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Begin New Search Topic Globalization Political Geography China Content Type Working Paper

1. China’s Development Path: Government, Business, and Globalization in an Innovating Economy

Author:
Yin Yi and William Lazonick
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
We employ the “social conditions of innovative enterprise” framework to analyze the key determinants of China’s development path from the economic reforms of 1978 to the present. First, we focus on how government investments in human capabilities and physical infrastructure provided foundational support for the emergence of Chinese enterprises capable of technological learning. Second, we delve into the main modes by which Chinese firms engaged in technological learning from abroad—joint ventures with foreign multinationals, global value chains, and experienced high-tech returnees—that have contributed to industrial development in China. Third, we provide evidence on achievements in indigenous innovation—by which we mean improvements in national productive capabilities that build on learning from abroad and enable the innovating firms to engage in global competition—in the computer, automobile, communication-technology, and semiconductor-fabrication industries. Finally, we sketch out the implications of our approach for current debates on the role of innovation in China’s development path as it continues to unfold.
Topic:
Development, Economics, Globalization, Infrastructure, Hegemony, and Innovation
Political Geography:
China and Asia

2. Brothers in arms: The value of coalitions in sanctions regimes

Author:
Sonali Chowdhry, Julian Hinz, Katrin Kamin, and Joschka Wanner
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
This paper examines the impact of coalitions on the economic costs of the 2012 Iran and 2014 Russia sanctions. By estimating and simulating a quantitative general equilibrium trade model under different coalition set-ups, we (i) dissect welfare losses for sanction-senders and target; (ii) compare prospective coalition partners and; (iii) provide bounds for the sanctions potential — the maximum welfare change attainable — when sanctions are scaled vertically, i.e. across sectors up to an embargo, or horizontally, i.e. across countries up to a global regime. To gauge the significance of simulation outcomes, we implement a Bayesian bootstrap procedure that generates confidence bands. We find that the implemented measures against Iran and Russia inflicted considerable economic harm, yielding 32 – 37% of the vertical sanctions potential. Our key finding is that coalitions lower the average welfare loss incurred from sanctions relative to unilateral implementation. They also increase the welfare loss imposed on Iran and Russia. Adding China to the coalition further amplifies the welfare loss by 79% for Iran and 22% for Russia. Finally, we quantify transfers that would equalize losses across coalition members. These hypothetical transfers can be seen as a sanctions-equivalent of NATO spending goals and provide a measure of the relative burden borne by coalition countries.
Topic:
Globalization, International Trade and Finance, Markets, Sanctions, Alliance, and Embargo
Political Geography:
Russia, China, Europe, Asia, North America, and United States of America

3. China in One Country: interdependence or globalisation 'with Chinese characteristics'?

Author:
George Magnus
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
Globalisation has faltered, and faces significant political challenges. In both the US and China, voices are calling for a reduction of economic interdependence between the two countries. In the US, this has taken the name of decoupling, in China, self-reliance. At the same time, China’s President, Xi Jinping has vocally championed globalisation in various global fora in recent years. Understanding of China’s systems of government and business, as well as its global interests, is lacking when compared to that of the US. In this Strategic Update, George Magnus investigates what is meant when China’s leadership speaks of globalisation, and what the implications of the answer are for the rest of the world.
Topic:
Foreign Policy, Economics, Globalization, and Leadership
Political Geography:
China, Asia, and United States of America

4. China’s BRI: The Development-Finance Dimension

Author:
David Gordon and Haoyu Tong
Publication Date:
03-2020
Content Type:
Working Paper
Institution:
International Institute for Strategic Studies
Abstract:
This report is the first of two synthesising the findings of a major research workshop convened in Washington DC on 26 June 2019, by The International Institute for Strategic Studies (IISS), as part of its multi-year project on China’s Belt and Road Initiative (BRI). The IISS commissioned ten papers that addressed development-finance and security issues in the BRI, prepared by leading scholars and policy practitioners. They were joined at the workshop by more than two dozen other experts on China’s international behaviour. This first report focuses on development-finance issues in the BRI; the second will address security issues broadly cast. China’s Belt and Road Initiative is now six years old. Announced by (then) newly ensconced President Xi Jinping, it has since become the centrepiece of Xi’s ambitious drive to make China a more active global leader, and to break free from the cautious approach set out more than 30 years earlier by then-paramount-leader Deng Xiaoping – that China’s strategic approach should be to ‘hide its capacities and bide its time’. At the Chinese Communist Party’s (CCP) 19th Congress in 2017, the BRI was integrated into the party’s charter. Much of the early analytical work on the BRI has focused on questions surrounding China’s motivations – economic or geopolitical. Is Xi’s initiative a response to changing domestic economic circumstances? Or does it signal evidence of China’s intent to build a twentyfirst- century imperium modelled on the post-war United States-led experience, more than on European colonial or earlier Asian empires? The emerging consensus on this question is that it has been a bit of both. At the same time, an often overlooked factor is Xi’s constant need to further consolidate his power inside China, as the economics versus geopolitics debate about the motivations for the BRI gives too little attention to the more purely political dimension. The BRI cannot be separated from Xi’s efforts to cast himself domestically as an exceptional leader for an exceptional moment in China’s history.
Topic:
Development, Globalization, Infrastructure, Hegemony, and Belt and Road Initiative (BRI)
Political Geography:
China and Asia

5. The Impact of Economic Globalisation on Firm Performance and the Labour Market: Evidence from Japan

Author:
Keiko Ito
Publication Date:
10-2019
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
This paper summarises the major findings and arguments in the literature on the impact of globalisation on firm performance and the labour market, focusing on the case of Japan. Internationalised firms show better performance. Although offshoring has shifted labour demand towards skilled workers, thedirect contribution of globalisation to the widening wage gap is quite limited. The empirical evidence for Japan is more or less consistent with that for other developed countries, but some observations on Japan are worth pointing out. First, several empirical studies confirm a learning-by-exporting effect. Second, there is no strong evidence that increases in imports from China have reduced domestic employment. Increases in imports from China have a positive effect on value added growth in downstream industries, implying that imports from China are likely to be complementary to domestic production in Japan.
Topic:
Globalization, Industrial Policy, Labor Issues, Exports, and Imports
Political Geography:
Japan, China, and Asia

6. China’s new policy on the European Union: A toughening line on political issues

Author:
Jyrki Kallio
Publication Date:
01-2019
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
China’s recent policy paper on the European Union shows that the country continues to recognize the EU as an important partner in many fields. A new, distressing element is that China has toughened its demands towards the EU to respect its core interests and to refrain from meddling in its internal affairs.
Topic:
Globalization, International Affairs, European Union, and Conflict
Political Geography:
China, Europe, and Asia

7. The Rise of China and the Rebound in Korea’s Manufacturing Employment

Author:
Kyong Hyun Koo and Unjung Whang
Publication Date:
12-2018
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Over the last three decades, the world has experienced a substantial in-crease in Chinese import penetration due to the rapid improvement in Chi-na’s supply productivity, which is often called the “China shock” or “China syndrome.” The existing literature have shown that the increase in imports from China due to the China shock adversely affected the manufacturing employment of a number of advanced countries such as the U.S., Norway, Denmark, and Spain. Unlike those advanced countries, South Korea has shown a pronounced increase in exports to China as well as imports from China since the 1990s. Over the same time, furthermore, Korea’s manufactur-ing employment has shown a stagnated downward trend compared to other advanced economies and even rebounded since the mid-2000s. Given these motivations, this study investigates both import and export channels to ex-plore how the China trade shocks affected the exceptional trend in Korea’s manufacturing employment from 1993 through 2015. To capture the overall employment effects of the China shocks, specifically, we consider not only how a Korean manufacturing industry employment is affected by the change in its direct exposure to China trade shocks (direct effects), but also how other industries’ changes in exposure to China trade shocks affect the industry through domestic industrial linkages (indirect ef-fects), largely following the empirical approach employed by Acemoglu et al. (2016). Mainly using firm-level data for almost all Korean manufacturing firms with more than four employees and the 2SLS estimation method, we find that during the period 1993-2015 the increase in Chinese import expo-sure had statistically insignificant direct effects on Korea’s manufacturing em-ployment on average, while 1% point increase in Chinese export exposure directly caused 0.18% increase in employment across Korean manufacturing industries. For the indirect effects of China shocks, in contrast, 1% point in-crease in Chinese import exposures of downstream industries (intermediate goods buyers) led to 3.00% decrease in employment of upstream industries (intermediate goods sellers) on average, while 1% point increase in Chinese export exposures of downstream industries brought 1.70% increase in em-ployment of upstream industries on average. The relatively moderate direct effects compared to the indirect ones are partly explained by two factors: First, Korea has gone through a substantial change in the structure of its trade with China since 2000s, so that within-industry supply chains between China and Korea have become more intertwined for some industries. Second, the Korean industries whose main downstream industries were substantially exposed to the Chinese imports (exports) tended to have a relatively low di-rect Chinese import (export) exposure during the period 1993-2015. Based on the 2SLS estimates above, the increased Chinese import expo-sure turns out to have decreased Korea manufacturing employment by 1,210,000 during the period 1993-2015, mainly through the indirect channel. In contrast, the increased Chinese export exposure appears to have increased Korea manufacturing employment by 1,090,000 during the same period, through the direct channel (210,000) and indirect channel (880,000). In the case of Korea’s manufacturing industry, therefore, most of the job reduction attributable to the China shocks has been also offset by job creation caused by the China shocks. Such a considerable increase in manufacturing jobs due to the rise of China, which has not been reported yet in other advanced economies, appear to have played an important role in generating the re-bounding trend in Korea’s manufacturing employment.
Topic:
Globalization, Labor Issues, Economic Policy, and Trade Shocks
Political Geography:
China, Asia, and South Korea

8. Seven Chinas A Policy Framework

Author:
David Kelly
Publication Date:
02-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
The debate about China’s changing role in global affairs is often framed as a dichotomous choice between a peacefully rising China that seeks to be a constructive stakeholder and an increasingly dangerous China that is challenging the status quo, both in terms of its norms and the place of the United States. The reality is more complicated. There are not only signs of both elements, but the foundations shaping Chinese behavior is multifold. Most international relations scholars examine China through one or another version of realism or liberalism. David Kelly, head of research at China Policy, offers an alternative approach that examines the nature of Chinese identity, or rather, Chinese identities, plural, and how they exhibit themselves in Chinese foreign policy. Using his renowned skills in reading Chinese-language official documents and the broader commentary, Kelly teases out seven narratives that Chinese tell themselves and the world, and he provides a codebook for explicating shifting Chinese behavior in different arenas. Kelly concludes that some of these narratives facilitate cooperation, but most point toward deep-seated tensions between China and the West in the years ahead.

Topic:
Foreign Policy, Globalization, Imperialism, and Conflict
Political Geography:
United States, China, Asia, North America, and Asia-Pacific

9. Guardians of the Belt and Road: The Internationalization of China's private security companies

Author:
Meia Nouwens and Helena Legarda
Publication Date:
08-2018
Content Type:
Working Paper
Institution:
International Institute for Strategic Studies
Abstract:
Chinese private security companies are going global to protect the country's assets and citizens, in the sometimes unstable countries linked to Beijing's Belt and Road Initiative. Following the build-up of infrastructure and investment projects along China’s extensive Belt and Road Initiative (BRI), private security companies from China are also increasingly going global – to protect Chinese assets and the growing number of Chinese nationals living and working in countries along the BRI, in sometimes unstable regions. Out of the 5,000 registered Chinese private security companies, 20 provide international services, employing 3,200 security personnel in countries like Iraq, Sudan and Pakistan. The impact of this newly developing Chinese activity abroad is analyzed in this MERICS China Monitor. Chinese private security companies’ international activities pose a challenge to European interests as they are often largely unregulated and their security staff are often inexperienced in dealing with serious conflict situations and combat. EU policymakers, thus, are called upon to encourage and assist Beijing to pass laws regulating Chinese private security companies’ activities overseas.
Topic:
Security, Globalization, European Union, and Private Sector
Political Geography:
China, Europe, Beijing, and Asia

10. The Development of U.S.-China Trade and the Result of Conflict

Author:
Ma Tao
Publication Date:
06-2018
Content Type:
Working Paper
Abstract:
The very success of globalization has flourished since World War II. The benefits of economic globalization are not evenly distributed among countries, especially among different groups within a country. Before the financial crisis in 2008, as the major promotors of globalization, developed countries intensified their internal contradictions. So populism, protectionism and isolationism are rising in many developed countries, which are the main features of anti-globalization. Brexit happened against the polls in 2016, in large part, because of the migrant crisis tipping the British towards protection of its borders. In the beginning of his presidency, Donald Trump declared to withdraw from TPP, build Mexican border wall, renegotiate NAFTA and so on. Trump’s protectionism policies may be gradually implemented in 2017. Going on like these, the tide of anti-globalization may be further strengthened in the future.
Topic:
Globalization, Bilateral Relations, Foreign Direct Investment, Trade Wars, and Trade
Political Geography:
China, Asia, North America, and United States of America

11. U.S.-China Trade Imbalance and the Results of Trade Conflict

Author:
Ma Tao
Publication Date:
04-2018
Content Type:
Working Paper
Abstract:
The very success of globalization has flourished since World War II. The benefits of economic globalization are not evenly distributed among countries, especially among different groups within a country. Before the financial crisis in 2008, as the major promotors of globalization, developed countries intensified their internal contradictions. So populism, protectionism and isolationism are rising in many developed countries, which are the main features of anti-globalization. Brexit happened against the polls in 2016, in large part, because of the migrant crisis tipping the British towards protection of its borders. In the beginning of his presidency, Donald Trump declared to withdraw from TPP, build Mexican border wall, renegotiate NAFTA and so on. Trump’s protectionism policies may be gradually implemented in 2017. Going on like these, the tide of anti-globalization may be further strengthened in the future.
Topic:
Globalization, Economy, Trade, and Protectionism
Political Geography:
China, Asia, United States of America, and North America

12. China’s Belt and Road Initiative Security Needs: The Evolution of Chinese Private Security Companies

Author:
Alessandro Arduino
Publication Date:
08-2017
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
The unprecedented amount of Chinese funds funnelled into the Belt and Road Initiative and Beijing’s vision of global connectivity will face a harsh reality that encompasses a wide spectrum of threats. Chinese corporations have just started to acknowledge that the risks associated with outbound foreign direct investments carry higher failure rates due to intertwined factors such as economic crisis, conflict, civil unrest, nationalisation, and currency devaluation, to name a few. In several cases, the Chinese state-owned enterprises’ infrastructural projects add stress to the already unstable socio-political environments because of their size and speed of implementation. Understanding and managing this stress is a challenge that cannot be ignored if benefits of these projects are to be realised. The solution to political and criminal violence requests a broader participation that encompasses the insurance and private security sectors.
Topic:
Globalization, Nationalism, Conflict, Violence, and Private Sector
Political Geography:
China, Beijing, and Asia

13. Business and Politics In China's Overseas Investments

Author:
Luke Patey and Michal Meidan
Publication Date:
11-2016
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
The size and sophistication of Chinese foreign investment is on the rise. In 2014, inbound investment to China was outpaced by outbound investment for the first time. Chinese foreign investment has surpassed the $100 billion mark for the past three years, making China the third largest overseas investor. At the same time, beyond oil and gas, which dominated headlines over the past decade, Chinese state-owned enterprises and private corporations are making multi-billion dollar investments in construction, telecommunications, nuclear, and high-tech across the globe. What political and security implications do these new investment have for host government in North America and Europe? What is the view point of Beijing towards the growing reach of its corporations overseas? A new policy brief by Michal Meidan, research associate at Chatham House and Asia Analyst at Energy Aspects, and DIIS senior researcher Luke Patey explores these questions.
Topic:
Globalization, International Political Economy, and International Trade and Finance
Political Geography:
China and Global Focus

14. The Revival of the Silk Roads (Land Connectivity) in Asia

Author:
Pradumna B. Rana and Wai-Mun Chia
Publication Date:
05-2014
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
This paper argues that contrary to popular belief, in the bygone era, there was not one but two Silk Roads in Asia – the Northern and the less well-known South-western Silk Road (SSR). The SSR connected South/Central Asia with southern China and present day Association of Southeast Asian Nations (ASEAN). After enjoying a rich history of around 1,600 years, the Silk Roads went into disrepair. Now, for various economic, security, and political reasons, land connectivity is once again making a comeback in Asia. These include the (i) ―Go West‖ and the recent ―New Silk Roads‖ policies of China; (ii) ―Look East‖ policies of South Asia; (iii) opening of Myanmar, a node between South Asia and East Asia; and (iv) growing importance of supply-chain trade. The focus has, however, been mainly on reviving the Northern Silk Road with relatively few actions being initiated to revive the SSR. Mirroring the on-going efforts in the Greater Mekong Sub-region and the Central Asian region, this paper proposes four economic corridors for Pan-Asian connectivity that is to connect South/Central Asia with southern China and ASEAN. The paper argues that the revival of land connectivity in Asia is making Maritime Asia of the past, more continental-based. One implication is that regional institutions focusing solely on Maritime Asia, such as the Asia Pacific Economic Cooperation (APEC), may be losing some of their relevance vis-à-vis say the more continental-based China-led Shanghai Cooperation Organization. The other is that the influence of the West in Asia‘s security may be declining relative to that of China, India, and Russia.
Topic:
Security, Globalization, and Trade
Political Geography:
Russia, China, India, and Asia

15. From Catching Up to Forging Ahead? China's Prospects in Semiconductors

Author:
Dieter Ernst
Publication Date:
10-2014
Content Type:
Working Paper
Institution:
East-West Center
Abstract:
China's new strategy to upgrade its semiconductor industry (outlined in the "Guidelines to Promote National Integrated Circuit Industry Development," June 24, 2014), seeks to move from catching-up to forging ahead in semiconductors, by strengthening simultaneously China's integrated circuit (IC) design industry and domestic IC foundry services.
Topic:
Economics, Globalization, Industrial Policy, Markets, and Science and Technology
Political Geography:
China and Asia

16. International Shifts and Their Security Impact on the Gulf: Quantifying Key Trends

Author:
Anthony H. Cordesman
Publication Date:
11-2014
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
I have been asked to help set the stage for this conference by looking at the broader issues that can address the issue of A World with No Axis? International Shifts and their Impact on the Gulf. I have spent enough time in the Gulf over the years to know how often people have strong opinions, interesting conspiracy theories, and a tendency to ignore hard numbers and facts. We all suffer from the same problems , but today I'm going to focus as much on facts and numbers as possible.
Topic:
Globalization, Bilateral Relations, and Hegemony
Political Geography:
United States and China

17. The Hyperglobalization of Trade and Its Future

Author:
Arvind Subramanian and Martin Kessler
Publication Date:
08-2013
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
This paper describes seven salient features of trade integration in the 21st century: Trade integration has been more rapid than ever (hyperglobalization); it is dematerialized, with the growing importance of services trade; it is democratic, because openness has been embraced widely; it is criss-crossing because similar goods and investment flows now go from South to North as well as the reverse; it has witnessed the emergence of a mega-trader (China), the first since Imperial Britain; it has involved the proliferation of regional and preferential trade agreements and is on the cusp of mega-regionalism as the world's largest traders pursue such agreements with each other; and it is impeded by the continued existence of high barriers to trade in services. Going forward, the trading system will have to tackle three fundamental challenges: In developed countries, the domestic support for globalization needs to be sustained in the face of economic weakness and the reduced ability to maintain social insurance mechanisms. Second, China has become the world's largest trader and a major beneficiary of the current rules of the game. It will be called upon to shoulder more of the responsibilities of maintaining an open system. The third challenge will be to prevent the rise of mega-regionalism from leading to discrimination and becoming a source of trade conflicts. We suggest a way forward—including new areas of cooperation such as taxes—to maintain the open multilateral trading system and ensure that it benefits all countries.
Topic:
Economics, Globalization, International Trade and Finance, Markets, and Treaties and Agreements
Political Geography:
China

18. How much did China's WTO accession increase economic growth in resource-rich countries?

Author:
Mikkel Barslund, Thomas Barnebeck Andersen, Casper Worm Hansen, Thomas Harr, and Peter Sandholt Jensen
Publication Date:
10-2013
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
This Working Document provides an estimate of China's impact on the growth rate of resource-rich countries since its WTO accession in December 2001. The authors' empirical approach follows the logic of the differences-in-differences estimator. In addition to temporal variation arising from the WTO accession, which they argue was exogenous to other countries' growth trajectories, the authors exploit spatial variation arising from differences in natural resource wealth. In this way they can compare changes in economic growth in the pre- and post-accession periods between countries that benefited from the surge in demand for industrial commodities brought about by China's WTO accession and countries that were less able to do so. They find that that roughly one-tenth of the average annual post-accession growth in resource-rich countries was due to China's increased appetite for commodities. The authors use this finding to inform the debate about what will happen to economic growth in resource-rich countries as China rebalances and its demand for commodities weakens.
Topic:
Economics, Emerging Markets, Globalization, Industrial Policy, and International Trade and Finance
Political Geography:
China

19. Freeing the Global Market: How to Boost the Economy by Curbing Regulatory Distortions

Author:
Shanker A. Singham
Publication Date:
10-2012
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
The U.S. economy faces major challenges competing internationally. One of the most worrisome is the growing use in China and other advanced developing countries of anticompetitive market distortions (ACMDs)—including regulatory protection that privileges specific companies—which put foreign competitors at a disadvantage. ACMDs are government actions that give certain business interests artificial competitive advantages over their rivals, be they foreign or domestic, to the detriment of consumer welfare. These market distortions are especially damaging to the industries in which the United States enjoys the greatest comparative advantages, but they are also harmful to the long-term prosperity of developing economies and cost the global economy trillions of dollars. To combat ACMDs, the conventional trade policy approach of focusing on the The U.S. economy faces major challenges competing internationally. One of the most worrisome is the growing use in China and other advanced developing countries of anticompetitive market distortions (ACMDs)—including regulatory protection that privileges specific companies—which put foreign competitors at a disadvantage.1 ACMDs are government actions that give certain business interests artificial competitive advantages over their rivals, be they foreign or domestic, to the detriment of consumer welfare. These market distortions are especially damaging to the industries in which the United States enjoys the greatest comparative advantages, but they are also harmful to the long-term prosperity of developing economies and cost the global economy trillions of dollars.
Topic:
Economics, Emerging Markets, Globalization, International Trade and Finance, and Markets
Political Geography:
Russia, United States, China, India, and Brazil

20. Global Governance Audit

Author:
Hakan Altinay
Publication Date:
02-2012
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
We frequently treat the changing constellation that has come to be referred to as global governance as a lackluster fait accompli. Nobody has masterminded it. Nobody is really in charge. Almost everybody has reasons to be unhappy about what they view as its current suboptimal state. As such, global governance is not an easy phenomenon to assess or audit. The benchmarks and scales to be used are not obvious. Yet an audit attempt is nevertheless necessary, if for no other reason than to start to form a deliberated assessment, to develop some benchmarks, and to refine our questions for the future.
Topic:
Economics, Globalization, and Governance
Political Geography:
China and Europe

21. Country Forecast: Global outlook

Publication Date:
04-2012
Content Type:
Working Paper
Institution:
Economist Intelligence Unit
Abstract:
Three years after the global economy reached its lowest point in three-quarters of a century, the recovery remains incomplete and the outlook uncertain. On March 9th 2009, the capitalisation of Morgan Stanley\'s global stockmarket index fell to US$26trn, nearly 60% below its 2007 peak. Today, the value of the world\'s stockmarkets has yet to return to the pre-crisis level—nor has the confidence of most consumers and businesses. The excesses of the last ten years—the personal debt accumulated early in the last decade and the public debt added during the recession—have saddled many countries with weak economic foundations and little or no resilience to shocks. This has left the US economy, in particular, struggling for a third straight year to lock in faster growth. It has left debt-ravaged Europe in recession and China manoeuvring unsteadily to deflate a bubble. On the brighter side, the global economy will grow again this year and the imbalances that built up over the past decade will continue to unwind. But global growth will be slower this year than last, and a host of risks—from elevated oil prices to war in the Middle East, to the collapse of Europe\'s single currency—will weigh on confidence and reduce spending and investment.
Topic:
Economics, Globalization, Markets, Global Recession, and Financial Crisis
Political Geography:
United States, China, Europe, and Middle East

22. Rising Democracies and the Arab Awakening: Implications for Global Democracy and Human Rights

Author:
Ted Piccone and Emily Alinikoff
Publication Date:
01-2012
Content Type:
Working Paper
Institution:
Center on International Cooperation
Abstract:
As the emerging global order takes shape, debate is growing more intense around the trajectory of the rising powers and what their ascendency to positions of regional and international influence means for the United States, its traditional allies, and global governance more broadly. Commentary about these rising powers— often referred to in a generic way as the BRICS (Brazil, Russia, India, China, South Africa) but actually encompassing a dozen or so countries largely represented in the G-20—ranges from alarmist to sanguine. Pessimists argue that China, with its impressive economic growth and increasingly global reach, is well-positioned to challenge the United States' role of global superpower and to weaken the commitment of other rising powers, and various international organizations, to liberal values. More optimistic analysts insist that the rise of middle powers, most of which are democracies of varying stripes, bodes well for the world: millions are being lifted out of poverty, rule of law is taking hold and the international system is bound to be a more inclusive, representative one.
Topic:
Democratization, Development, Economics, Globalization, Human Rights, International Trade and Finance, Markets, Poverty, and Governance
Political Geography:
Russia, United States, China, India, South Africa, Brazil, and Arabia

23. China's Economic Restructuring: Role of Agriculture

Author:
Zhang Hongzhou
Publication Date:
05-2012
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
While China has achieved extraordinary economic success in the past decades, its economic structural risks have increased significantly as well. As Chinese top leaders have repeatedly emphasized, economic restructuring is a critical task facing China's economy. To restructure China's economy, the country needs to find a new engine for growth to replace the export and investment led growth model, address social inequality and protect the environment. The key approaches identified by the Chinese government include urbanization, upgrading the manufacturing sector and developing strategic industries. However, through in-depth analysis, this paper finds that the effectiveness of these measures remains in question as they fail to target at all the root causes of China's economic problems.
Topic:
Economics, Environment, Globalization, Industrial Policy, International Trade and Finance, and Social Stratification
Political Geography:
China and Israel

24. America's Voluntary Standards System--A "Best Practice" Model for Innovation Policy?

Author:
Dieter Ernst
Publication Date:
02-2012
Content Type:
Working Paper
Institution:
East-West Center
Abstract:
For its proponents, America's voluntary standards system is a "best practice" model for innovation policy. Foreign observers however are concerned about possible drawbacks of a standards system that is largely driven by the private sector. There are doubts, especially in Europe and China, whether the American system can balance public and private interests in times of extraordinary national and global challenges to innovation.
Topic:
Development, Globalization, Industrial Policy, International Trade and Finance, Science and Technology, Intellectual Property/Copyright, and Governance
Political Geography:
China, America, and Europe

25. America's Voluntary Standards System—A "Best Practice" Model for Innovation Policy?

Author:
Dieter Ernst
Publication Date:
02-2012
Content Type:
Working Paper
Institution:
East-West Center
Abstract:
For its proponents, America's voluntary standards system is a "best practice" model for innovation policy. Foreign observers however are concerned about possible drawbacks of a standards system that is largely driven by the private sector. There are doubts, especially in Europe and China, whether the American system can balance public and private interests in times of extraordinary national and global challenges to innovation.
Topic:
Democratization, Economics, Globalization, International Trade and Finance, Markets, and Governance
Political Geography:
United States, China, and Europe

26. China, the United States, and the Changing Global Architecture

Author:
Seungjoo Lee
Publication Date:
03-2012
Content Type:
Working Paper
Institution:
East Asia Institute (EAI)
Abstract:
With the prospect of leadership change in China and the United States in 2012, the possibility for instability and uncertainty in the East Asia region is high. Despite such concerns, it is expected that the current structure of global governance will mitigate the difficulties associated with this period of transition. Considering the importance of global governance, it becomes necessary then to follow the changes in the global and regional architecture and think about how South Korea should meet this challenge. The trio of closely-related summit meetings that took place in November 2011 was such an occasion in which China and the United States grappled to shape the regional and global architecture. These meetings included the G20 Cannes summit on November 3, the Asia-Pacific Economic Cooperation (APEC) summit on November 12, and the East Asia Summit (EAS) on November 19. It is important to focus on the fact that during these meetings Beijing and Washington had the chance to examine the intention and capability of each other. In that sense, these meetings were akin to that of a boxing match fought over three rounds using not force but the complex elements of international politics in the twenty-first century that interact to design the regional and global architecture. These elements include power politics in international relations, cooperation and conflict in institutions and networks, and the knowledge power which allows for a consensus among countries by sharing the vision of a new order.
Topic:
Foreign Policy, Globalization, Hegemony, and Leadership
Political Geography:
China, Asia, North America, and United States of America

27. Organising an investment in China: Prepare for opportunity

Publication Date:
11-2011
Content Type:
Working Paper
Institution:
Economist Intelligence Unit
Abstract:
Foreign companies continue to be attracted by the opportunities offered by China's large and rapidly growing economy. China has a population of over 1.3bn, and the size of the economy is likely to grow to just under US$13trn a year at market exchange rates by 2015. Although GDP per head will still be relatively low by the end of the forecast period, at just under US$10,000 a year, this will represent a substantial improvement from just under US$4,500 in 2010. Significant regional disparities within China will persist. The provinces of the eastern seaboard enjoy standards of living well above the national average. However, there are also markets to be found in inland China, where many large cities are located. To some extent, the size of the population and the pace of economic growth belie the challenges of operating in China. Nationwide distribution networks will increasingly be put in place, but the Chinese market is likely still to be a fragmented one by 2015.
Topic:
Economics, Emerging Markets, Globalization, and Foreign Direct Investment
Political Geography:
China

28. The G20: Engine of Asian Regionalism?

Author:
Hugo Dobson
Publication Date:
11-2011
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
As a result of the emergence of the G20 as the self‐appointed “premier forum for international economic cooperation”, Asia's expanded participation in G‐summitry has attracted considerable attention. As original G7 member Japan is joined by Australia, China, Indonesia, India and South Korea, this has given rise to another alphanumeric configuration of the Asian 6 (A6). Resulting expectations are that membership in the G20 will impact Asian regionalism as the A6 are forced into coordination and cooperation in response to the G20's agenda and commitments. However, by highlighting the concrete behaviours and motivations of the individual A6 in the G20 summits so far, this paper stands in contrast to the majority of the predominantly normative extant literature. It highlights divergent agendas amongst the A6 as regards the future of the G20 and discusses the high degree of competition over their identities and roles therein. This divergence and competition can be seen across a range of other behaviours including responding to the norm of internationalism in promoting global governance and maintaining the status quo and national interest, in addition to claiming a regional leadership role and managing bilateral relationships with the US.
Topic:
Economics, Emerging Markets, Globalization, International Trade and Finance, Regional Cooperation, and Governance
Political Geography:
United States, Japan, China, Indonesia, India, Asia, South Korea, and Australia

29. Chinese Lessons from Other Peoples' Wars

Author:
Andrew Scobell (ed.), David Lai (ed.), and Roy Kamphausen (ed.)
Publication Date:
11-2011
Content Type:
Working Paper
Institution:
The Strategic Studies Institute of the U.S. Army War College
Abstract:
The annual Conference on the Chinese People's Liberation Army (PLA) took place at the U.S. Army War College (USAWC), in Carlisle, Pennsylvania, on October 22-24, 2010. The topic for this year's conference was the “PLA's lessons from Other People's Wars.” Participants at the conference sought to discern what lessons the PLA has been learning from the strategic and operational experiences of the armed forces of other countries during the past 3 decades.
Topic:
Security, Arms Control and Proliferation, Globalization, and International Cooperation
Political Geography:
China, Asia, and Australia/Pacific

30. From REDD to Green: A Global Incentive System to Stop Tropical Forest Clearing

Author:
David Wheeler, Robin Kraft, and Dan Hammer
Publication Date:
12-2011
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
In this paper, we develop and illustrate a prototype incentive system for promoting rapid reduction of forest clearing in tropical countries. Our proposed Tropical Forest Protection Fund (TFPF) is a cash-on-delivery system that rewards independently monitored performance without formal contracts. The system responds to forest tenure problems in many countries by dividing incentive payments between national governments, which command the greatest number of instruments that affect forest clearing, and indigenous communities, which often have tenure rights in forested lands. The TFPF incorporates both monetary and reputational incentives, which are calculated quarterly. The monetary incentives are unconditional cash transfers based on measured performance, while the reputational incentives are publicly disclosed, color-coded performance ratings for each country. The incentives include rewards for: (1) exceeding long-run expectations, given a country's forest clearing history and development status; (2) meeting or exceeding global REDD+ goals; and (3) achieving an immediate reduction in forest clearing. Drawing on monthly forest clearing indicators from the new FORMA (Forest Monitoring for Action) database, we illustrate a prototype TFPF for eight East Asian countries: Cambodia, China, Indonesia, Lao PDR, Malaysia, Myanmar, Thailand, and Vietnam. A system with identical design principles could be implemented by single or multiple donors for individual or multiple forest proprietors within one or more countries, as well as national or local governments in individual countries, tropical regions, or the global pan-tropics. Our results demonstrate the importance of financial flexibility in the design of the proposed TFPF. Its incentives are calculated to induce a massive, rapid reduction of tropical forest clearing. If that occurs, a TFPF for East Asia will need standby authority for disbursements that may total $10–14 billion annually for the next two decades. This financial burden will not persist, however, because the TFPF is designed to self-liquidate once all recipient countries have achieved clearly specified benchmarks. We estimate that the TFPF can be closed by 2070, with its major financial responsibility discharged by 2040.
Topic:
Agriculture, Economics, Globalization, and Markets
Political Geography:
China, Indonesia, Malaysia, East Asia, Vietnam, Cambodia, Thailand, Southeast Asia, and Myanmar

31. Who Captures Value in Global Supply Chains?

Author:
Jyrki Ali-Yrkkö, Petri Rouvinen, Timo Seppälä, and Pekka Ylä-Anttila
Publication Date:
02-2011
Content Type:
Working Paper
Institution:
Berkeley Roundtable on the International Economy
Abstract:
Available statistics tell us little about the economic consequences of increasing global dispersion of production processes. In order to shed light on the issue, we perform grass roots detective work to uncover the geography of value added in the case of a Nokia N95 smartphone circa 2007. The phone was assembled in Finland and China. In the case when the device was assembled and sold in Europe, the value-added share of Europe (EU-27) rose to 68%. Even in the case when it was assembled in China and sold in the United States, Europe captured as much as 51% of the value added, despite of the fact that it had rather little role in supplying the physical components. Our analysis illustrates that international trade statistics can be misleading; the capture of value added is largely detached from the physical goods flows. It is rather services and other intangible aspects of the supply chain that dominate. While final assembly – commanding 2% of the value added in our case – has increasingly moved offshore, the developed countries continue to capture most of the value added generated by global supply chains.
Topic:
Economics, Globalization, Industrial Policy, International Trade and Finance, and Markets
Political Geography:
China, Europe, and Finland

32. Global Brazil and U.S.-Brazil Relations

Author:
Samuel W. Bodman, James D. Wolfensohn, and Julia E. Sweig
Publication Date:
07-2011
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
Brazil has transcended its status as the largest and most resource-rich country in Latin America to now be counted among the world's pivotal powers. Brazil is not a conventional military power, it does not rival China or India in population or economic size, and it cannot match the geopolitical history of Russia. Still, how Brazil defines and projects its interests, a still-evolving process, is critical to understanding the character of the new multipolar and unpredictable global order.
Topic:
Development, Economics, Globalization, and International Trade and Finance
Political Geography:
Russia, China, India, Brazil, and Latin America

33. A China Round of Multilateral Trade Negotiations

Author:
Arvind Subramanian and Aaditya Mattoo
Publication Date:
12-2011
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
Until recently, the World Trade Organization (WTO) has been an effective framework for cooperation because it has continually adapted to changing economic realities. The current Doha Agenda is an aberration because it does not reflect one of the biggest shifts in the international economic and trading system: the rise of China. Even though China will have a stake in maintaining trade openness, an initiative that builds on but redefines the Doha Agenda would anchor China more fully in the multilateral trading system. Such an initiative would have two pillars. First, a new negotiating agenda that would include the major issues of interest to China and its trading partners, and thus unleash the powerful reciprocal liberalization mechanism that has driven the WTO process to previous successes. Second, new restraints on bilateralism and regionalism that would help preserve incentives for maintaining the current broad non-discriminatory trading order.
Topic:
Economics, Globalization, International Trade and Finance, and Markets
Political Geography:
China and Israel

34. China's Soft Power in the Information Age: Think Again

Author:
Shanthi Kalathil
Publication Date:
05-2011
Content Type:
Working Paper
Institution:
Institute for the Study of Diplomacy, Edmund A. Walsh School of Foreign Service, Georgetown University
Abstract:
In recent years, many have argued that China has been largely successful at using soft power to bolster its rise to great power status. This essay suggests that the Chinese government—and other authoritarian states—have fundamentally misread the nature of the relationship between soft power and the globally networked, information-rich environment, thus misunderstanding how soft power is accumulated. Because of this, their efforts at deploying soft power over the long term are not likely to be as effective as conventional wisdom would make them out to be.
Topic:
Foreign Policy, Development, Diplomacy, Globalization, and Political Economy
Political Geography:
United States, China, and Israel

35. South Korea in the Chinese Political Imagination

Author:
Sook-Jong Lee
Publication Date:
03-2011
Content Type:
Working Paper
Institution:
East Asia Institute (EAI)
Abstract:
States form images of each other based on assessments of each other’s material capabilities or on interpretations of each other’s intentions. Images matter in the foreign policy making process since they form popular public opinion on official policies and, in more basic ways, construct people’s identity toward other countries. Some images are more transient and therefore manageable. Remarks by foreign leaders, official documents, or media coverage tend to belong to this category. States try to make their images favorable in the minds of a foreign audience through their public diplomacy efforts. On the other hand, some images are more fundamental and hard to change, so that foreign policies are pressed to operate within their perimeter. Political ideology, religious orientation, and accumulated bilateral historical experiences tend to form these more durable images. Today’s globalized world has witnessed the rise of the Internet as an important medium constructing popular images of a foreign country. As mass communication across countries becomes more open and instant, foreign policy makers face the increasing challenge of controlling information flows and separating foreign policy agendas from domestic interests. Citizens with less direct contact are more prone to embracing popular images mediated by mass media. Elites, in contrast, who have more direct contact and knowledge, tend to have more rationally interpreted images of foreign countries. Formerly, elites used to monopolize foreign policy inputs. In the porous world of today, however, it is difficult for elites to resist and persuade popular opinion, which is more emotionally driven. This challenge is felt in China, where the leadership is sometimes at odds with irrational populism. In this respect, it is important to understand Chinese images of South Korea. How do elites and ordinary citizens of China hold South Korea in their political imagination? What are the implications of Chinese images of Korea for Seoul’s China policy?
Topic:
Foreign Policy, Globalization, Regional Cooperation, and Populism
Political Geography:
China, Asia, and South Korea

36. Confronting the Long Crisis of Globalization

Author:
Alex Evans, Bruce Jones, and David Steven
Publication Date:
01-2010
Content Type:
Working Paper
Institution:
Center on International Cooperation
Abstract:
Globalization has entered a turbulent period. Over the past twenty years, the most significant threats to international security, stability, and prosperity have evolved rapidly. Global systems are now tightly interconnected, with risk proliferating freely across borders.
Topic:
Debt, Globalization, and Financial Crisis
Political Geography:
Russia, China, and India

37. Global Cyber Deterrence Views from China, the U.S., Russia, India, and Norway

Author:
Andrew Nagorski(ed.)
Publication Date:
04-2010
Content Type:
Working Paper
Institution:
EastWest Institute
Abstract:
In the wake of the financial crisis, organizations everywhere have looked to the third revolution in information technology to upgrade their infrastructure and spur a new round of growth. The damage caused by cyber crimes and cyber attacks, however, is at the same time growing increasingly serious. As we face a looming “cyber cold war” and a “cyber arms race,” vital individual, business, and even national interests are threatened. At the same time, faith in information technology and information networks continues to slip. As a result, seeking effective ways to counter cyber threats has become an urgent priority across the globe.
Topic:
Security, Globalization, International Cooperation, and Science and Technology
Political Geography:
Russia, United States, China, India, and Norway

38. Status, Identity, and Rising Powers

Author:
Deborah Welch Larson and Alexei Shevchenko
Publication Date:
10-2010
Content Type:
Working Paper
Institution:
Centre for International Peace and Security Studies
Abstract:
In the current era, the most striking development is the appearance of rising powers. These include Brazil, Russia, India, and China but also South Africa, Mexico, and South Korea. No longer can a small group of advanced states, the Group of Seven (G-7), manage the world economy. The G-7 has for all practical purposes been replaced by the G-20, which includes China, India, South Korea, Indonesia, and Australia. The emerging powers in Asia account for a growing share of the world's global domestic product. These powers are spending more on their military—India already has an aircraft carrier and plans to procure two more. China's growing navy is a major concern to the United States military.
Topic:
Emerging Markets, Globalization, International Trade and Finance, and Power Politics
Political Geography:
Russia, United States, China, India, South Korea, South Africa, Brazil, and Mexico

39. (Information) Revolution in One Country

Author:
Anthony Olcott
Publication Date:
06-2010
Content Type:
Working Paper
Institution:
Institute for the Study of Diplomacy, Edmund A. Walsh School of Foreign Service, Georgetown University
Abstract:
Speaking in China on November 16, 2009, President Barack Obama said, “I think that the more freely information flows, the stronger the society becomes, because then citizens of countries around the world can hold their own governments accountable. They can begin to think for themselves” [video—transcript]. Secretary of State Hillary Clinton quoted most of the same phrase two months later in her own ringing endorsement of Internet freedom, delivered in a speech at the Washington, DC, Newseum on January 21, 2010.
Topic:
International Relations, Foreign Policy, Diplomacy, Globalization, International Security, and Power Politics
Political Geography:
China and Washington

40. Verschiebungen der globalen Machtverhältnisse durch den Aufstieg von Regionalen Führungsmächten. China, Indien, Brasilien und Südafrika im Vergleich

Author:
Robert Kappel
Publication Date:
09-2010
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
A number of regional powers are becoming important international actors and are changing the coordinates of world politics and the global economy. The political and economicshift in favor of these regional powers has been accompanied by the relative loss of importance of the US, Japan, and the EU. The latter countries are increasingly challenged by the economic growth and the geostrategical actions of the regional powers. As the conception of and debates on regional powers have been led by political science, this paper aims to contribute to the discussion from an economics perspective. Based on the discussion of different concepts of economic power–such as those of Schumpeter, Perroux, Predöhl, or Kindleberger–concepts of technological leadership, and the global value chain approaches, the paper develops a research framework for the economics of regional powers. This framework is then tested using descriptive statistics as well as regressions analysis, with a focus on the four regional powers Brazil, China, India, and South Africa. As economic power is relational, the relationship of regional powers to other nations in the region is analyzed. According to the findings, only limited conclusions on the economics of regional powers are possible: a regional power can be described as an economy with a relatively large population and land area which plays a dominant role in trade within the region and in the regional governance. The regional power develops its technological capacities, and its businesses act regionally and globally with increasing strength.
Topic:
International Relations, Economics, Globalization, International Political Economy, and Power Politics
Political Geography:
China, India, and Brazil

41. Global Prospects for Utility-Scale Solar Power: Toward Spatially Explicit Modeling of Renewable Energy Systems

Author:
Kevin Ummel
Publication Date:
12-2010
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
This paper provides high-resolution estimates of the global potential and cost of utility-scale photovoltaic and concentrating solar power technologies and uses a spatially explicit model to identify deployment patterns that minimize the cost of greenhouse gas abatement. A global simulation is run with the goal of providing 2,000 TWh of solar power (-7% of total consumption) in 2030, taking into account least-cost siting of facilities and transmission lines and the effect of diurnal variation on project profitability and required subsidies. The American southwest, Tibetan Plateau, Sahel, and Middle East are identified as major supply areas. Solar power consumption concentrates in the United States over the next decade, diversifying to Europe and India by the early 2020's, and focusing in China in the second half of the decade—often relying upon long-distance, highvoltage transmission lines. Cost estimates suggest deployment on this scale is likely to be competitive with other prominent abatement options in the energy sector. Further development of spatially explicit energy models could help guide infrastructure planning and financing strategies both nationally and globally, elucidating a range of important questions related to renewable energy policy.
Topic:
International Relations, Climate Change, Energy Policy, Globalization, and Science and Technology
Political Geography:
United States, China, Middle East, and Sahel

42. Reinterpreting China's Success Through the New Economic Geography

Author:
Yukon Huang
Publication Date:
11-2010
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
China has in recent years capitalized on its huge, diverse population and geographical expanse to transform itself into the world's most efficient assembler and exporter of a wide range of manufactured goods. In achieving this development, it has followed a strategy essentially based on the New Economic Geography, which explains how lower transportation costs and concentration of economic activities foster economies of scale and explosive urbanization.
Topic:
Economics, Globalization, and Industrial Policy
Political Geography:
China

43. Beyond Market Forces: Regulating the Global Security Industry

Author:
James Cockayne, Emily Speers Mears, Alison Gurin, Iveta Cherneva, Sheila Oviedo, and Dylan Yaeger
Publication Date:
07-2009
Content Type:
Working Paper
Institution:
International Peace Institute
Abstract:
In late 2008, seventeen states, including the US, UK, China, Iraq, Afghanistan, and others, endorsed the Montreux Document on Pertinent International Legal Obligations and Good Practices for States related to Operations of Private Military and Security Companies during Armed Conflict (2008). This provides important guidance to states in regulating private military and security companies (PMSCs). However, there is a need to do more, to provide increased guidance to the industry and ensure standards are enforced.
Topic:
Security, Globalization, Markets, International Security, and Financial Crisis
Political Geography:
Afghanistan, United States, China, Iraq, and United Kingdom

44. Criss-Crossing Globalization: Uphill Flows of Skill-Intensive Goods and Foreign Direct Investment

Author:
Arvind Subramanian and Aaditya Mattoo
Publication Date:
08-2009
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
Th is paper documents an unusual and possibly significant phenomenon: the export of skills embodied in goods, services, or capital from poorer to richer countries. We fi rst present a set of stylized facts. Using a measure that combines the sophistication of a country's exports with the average income level of destination countries, we show that the performance of a number of developing countries, notably China, Mexico, and South Africa, matches that of much more advanced countries, such as Japan, Spain, and the United States. Creating a new combined dataset on foreign direct investment (FDI) (covering greenfi eld investments as well as mergers and acquisitions) we show that fl ows of FDI to Organization for Economic Cooperation and Development (OECD) countries from developing countries like Brazil, India, Malaysia, and South Africa as a share of their GDP are as large as fl ows from countries like Japan, Korea, and the United States. Th en, taking the work of Hausmann et al. (2007) as a point of departure, we suggest that it is not just the composition of exports but their destination that matters. In both cross-sectional and panel regressions, with a range of controls, we fi nd that a measure of uphill fl ows of sophisticated goods is signifi cantly associated with better growth performance. Th ese results suggest the need for a deeper analysis of whether development benefi ts might derive not from deifying comparative advantage but from defying it.
Topic:
Economics, Globalization, and Foreign Direct Investment
Political Geography:
China, South Africa, and Mexico

45. The Great Regression? Financial Crisis in an Age of Global Interdependence

Author:
Vadim Kononenko, Raimo Väyrynen, Toby Archer, Kristian Kurki (ed.), and Matti Nojonen
Publication Date:
12-2009
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
The financial crisis and the ensuing global economic downturn have been the focal point of news coverage and policy analysis for over a year now, and speculation has been rife about how things will pan out. At one extreme are those who shrug the situation off as a significant yet transient dent in economic development, with marginal repercussions on the global system. At the other end are those touting the crisis as the first step in an epoch-making transition in the global power balance, where rapidly expanding economies like China, Brazil and India will make gains on the hitherto dominant developed nations, shifting the distribution of power in the world. Whatever the eventual outcome, there is no denying that the crisis's impact on international relations will be significant.
Topic:
Economics, Globalization, Power Politics, and Financial Crisis
Political Geography:
China, India, and Brazil

46. Global security in a multipolar world

Author:
Radha Kumar, Álvaro de Vasconcelos, Andrei Zagorski, Paulo Wrobel, Feng Zhongping, Robert Hutchings, Elizabeth Sidiropoulos, and Luis Peral
Publication Date:
10-2009
Content Type:
Working Paper
Institution:
European Union Institute for Security Studies
Abstract:
This is the second Chaillot Paper in a series exploring the various strands of a global topic: multilateralising multipolarity. Through the essays collected in the first study, we set out to assess the scope of change in the international system and how EU action could best be suited to bringing about a multilateral order. After the fall of the Berlin Wall brought about the end of bipolarity, the world has changed no less dramatically since the 1990s witnessed the Balkan wars and the first EU military crisis-management operations. Basically, the post-Cold War 'unipolar' world turned 'multipolar', and as a result the West can no longer tackle global issues – made more pressing indeed due to this very transformation – on its own any more than it can deal single- handedly with regional crises. The comparative analysis of the strategic vision of Brazil, Russia, India, and China, the so-called BRICs, showed that the best policy mindset for the European Union, contrary to some suggestions, was not to try to become a normal hard-power player. It further concluded that, in a multi- polar world, this was simply not a viable option. For the European Union to survive and to influence the outcome of the international order, it must succeed in giving a multilateral dimension to the current multipolarity; in other words, Europe must be able to define together with other world and regional powers the norms and rules that are needed to drive concerted efforts to stay clear of some future clash of competing unilateralisms.
Topic:
Security, Globalization, Intelligence, and Regional Cooperation
Political Geography:
Russia, China, Europe, India, and Brazil

47. Crisis and Consensus; America and ASEAN in a New Global Context

Author:
Donald K. Emmerson
Publication Date:
02-2009
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
No crisis is uniformly global. The suffering and the opportunity that a “global” crisis entails are always unevenly distributed across countries, and unevenly across the population inside any one country. That said, one can nevertheless argue that we—not the old royal “we” but, more presumptuously, the new global “we”—are in January 2009 experiencing the latest of four dramatic changes that major parts of the world have undergone over the last twenty years. In 1989, of course, the Berlin Wall was breached, ending the Cold War, followed by the implosion of Lenin's Soviet dystopia two years later. Nor did the 1989 massacre of proreform demonstrators in Tiananmen Square revive a command economy in China. Instead it kept the polity shut so that Deng's economy could continue to open.
Topic:
International Relations, Globalization, and International Political Economy
Political Geography:
United States, China, America, Israel, Asia, and Berlin

48. Managing Strategic Competition with China

Author:
Philip C. Saunders
Publication Date:
07-2009
Content Type:
Working Paper
Institution:
Academy of Political Science
Abstract:
Officials in the Obama administration have highlighted the need for a “positive, cooperative, and comprehensive relationship” with China that can help the United States address an array of global challenges. Administration officials have not adopted the “responsible stakeholder” language that characterized recent U.S. China policy, but their overall approach appears compatible with that concept. Initial policy statements have focused on expanding U.S.-China cooperation, with particular emphasis on addressing the global economic crisis and climate change.
Topic:
Foreign Policy, Climate Change, Globalization, and Weapons of Mass Destruction
Political Geography:
United States and China

49. Brazil's Rise as an Emerging Power: Implications for the U.S. and Europe

Author:
Stefan A. Schirm
Publication Date:
06-2009
Content Type:
Working Paper
Institution:
Center for Transatlantic Relations
Abstract:
The last 20 years have witnessed the economic emergence of several countries, which are considered today to be “pivotal states”, “regional powers”, and “emerging powers” in world politics. These emerging powers encompass countries such as China, India, Brazil and Russia, (the BRICs), which have in common both that they have experienced rapid economic growth and that they seek to influence the global economy and world politics to a greater degree than they did before their rise. The BRICs have become leading exporters and lenders (especially China to the US) as well as holders of currency reserves, and they (plus Mexico) are expected to surpass the GNP of the G7 industrialized countries by the year 2040. The reasons for the assignment of a new role, and often of increased power, to these states are their demographic and geographic size, their economic and military capacities, and their political aspirations.
Topic:
Economics, Emerging Markets, and Globalization
Political Geography:
Russia, United States, China, Europe, India, Brazil, and Latin America

50. Omens and Threats in the Doha Round: The Decline of Multilaterialism?

Author:
Daniel Drache and Marc D. Froese
Publication Date:
05-2008
Content Type:
Working Paper
Institution:
Institute on Globalization and the Human Condition, McMaster University
Abstract:
Faced with the lengthening shadow of the Doha Round of trade negotiations, scholars often point to the seven years it took negotiators to conclude the Uruguay Round. This paper argues that the negotiating deadlock in the Doha Round represents a transformative shift on the part of Member nations away from the current model of multi-platform, single-undertaking multilateralism and towards smaller negotiating platforms. We examine two dynamics that mark this round as qualitatively different from the Uruguay Round. First, new, highly vocal global trading powers such as India, China and Brazil have begun to use their market power to push for a trade deal that directly benefits the Global South. Second, the new rules for trade that were agreed to in the Uruguay Round had promised a reduction in non-tariff protectionism, but the continuing popularity of protectionist industrial policies has shown the developing world that greater access to northern markets might not be delivered at the World Trade Organization. The paper concludes with a discussion of trade multilateralism in historical context. This is not the first time the world has been faced with systemic changes in international economic relations. In the nineteenth and the early twentieth centuries, global trade broke down – first with the end of the British free trade system, and shortly thereafter with the catastrophic collapse of the interwar trading order. Nevertheless, this qualitative shift in the negotiating strategies of states need not be seen as a return to protectionism. The explosion of preferential regional agreements offers a number of new ways to address the social and political dimensions of economic integration.
Topic:
Agriculture, Globalization, International Organization, International Trade and Finance, Post Colonialism, Sovereignty, Treaties and Agreements, and World Trade Organization
Political Geography:
China and Brazil

51. China and the Future of the Developing World: The Coming Global-Asian Era and its Consequences

Author:
Jeffrey Henderson
Publication Date:
05-2008
Content Type:
Working Paper
Institution:
United Nations University
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.
Topic:
Development, Globalization, International Political Economy, International Trade and Finance, and Oil
Political Geography:
China and Asia

52. Globalization and Global Governance in the 21st Century

Author:
Jeffrey Hart and Joan Edelman Spero
Publication Date:
01-2008
Content Type:
Working Paper
Institution:
Centre for International Peace and Security Studies
Abstract:
An examination of international economic relations in the six decades since World War II reveals many ways in which political factors have shaped economic outcomes. The postwar security system significantly affected the postwar economic system. The creation of a bipolar security system following the outbreak of the Cold War led to the separation of the Eastern and Western economic systems and provided a basis for the dominant role of the United States in the Western system and of the Soviet Union in the Eastern system. The end of the Cold War led in turn to the end of the East-West economic divide and to the integration of the formerly Communist countries and China into the global capitalist economy.
Topic:
Cold War, Globalization, Government, International Cooperation, International Political Economy, International Security, and International Affairs
Political Geography:
United States and China

53. Exploring Host Country Capacity for Increasing U.S. Study Abroad

Author:
Robert Gutierrez, Rajika Bhandari, and Daniel Obst
Publication Date:
05-2008
Content Type:
Working Paper
Institution:
Institute of International Education (IIE)
Abstract:
According to the Institute of International Education's most recent data, over 223,000 U.S. students annually study abroad for academic credit, and there are widespread calls to double, triple or even quadruple that number in the coming decade, sending students to more diverse destinations around the globe. Where would another 300,000-700,000 Americans go to study abroad? Which university systems, especially in the non-traditional destinations, have the capacity to absorb large increases when countries like India, China, Egypt, Turkey and Brazil are struggling to accommodate the demand for higher education by their own citizens? To begin addressing these important questions, the Institute of International Education launched Meeting America's Global Education Challenge, a focused policy research initiative which explores from multiple perspectives the challenge of substantially expanding the numbers and destinations of U.S. students studying overseas. In May 2007, IIE published its first White Paper in this series, Current Trends in U.S. Study Abroad the Impact of Strategic Diversity Initiatives.
Topic:
International Relations, Education, and Globalization
Political Geography:
United States, China, Europe, Turkey, Brazil, and Egypt

54. The BRICSAM Countries and Changing World Economic Power: Scenarios to 2050

Author:
Manmohan Agarwal
Publication Date:
10-2008
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
Rapid economic growth in the large developing countries collectively known as BRICSAM (Brazil, Russia, India, China, South Africa and Mexico) has the potential to change the balance of economic power in the world. This paper analyzes this potential building on developments in these economies over the past four decades in the context of the evolution of the world economy. This evolution has two significant features: increasing economic integration and a hiatus in growth. Increasing integration can be observed in the almost universal rise in the share of the exports of goods and services in GDP, and the increase in private capital flows. There has been a hiatus in growth since the 1973-1974 increase in the price of oil.
Topic:
Economics, Globalization, International Political Economy, and International Affairs
Political Geography:
Russia, China, India, South Africa, Brazil, and Mexico

55. China's Role as a Trade Bridge for Expanding Regional and World Trade

Author:
Min Gong and Wenpu Li
Publication Date:
10-2008
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
To understand China's trade relations with the US, Japan, and South Korea, we estimate a vector autoregressive model (VAR) model to investigate the trade interactions among these four countries using data from the period of the first quarter of 1993 to the fourth quarter of 2005. We find substantial Foreign Direct Investment (FDI)-induced indirect trade from Japan and Korea to the US through China, and between Japan and Korea through China. These indirect trade flows lead to increases in China's trade deficit with Japan and Korea as well as China's trade surplus with the US. The indirect trade flows through China also indicate the importance of China's role as a trade bridge. From the viewpoint of world trade growth, as a trade bridge, China contributes to the stable growth of the regional and world economies. However, China's role as a trade bridge may negatively affect its long-run economic growth.
Topic:
Globalization, International Political Economy, and International Trade and Finance
Political Geography:
United States, Japan, China, Asia, South Korea, and Korea

56. China's Quest for Alternative to Neo-liberalism: Market Reform, Economic Growth, and Labour

Author:
Dic Lo
Publication Date:
11-2007
Content Type:
Working Paper
Institution:
School of Oriental and African Studies - University of London
Abstract:
Since the turn of the century, China's state and society have focused their efforts on “constructing a harmonious society”. Viewed from the perspective of globalization, these efforts represent a quest for a model of development that deviates fundamentally from neo-liberalism. In particular, state policies and institutional reforms in recent years have tended to target at labor compensation-enhancing economic growth, rather than growth based on “cheap labor”. This paper seeks to clarify the nature of the emerging Chinese economic development model, and, on that basis, to analyze its efficiency and welfare attributes. In conjunction with an analysis of China's economic growth path, which seems to have undergone a transition from labor-intensive growth to capital-deepening growth, it is argued that the new development model does represent a more feasible and desirable pursuit than neo-liberalism. The paper concludes with a discussion on the impact of this new Chinese development model on the future direction of globalization.
Topic:
Development, Economics, Globalization, and Markets
Political Geography:
China and Asia

57. Globalisation and Labour Markets Policy Issues Arising from the Emergence of China and India

Author:
David T. Coe
Publication Date:
11-2007
Content Type:
Working Paper
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Globalisation is having important effects on labour markets in OECD countries. The global supply of labour has increased enormously with the emergence of China and India. At the same time technological advances have contributed to heightened income inequality and changed the nature of globalisation itself, most vividly demonstrated by the rapid growth of offshoring of business services that were previously nontradable. It is argued in this paper that these developments are best characterized as an intensification and broadening of the process of globalisation rather than a fundamental change in the nature of globalisation. They will, nevertheless, have long-lasting effects on OECD labour markets, increasing the urgency of implementing the labour market policies set out in the Restated OECD Job Strategy. The paper concludes that the most important implication of the emergence of China and India in the context of widespread perceptions of increasing economic inequality may be to reduce support for globalisation in OECD countries.
Topic:
Globalization, Labor Issues, Economic Inequality, and Labor Market
Political Geography:
China, India, and Asia

58. Economic Size Trumps All Else? Lessons from BRICSAM

Author:
Timothy Shaw, Andrew F. Cooper, and Agata Antkiewicz
Publication Date:
12-2006
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
Continuing CIGI's BRICSAM research, this paper questions whether size (economic or population) of emerging economies alone is enough to warrant accommodation in the rules and structures of the international system. The global realignment of states following the resulting power vacuum brought on by the end of the Cold War is finally materializing, as a new triangular formation has taken shape: the 'first world' club of the OECD; the 'second world' of emerging economies; and, a heterogeneous 'third world' of the rest. The interplay between and mobility among these groups of states deserves in-depth analysis. The core of this paper observes the economic and social trends of countries in the second tier, and their upwards aspirations towards the top-tier of the global architecture. Traced through a variety of indices, the growth of the BRICSAM group of countries (Brazil, Russia, India, China, South Africa, ASEAN-4 and Mexico) is demonstrated to be a powerful force in international economics and political economy. For the inclusion of these states, a change in the key aspects of global economic governance, the international architecture and geopolitics seems inevitable, and with it, new challenges arise for decision-makers and scholars alike.
Topic:
Cold War, Development, Economics, and Globalization
Political Geography:
Russia, China, India, South Africa, Brazil, and Mexico

59. The Long March in Hong Kong: Continuing Steps in the Transition from Colony to Democracy

Author:
Herman B. Leonard and Thomas S. Axworthy
Publication Date:
08-2006
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
Avowedly apolitical, Hong Kong is in the midst of the most rapid political transition in China and the success of this transition is crucial not only for the seven million residents of Hong Kong, but also for the future of China itself. How the authorities in Beijing respond to democratic demands from Hong Kong, and how the government of Hong Kong treads a democratic pathway within the boundaries of the Basic Law, are two of the most important questions in international politics today. China's decisions about Hong Kong will tell us much about the prospects of democratic transformation in China itself, and on that crucible the future of the 21 st century might turn.
Topic:
International Relations, Globalization, and Government
Political Geography:
China, Israel, Beijing, and Hong Kong

60. China and the Global Economy: Medium-term Issues and Options - A Synthesis Report

Author:
Ricardo Hausmann, Edwin Lim, and Michael Spence
Publication Date:
07-2006
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
China's economic and social achievements since the beginning of reform and opening are unprecedented in global history. Managing the growth process in this continuously changing environment has required great skill and the use of unconventional economic policy. Now China has entered a new era in its development process with a set of challenges largely different from those of the recent past. Some problems - such as growing internal and external structural imbalances, increasing income and regional inequality – have arisen from, or been exacerbated by, the very pattern and success of high growth since reforms began. Others are newly posed by rapid changes in the global economy. These challenges can best be tackled in an integrated and coordinated fashion. This report, supported by the China Economic Research and Advisory Programme (CERAP), identifies the primary challenges facing China today and presents options for meeting them.
Topic:
International Relations, Security, and Globalization
Political Geography:
China and Asia

61. Threshold Estimation on the Globalization-Poverty Nexus: Evidence from China

Author:
Zhicheng Liang
Publication Date:
06-2006
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
China has experienced rapid integration into the global economy and achieved remarkable progress in poverty reduction over the last two decades. In this paper, by employing panel data covering twenty-five Chinese provinces over the period of 1986- 2002, and applying the endogenous threshold regression techniques, we empirically investigate the globalization-poverty nexus in China, paying particular attention to the nonlinearity of the impact of globalization on the poor. Estimation results provide strong evidence to suggest that there exists a threshold in the relationship between globalization and poverty: globalization is good for the poor only after the economy has reached a certain threshold level of globalization.
Topic:
Economics, Globalization, and Poverty
Political Geography:
China and Asia

62. Globalization and the Urban Poor in China

Author:
Guanghua Wan and Yin Zhang
Publication Date:
04-2006
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper examines the distributional impact of globalization on the poor in urban China. Employing the kernel density estimation technique, we recovered from irregularly grouped household survey data the income distribution for 29 Chinese provinces for 1988-2001. Panels of the income shares of the poorest 20, 10 and 5 per cent of the urban residents were then compiled. In a fixed-effect model, two of the central conclusions of Dollar and Kraay (2002)—that 'the incomes of the poor rise equi-proportionately with average income' and that trade openness has little distributional effect on poverty—were revisited. Our results lend little support to either of the Dollar-Kraay conclusions, but instead indicate that average income growth is associated with worsening income distribution while globalization in general, and trade openness in particular, raises the income shares of the poor. It is also found that openness to trade and openness to FDI have differential distributional effects. The beneficial effect of trade was not restricted to the coastal provinces only, but also weakened significantly after 1992. These findings are robust to allow for nonlinearity in the effect of globalization and to control for the influence of several other variables.
Topic:
Economics, Globalization, and Poverty
Political Geography:
China and Asia

63. Leaders and Laggards: When and Why do Countries Sign the NPT?

Author:
Christopher Way and Karthika Sasikumar
Publication Date:
02-2005
Content Type:
Working Paper
Institution:
Centre for International Peace and Security Studies
Abstract:
The Nuclear Nonproliferation Treaty (NPT) was concluded at the end of the 1960s, a decade which saw the drama of the Cuban Missile Crisis, the height of the nuclear arms race between the superpowers, and the entry of France and China into the club of countries that had tested nuclear weapons. The basic bargain underlying the NPT allows countries to surrender their right to develop nuclear weapons in return for access to international assistance in civilian nuclear technology. Five countries (the United States, the Soviet Union, the United Kingdom, France, and China) that had tested nuclear devices before 1 January 1967, were conferred the status of Nuclear Weapon State (NWS) by Article IX. All other signatories (Non Nuclear Weapon States or NNWSs) pledged to abjure the development and diffusion of nuclear weapons technology.
Topic:
International Relations, Globalization, Nuclear Weapons, and Treaties and Agreements
Political Geography:
United States, China, United Kingdom, France, Soviet Union, and Cuba

64. What Might the Next Emerging-Market Financial Crisis Look Like?

Author:
Morris Goldstein and Anna Wong
Publication Date:
07-2005
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
This paper addresses the following question: If a financial crisis affecting a group of emerging economies were to take place sometime over the next three years, where would the crisis likely originate, how could it be transmitted to other economies, and which economies would be most affected by particular transmission or contagion mechanisms? A set of indicators is presented to gauge the vulnerability of individual emerging economies to various shocks, including a slowdown in import demand in both China and the United States, a fall in primary commodity prices, increased costs and lower availability of external financing, alternative patterns of exchange rate changes, and pressures operating on monetary and fiscal policies in emerging economies.
Topic:
Economics, Emerging Markets, Globalization, and International Trade and Finance
Political Geography:
United States and China

65. From the Discourse of "Sino-West" to "Globalization": Chinese Perspectives on Globalization

Author:
Yu Keping
Publication Date:
03-2004
Content Type:
Working Paper
Institution:
Institute on Globalization and the Human Condition, McMaster University
Abstract:
“Globalization” has become a fashionable term, and is itself as globalized as McDonald's, the Internet and the film Titanic. So wherever in the West or the East, in developing or developed countries, or in capitalist or socialist countries, people are talking about “globalization,” so too are they doing in China. All popular theories in the West tend to have repercussions in China sooner or later, as the examples of modernization theory, postmodern theory and globalization theory demonstrate. Modernization theory, which prevailed in the West in the 1950s and 1960s, did not become popular in China until the 1980s, while globalization theory, which came to prominence in the West in the early 1990s, has been a hot topic in China since the mid-1990s. This fact itself is a good indicator that globalization has been an inevitable trend shaping the development process of the world, including China. Having introduced reforms that open the country's economy to the world markets, and as an active member of the international community, China is necessarily facing the effects of globalization. As a result, Chinese politicians and scholars are posing questions about how to respond to the challenges and opportunities that globalization presents.
Topic:
Globalization
Political Geography:
China and Asia

66. Globalization and Regional Income Inequality: Evidence from within China

Author:
Guanghua Wan, Zhao Chen, and Ming Lu
Publication Date:
11-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
China's recent accession to the WTO is expected to accelerate its integration into the world economy, which aggravates concerns over the impact of globalization on the already rising inter-region income inequality in China. This paper discusses China's globalization process and estimates an income generating function, incorporating trade and FDI variables. It then applies the newly developed Shapley value decomposition technique to quantify the contributions of globalization, along with other variables, to regional inequality. It is found that (a) globalization constitutes a positive and substantial share to regional inequality and the share rises over time; (b) capital is one of the largest and increasingly important contributor to regional inequality; (c) economic reform characterized by privatization exerts a significant impact on regional inequality; and (d) the relative contributions of education, location, urbanization and dependency ratio to regional inequality have been declining.
Topic:
Economics and Globalization
Political Geography:
China and Asia

67. China and State/Space: Scale Relations and the City in an Era of Globalization

Author:
Carolyn Cartier
Publication Date:
03-2004
Content Type:
Working Paper
Institution:
Center for International Studies, University of Southern California
Abstract:
Since the onset of reform and opening in the People's Republic of China after 1978, decentralization of state power has arguably been the most consequential transformation of the Chinese political economy, underpinning the dynamics of economic growth and state-society relations. The growth of the number and size of cities and the urban population—urbanization—are the outstanding geographical manifestations of these processes. How should we analyze the relationships between them? This chapter introduces scale relations as a basis for assessing the decentralization of state power and urbanization, and to demonstrate the 'rescaling' of the Chinese state in an era of globalization as spatial processes and their manifestation at the urban scale.
Topic:
Globalization and Government
Political Geography:
China and Asia

68. Does China Matter? The Global Economic Issues

Author:
Stuart Harris
Publication Date:
09-2003
Content Type:
Working Paper
Institution:
Australian National University Department of International Relations
Abstract:
In 1999, Gerry Segal, then Director of Research at the International Institute of Strategic Studies, wrote an article in Foreign Affairs entitled 'Does China matter?'. His article ranged across economic, political and strategic issues but his overall conclusion was that China's importance had been greatly exaggerated. As far as economic questions were concerned, Segal saw China as a small market 'that matters little to the world, especially outside Asia'.
Topic:
International Relations, Economics, and Globalization
Political Geography:
China and Asia

69. Free Movement of People, Goods, Services and Capital in View of the Context of Stability Pact

Author:
Mladen Stanicic
Publication Date:
02-2003
Content Type:
Working Paper
Institution:
Austrian National Defence Academy
Abstract:
The Stability Pact is a strategic concept whose aim is to warrant long- term peace and stability in South-Eastern Europe. It is becoming an indispensable element of the global security structure which is currently being constructed in relations between the big powers, the USA, Russia and China, with the active participation of the United Nations, the European Union, international financial institutions and individual countries. As one of the sponsors of the pact, the European Union is keenly interested in stability and peace among its next-door neighbours, some of whom are covered by the pending eastern enlargement. This enlargement is intended to transcend centuries of civilisational and religious divisions in Europe, the causes of many political and armed conflicts in the past. The vision of Europe in the 21st century, reaching all the way to the borders of the former Soviet Union, is that of a multicultural community encompassing states with diverse civilisational, religious, ethnic and cultural characteristics.
Topic:
Security, Globalization, International Cooperation, and International Trade and Finance
Political Geography:
Russia, United States, China, Europe, and Eastern Europe

70. The Crisis in Asia: An Empirical Assessment

Author:
Warwick McKibbin
Publication Date:
12-1999
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
The economies of South East Asia and Korea have been shaken by a financial and economic crisis that has enveloped the region since mid 1997. There are competing explanations for the cause of the crisis however most commentators would agree that a major shock that impacted on the countries has been a dramatic increase in the perceived risks of investing in these economies. This paper explores the impact of a re-evaluation of the risk in the Asian economies focussing on the differential real consequences of a temporary versus more permanent rise in risk. It contributes to our understanding of the possible consequences of the Asia crisis by applying a global simulation model that captures both the flow of goods as well as international capital flows between countries. The real impacts on the Asian economies of a rise in risk perceptions in the model are large and consistent with observed adjustment. However the spillovers to the rest of the world are relatively small because the loss in export demand that accompanies the crisis in Asia is offset by a fall in long term interest rates as capital flows out of Asia into the non-Asian OECD economies. Thus strong domestic demand in economies such as the US induced by the general equilibrium effects of the reallocation of financial capital can more than offset the consequences of lower export growth. The analysis also highlights the impacts on global trade balances reflecting the movements of global capital and points to both potential problems and lesson for policymakers over the coming years.
Topic:
Economics, Emerging Markets, and Globalization
Political Geography:
China, Israel, East Asia, and Asia

71. The Global Economic Impacts of Trade and Financial Reform in China

Author:
Warwick McKibbin and KK Tang
Publication Date:
12-1999
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Despite the setbacks from the recent Asian currency crisis, the ascendancy of Asia as an economic centre of world economic activity is likely to continue into the 21st century. A key issue that will shape the role of Asia, and indeed the shape of the world economy in the 21st century, is the economic development of China. To date China has successfully weathered the currency storm in Asia and continues on a program of economic reform. If anything, the problems of Japan and Korea provide powerful lessons for other countries undergoing rapid economic growth and structural change. These lessons include the importance of a well developed financial sector with lending and investment decisions based on market signals rather than government directives. Whether China can further integrate smoothly into global markets and sustain the fast growth of the last few decades will be a crucial development in the world economy. In this paper, we explore the impacts of continued Chinese economic reform with a focus on the role of international financial flows both in the adjustment within China as well as in the transmission of Chinese reforms to the rest of the world.
Topic:
Economics, Emerging Markets, and Globalization
Political Geography:
China, Israel, East Asia, and Asia

72. Regional and Multilateral Trade Liberalization: The Effects on Trade, Investment and Welfare

Author:
Warwick McKibbin
Publication Date:
12-1999
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
This paper explores the impact on economies of trade liberalization under alternative regional and multilateral arrangements: unilateral liberalization; liberalization as part of the ASEAN regional grouping; liberalization as part of the APEC regional grouping; or liberalization as part of a multilateral trade liberalization regime. The paper is based on a Dynamic Intertemporal General Equilibrium model (DIGEM) called the Asia-Pacific G-Cubed Model. It is shown that the long run gains from a country's own liberalization tend to be large relative to the gains from other countries liberalizing although this varies across countries. It is also shown that there is a significant difference between the effects on GDP (production location) and the effects on consumption per capita of the alternative liberalization approaches across countries. The timing of liberalization is also shown to matter. With open capital markets the gains from credibly announced trade liberalization are realized before the reforms are put in place because there is a rise in global investment which raises the global capital stock. In addition there is a reallocation of capital via financial market adjustment. This paper also demonstrates that for some economies, there can be short run adjustment costs to trade liberalization because resources cannot be instantly reallocated across sectors in an economy. These adjustment costs from own liberalization can be reduced if more countries also liberalize. The nature of the dynamic adjustment suggests that other macroeconomic policies may play an important role during the early period of phased-in trade liberalization.
Topic:
Economics, Emerging Markets, and Globalization
Political Geography:
China, Israel, East Asia, and Asia

73. Rapid Economic Growth in China: Implications for the World Economy

Author:
Warwick McKibbin and Yiping Huang
Publication Date:
12-1999
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
Rapid growth of the Chinese economy in the past decade and its potential for strong growth into the foreseeable future have caused anxieties in the rest of the world. Some commentators see Chinese growth wholly in terms of competition for trade and investment opportunities with other developing economies and a major cause of structural adjustments in the advanced industrialized economies. In particular there have been warnings of severe consequences for international agricultural markets. In this paper we use a dynamic general equilibrium model called the G-CUBED model (developed by McKibbin and Wilcoxen) to explore possible future paths of the Chinese economy based on projections of population growth, sectoral productivity growth, energy efficiency and technical change in the Chinese economy. This model captures not only the composition of the direct trade impacts of developments in the Chinese economy but also the implications of the endogenous flows of financial capital on macroeconomic adjustment in the world economy. The study focuses on the period from 1990 to 2020. Rather than being a problem for the world economy, we find strong growth in China is beneficial for the world economy directly through raising world incomes.
Topic:
Economics, Emerging Markets, and Globalization
Political Geography:
China, Israel, East Asia, and Asia

74. The Transmission of Productivity and Investment Shocks in the Asia Pacific Region

Author:
Warwick McKibbin
Publication Date:
12-1999
Content Type:
Working Paper
Institution:
The Brookings Institution
Abstract:
An important aspect of macroeconomic interdependence in the Asia Pacific region is the adjustment of trade and current account balances in response to changes in saving and investment rates in individual economies. Greater trade flows, reliance on imported intermediate goods as well as more integrated capital markets imply that shifts in private or public saving and investment rates in an economy in the region can potentially have large impacts on other economies. This paper explores the quantitative nature of these linkages by focusing on a number of shocks within the context of a new dynamic multi-sector global model called the Asia-Pacific G-Cubed Model (AP-GCUBED). This model integrates sectoral adjustment with macroeconomic interdependence including explicit treatment of capital flows to explore the implications of a variety of productivity and investment shocks in the Asia Pacific Region. The first shock considered is a permanent decline in private investment in Japan. The second shock is a temporary rise in total factor productivity growth in China. The fall in Japanese investment is found to have a significant effect on trade flows and financial flows in the region whereas the rise in Chinese productivity has a quite different effect on the region.
Topic:
Economics, Emerging Markets, and Globalization
Political Geography:
China, Israel, East Asia, and Asia

75. Wage Reform, Soft Budget Constraints and Competition

Author:
Jian Sun
Publication Date:
02-1999
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Since the beginning of the Chinese economic reforms in 1978, there has been a series of effort to reform the labour compensation practice in state-owned enterprises to strengthen the link between pay and productivity. Despite the reforms, however, rapid increases in wage rates occurred in state-owned enterprises. Moreover, although state-owned enterprises have much lower productivity gains than non-state enterprises, they pay substantially higher wages and have faster wage growth.
Topic:
Economics, Globalization, Industrial Policy, and International Political Economy
Political Geography:
China and Asia