|
on China |
| By: | Martha Prevezer |
| Abstract: | This paper has three aims: 1) to use Langlois’ framework of dynamic transaction costs to illustrate the coevolution of firm capabilities and the emergence of new markets for offshored and outsourced business services in China; 2) to use Coase’s institutional structure of production framework to analyse the influence of Chinese institutions on the organizational choices made in the offshoring and outsourcing of business services in China and 3) to link the two themes and understand the interaction between Chinese institutions and the emergence of markets and capabilities in business services in China. We use case studies and interview data to look at these issues. |
| Keywords: | offshoring, China, business services, institutions, dynamic transactions costs |
| Date: | 2008–09 |
| URL: | http://d.repec.org/n?u=RePEc:cgs:wpaper:25&r=cna |
| By: | Ippei Fujiwara (Institute for Monetary and Economic Studies, Bank of Japan (E-mail: ippei.fujiwara@boj.or.jp)); Keisuke Otsu (Assistant Professor, Sophia University, Faculty of Liberal Arts and formerly, Economist, Institute for Monetary and Economic Studies (E-mail: k-otsu@sophia.ac.jp)); Masashi Saito (Economist, Research and Statistics Department, Bank of Japan (E-mail: masashi.saitou@boj.or.jp)) |
| Abstract: | Three decades have passed since China dramatically opened up to the global market and began to catch up rapidly with leading economies. In this paper we discuss the effects of Chinafs opening-up and rapid growth on the welfare of both China and the rest of the world (ROW). We find that the opening-up per se is welfare improving for China but has had little impact on the ROW given a balanced trade constraint. The opening-up of China is beneficial to the ROW if it leads to significant productivity growth in China. Also, Chinafs balanced trade policy after the opening-up has helped the ROW rather than China. |
| Keywords: | Productivity, Terms of Trade, Growth, Open Economy |
| JEL: | E13 F41 O47 |
| Date: | 2008–09 |
| URL: | http://d.repec.org/n?u=RePEc:ime:imedps:08-e-22&r=cna |
| By: | Yao, Shujie; Han, Zhongwei; Feng, Genfu |
| Abstract: | Since China joined the WTO in 2001, the pressure for bank reforms has mounted as China ought to fully open up its financial market to foreign competition by 2006. Efficiency is key for domestic banks to survive in a liberalised environment, but it appears that the last hope for raising bank efficiency is through ownership reform. Whether ownership reform and foreign competition can solve China?s banking problem remains to be tested. This paper aims to answer this question through using a non-parametric approach to analyse the efficiency changes of 15 large commercial banks during 1998-2005. We find that ownership reform and foreign competition have forced the Chinese commercial banks to improve performance, as their total factor productivity rose by 5.6 per cent per annum. This coincides with the recent bullish Chinese stock markets led by three listed state-owned commercial banks. Despite such encouraging results, we remain cautious about the future of the Chinese banks, as the good results may have been artificially created with massive government support and the fundamentals of the banks may be still weak. |
| Keywords: | data envelopment analysis (DEA), efficiency, banking, China |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:rp2008-38&r=cna |
| By: | Turvey, Calum G.; Kong, Rong |
| Abstract: | This paper investigates the economic conditions of rural households in China. Historical survey data indicate that over 80 per cent of rural households earn less than 4,500 yuan in net disposable income each year, that for the vast majority of rural households disposable income is insufficient to meet food consumption needs, and that in terms of economic growth rural households are receiving an ever decreasing percentage of China?s growing economy with rural household incomes being only 31 per cent of urban household income in 2004. To reduce vulnerability and food insecurity, this paper investigates the role of microcredit in China. It is argued that in China the conventional wisdom is to provide credit using traditional means, but we provide a model that shows how a microcredit market based on trust can co-exist with a commercial collateral-based market. This model is developed in detail and certain propositions are supported using dominant strategies in a trust-honour game based on the prisoner?s dilemma. The theoretical model is then applied to the case of microlending in China. It explains why, in the absence of trust, rural credit corporations do not make loans to the very poor. Furthermore, the model explains how Central party policies on rural credit can actually crowd out micro finance institution (MFI) and NGO microlending in China, and also explains why moneylenders dominate in many of the poorer regions of the country. From a policy point of view, the theoretical model indicates that trust-based lending, coupled with certain incentives, can go far in supporting growth opportunities in rural China. It is argued that Chinese policy should be flexible enough to permit trust-based microlending to the poor, regardless of how counterintuitive this must appear to the conventional wisdom. Indeed, in the absence of flexible credit strategies, China?s rural poor will remain in a persistent food-insecure poverty gap. |
| Keywords: | equilibrium, game theory, rural, credit, China |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:rp2008-52&r=cna |
| By: | Jenkins, Rhys |
| Abstract: | In recent years there has been a growing literature that analyses the threat which Chinese exports pose to the exports of other developing countries. The paper provides a critique of the standard measures of export similarity which have been used to estimate the threat from China in these studies. Two alternative indices, the static and the dynamic index of competitive threat, are developed and estimated for 18 developing countries and compared with estimates for the standard measures. It is shown that the latter tend to underestimate the extent to which countries are threatened by China. They also distort both the rankings of countries according to the extent to which they face competition from China and the direction of change in the competitive threat over time. |
| Keywords: | China, competition, export similarity, exports, trade |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:rp2008-11&r=cna |
| By: | Li, Xuan |
| Abstract: | A comparative study is undertaken that explores Chinese and Indian pharmaceutical industries under different patent regimes. It is found that relative to India, which had implemented process patent until 2005, China with a product patent regime since 1993 suffers from both lower drug accessibility and availability (the latter is a missing parameter in the literature). Also, China lags behind in both lower R&D investment and patents filed by Chinese nationals. Based on these findings and associated legal interpretation, we conclude that higher patent protection in China generates negative impacts on the pharmaceutical industries. Thus, governments should utilize TRIPS flexibilities and other regimes like price control to offset the anticompetitive effect in designing patent policies. |
| Keywords: | product patent, process patent, TRIPS, pharmaceutical industries, China, India |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:rp2008-36&r=cna |
| By: | Gries, Thomas; Redlin, Margarete |
| Abstract: | Concerns about the duration of China?s growth and hence the question of a permanent significant contribution of China to world economic growth relate, amongst other things, to the problem of reducing regional disparity in China. While China?s high average growth is driven by a small number of rapidly developing provinces, the majority of provinces have experienced more moderate development. To obtain broad continous growth it is important to identify the determinants of provincial growth. Therefore, we introduce a stylized model of regional development which is characterized by two pillars: (i) International integration indicated by FDI and/or trade lead to imitation of international technologies, technology spill overs and temporary dynamic scale economies, and (ii) domestic factors indicated by human and real capital available through interregional factor mobility. Using panel data analysis and GMM estimates our empirical analysis supports the predictions from our theoretical model of regional development. Positive and significant coefficients for FDI and trade support the importance of international integration and technology imitation. A negative and significant lagged GDP per capita indicates a catching up, non steady state process across China?s provinces.Highly significant human and real capital identifies the importance of these domestic growth restricting factors. However, other potentially important factors like labor or government expenditures are (surprisingly) insignificant or even negative. Further, in contrast to implications from NEG models indicators for urbanization and agglomeration do not contribute significantly. |
| Keywords: | international integration, regional development, FDI, China |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:rp2008-66&r=cna |
| By: | You, Liangzhi |
| Abstract: | This paper looks at differences in spatial and temporal variation of rice yields in China and Brazil. We find that rice yields in China have converged over time and that rice production has become more and more homogeneous. In contrast, rice yields in Brazil have diverged over time, primarily due to variations in upland rice yields. Three hypotheses are put forward to explain the different behaviour of rice yields in Brazil and China: (i) differences in production systems (i.e., irrigated in China versus upland in Brazil); (ii) changes in rainfall patterns and (iii) bias in agricultural R&D favouring irrigated rice. Our empirical analysis provides support to the first two hypotheses by establishing that upland rice is subjected to much greater variation in yields than irrigated rice and that changing rainfall patterns affect mostly upland rice. We also provide evidence of the bias towards irrigated systems by looking at the patterns of varietal release. |
| Keywords: | rice productivity, spatial convergence, technology spillover, China, Brazil |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:rp2008-30&r=cna |
| By: | Xing, Yuqing |
| Abstract: | This paper analyses China?s ICT exports growth in its two major markets Japan and the US from 1992 to 2004. It focuses on ICT products classified in SITC 75, 76 and 77. The empirical results show that Chinese exports had maintained two-digit annual growth during the period. The growth was much higher than the corresponding growth of the overall markets. By 2004, Chinese ICT exports accounted for 26 per cent of the total Japanese imports and 19 per cent of the total imports of the US in ICT products. In addition, the paper investigates whether the rapid growth of Chinese ICT exports crowded out that of other Asian countries: Indonesia, Malaysia, Philippines, Singapore, South Korea and Thailand. The empirical analysis shows that the crowding out effect differs across countries and products. The exports of Singapore and Philippines have been negatively affected by the growth of Chinese exports, but no crowding effect existed at all with Indonesia?s exports. |
| Keywords: | China, exports, ICT, Asia |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:rp2008-39&r=cna |
| By: | Cai, Fang |
| Abstract: | With the aid of an analytical framework of the Lewis model revised to reflect the experience of China, this paper examines the country?s dualistic economic development and its unique characteristics. The paper outlines the major effects of China?s growth as achieved during the course of economic reform and the opening-up of the country: the exploitation of the demographic dividend, the realization of comparative advantage, the improvement of total factor productivity, and participation in economic globalization. By predicting the long-term relationship between the labour force demand and supply, the paper reviews the approaching turning point in China?s economic development and examines a host of challenges facing the country in sustaining growth. |
| Keywords: | demographic dividend, Lewisian turning point, economic development, China |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:rp2008-09&r=cna |
| By: | Shin-ichi Fukuda (Faculty of Economics, University of Tokyo) |
| Abstract: | After prolonged recessions, the Japanese economy had recovered from the crisis in the first half of the 2000s and has recorded sustained growth in the last several years. Tremendous structural changes during and after the financial crisis were one of the main driving forces for the recovery. However, dramatic increases in exports were another. In particular, increases of Japanese exports to China were substantial in the 2000s and supported the recovery of the Japanese economy from its demand side. The purpose of this paper is to examine the role of the exports to China for the recovery in the 2000s. The dependence of the Japanese export sectors on the Chinese economy has risen in the past ten years. China is now almost surpassing the United States as destination of Japanese exports. Vector autoregressions (VARs) show that the Japanese production was caused by exports to the United States until the mid-1990s but was caused by exports to China after the late 1990s. However, the effects on the production were highly different across firms. The increased exports to China were beneficial for the recovery of manufacturing industries with advanced technology. Their impacts were, in contrast, insignificant for the recovery of labor-intensive small firms and non-manufacturing firms. Consequently, the sustained growth in the last several years was accompanied by widening inequalities across firms. |
| Date: | 2008–09 |
| URL: | http://d.repec.org/n?u=RePEc:tky:fseres:2008cf589&r=cna |
| By: | Song, Ligang; Sheng, Yu |
| Abstract: | The study decomposes the sources of Chinese growth by first making a distinction between technological progress and technical efficiency in the growth accounting framework, and then identifying a series of reform programmes, such as urbanization, structural change, privatization, liberalization, banking and fiscal system reforms as the key components in institutional innovation which facilitate the improvement of technical efficiency and through which economic growth. These components are then incorporated into the model specification, which is estimated based on a panel dataset by applying the principal component analysis (PCA) to eliminate the multicollinearity problem. The results show that urbanization, liberalization and structural change in the form of industrialization are the most important components in contributing to the improvement of technical efficiency and hence growth, highlighting the importance of government policies aimed at enhancing further urbanization, openness to trade and industrial structural adjustments to sustain the growth momentum in China. The study also found that the potential for further enhancing growth through technical efficiency in China is considerable, which can be realized by deepening state-owned enterprises (SOEs) restructuring, and banking and fiscal system reform. |
| Keywords: | institutional reform, growth, technical efficiency, principal component analysis, stochastic frontier analysis |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:rp2008-12&r=cna |
| By: | Suma Athreye; Martha Prevezer |
| Abstract: | This paper uses patent and publication data to assess the nature of technological advantages that are attracting R&D offshoring and outsourcing activities to India and China and the possible consequences of such R&D offshoring in increasing domestic innovative capability and building domestic research infrastructure. We find evidence that domestic patenting is concentrated in sectors that are different from sectors of R&D offshoring. Furthermore, whilst the domestic science base (as measured by publications data) in India and China shows strong complementarities in its specialisation profile to that in the US, our data also suggest that the location of international R&D activity in these economies from 1995 may not have strengthened the science base of these economies. Foreign patenting activities in India and China are also marked by a low attachment to the science base. |
| Keywords: | R&D offshoring/internationalisation, Science base, Emerging economies, India and China |
| Date: | 2008–09 |
| URL: | http://d.repec.org/n?u=RePEc:cgs:wpaper:26&r=cna |
| By: | Sélin Ozyurt |
| Abstract: | This study investigates the impact of inward foreign direct investment (FDI) flows and international trade on labour productivity in 30 Chinese provinces over the period 1979-2006. Since China launched the “open door” policy in 1978, the country has been attracting a growing share of FDI flows and its international trade has been expanding considerably. China’s accession into the WTO in 2001 has also started a new era in its integration into the world economy. In this paper, we model labour productivity as dependent on FDI, foreign trade and other traditional variables such as capital intensity, infrastructure and human capital development. Our empirical analysis improves the existing wide literature by taking into account spatial effects and potential econometric issues they imply. Using recently developed spatial data analysis tools, we explore the pattern, (weather it be negative or positive) and the extent of spatial interaction of labour productivity between regions. Thereby, we extend previous research by testing the explanatory power of additional variables such as spatially lagged independent and dependent variables. The explicit consideration of spatial dependence in the modelling scheme provides us a better understanding of the regional spillovers process. Our results indicate a general trend of spatial autocorrelation in labour productivity during the study period. Put differently, in China, the productivity of a given region is highly determined by those of surrounding regions. In addition, our empirical outcomes yield support for positive and significant impacts of FDI and foreign trade on labour productivity. Furthermore, in China, FDI and trade exhibit a positive spatial pattern and give rise to interregional productivity spillovers among provinces. These findings are robust to a number of alternative spatial weighting matrix specifications. |
| Date: | 2008–09 |
| URL: | http://d.repec.org/n?u=RePEc:lam:wpaper:08-15&r=cna |
| By: | Tang, Sumei; Selvanathan, E.A.; Selvanathan, S. |
| Abstract: | In this paper, we investigate the causal link between foreign direct investment (FDI), domestic investment and economic growth in China for the period 1988-2003. Towards this purpose, a multivariate VAR system with error correction model (ECM) and the innovation accounting (variance decomposition and impulse response function analysis) techniques are used. The results show that while there is a bi-directional causality between domestic investment and economic growth, there is only a single-directional causality from FDI to domestic investment and to economic growth. Rather than crowding out domestic investment, FDI is found to be complementary with domestic investment. Thus, FDI has not only assisted in overcoming shortage of capital, it has also stimulated economic growth through complementing domestic investment in China. |
| Keywords: | foreign direct investment, domestic investment, economic growth, multivariate VAR system, error correction model |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:rp2008-19&r=cna |
| By: | Hongbin Li (Tsinghua University); Mark Rosenzweig (Yale University); Junsen Zhang (Chinese University of Hong Kong) |
| Abstract: | In this paper, we use new survey data on twins born in urban China, among whom many experienced the consequences of the forced mass rustication movement of the Chinese “cultural revolution,” to identify the distinct roles of altruism and guilt in affecting behavior within families. Based on a model depicting the choices of the allocation of parental time and transfers to multiple children incorporating favoritism, altruism and guilt, we show the conditions under which guilt and altruism can be separately identified by experimental variation in parental time with children. Based on within-twins estimates of affected cohorts, we find that parents selected children with lower endowments to be sent down; that parents behaved altruistically, providing more gifts to the sibling with lower earnings and schooling; but also exhibited guilt – given the current state variables of the two children, the child experiencing more years of rustication received significantly higher transfers. |
| Keywords: | guilt, altruism, China |
| JEL: | J12 J13 O12 |
| Date: | 2008–09 |
| URL: | http://d.repec.org/n?u=RePEc:egc:wpaper:965&r=cna |
| By: | Fidrmuc, Jarko; Batorova, Ivana |
| Abstract: | We analyse the business cycles in China and in selected OECD countries between 1992 and 2006. We show that, although negative correlation dominates for nearly all countries, we can also see large differences for various frequencies of cyclical developments. On the one hand, nearly all OECD countries show positive correlations of the very short-run developments that may correspond to intensive supplier linkages. On the other hand, business cycle frequencies (cycles with periods between 1.5 and 8 years) are typically negative. Nevertheless, countries facing a comparably longer history of intensive trading links tend to show also slightly higher correlations of business cycles with China. |
| Keywords: | business cycles, synchronisation, trade, FDI, dynamic correlation |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:rp2008-02&r=cna |
| By: | Khan, Haider A. |
| Abstract: | This paper analyses both global and regional approaches to solving problems of energy security and ecological imbalance by addressing specifically the problems of China?s energy security. China?s growing energy dependence has become a major concern for both economic and national security policymakers in that country. The ambitious goal of modernization of the economy along the lines of the other newly industrialized economies (NIEs) of Asia has succeeded only too well, and it is difficult to reorient economic priorities. If examined rigorously, such an economic strategic assumption can be seen to entail the goal of creating further technological capabilities. In particular, China seems to be firmly committed to the creation of a largely self-sustaining innovation system as part of a knowledge-based economy of the future. Such innovation systems, called positive feedback loop innovation systems or POLIS have been created by advanced countries, and NIEs such as South Korea and Taiwan are proceeding to create these as well. But this will add to its energy burden and further dependence on the US as the power which controls the key sea lanes. Only a strategic reorientation to building a self-sustaining POLIS and appropriate regional cooperation institutions can lead to the way out of the current dilemma for China. Fortunately, such a model of POLIS which is distributionally and ecologically sensitive can be built for China and applied strategically to lead towards a sustainable development trajectory. ... |
| Keywords: | China, development strategy, energy, environment, POLIS, innovation system, regional cooperation |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:rp2008-56&r=cna |
| By: | Bussolo, Maurizio; De Hoyos, Rafael E.; Medvedev, Denis; van der Mensbrugghe, Dominique |
| Abstract: | Over the past 20 years, aggregate measures of global inequality have changed little even if significant structural changes have been observed. High growth rates of China and India lifted millions out of poverty, while the stagnation in many African countries caused them to fall behind. Using the World Bank?s LINKAGE global general equilibrium model and the newly developed Global Income Distribution Dynamics (GIDD) tool, this paper assesses the distribution and poverty effects of a scenario where these trends continue in the future. Even by anticipating a deceleration, growth in China and India is a key force behind the expected convergence of per capita incomes at the global level. Millions of Chinese and Indian consumers will enter into a rapidly emerging global middle class?a group of people who can afford, and demand access to, the standards of living previously reserved mainly for the residents of developed countries. Notwithstanding these positive developments, fast growth is often characterized by high urbanization and growing demand for skills, both of which result in a widening of income distribution within countries. These opposing distributional effects highlight the importance of analysing global disparities by taking into account?as the GIDD does?income dynamics between and within countries. |
| Keywords: | China, India, global income distribution, middle class |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:rp2008-29&r=cna |
| By: | Fan, Peilei |
| Abstract: | Both China and India, the emerging giants in Asia, have achieved significant economic development in recent years. China has enjoyed a high annual GDP growth rate of 10 per cent and India has achieved an annual GDP growth rate of 6 per cent since 1981. Decomposing China and India?s GDP growth from 1981 to 2004 into the three factors? contribution reveals that technology has contributed significantly to both countries? GDP growth, especially in the 1990s. R&D outputs (high-tech exports, service exports, and certified patents from USPTO) and inputs (R&D expenditure and human resources) further indicate that both countries have been very committed to R&D and their output is quite efficient. Both governments have played an essential role in transforming their national innovation systems so that they can be more adaptable to economic development. The main focus of their reforms has been to link the science sector with the business sector and to provide incentives for innovation activities. Balancing import of technology and indigenous R&D effort is another major theme. Innovation capability development has become more and more critical to the success of biofirms in India and China. Institutional factors have great influence on choice of innovation at the firm level, i.e., the decision at firm level in terms of indigenous R&D or import of technology. Nevertheless, limited financial resources and insufficiently qualified human resources remain two major challenges for domestic companies in both countries. |
| Keywords: | China, India, innovation capability, domestic companies, ICT, biotech |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:rp2008-31&r=cna |
| By: | Michel Fok (Annual crop systems - CIRAD : UPR102); Naiyin Xu (RIIC - Research Institute of Industrial Crops - Jiangsu Academy of Agricultural Sciences) |
| Abstract: | China is ranking first in cotton production for more than 20 years. The adoption of GM cotton, since 1997, through the marketing of many varieties, has enabled it to maintain its rank by overcoming the pest resistance to insecticide. The varietal contribution has resulted from a radical change in the legal framework to enhance the variety and seed markets. Nevertheless, today, all cotton sector stakeholders do recognize that there is a big issue of excessive competition from a great number of varieties leading to variety and seed mixture. This situation has led the Chinese Government to decide on a new support policy called "quality seed subsidy policy". The Chinese policy in the areas of varieties and seeds hence is providing an interesting case of interaction between policy and market within less than twenty years.Our paper is a contribution to analyse the cotton variety and seed market development of the last twenty years by focussing on the interaction between State intervention and market. A change in the cotton policy, consisting of liberalizing the variety and seed markets, could prove to be quite successful where the capacities for breeding and investment exist prior to the policy change. This success nevertheless will remain a short term one if no regulation is provided to prevent the market development from excessive and unfair competition. The case analysed is a good illustration of the shortfalls of unregulated competition. It is however ineffective to regulate by imposing what farmers should use. Such a direct intervention in the market is showing undesired effects on the viability of seed companies. |
| Keywords: | China; cotton; Bt; seed market; property right; variety; regulation; competition |
| Date: | 2008–05–14 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00324379_v1&r=cna |
| By: | Wu, Yanrui |
| Abstract: | Economic growth in China and India has attracted many headlines recently. As a result, the literature comparing the two Asian giants has expanded substantially. This paper adds to the literature by comparing regional growth, disparity and convergence in the two economies. This is the first of its kind. The paper presents a detailed examination of economic growth in the regions of China and India over the past twenty years. It also provides an assessment of regional disparity in the two countries and investigates whether there is any evidence of regional convergence during the period of rapid economic growth. It attempts to identify the sources of regional disparity and hence draw policy implications for economic development in the two countries in the near future. |
| Keywords: | regional development, China, India, disparity, convergence |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:rp2008-13&r=cna |
| By: | Henderson, Jeffrey |
| Abstract: | The rise of China as an economic and political ?driver? of the global economy is likely to be one of the defining moments of world history. Its dynamism and international expansion are on the verge of creating a ?critical disruption? in the global order that has held sway for over 60 years. As such, China is beginning to reshape the world, presaging a new phase of globalization: a ?global-Asian era?. This new era is likely to be distinct from any of the earlier phases of globalization and China?s global footprint, in terms of its business, economic and political actions and their geopolitical implications, is likely to be markedly different from what has gone before. This paper offers a framework by which we can begin to understand the coming global-Asian era (GAE) and some of its consequences, particularly as the latter are surfacing in the developing world. Having discussed the nature and dynamics of the GAE, the paper turns to sketch a series of vectors (trade, aid and energy security) along which the GAE is beginning to impact on developing countries. The paper argues that, at least for these vectors, the Chinese-driven GAE is providing opportunities as well as dangers for national development projects. It concludes by briefly speculating on the viability of the GAE. |
| Keywords: | China, globalization, developing world, trade, oil, aid, geopolitics |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:rp2008-58&r=cna |
| By: | Li, Yuefen; Zhang, Bin |
| Abstract: | The segmentation of global manufacturing and services provided China and subsequently India with a golden opportunity to make full use of their absolute advantage?low cost yet educated labour?to integrate into the world economy within a comparatively shorter period of time than some earlier industrialisers. Though international trade functioned as a vent of surplus in view of the narrowness of their domestic markets at the beginning of their economic catch-up, the label of export-led model may not reflect the real picture as imports underwent dramatic increases during their respective growth periods, in particular for China. Foreign direct investment has played a pivotal role in their economic growth and has major presence in international trade and investment in leading sectors of both countries, giving rise to certain special features and weak links for their economic expansion and sustainability of fast economic growth. To maintain more broad-based, fast and balanced growth, it seems that both countries have to redress sectoral imbalances, encourage technology upgrading and cope with future changes in demographic profiles which constituted a trigger to fast economic growth at the time of their respective economic reform. |
| Keywords: | China, India, development |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:rp2008-37&r=cna |
| By: | Oxelheim, Lars (Research Institute of Industrial Economics (IFN)) |
| Abstract: | The process of globalization encompasses economic and financial integration. Abolition of capital controls and dismantling of barriers of different kinds are important ingredients of the process that will entirely change the exposure of previously sheltered companies to shocks on the global economic arena. Lessons learned by policy-makers in already globalized countries are that market participants should be prepared to meet the new exposure to fluctuating exchange rates, interest rates and inflation rates. China has recently adopted International Financial Reporting Standards (IFRS) in her efforts to improve the quality of information available for risk management and for pricing of risk. This paper claims that further improvements are needed and presents a new framework for how to understand and measure the impact of different scenarios on corporate performance. It also elaborates on how to communicate the macroeconomic effects to external stakeholders of the firm in a way that fosters further economic growth in China. |
| Keywords: | International Financial Reporting Standards; Transparency; Economic Growth; Macroeconomic Impact; Globalization |
| JEL: | E22 E32 E44 F15 F23 F37 G18 G32 L25 M21 |
| Date: | 2008–09–24 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:0768&r=cna |
| By: | Qureshi, M.S.; Wan, Guanghua |
| Abstract: | By exploring the export performances and specialization patterns of China and India, we assess their trade competitiveness and complementarity vis-.-vis each other as well as with the rest of the world. Our analysis indicates that (i) India faces tough competition from China in the third markets especially in clothing, textile and leather products; (ii) there is a moderate potential for expanding trade between the two countries; (iii) China poses a challenge for the East Asian economies, the US, and most of the European countries especially in medium technology industries; (iv) India appears to be a competitor mainly for its neighbouring South Asian countries; and (v) complementarity exists between the imports of China and India, and the exports of the US, some European states and East Asian countries, especially Japan, Korea, Malaysia, Singapore and Thailand, implying opportunities for trade expansion; and finally (vi) the export structure of China is changing with the exports of skill intensive and high technology products increasing and those of labour-intensive products decreasing gradually. This suggests that challenges created by China in traditional labour-intensive products might reduce in the long run |
| Keywords: | international trade, export competition, China, India |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:rp2008-08&r=cna |
| By: | Zhang, Jun |
| Abstract: | This paper investigates the institutional reason underlying the change in the trajectory of economic growth in post-reform China, and argues that the trajectory of growth was much more normal during the period of 1978-89 than in the post-1989 era. In the former period, growth was largely induced by equality-generating institutional change in agriculture and the emergence of non-state industrial sector. In the latter period, growth was triggered by the acceleration of capital investments under authoritarian decentralized hierarchy within self-contained regions. Such a growth trajectory accelerates capital deepening, deteriorating total factor productivity and leads to rising regional imbalance. This paper further argues that the change in the trajectory of growth is the outcome of changes in political and inter-governmental fiscal institutions following the 1989 political crisis. |
| Keywords: | economic growth, political institutions |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:rp2008-33&r=cna |