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China and the Global Economy
China’s global economic footprint is large and growing. In recent years, China has contributed a third or more to the growth of the global economy, following its meteoric rise starting in the 1980s and gathering momentum in the 1990s. China has convincingly demonstrated the efficacy of investment and export-led growth as a model of development, and has achieved economic stardom using a mix of industrial, trade and exchange rate policies within the framework of a gradually reforming socialist market economy. The chapters in this volume, written by prominent China scholars and economists, as well as an original introduction by a world-leading expert, explore China’s economy. This collection will be an invaluable resource for China watchers and to researchers, students and policymakers interested in learning from East Asia’s development, understanding how China transformed its economy and wondering how China might come to grips with the challenges ahead.
More Information
Contributors
Contents
More Information
China’s global economic footprint is large and growing. In recent years, China has contributed a third or more to the growth of the global economy following its meteoric rise starting in the 1980s and gathering momentum in the 1990s. China has convincingly demonstrated the efficacy of investment and export-led growth as a model of development and has achieved economic stardom using a mix of industrial, trade and exchange rate policies within the framework of a gradually reforming socialist market economy. The chapters in this volume written by prominent China scholars and economists as well as an original introduction by a world-leading expert, explore China’s economy. This collection will be an invaluable resource for China watchers and to researchers, students and policymakers interested in learning from East Asia’s development, understanding how China transformed its economy and wondering as to how China might come to grips with the challenges ahead.
Contributors
34 articles, dating from 2006 to 2016
Contributors include: L. Brandt, B. Eichengreen, J. Frankel, Y. Huang, G. Jefferson, J.Y. Lin, P. Nolan, D. Shambaugh, J. Wasserstrom, Y. Yongding
Contributors include: L. Brandt, B. Eichengreen, J. Frankel, Y. Huang, G. Jefferson, J.Y. Lin, P. Nolan, D. Shambaugh, J. Wasserstrom, Y. Yongding
Contents
Contents:
Research Review Shahid Yusuf
PART I CHINA’S REFORM AND OPENING IN HISTORICAL PERSPECTIVE
1. Loren Brandt, Debin Ma and Thomas G. Rawski (2014), ‘From Divergence to Convergence: Reevaluating the History behind China’s Economic Boom’, Journal of Economic Literature, 52 (1), March, 45–123
2. Chenggang Xu (2011), ‘The Fundamental Institutions of China’s Reform and Development’, Journal of Economic Literature, 49 (4), December, 1076–151
3. Jeffrey Wasserstrom (2014), ‘China and Globalization’, Daedalus, 143 (2), Spring, 157–69
PART II THE ROLE OF SEZS AND TVES IN CHINA’S MODERNIZATION
4. Douglas Zhihua Zeng (2011), ‘How Do Special Economic Zones and Industrial Clusters Drive China’s Rapid Development?’, Building Engines for Growth and Competitiveness in China: Experience with Special Economic Zones and Industrial Clusters, Chapter 1, Washington, DC, USA: World Bank, 1–54
5. Chenggang Xu and Xiaobo Zhang (2009), ‘The Evolution of Chinese Entrepreneurial Firms: Township-Village Enterprises Revisited’, IFPRI Discussion Paper 00854, Washington, DC, USA: International Food Policy Research Institute, 1–32
PART III TRADE AND GROWTH
6. Lee Branstetter and Nicholas Lardy (2006), ‘China’s Embrace of Globalization’, in Loren Brandt and Thomas G Rawski (eds), China’s Great Economic Transformation, Chapter 16, New York, USA: Cambridge University Press, 633–82
7. Larry Qiu and D Ying Xue (2014), ‘Understanding China’s Foreign Trade: A Literature Review’, China Economic Journal, 7 (2), 168–86
8. Simon Sturn (2014), ‘From Internal Imbalances to Global Imbalances: A Survey on the Causes of China’s Export-Led Growth’, China Economic Journal, 7 (3), 320–42
9. Françoise Lemoine (2013), ‘From Foreign Trade to International Investment: A New Step in China’s Integration with the World Economy’, Economic Change and Restructuring, Special Issue on China: Re-thinking China’s Economic Transition and Development in the Post-Crisis Era, 46 (1), March, 25–43
PART IV THE CONTRIBUTION OF FDI TO CHINA’S DEVELOPMENT
10. John Whalley and Xian Xin (2010), ‘China’s FDI and Non-FDI Economies and the Sustainability of Future High Chinese Growth’, China Economic Review, 21 (1), March, 123–35
11. Gary H. Jefferson and Miao Ouyang (2014), ‘FDI Spillovers in China: Why Do The Research Findings Differ So Much?’, Journal of Chinese Economic and Business Studies, 12 (1), 1–27
PART V SOURCES AND CAUSES OF GROWTH DURING THE FIRST THREE DECADES
12. Shiyi Chen, Gary H. Jefferson and Jun Zhang (2011), ‘Structural Change Productivity Growth and Industrial Transformation in China’, China Economic Review, 22 (1), March, 133–50
13. Yasheng Huang (2011), ‘Rethinking the Beijing Consensus’, Asia Policy, 11 (1), January, 1–26
14. Richard B. Freeman and Wei Huang (2015), ‘China’s “Great Leap Forward” in Science and Engineering’, in Aldo Geuna (ed.), Global Mobility of Research Scientists: The Economics of Who Goes Where and Why, Chapter 6, London, UK: Academic Press, 155–75
15. Albert Guangzhou Hu and Gary H. Jefferson (2009), ‘A Great Wall of Patents: What s Behind China’s Recent Patent Explosion?’, Journal of Development Economics, 90 (1), September, 57–68
PART VI SHIFTING TRACKS TO A NEW GROWTH PARADIGM
16. Yu Yongding (2012), ‘Rebalancing the Chinese Economy’, Oxford Review of Economic Policy, 28 (3), Autumn, 551–68
17. David Dollar (2013), ‘China’s Rebalancing: Lessons from East Asian Economic History’, Brookings Institution Research Papers, Washington, DC, USA: Brookings Institution, 1–27
PART VII GROWTH PROSPECTS LOOKING FORWARD
18. Jesus Felipe, Utsav Kumar, Norio Usui and Arnelyn Abdon (2013), ‘Why Has China Succeeded? And Why Will it Continue to Do So’, Cambridge Journal of Economics, 37 (4), July, 791–818
19. Jeffrey Frankel (2016), ‘Globalization and Chinese Growth: End of Trends?’, HKS Faculty Research Working Paper, Cambridge, USA: Harvard University, 1–20
20. Robert J. Barro (2016), ‘Economic Growth and Convergence, Applied to China’, China and World Economy, Special Issue: China’s Growth Potential in the Medium and Long Run, 24 (5), September–October, 5–19
PART VIII FINANCIAL DEVELOPMENT AND THE PAST, PRESENT AND FUTURE ROLE OF THE RENMINBI
21. Patrick Hess (2014), ‘China’s Financial System: Past Reforms, Future Ambitions, Current State’, in F. Rövekamp and H. G. Hilpert (eds.), Currency Cooperation in East Asia, Switzerland: Springer International Publishing, 21–41
22. W. Max Corden (2009), ‘China’s Exchange Rate Policy, its Current Account Surplus and the Global Imbalances’, Economic Journal, 119 (541), November, F430–F441
23. Damian Tobin (2013), ‘Renminbi Internationalisation: Precedents and Implications’, Journal of Chinese Economic and Business Studies, Special Issue: The Renminbi as an International Currency: The Next Instalment of China’s Economic Reforms?, 11 (2), 81–99
24. Benjamin J. Cohen (2012), ‘The Yuan Tomorrow? Evaluating China’s Currency Internationalisation Strategy’, New Political Economy, 17 (3), July, 361–71
PART IX CHINA’S EMERGING MULTINATIONALS
25. Mike W. Peng (2012), ‘The Global Strategy of Emerging Multinationals from China’, Global Strategy Journal, 2 (2), May, 97–107
26. Kevin P. Gallagher and Amos Irwin (2014), ‘Exporting National Champions: China’s Outward Foreign Direct Investment Finance in Comparative Perspective’, China and World Economy, 22 (6), November–December, 1–21
27. Xiaohui Liu and Trevor Buck (2009), ‘The Internationalization Strategies of Chinese Firms: Lenovo and BOE’, Journal of Chinese Economic and Business Studies, 7 (2), 167–81
28. Tarun Khanna, Krishna G. Palepu and Philip Andrews (2011) ’Haier: Taking a Chinese Company Global in 2011’, Harvard Business Review Case Study, 1–23
PART X CHINA’S MULTIPRONGED AND WIDENING GLOBAL ENGAGEMENT
29. Wenjie Chen and Heiwai Tang (2014), ‘The Dragon is Flying West: Micro Level Evidence of China’s Outward Direct Investment’, Asian Development Review, 31 (2), September, 109–40
30. Peter Nolan (2015), ‘The West and China: Globalization and Competition in Financial Services’, Journal of Chinese Economic and Business Studies, 13 (2), 87–104
31. Michael D. Swaine (2015), ‘Chinese Views and Commentary on the “One Belt, One Road” Initiative’, China Leadership Monitor, 47, 1–24
32. Michael D. Swaine (2016), ‘Chinese Views on Global Governance Since 2008–2009: Not Much New’ China Leadership Monitor, 49, 1–13
33. Justin Yifu Lin and Yan Wang (2015), ‘China’s Contribution to Development Cooperation: Ideas, Opportunities and Finances’, FERDI Working Paper No. 119, Clermont-Ferrand, France: Fondation Pour Les Études et Recherches Sur Le Développment International, 1–30
PART XI A FRAGILE, TENTATIVE GLOBAL GIANT
34. David Shambaugh (2014), ‘China at the Crossroads: Ten Major Reform Challenges’, Brookings Institution Research Papers, Washington, DC, USA: Brookings Institution, 1–18
Index
Research Review Shahid Yusuf
PART I CHINA’S REFORM AND OPENING IN HISTORICAL PERSPECTIVE
1. Loren Brandt, Debin Ma and Thomas G. Rawski (2014), ‘From Divergence to Convergence: Reevaluating the History behind China’s Economic Boom’, Journal of Economic Literature, 52 (1), March, 45–123
2. Chenggang Xu (2011), ‘The Fundamental Institutions of China’s Reform and Development’, Journal of Economic Literature, 49 (4), December, 1076–151
3. Jeffrey Wasserstrom (2014), ‘China and Globalization’, Daedalus, 143 (2), Spring, 157–69
PART II THE ROLE OF SEZS AND TVES IN CHINA’S MODERNIZATION
4. Douglas Zhihua Zeng (2011), ‘How Do Special Economic Zones and Industrial Clusters Drive China’s Rapid Development?’, Building Engines for Growth and Competitiveness in China: Experience with Special Economic Zones and Industrial Clusters, Chapter 1, Washington, DC, USA: World Bank, 1–54
5. Chenggang Xu and Xiaobo Zhang (2009), ‘The Evolution of Chinese Entrepreneurial Firms: Township-Village Enterprises Revisited’, IFPRI Discussion Paper 00854, Washington, DC, USA: International Food Policy Research Institute, 1–32
PART III TRADE AND GROWTH
6. Lee Branstetter and Nicholas Lardy (2006), ‘China’s Embrace of Globalization’, in Loren Brandt and Thomas G Rawski (eds), China’s Great Economic Transformation, Chapter 16, New York, USA: Cambridge University Press, 633–82
7. Larry Qiu and D Ying Xue (2014), ‘Understanding China’s Foreign Trade: A Literature Review’, China Economic Journal, 7 (2), 168–86
8. Simon Sturn (2014), ‘From Internal Imbalances to Global Imbalances: A Survey on the Causes of China’s Export-Led Growth’, China Economic Journal, 7 (3), 320–42
9. Françoise Lemoine (2013), ‘From Foreign Trade to International Investment: A New Step in China’s Integration with the World Economy’, Economic Change and Restructuring, Special Issue on China: Re-thinking China’s Economic Transition and Development in the Post-Crisis Era, 46 (1), March, 25–43
PART IV THE CONTRIBUTION OF FDI TO CHINA’S DEVELOPMENT
10. John Whalley and Xian Xin (2010), ‘China’s FDI and Non-FDI Economies and the Sustainability of Future High Chinese Growth’, China Economic Review, 21 (1), March, 123–35
11. Gary H. Jefferson and Miao Ouyang (2014), ‘FDI Spillovers in China: Why Do The Research Findings Differ So Much?’, Journal of Chinese Economic and Business Studies, 12 (1), 1–27
PART V SOURCES AND CAUSES OF GROWTH DURING THE FIRST THREE DECADES
12. Shiyi Chen, Gary H. Jefferson and Jun Zhang (2011), ‘Structural Change Productivity Growth and Industrial Transformation in China’, China Economic Review, 22 (1), March, 133–50
13. Yasheng Huang (2011), ‘Rethinking the Beijing Consensus’, Asia Policy, 11 (1), January, 1–26
14. Richard B. Freeman and Wei Huang (2015), ‘China’s “Great Leap Forward” in Science and Engineering’, in Aldo Geuna (ed.), Global Mobility of Research Scientists: The Economics of Who Goes Where and Why, Chapter 6, London, UK: Academic Press, 155–75
15. Albert Guangzhou Hu and Gary H. Jefferson (2009), ‘A Great Wall of Patents: What s Behind China’s Recent Patent Explosion?’, Journal of Development Economics, 90 (1), September, 57–68
PART VI SHIFTING TRACKS TO A NEW GROWTH PARADIGM
16. Yu Yongding (2012), ‘Rebalancing the Chinese Economy’, Oxford Review of Economic Policy, 28 (3), Autumn, 551–68
17. David Dollar (2013), ‘China’s Rebalancing: Lessons from East Asian Economic History’, Brookings Institution Research Papers, Washington, DC, USA: Brookings Institution, 1–27
PART VII GROWTH PROSPECTS LOOKING FORWARD
18. Jesus Felipe, Utsav Kumar, Norio Usui and Arnelyn Abdon (2013), ‘Why Has China Succeeded? And Why Will it Continue to Do So’, Cambridge Journal of Economics, 37 (4), July, 791–818
19. Jeffrey Frankel (2016), ‘Globalization and Chinese Growth: End of Trends?’, HKS Faculty Research Working Paper, Cambridge, USA: Harvard University, 1–20
20. Robert J. Barro (2016), ‘Economic Growth and Convergence, Applied to China’, China and World Economy, Special Issue: China’s Growth Potential in the Medium and Long Run, 24 (5), September–October, 5–19
PART VIII FINANCIAL DEVELOPMENT AND THE PAST, PRESENT AND FUTURE ROLE OF THE RENMINBI
21. Patrick Hess (2014), ‘China’s Financial System: Past Reforms, Future Ambitions, Current State’, in F. Rövekamp and H. G. Hilpert (eds.), Currency Cooperation in East Asia, Switzerland: Springer International Publishing, 21–41
22. W. Max Corden (2009), ‘China’s Exchange Rate Policy, its Current Account Surplus and the Global Imbalances’, Economic Journal, 119 (541), November, F430–F441
23. Damian Tobin (2013), ‘Renminbi Internationalisation: Precedents and Implications’, Journal of Chinese Economic and Business Studies, Special Issue: The Renminbi as an International Currency: The Next Instalment of China’s Economic Reforms?, 11 (2), 81–99
24. Benjamin J. Cohen (2012), ‘The Yuan Tomorrow? Evaluating China’s Currency Internationalisation Strategy’, New Political Economy, 17 (3), July, 361–71
PART IX CHINA’S EMERGING MULTINATIONALS
25. Mike W. Peng (2012), ‘The Global Strategy of Emerging Multinationals from China’, Global Strategy Journal, 2 (2), May, 97–107
26. Kevin P. Gallagher and Amos Irwin (2014), ‘Exporting National Champions: China’s Outward Foreign Direct Investment Finance in Comparative Perspective’, China and World Economy, 22 (6), November–December, 1–21
27. Xiaohui Liu and Trevor Buck (2009), ‘The Internationalization Strategies of Chinese Firms: Lenovo and BOE’, Journal of Chinese Economic and Business Studies, 7 (2), 167–81
28. Tarun Khanna, Krishna G. Palepu and Philip Andrews (2011) ’Haier: Taking a Chinese Company Global in 2011’, Harvard Business Review Case Study, 1–23
PART X CHINA’S MULTIPRONGED AND WIDENING GLOBAL ENGAGEMENT
29. Wenjie Chen and Heiwai Tang (2014), ‘The Dragon is Flying West: Micro Level Evidence of China’s Outward Direct Investment’, Asian Development Review, 31 (2), September, 109–40
30. Peter Nolan (2015), ‘The West and China: Globalization and Competition in Financial Services’, Journal of Chinese Economic and Business Studies, 13 (2), 87–104
31. Michael D. Swaine (2015), ‘Chinese Views and Commentary on the “One Belt, One Road” Initiative’, China Leadership Monitor, 47, 1–24
32. Michael D. Swaine (2016), ‘Chinese Views on Global Governance Since 2008–2009: Not Much New’ China Leadership Monitor, 49, 1–13
33. Justin Yifu Lin and Yan Wang (2015), ‘China’s Contribution to Development Cooperation: Ideas, Opportunities and Finances’, FERDI Working Paper No. 119, Clermont-Ferrand, France: Fondation Pour Les Études et Recherches Sur Le Développment International, 1–30
PART XI A FRAGILE, TENTATIVE GLOBAL GIANT
34. David Shambaugh (2014), ‘China at the Crossroads: Ten Major Reform Challenges’, Brookings Institution Research Papers, Washington, DC, USA: Brookings Institution, 1–18
Index
