Growth slowdowns redux: Avoiding the middle-income trap

Barry Eichengreen, Donghyun Park, Kwanho Shin 11 January 2013

a

A

The rapid economic growth of so-called emerging markets is one of the leading storylines of our age. Arguably, it is the most important economic development affecting the world’s population in the first decade of the 21st century. Rapid economic growth has lifted millions out of poverty. It has accounted for the vast majority of global growth in a period when the advanced countries have struggled economically and financially.

a

A

Topics:  Development

Tags:  China, middle income gap, slowdown

The appreciating renminbi

Philippe Bacchetta, Kenza Benhima, Yannick Kalantzis 09 January 2013

a

A

In the recent US presidential campaign, China was accused again of currency manipulation. In other words, the Chinese central bank is accused of maintaining the exchange rate at an artificially low level compared to its equilibrium value, including heavy intervention in the foreign exchange market. There has been a fierce debate on this issue in recent years, including on VoxEU.org (e.g., Persaud 2011, Reisen 2011, Reisen et al. 2011, Storesletten et al. 2010).

a

A

Topics:  Exchange rates

Tags:  China, Currency manipulation, Currency wars

Trade liberalisation and embedded institutional reform: Evidence from Chinese exporters

Amit Khandelwal, Peter K. Schott , Shang-Jin Wei 15 January 2013

a

A

Economists traditionally assess the welfare losses of trade barriers without considering the underlying institutions that support them. In fact, these institutions may amplify welfare losses substantially. Corrupt customs agents, bureaucratic red tape and the withholding of goods in bonded warehouses may favour some firms at the expense of others, resulting in a substantial misallocation of resources. Anecdotal evidence along these lines is easy to spot.

a

A

Topics:  Institutions and economics International trade

Tags:  China, import quota, export licence

China’s pure exporter subsidies: Protectionism by exporting

Fabrice Defever, Alejandro Riaño 04 January 2013

a

A

On 17 September last year, the US requested consultations with China concerning a wide range of export-contingent measures – grants, tax preferences and interest-rate subsidies, totalling at least $1 billion – in apparent violation of the WTO’s Agreement on Subsidies and Countervailing Measures, China’s accession protocol and article XVI of the GATT. The EU joined the consultations shortly after on 28 September.

a

A

Topics:  International trade

Tags:  China, WTO, trade, welfare

Value-added exchange rates

Rudolfs Bems, Robert Johnson 06 December 2012

a

A

Real effective exchange rates (REERs) are widely used to gauge competitiveness. Yet conventional REERs, based on gross trade flows and consumer price indexes (CPIs), are not well suited to that role when imports are used to produce exports – i.e., with vertical specialisation in trade.

a

A

Topics:  Competition policy Global economy International trade

Tags:  competitiveness, Germany, global imbalances, China, globalisation, trade, supply chains, iPhone

The renminbi bloc is here: Asia down, the rest of the world to go?

Arvind Subramanian, Martin Kessler 27 October 2012

a

A

The staggering economic rise of China in the last three decades leads to the question of the potential internationalisation of its currency, the renminbi (RMB). Internationalisation has different dimensions. An international currency is widely used in financial and trade transactions, and crucially it is used as a store of value. Some, like Eichengreen (2011) and Frankel (2011) see a potential global role for the RMB, provided important ancillary reforms to the domestic financial system and to the financial account first take place.

a

A

Topics:  Global economy International trade

Tags:  China, renminbi, global currency

Global Rebalancing 2.0

Linda Lim, Ronald U Mendoza 24 September 2012

a

A

The discussion on global rebalancing is at a crossroads, and much of what will shape policy options moving forward will have to be taken up in roundtables that include more countries than the two usual suspects, China and the US.

a

A

Topics:  Global economy

Tags:  US, global imbalances, China

Why do Chinese households save so much?

Raman Ahmed, Heleen Mees 28 August 2012

a

A

China’s monumental savings rate is a popular topic of for policy discussion.1  It has been blamed for the global financial crisis, currency wars (Portes 2010), and the ensuing Great Recession (Mees 2012). But what explains the high savings rate?

The growing body of work on this question has put forward many answers, ranging from the one-child policy to the role of marriage and the weak welfare state (see for example Horioka and Wan 2007, Wei and Zhang 2009, Chamon and Prasad 2010, Jin et al. 2010 and Ma and Yi 2010).

a

A

Topics:  Global economy

Tags:  global imbalances, China, savings rate

Rising regional inequality in China: Fact or artefact?

John Gibson, Chao Li 09 August 2012

a

A

A growing literature uses sub-national data from China to measure trends in regional inequality and to test models of economic growth and convergence. Most published studies use provincial-level data although finer spatial scales, such as prefectures (Roberts et al. 2012) and counties (Banerjee et al. 2012), are starting to be used. But regardless of scale, most authors ignore that China’s local GDP per capita data cannot be interpreted in the way that economists would expect, of measuring value-added or output per resident.

a

A

Topics:  Development Poverty and income inequality

Tags:  China, Inequality, Poverty

China’s strong domestic demand has reduced its trade surplus

Françoise Lemoine, Deniz Ünal 19 July 2012

a

A

Between 2005 and 2007 China’s accumulated huge trade surpluses and played a major part in the rise of global imbalances. The US and China have repeatedly come in conflict over the imbalance in bilateral trade.

a

A

Topics:  Global economy International trade

Tags:  global imbalances, China, current account

Pages

Events