nep-cna New Economics Papers
on China
Issue of 2008‒03‒08
five papers chosen by
Zheng Fang
Ohio State University

  1. Public Finance in China since the Late Qing Dynasty By Krug, B.
  2. Lessons from China for Africa By Dollar, David
  3. Information and communication technologies and geographic concentration of manufacturing industries: evidence from China By Fu, Shihe; Hong, Junjie
  4. Russian- Chinese relations : towards an energy partnership By Olga Garanina
  5. Outsourcing in East Asia and its impact on the Japanese and Korean Labour Markets By Sanghoon Ahn; Kyoji Fukao; Keiko Ito

  1. By: Krug, B. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: How is “public finance†organized in China? Is China’s public finance system different from that of other countries? Can we detect features which link today’s system to the past? Public finance refers to more than annual state budgets and constitutional procedures. It includes foreign debt, state monopolies or monetary policies, all of which played a crucial role in China’s public finance during the last hundred years. A purely legislative definition obscures the fact that changes in public finance have contributed to the collapse of political regimes such as Imperial China (1911), Republican China (1927), and KMT-China (1945), as well engendered regime changes in 1949, 1961 and 1978. From a more comprehensive economic perspective public finance in China encompasses institutions, organizations and policies.
    Keywords: public finance;China;imperial China;republican China;KMT-China
    Date: 2008–02–05
  2. By: Dollar, David
    Abstract: China has been the most successful developing country in this modern era of globalization. Since initiating economic reform after 1978, its economy has expanded at a steady rate over 8 percent per capita, fueling historically unprecedented poverty reduction (the poverty rate declined from over 60 percent to 7 percent in 2007). Other developing countries struggling to grow and reduce poverty are naturally interested in what has been the source of this impressive growth and what, if any, lessons they can take from China. This paper focuses on four features of modern China that have changed significantly between the pre-reform period and today. The Chinese themselves call their reform program Gai Ge Kai Feng, " change the system, open the door. " " Change the system " means altering incentives and ownership, that is, shifting the economy from near total state ownership to one in which private enterprise is dominant. " Open the door " means exactly what it says, liberalizing trade and direct investment. A third lesson is the development of high-quality infrastructure: China ' s good roads, reliable power, world-class ports, and excellent cell phone coverage throughout the country are apparent to any visitor. Wha t is less well known is that most of this infrastructure has been developed through a policy of " cost recovery " that prices infrastructure services at levels sufficient to finance the capital cost as well as operations and maintenance. A fourth important lesson is China ' s careful attention to agriculture and rural development, complemented by rural-urban migration.
    Keywords: Transport Economics Policy & Planning,Environmental Economics & Policies,Emerging Markets,Population Policies,Debt Markets
    Date: 2008–02–01
  3. By: Fu, Shihe; Hong, Junjie
    Abstract: Using the 2004 China economic census database, this paper examines the impact of information and communication technologies (ICT) on the geographic concentration of manufacturing industries, controlling for other determinants of industrial agglomeration. Higher geographic concentration is found consistently in industries where ICT are more widely adopted, and the association is stronger at higher geographic levels. Furthermore, young firms that have adopted ICT, although they are more footloose, contribute to industrial agglomeration. High-tech industries with advanced ICT also tend to agglomerate. Contrary to the prevalent argument that ICT lead to more dispersion, our study suggests that ICT promote industrial agglomeration.
    Keywords: Information and communication technologies; Geographic concentration; Agglomeration; China
    JEL: R32 R12
    Date: 2008–03–01
  4. By: Olga Garanina (LEPII - Laboratoire d'Économie de la Production et de l'Intégration Internationale - CNRS : UMR5252 - Université Pierre Mendès-France - Grenoble II)
    Abstract: This paper aims to investigate the Russian-Chinese energy relations in the context of evolution of bilateral strategic relations since 1991.The research is focused on Russia and encompasses three main aspects: strategic approach of Russian-Chinese relations, Russian hydrocarbons production and export potential and prospects for the Eastern Russia. The paper is based on qualitative analysis. It shows that the framework of bilateral relations is globally favourable for creation of costly energy transport infrastructures. The quest for diversification of Chinese energy supplies contributes to the promotion of Russian hydrocarbons exports towards Asia, the latter contributing to diversify Russian energy exports traditionally sent to Europe. However, the modalities of these projects are submitted to the Russian state interests. Moreover, while natural gas reserves are sufficient to meet the Chinese demand, oil production prospects in the East of Russia are uncertain at a long-term perspective.
    Keywords: trade relationships ; energy policy ; energy resources ; hydrocarbon ; energy ; energy supply ; Russia ; China
    Date: 2007–11
  5. By: Sanghoon Ahn; Kyoji Fukao; Keiko Ito
    Abstract: This study describes the changing patterns of intermediate goods trade and foreign direct investment (FDI) in East Asia and investigates the impacts of international outsourcing on the Japanese and the Korean labour markets. The main findings of the paper are as follows. First, intra-regional trade in East Asia grew remarkably during the period 1990-2003. While overall trade with the rest of the world roughly doubled in this period, intra-regional trade in East Asia more than tripled. Second, the main factor behind increased intra-regional trade in East Asia was the trade in intermediate goods through outsourcing and the international fragmentation of production. Third, reflecting the fact that outsourcing to Asia (particularly to China) has a negative impact on the demand for workers with lower education and a positive impact on the demand for workers with higher education, relative wage shares of workers by educational attainment have changed substantially both in Japan and Korea. Fourth, our empirical analysis provides evidence of labour demand shift towards skilled labour in Japanese manufacturing as a result of outsourcing. For Korea, although the overall effects of outsourcing have been insignificant in Korea partly because a substantial part of Korean outsourcing remained directed towards Japan, our results imply that labour demand would shift away from less-skilled workers towards more-skilled workers if outsourcing to China increased and outsourcing to Japan decreased in the future.
    Keywords: Korea, Japan, manufacturing, outsourcing
    JEL: F14 F16 F23
    Date: 2008–01–22

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