nep-cna New Economics Papers
on China
Issue of 2005‒12‒01
six papers chosen by
Fang Zheng
Fudan University

  1. Reconciling the Chinese Financial Development with its Economic By Jean-Claude Maswana
  2. Intergovernmental Fiscal Reform, Financial Deepening, and Regional Disparity in China: A Missing Link* By Zhang Jun; Yu Jin
  3. China’s Banking Reform: Problems and Potential Solutions By Xiaosong Zeng; Charles Goodhart
  4. China and the Geopolitics of Oil in the Asian Pacific Region By Pablo Bustelo
  5. Health Determinants in Urban China By Zhong Zhao

  1. By: Jean-Claude Maswana (Kyoto University)
    Abstract: Focused on the case of China’s financial development, the present discursive essay sets out to argue that if the Chinese financial system distorted the allocation of funds then economic growth could not be sustained and financial depth would remain deficient. The essay puts forward selected financial facts and policies, discusses their relevance in the particular context of China’s economic development goals and concludes that although the Chinese financial system is not developed according to the standards of industrialized countries, financial intermediation has nevertheless been efficient in terms of promoting savings and credit to the extent that might have been good enough to facilitate economic growth. Furthermore, in order to reconcile China’s financial efficiency-growth apparent paradox, the essay supports the view that analyzing China’s financial system using market-based standards may not be valid.
    Keywords: China, financial development, growth-finance nexus
    JEL: O P
    Date: 2005–11–22
  2. By: Zhang Jun (China Center for Economic Studies, Fudan University); Yu Jin (Department of Economics, Nanyang Technological University)
    Abstract: It becomes apparent that growing disparity in China is highly associated with regional variation of productivity, and that productivity is significantly impacted by financial deepening process. After identifying and estimating the share of bank lending to non-state sector, this paper finds a significant variation in the level of financial deepening between regions. Then this paper examines why financial development process turns out to be divergent between coastal and inland regions. Such analysis places the issue of enlarging regional imbalance in China in a context specific to the weakness of re-centralization process of intergovernmental fiscal relations in 1994.
    JEL: O
    Date: 2005–11–21
  3. By: Xiaosong Zeng; Charles Goodhart
    Date: 2005–11
  4. By: Pablo Bustelo (Elcano Royal Institute for International & Strategic Studies & Complutense University of Madrid)
    Abstract: China’s growing demand for oil is significantly changing the international geopolitics of energy, especially in the Asian Pacific region. The recent growth in oil consumption, combined with forecasts of increased oil imports (especially from the Middle East), have led to deep concern among Chinese leaders regarding their country’s energy security. They are responding in a number of different ways. In particular, they are determined to increase the security and reliability of oil imports by searching for new sources of supply, and to control purchases and transport lanes, while boosting national production at any cost. This is already causing tension and could lead to further disputes with the US and other big oil consumers, such as Japan and India, as well as with other Asian Pacific countries. However, enhanced cooperation among the big East Asian economies (China, Japan and South Korea) is also a possibility. This document first of all presents an overview of China’s energy sector, emphasising the strong growth in its energy demand to date and its potential for future growth. Secondly, we look at the oil sector, highlighting China’s growing dependence on imports. The third part deals with the Chinese perception of energy security in the oil sector. Finally, the fourth part focuses on the geopolitical implications for the Asian Pacific region of China’s search for oil.
    Keywords: China, energy consumption, energy production, oil consumption, oil production, oil imports, East Asia
    JEL: O13 Q41 Q43
    Date: 2005–11–20
  5. By: Zhong Zhao (IZA Bonn and CCER, Peking University)
    Abstract: This paper identifies health determinants in urban China applying Grossman model. Using wave of China Health and Nutrition Survey in 2000, we find that education has important positive effect on health, and cost of health care services has significantly negative impact. However, effects of wage rate and household income are insignificant. We also find that region is an important determinant of health. The body weight is also important, but unlike finding in developed countries, under-weight instead of over-weight is a better predictor for poor health. Our results suggest that male has better health than female does, and married couple has better health in urban China.
    Keywords: self-reported health status, Grossman model, ordered probit, China
    JEL: I12 J24 D12
    Date: 2005–11
  6. By: Flávio Vilela Vieira; Michele Polline Veríssimo
    Abstract: The main goal os this paper is to understand on theoretical and empirical grounds the main determinants of China´s long-run economic growth. The historical data analysis suggests a crucial role played by FDI and the exchange rate. The econometric analysis provides empirical support for the primary role played by the exchange rate in explaining China´s economic growth (1970 to 2003) followed by FDI, investment rate and trade opennesss. Exchange rate policy and regime seems to be a direct road to explain (past and future) economic growth in China and the conditions for increasing exchange rate flexibility, an almost sure path for the near future.
    JEL: O40 O53 C32
    Date: 2005

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