nep-cna New Economics Papers
on China
Issue of 2005‒11‒12
ten papers chosen by
Fang Zheng
Fudan University

  1. Income Disparity and Economic Growth: Evidence from China By Duo Qin; Marie Anne Cagas; Geoffrey Ducanes; Xinhua He; Rui Liu; Shiguo Liu
  2. "State and Ownership Reforms in Transition Economics: China vs. the Orthodoxy" By Jeffrey B. Miller; Stoyan Tenev
  3. "Gender Inequality in a Globalizing World" By Stephanie Seguino
  4. "The United States and Her Creditors: Can the Symbiosis Last?" By Wynne Godley; Dimitri B. Papadimitriou; Claudio H. Dos Santos; Gennaro Zezza
  5. The International Allocation of R&D Activity by US Multinationals: The East Asian Experience in Comparative Perspective By Prema-chandra Athukorala; Archanun Kohpaiboon
  6. Trade Globalization and Political Liberalization: A Gravity Approach By Miaojie YU
  7. Paths to Success: The Relationship Between Human Development and Economic Growth By Michael Boozer; Gustav Ranis; Frances Stewart; Tavneet Suri

  1. By: Duo Qin (Queen Mary, University of London); Marie Anne Cagas (Asian Development Bank); Geoffrey Ducanes (Asian Development Bank); Xinhua He (Chinese Academy of Social Sciences); Rui Liu (Chinese Academy of Social Sciences); Shiguo Liu (Chinese Academy of Social Sciences)
    Abstract: This paper carries out a pilot empirical study on how income inequality affects growth and the macro economy by means of incorporating panel data information into a macro-econometric model. China is used as the pilot field. Provincial urban and rural household data are used to construct inequality measures, which are then used to augment household consumption equations in the ADB China model. Model simulations are performed to study the effect of inequality on GDP growth and its sectoral components. Results show that inequality is a robust explanatory variable of consumption and that the way inequality develops over time carries certain negative consequences on GDP and sectoral growth.
    Keywords: Income inequality, Growth, Econometric model, China
    JEL: R11 E21 D3 C5 C2
    Date: 2005–11
  2. By: Jeffrey B. Miller (Department of Economics,University of Delaware); Stoyan Tenev
    JEL: P20
    Date: 2005
  3. By: Stephanie Seguino
    Abstract: Emphasis on market-friendly macroeconomic and development strategies in recent years has resulted in deleterious effects on growth and well-being, and has done little to promote greater gender equality. This paper argues that the example of East Asia states, which recognized their position as "late industrializers," relied on a managed-market approach with the state that employed a wide variety of policy instruments to promote industrialization. Nevertheless, while Asian growth was rapid, it was not enough to produce greater gender equality. A concentration of women in mobile export industries that face severe competition from other low-wage countries reduces their bargaining power and inhibits closure of gender-wage gaps. Gender-equitable macroeconomic and development policies are thus required, including financial market regulation, regulation of trade and investment flows, and gender-sensitive public sector spending.
    Date: 2005–07
  4. By: Wynne Godley; Dimitri B. Papadimitriou; Claudio H. Dos Santos; Gennaro Zezza
    Abstract: The main arguments in this paper can be simply stated: 1) If output in the US grows fast enough to keep unemployment constant between now and 2010 and if there is no further depreciation in the dollar, the deficit in the balance of trade is likely to get worse, perhaps reaching 7.5 per cent by the end of the decade. 2) If the trade deficit does not improve, let alone if it gets worse, there will be a large further deterioration in the US's net foreign asset position so that, with interest rates rising, net income payments from abroad will at last turn negative and the deficit in the current account as a whole could reach at least 8.5 per cent of GDP. . . .
    Date: 2005–09
  5. By: Prema-chandra Athukorala; Archanun Kohpaiboon
    Abstract: This paper examines patterns and determinants of overseas R&D expenditure of MNEs, with emphasis on the East Asian experience, using a new panel dataset relating to US-based manufacturing MNEs over the period 1990-2001. It is found that inter-country differences in R&D intensity of operation of US MNE affiliates are fundamentally determined by the domestic market size, overall R&D capability and cost of hiring R&D personnel. The impact of domestic market orientation of affiliates on R&D propensity varies among countries depending on their stage of global economic integration. Intellectual property protection seems to matter largely for mature economies with complementary endowments. There is no evidence to suggest that financial incentives have a significant impact on inter-country differences in R&D intensity when controlled for other relevant variables. Nor is there a statistically significant relationship between the size of the capital stock of MNEs and R&D intensity of their operation across countries. Overall, our findings serve as a caution against paying too much attention by host country governments on turning MNEs affiliates into technology creators as part of their foreign direct investment policy.
    Date: 2005–09
  6. By: Miaojie YU (Department of Economics, UC-Daivs)
    Abstract: This paper is an empirical investigation on the relationship between trade globalization and political liberalization. The sample is based on 157 countries from years 1957-1998, taking into consideration many social, economic, environmental, geographical, and historical factors. From this, an augmented gravity equation is estimated and evidence is found to support the prediction that political liberalization could discourage trade and trade could foster democracy.
    Keywords: Trade, Democracy, Gravity Equation
    JEL: F13 F14 P16
    Date: 2005–11–09
  7. By: Michael Boozer (Economic Growth Center, Yale University); Gustav Ranis (Economic Growth Center, Yale University); Frances Stewart; Tavneet Suri
    Abstract: This paper explores the two-way relationships between Economic Growth (EG) and Human Development (HD), building on an earlier work by Ranis, Stewart, and Ramirez (2000). Here, we show that HD is not only a product of EG but also an important input to it. The paper develops new empirical strategies to estimate the strength of the two-way chains connecting HD and EG. Building on existing growth literature, we explore the empirical determinants of positive growth trajectories running from HD to EG and find that HD plays an essential role in explaining growth trajectories. Our findings point to the empirical relevance of endogenous growth models in general, and threshold effect models in particular. We also develop a measure of the strength of the EG to HD relationship and explore some of its empirical determinants. A strong sequencing implication of our findings is that HD must be given priority for the achievement of both higher EG as well as HD.
    Keywords: Human Development, Economic Growth, Threshold Models
    JEL: O15 O57 C23
    Date: 2003–12
  8. By: Allen J. Scott (UCLA)
    Abstract: Regional push derives from the geographic agglomeration of economic activities, and is expressed in increments to national productivity. Various pieces of statistical evidence in favor of the existence of regional push effects in low- and middle-income economies are marshalled. The origins of these effects in different sorts of externalities and increasing returns to agglomerative scale and scope are analyzed in theoretical terms. Further evidence for the existence of these effects is displayed in a brief review of published case studies of African, Asian, and Latin American regions. A number of observations are then offered on the possibilities of identifying viable developmental policies and practices directed to enhancing the productivity-boosting properties of regions in low- and middle-income economies.
    Keywords: Agglomeration, big push, regional development, developing countries, local economic development
    JEL: O P
    Date: 2005–11–07
  9. By: Titas Bandopadhyay (Bagnan College)
    Abstract: The purpose of this paper is to examine the Fields (1989) proposition1 in a multi sector general equilibrium model with perfect and imperfect capital mobility2. The effects of different fiscal policies on the equilibrium rate of urban unemployment are also examined here3. The main findings are more efficient on-the-job search from the rural sector raises equilibrium urban unemployment rate whereas increased job search efficiency from the urban informal sector lowers this rate. Again urban subsidy policy lowers the equilibrium urban unemployment rate and rural subsidy policy raises this rate. Urban formal sector enlargement leads to a change in ex-ante and ex-post labour force in the rural sector even if urban informal sector wage rate is constant. All the results are obtained both in the case of perfect and imperfect capital mobility.
    Keywords: job search, informal sector,development policy
    JEL: C6 D5 D9
    Date: 2005–11–05
  10. By: Titas Bandopadhyay (Bagnan College)
    Abstract: We consider a three sector model of informal sector which assumes efficiency wage hypothesis and explains the simultaneous existence of informal sector and urban unemployment. We also study the effects of subsidy policies given to different sectors and the effects of change in capital stock on urban unemployment and domestic factor income.
    Keywords: Capital immobility,informal sector, urban unemployment
    JEL: C6 D5 D9
    Date: 2005–11–05

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