nep-cna New Economics Papers
on China
Issue of 2007‒12‒15
five papers chosen by
Zheng Fang
Ohio State University

  1. Japan’s foreign Aid Sanctions Policy Toward China By Furuoka, Fumitaka
  2. The Impact of China's Import Demand Growth on Sectoral Specialization in Brazil: A CGE Assessment By Willenbockel, Dirk
  3. Will the Renminbi become a world currency? By Wndy Dobson; Paul R. Masson
  4. Path-following or Leapfrogging in Catching-up: the Case of Chinese Telecommunication Equipment Industry. By Liu, Xielin
  5. The Adjusted Measure of Body Mass Index and its Impact on Health By Qiu, Tian

  1. By: Furuoka, Fumitaka
    Abstract: This paper examines Japan’s foreign aid sanction policy toward China. The Japanese government seems to be reluctant to take strict measures against China. Only due to strong criticisms from other aid donors did Japan cut aid to China. However, economic assistance was resumed as soon as Japan found a suitable pretext. What were the rationales for Japan’s policies in the country? What were the main factors that prevented Tokyo from taking strict measures against the country? This paper assumes that the driving force behind Japan’s aid policy is the promotion of Japan’s economic interests. As a conclusion, Japan has very strong economic and diplomatic relations with China. The need to maintain good relations with them became the main factor that determined Japan’s response to the human rights issues in the country. In other words, oftentimes, economic and diplomatic interests have prevented Japan from using stern foreign aid sanctions against China.
    Keywords: Foreign Aid; Japan; China
    JEL: F35 O53
    Date: 2007–12–12
  2. By: Willenbockel, Dirk
    Abstract: Brazil’s trade with China has expanded at a tremendous pace over the past few years. Between 1999 and 2004, its exports to China have grown by 800 percent in value terms while the value of its imports from China has more than tripled. China is now Brazil’s third most important export destination and its fourth most important import source. While the Brazilian government actively pursues closer trade and investment links with China, critics fear that potential resulting shifts in specialization patterns towards low-value-added activities with low human capital and technology intensity may adversely affect Brazil’s long-run growth prospects, given that Brazilian exports to China consist primarily of primary commodities, while imports from China increasingly compete with domestic manufacturing output in home and third-country markets. To which extent are fears that China’s emergence as a global player in international trade pushes Brazil back into raw material corner warranted? This paper aims to provide a partial answer to this question by focusing on the impact of China’s growth in demand for Brazilian exports from 2001 to 2006 on the sectoral structure of the Brazilian economy. The analytical framework is a 34-sector computable general equilibrium model. The model is calibrated to a 2001 dataset and shocked with the growth in Brazilian exports to China by sector over the period 2001 to 2006. The simulation results provide an indication of the strength of the resource pull effects due to this shock in isolation from all other exogenous influences on the Brazilian economy.
    Keywords: Brazil; Applied general equilibrium analysis; China; Dutch disease;Computable general equilibrium analysis
    JEL: C63 F17 O54 F14 F1
    Date: 2007–11
  3. By: Wndy Dobson; Paul R. Masson (Wendy Dobson, Rotman School of Management Paul R. Masson, Rotman School of Management.)
    Abstract: China has emerged as a major power in the world economy, so it seems natural to consider whether its currency will also have a major role. However, at present it is not used internationally. We look at the factors that contribute to the international use of currencies, and focus on the aspects of China’s financial system that would have to change before the renminbi emerged as an important regional or world currency. Even with important reforms, two important questions would remain: whether the authorities would want to encourage its international use, and whether an economy with substantial party control could gain international acceptance for its currency.
    Date: 2007
  4. By: Liu, Xielin
    Abstract: In this paper, by reviewing the development of telecommunication equipment industry from fixed phone switches to later 3G, TD-SCDMA, we conclude that the degree of matching between existing foreign products with Chinese market is the primary incentive for Chinese companies to catch-up. The possibility to redesign the existing foreign product to match the market needs in China leads to further opportunity to catch-up. The accessibility of knowledge through government support, alliance with foreign companies or R&D work shapes the capability of Chinese companies to catch-up. The government support is important but not dominated. Leapfrogging strategy will meet more tough problems than path-following. Government plays a more important role in the leapfrogging than the path-following catching-up process. Open to the world and encouraging the collaboration and alliance activity can give companies in the developing countries more opportunity to access the latest knowledge. In the dynamic and advanced industry, FDI can be a very important factor for the technology transfer and catching-up.
    JEL: O31 O32 O33 O34 O38 N5 O47 R58
    Date: 2007
  5. By: Qiu, Tian
    Abstract: The aim of this paper is to examine the impact of socio-economic status (SES) on the Body Mass Index (BMI), a formula based on the ratio of height to weight, linked to health, using a four-year (1991, 1993, 1997 and 2000) panel data set which comes from the Physical Examination in China Health and Nutrition Survey. To an extent we confirm the results with respect to the linkage between SES and the documented healthy BMI found for other developing countries. Furthermore, apart from using the existing specification of BMI, we develop a little further the issue on how to define BMI with respect to the adjustment of gender and age. This leads to a slightly different formulation for the BMI and a substantially different healthy range based on self-reported health. We also find that the healthy BMI has a significant impact on health together with SES.
    JEL: I12
    Date: 2007

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