality. New institutional economics believes that institutions, like labor, land, capital, and technological innovation, are one of the elements of economic growth. An examination of both horizontal and vertical aspects of world history also shows that the connotation and quality of institutions are the most important factors that influence or even determine the long-term performance of a country's economy.

Build a social service system and promote supporting reforms. The ultimate goal of supply-side reform is to improve the quality and efficiency of the supply system and improve the competitiveness of regions, industries, systems, products, etc.

Reference: Baidu Encyclopedia-Supply-side Structural Reform