nep-cna New Economics Papers
on China
Issue of 2007‒10‒13
nine papers chosen by
Zheng Fang
Ohio State University

  1. What Drives China's Growing Role in Africa? By Jian-Ye Wang
  2. Old-Age Pension Reform and Modernization Pathways: Lessons for China from Latin America By Calvo, Esteban; Williamson, John B.
  3. The role of China in Asia: engine, conduit, or steamroller? By Jane T. Haltmaier; Shaghil Ahmed; Brahima Coulibaly; Ross Knippenberg; Sylvain Leduc; Mario Marazzi; Beth Anne Wilson
  5. The role of clustering in rural industrialization: A Case Study of the Footwear Industry in Wenzhou By Huang, Zuhui; Zhang, Xiaobo; Zhu, Yunwei
  6. Playful Dragon: Messing and missing trade By Beja, Jr., Edsel
  7. GM Cotton in China: Innovation integration and seed market disintegration By Michel Fok; Naiyin Xu
  8. Multiple-factor adoption of GM Cotton in China: Influence of conventional technology development and rural change in Jiangsu Province By Naiyin Xu; Michel Fok
  9. Why is son preference declining in South Korea ? the role of development and public policy, and the implications for China and India By Das Gupta, Monica; Chung, Woojin

  1. By: Jian-Ye Wang
    Abstract: What role does China play in Africa's development? What drives China's increasing economic involvement in the continent? This paper attempts to provide a quantified assessment of China's multifaceted influence as market, donor, financer and investor, and contractor and builder. Though in the past official development aid predominated, the paper argues that government policies, markets for each other's exports, Africa's demand for infrastructure, and differences in China's approach to financing have together moved commercial activities-trade and investment-to the center of China-Africa economic relations. While China's public sector, state financial institutions in particular, has been instrumental in the process, the influence of its private sector is increasing. Implications for the future of China-Africa economic relations are briefly noted.
    Keywords: Trade , China , Africa , Development assistance , Capital flows , Working Paper ,
    Date: 2007–08–30
  2. By: Calvo, Esteban; Williamson, John B.
    Abstract: While numerous Western countries first experienced cultural rationalization, next economic modernization, and then faced the challenges of population aging and pension policy reform, both Latin America and China, in contrast, are dealing with these challenges in the context of much less developed economies and stronger traditional cultures. In this article we analyze old-age pension reform efforts in eight Latin American countries that have introduced funded defined contribution schemes with individual accounts. We are searching for insights about the potential success of similar reforms being implemented in China. All of these societies are organized primarily around the principles of family, reciprocity, loyalty and poverty. Our analysis suggests that these distinctive characteristics have important implications for the likely success of the reforms currently being implemented in China, particularly in four interrelated areas: coverage, compliance, transparency, and fiscal stability.
    Keywords: Pension reform; China; Latin America; Social Security; Culture
    JEL: H55 J32 G23
    Date: 2006
  3. By: Jane T. Haltmaier; Shaghil Ahmed; Brahima Coulibaly; Ross Knippenberg; Sylvain Leduc; Mario Marazzi; Beth Anne Wilson
    Abstract: This paper assesses China's role in Asia as an independent engine of growth, as a conduit of demand from the industrial countries, and as a competitor for export markets. We provide both macroeconomic and microeconomic evidence. The macroeconomic analysis focuses on the impact of U.S. and Chinese demand on the output of the Asian economies by estimating growth comovements and VARs. The results suggest an increasing role of China as an independent source of growth. The microeconomic analysis decomposes trade into basic products, parts and components, and finished goods. We find a large role for parts and components trade consistent with China playing an important and increasing role as a conduit. We also estimate some regressions that show that China's increasing presence in export markets has had a negative effect on exports of some products for some other Asian economies, but not for other products, including those of the important electronic high-technology industry.
    Date: 2007
  4. By: Puah, Chin-Hong; Kueh, Jerome Swee-Hui; Lau, Evan
    Abstract: The relationship between Foreign Direct Investment (FDI) and Gross Domestic Products (GDP) had become the centre piece of recent researches in identifying the short run and long run implications between the two variables. Using the hypotheses of FDI led GDP and GDP led FDI as theoretical framework, this study intends to analyze the implications of the rise of China towards the ASEAN-5 countries, namely Indonesia, Malaysia, the Philippines, Singapore and Thailand from the perspective of FDI and GDP. The cointegration and vector error correlation estimate test results showed that there is a significant positive long run relationship between FDI of China and GDP of ASEAN-5. However, we failed to detect any short run causal relationship among the variables under study.
    Keywords: Cointegration; Granger causality; FDI; ASEAN-5
    JEL: C32 O53 F21
    Date: 2007–10–09
  5. By: Huang, Zuhui; Zhang, Xiaobo; Zhu, Yunwei
    Abstract: "Wenzhou used to be one of the poorest regions in eastern China. With limited arable land, poor road access to major cities, and little support from the upper level governments, this region seemed to lack all the conditions necessary for economic growth. However, over the past several decades Wenzhou has developed the most dynamic private sector in China, and has accordingly achieved one of the fastest growth rates. In particular, the footwear industry in Wenzhou has grown from a negligible market share to the largest in China. Here, we report a survey of 140 Wenzhou-based footwear enterprises of various scales, and use this information to examine the driving forces behind the dramatic rural industrial growth seen in this region. Our results show that clustering deepens the division of labor in the production process and makes it possible for small entrepreneurial firms to enter the industry by focusing on a narrowly defined stage of production. Therefore, Wenzhou represents an example of how clustering plays a significant role in helping fledgling rural industries overcome the growth constraints of capital and technology in the incipient stage of industrialization." from Authors' Abstract
    Keywords: Cluster analysis, Industrialization, Finance, Economic development, Nonfarm economy,
    Date: 2007
  6. By: Beja, Jr., Edsel
    Abstract: An examination of available data reveals large trade misinvoicing between the People’s Republic of China and identified trade partners. The analysis finds a net trade misinvoicing of US$ 287.6 billion between 2000 and 2005, while the full magnitude of unrecorded trade is estimated at US$ 1.4 trillion. Further analysis also finds that there is an accounted misinvoicing or missing trade of US$ 53.7 billion for the same period. China needs to have more effective management of its trade flows. At the same time, the international community needs to contribute to put up more effective governance mechanisms to address trade misinvoicing.
    Keywords: International trade; trade misinvoicing; China
    JEL: F14
    Date: 2007–10–05
  7. By: Michel Fok (UPR10 - Systèmes cotonniers en petits paysannats - [CIRAD]); Naiyin Xu (RIIC - Research Institute of Industrial Crops - [Jiangsu Academy of Agricultural Sciences])
    Abstract: L'idée prévaut que ce sont les avantages spécifiques du coton-Bt qui ont permis la diffusion réussie du coton génétiquement modifié en Chine. L'efficience du coton-Bt varie cependant entre les régions de production. Dans la Province du Jiangsu, le long de la Vallée du Yangse, il n'y a pas vraiment gain de rendement, la réduction du contrôle chimique des ravageurs est limitée et globalement, il n'y a d'amélioration de la rentabilité liée spécifiquement à l'utilisation du coton-Bt.<br />L'utilisation du coton-Bt est pourtant quasi généralisée en Chine. Une approche plus globale, au-delà de la focalisation exclusive sur les effets spécifiques du coton-Bt, permet de comprendre ce paradoxe apparent. Dans la Province du Jiangsu, la diffusion du coton-Bt a bénéficié de son intégration dans les variétés hybrides qui sont parfaitement adaptées à la technique de production par transplantation. Le cas chinois indique que l'évaluation de l'utilisation du coton-By dans d'autres pays devrait considérer la mesure dans laquelle cette utilisation est compatible (ou non) avec les techniques existantes de production.<br />En Chine, la commercialisation du coton-Bt a entraîné la désintégration du marché des semences jusqu'alors dirigé par l'Etat. Les paysans ont d'abord bénéficié de la modernisation du marché des semences mais ils souffrent maintenant de la désintégration excessive par le secteur privé. Un ajustement de la régulation par l'Etat est nécessaire pour assurer la réussite de la restructuration du marché des semences.
    Keywords: coton; biotechnologies; Chine; industrie semencière; concurrence; stratégies; marketing
    Date: 2007–07–22
  8. By: Naiyin Xu (RIIC - Research Institute of Industrial Crops - [Jiangsu Academy of Agricultural Sciences]); Michel Fok (UPR10 - Systèmes cotonniers en petits paysannats - [CIRAD])
    Abstract: La grande diffusion du coton génétiquement modifié (CGM) en Chine, plus précisément du coton-Bt, est bien reconnue même si les craintes sur la durabilité de ce succès ont émergé récemment. Ce papier vise à indiquer que l'adoption du coton-Bt en Chine n'a pas dépendu seulement de ses avantages pour contrôler les ravageurs. Il évoque le cas spécifique de la Province du Jiangsu, dans la Vallée du Yangse, pour laquelle l'utilisation du CGM est peu rapportée dans les publications accessibles à la communauté internationale. Le papier synthétise les analyses récentes publiées en chinois par des auteurs relevant de la recherche ou du développement et il s'appuie sur les résultats d'une enquête réalisée en 2005 et sur ceux du réseau multi-local d'expérimentations variétales de la Vallée du Yangse. Il ressort que dans la Province du Jiangsu, la diffusion du CGM a beaucoup bénéficié d'une modernisation du secteur des semences qui a intégré le caractère Bt dans les variétés hybrides très adaptées à la technique de production par transplantation. En dépit d'une réduction plutôt limitée du coût de contrôle des ravageurs, les paysans ne devraient pas abandonner l'usage du coton-Bt car l'évolution de l'agriculture chinoise ne pousse plus les paysans à être aussi vigilants pour optimiser les coûts de production, à moins que les prix des semences continuent à croître de manière phénoménale. La poursuite d'une utilisation rentable du CGM requiert des initiatives pour mieux réguler le secteur des semences.
    Keywords: coton-Bt; Chine, agriculture; industrie semencière; transplantation
    Date: 2007–09–11
  9. By: Das Gupta, Monica; Chung, Woojin
    Abstract: For years, South Korea presented the puzzling phenomenon of steeply rising sex ratios at birth despite rapid development, including in women ' s education and formal employment. This paper shows that son preference decreased in response to development, but its manifestation continued until the mid-1990s due to improved sex-selection technology. The paper analyzes unusually rich survey data, and finds that the impact of development worked largely through triggering normative changes across the whole society - rather than just through changes in individuals as their socio-economic circumstances changed. The findings show that nearly three-quarters of the decline in son preference between 1991 and 2003 is attributable to normative change, and the rest to increases in the p roportions of urban and educated people. South Korea is now the first Asian country to reverse the trend in rising sex ratios at birth. The paper discusses the cultural underpinnings of son preference in pre-industrial Korea, and how these were unraveled by industrialization and urbanization, while being buttressed by public policies upholding the patriarchal family system. Finally, the authors hypothesize that child sex ratios in China and India will decline well before they reach South Korean levels of development, since they have vigorous programs to accelerate normative change to reduce son preference.
    Keywords: Population Policies,Gender and Law,Gender and Development,Access to Finance,Gender and Health
    Date: 2007–10–01

This nep-cna issue is ©2007 by Zheng Fang. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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