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on China |
| By: | Vincent Bouvatier (CES-TEAM) |
| Abstract: | This paper investigates hot money inflows in China. The financial liberalization comes into effect and the effectiveness of capital controls tends to diminish over time. As a result, China is fuelled by hot money inflows. The US interest rate cut since 2001 and expectations of exchange rate adjustments are the main factors explaining these capital inflows. This study use the Bernanke and Blinder (1988) model extended to an open economy to examine implications of hot money inflows for the Chinese economy. A Vector Error Correction Model (VECM) on monthly data from March 1995 to March 2005 is estimated to investigate the recent upsurge in foreign reserves and shows that the interaction between domestic credit and foreign reserves was stable and consistent with monetary stability. Granger causality tests are implemented to show how the People's Bank of China (PBC) achieved this result. |
| Keywords: | Hot money inflows, domestic credit, VECM, Granger causality. |
| JEL: | C32 E5 F32 F33 |
| Date: | 2006–02 |
| URL: | http://d.repec.org/n?u=RePEc:mse:wpsorb:bla06011&r=cna |
| By: | Beghin, John C. |
| Abstract: | This paper is an overview of important findings regarding the ongoing evolution of Asian dairy markets based on a series of new economic investigations. These investigations provide systematic empirical foundations for assessing Asian dairy markets with their new consumption patterns, changing industries, and trade prospects under different domestic and trade policy regimes. The findings are drawn from four case studies (China, India, Japan, and Korea), as well as a prospective analysis of future regional patterns of consumption and a policy analysis of trade liberalization of Asian dairy markets. The overview distills the findings of these new investigations and integrates them in the earlier economic literature; it draws policy implications and identifies lessons for countries outside of Asia, especially for emerging exporters in Latin America. |
| Keywords: | Asia, China, dairy, India, Japan, Korea, liberalization, trade integration. |
| JEL: | F1 |
| Date: | 2006–03–03 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genres:12506&r=cna |
| By: | Kazuyuki Motohashi |
| Abstract: | In this paper, the motivations of R&D by multinationals are investigated by using a large firm level dataset from Chinese official statistics on science and technology activities. Growing intensity of R&D activities is found both for foreign owned and domestic firms. But, it is also found that the R&D intensity at foreign owned firms is relatively smaller. This may be due to the fact that foreign owned firms are operating by relying of technological capabilities at home. Statistical analysis confirms that the major motivation of foreign R&D in China is "market driven" instead of "technological driven" or "human resource driven". However, there is a great variation of foreign R&D strategy across regions. Market driven R&D is found mainly in Guangdong, which is called a world IT factory, and does not have strong universities or PRIs. In contrast, R&D strategy in Beijing is oriented toward technology driven approach, because we can find a cluster of scientific institutions there. Shanghai, with both a large industrial base as well as strong science sector, is in-between. |
| Date: | 2006–02 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:06005&r=cna |
| By: | Agata Antkiewicz; John Whalley |
| Abstract: | We discuss recent cases of Chinese buyout activity in the OECD (especially in the US and the EU) in resource and manufacturing sectors. While most of the buyout attempts have been unsuccessful, they can serve as a catalyst for a wider discussion on the implications for global arrangements over cross border acquisitions. Three specific issues are discussed. The first is the subsidization of purchase raised in the OECD in response to the advancing of low- or no-interest loans by the Chinese Central Bank to companies investing abroad. The second is the transparency of entities involved in the buyout attempt. Most Chinese companies have close ties to the multiple levels of government and are not subject to the standard reporting requirements as required of OECD companies. The third involves national security concerns in the OECD and the possibility of acquiring sensitive technology by Chinese companies when they purchase companies abroad. These issues have not been addressed in the existing OECD/WTO investment policy initiatives and have yet to be discussed in the global fora. |
| JEL: | F02 F20 F21 O24 |
| Date: | 2006–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:12072&r=cna |