nep-cna New Economics Papers
on China
Issue of 2006‒03‒25
six papers chosen by
Zheng Fang
Fudan University

  1. Rural non-farm development in China and India By Mukherjee, Anit; Zhang, Xiaobo
  2. Rural and urban dynamics and poverty: Evidence from China and India By Fan, Shenggen; Chan-Kang, Connie; Mukherjee, Anit
  3. The dragon and the elephant By Gulati, Ashok; Fan, Shenggen; Dalafi, Sara
  4. Pollution Haven Hypothesis or Factor Endowment Hypothesis: Theory and Empirical Examination for the US and China By Umed Temurshoev
  5. Impact of global warming on Chinese wheat productivity By You, Liangzhi; Rosegrant, Mark W.; Fang, Cheng; Wood, Stanley
  6. Growth with Gender Inequity: Another Look at East Asian Development By Gunseli Berik

  1. By: Mukherjee, Anit; Zhang, Xiaobo
    Abstract: The dynamic rural nonfarm sector in China has been a major contributor to the country's remarkable growth, while in India the growth in output and employment in this sector has been rather stagnant. The paper argues that the observed patterns in the rural nonfarm development are the results of institutional differences between the two countries, especially in their political systems, ownership structure, and credit institutions. A review of the strengths and weaknesses of the rural nonfarm economy in China and India highlights the potentials and challenges of growth in the sector.
    Keywords: Industrial policy ,Policy research ,Non-farm development ,
    Date: 2005
  2. By: Fan, Shenggen; Chan-Kang, Connie; Mukherjee, Anit
    Abstract: "Like many developing countries, China and India followed development strategies biased in favor of the urban sector over the last several decades. These development schemes have led to overall efficiency losses due to misallocation of resources among rural and urban sectors. It also led to large income gaps between rural and urban areas. The urban bias was greater in China than in India. Indeed, official data show that both the income gap and the difference in poverty rates between rural and urban areas are much larger in China than in India. Both countries have corrected the rural-urban divide to some extent as part of reform processes. But the bias still exists. Other studies also support the idea presented here that correcting this imbalance will not only contribute to higher rural growth, but also secure future urban growth (Fan and Chan-Kang 2005). More important, correcting the urban bias will lead to larger reductions in poverty as well as more balanced growth across sectors and regions. Correcting a government's bias towards investment in urban areas is one of the most important policies to pursue." from Authors' Abstract
    Keywords: Rural-urban linkages ,Poverty ,
    Date: 2005
  3. By: Gulati, Ashok; Fan, Shenggen; Dalafi, Sara
    Abstract: "China's and India's rapid rise in the global arena has not only captured the attention of the world but has also set into motion a rethinking of the very paradigm of economic development....Today, China and India together account for 40 percent of the world's population. Both have implemented a series of economic reforms in the past two and half decades: China initiated this process at the end of the 1970s, while India began in the early 1990s. These reforms have led to rapid economic growth, with a growth rate of 8–9 percent per annum in China and 6–7 percent per annum in India. Despite similar trends in the reforms, the two countries have taken different reform paths; China started off with reforms in the agriculture sector and in rural areas, while India started by liberalizing and reforming the manufacturing sector. These differences have led to different growth rates and, more importantly, different rates of poverty reduction. They also have fundamentally different implications for growth and poverty reduction in the future. What can we learn from the process of economic reform in these two countries?... A number of studies looking into key aspects of reform and their relationship to outcomes, presented at two international workshops held in New Delhi and Beijing, try to offer some answers to these questions. These papers are currently being prepared by IFPRI for publication, and this discussion paper is a synopsis presented as a forerunner to the book. " from Authors' Abstract
    Keywords: Poverty alleviation China ,Poverty alleviation Egypt ,Economic reform ,
    Date: 2005
  4. By: Umed Temurshoev
    Abstract: This paper examines how free international trade affects the environment in the developed and less developed worlds. Using input-output techniques, tests of the pollution haven hypothesis (PHH) and the factor endowment hypothesis (FEH) for the US and China were empirically carried out. We found that China gains and the US lose in terms of CO2, SO2 and NOx emissions from increased trade, and the US is not exporting capital intensive goods. Thus both the PHH and the FEH are rejected, which implies that explaining the trade of pollutants remains an unresolved puzzle.
    Keywords: International trade, Environment, Pollution haven, Factor endowment, Inputoutput analysis.
    JEL: F18 Q32 D57
    Date: 2006–03
  5. By: You, Liangzhi; Rosegrant, Mark W.; Fang, Cheng; Wood, Stanley
    Abstract: "Climate change continues to have major impact on crop productivity all over the world. While many researchers have evaluated the possible impact of global warming on crop yields using mainly indirect crop simulation models, there are relatively few direct assessments on the impact of observed climate change on past crop yield and growth. We use a 1979-2000 Chinese crop-specific panel dataset to investigate the climate impact on Chinese wheat yield growth. We find that a 1 percent increase in wheat growing season temperature reduces wheat yields by about 0.3 percent. This negative impact is less severe than those reported in other regions. Rising temperature over the past two decades accounts for a 2.4 percent decline in wheat yields in China while the majority of the wheat yield growth, 75 percent, comes from increased use of physical inputs. We emphasize the necessity of including such major influencing factors as physical inputs into the crop yield-climate function in order to have an accurate estimation of climate impact on crop yields." Authors' Abstract
    Keywords: Global warming ,Climate ,Wheat production ,
    Date: 2005
  6. By: Gunseli Berik
    Abstract: This brief gendered history of Taiwan’s and Korea’s labor markets indicates a recent reversal in the persistent gender wage gaps that were long sustained by state policies that created and reproduced surplus labor conditions. The relative decline of manufacturing employment since the mid/late 1980s was accompanied by a generalized improvement in women’s relative wages. However, gender wage inequality and women’s low wages continue to be important policy variables, given the concentration of women in lower-paying and less secure occupations and sectors, Korea’s more limited and stalled progress toward gender wage equality, recent signs of downward harmonization of wages in Taiwan’s largest sectors, and ongoing employment discrimination against women. Policies must tackle employment discrimination, improve women’s labor market skills, support women’s caring work in the home to ensure their equitable pursuit of employment, and create gender equitable old-age security systems.
    Keywords: gender wage inequality, discrimination, economic development, Korea, Taiwan
    Date: 2006–03

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