|
on China |
| By: | Saebi, Tina (UNU-MERIT); Dong, Qinqin (Wuhan University of Technology) |
| Abstract: | This paper compares the key drivers of Sino-foreign alliance formation from the perspective of both Chinese and Western alliance partners. Our results indicate that Chinese companies enter into alliances with Western companies mainly to get accesses to international markets and to develop their technological and managerial competences further, while Western partners aim to gain access to the local customer and supplier bases of their Chinese counterpart as well as to the complex distribution systems found in the Chinese market. In analyzing the differences among Chinese and Western alliance motives, this paper shows how the initial deficiencies in the Chinese institutional environment has shaped the strategic motives of local companies and consequently lead to the diverging alliance formation motives in Sino-foreign alliances. |
| Keywords: | Strategic alliances, China, Innovation, Internationalization |
| JEL: | F23 L24 O32 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2008030&r=cna |
| By: | Lorenzo Cappiello (European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.); Gianluigi Ferrucci (European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany.) |
| Abstract: | This paper deals with two related issues: the sustainability of China’s exchange rate regime and the opening up of its capital account. The exchange rate discussion deliberately passes over the issue of the “equilibrium” value of the renminbi and its alleged undervaluation – typically at the heart of the current policy debate – and focuses instead on the domestic costs of the current regime and the potential risks to domestic financial stability in the long run. The paper argues that the renminbi exchange rate should be increasingly determined by market forces and that administrative controls should be progressively relinquished. The exchange rate is obviously linked to well-functioning and efficient capital markets, which require no barriers to capital flows. Thus, exchange rate reform has to be correctly sequenced with reform of the capital account to avoid disruptive capital flows. The paper discusses China’s twin surpluses of the current and capital accounts and attempts to identify the drivers of this “anomalous” external position. The pragmatic strategy pursued by the Chinese authorities in the aftermath of the Asian crisis encouraged FDI inflows and favoured the accumulation of a large stock of foreign exchange reserves. Combined with a relatively weak institutional setting, these factors have been important determinants of the pattern and composition of the country’s capital flows and international investment position. Finally, the paper speculates on the outlook for Chinese capital flows should barriers to capital movements be lifted. It argues that whether China continues to supply capital to the rest of the world or eventually becomes a net borrower in international capital markets – as was the case for most of its recent history – will depend on the evolution of its institutions. JEL Classification: F10, F21, F31, F32, P48. |
| Keywords: | China, exchange rate policy, international investment position, capital account liberalisation, institutions. |
| Date: | 2008–03 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbops:20080082&r=cna |
| By: | David Roodman |
| Abstract: | The Commitment to Development Index (CDI) ranks 21 of the world’s richest countries on their dedication to policies that benefit the five billion people living in poorer nations. Moving beyond simple comparisons of foreign aid, the CDI ranks countries on seven themes: quantity and quality of foreign aid, openness to developing-country exports, policies that influence investment, migration policies, stewardship of the global environment, security policies and support for creation and dissemination of new technologies. This year for the first time, CGD research fellow David Roodman extended the environment component of the Index to cover four of the biggest developing countries: Brazil, Russia, India and China, a group Goldman Sachs dubbed the “BRICs.” This working paper explores the indicators that make up the environment component (global climate, sustainable fisheries, and biodiversity and global ecosystems) and explains how the BRIC countries stack up to their right-country counterparts. He finds that the BRICs score remarkably well compared to the 21 rich countries covered by the Index: when thrown in with the usual 21, they rank second, fourth, fifth, and eleventh. They generally perform well on the greenhouse gas emissions, consumption of ozone-depleting substances, and tropical timber imports. And the BRICs have joined important international environmental accords. As a group, their major weakness is low gas taxes. In addition, Amazon deforestation and heavy fossil fuel use pull Brazil and Russia, respectively, below the CDI 21 average on greenhouse emissions per capita. China’s abstention from the U.N. fisheries agreement puts it a half point below the other BRICs. |
| Keywords: | environment, Commitment to Development Index (CDI) |
| Date: | 2007–10 |
| URL: | http://d.repec.org/n?u=RePEc:cgd:wpaper:128&r=cna |