Search Result

Srl

Item

ID: 096221

China as a global manufacturing powerhouse: strategic considerations and structural adjustment / McKay, Huw; Song, Ligang

Song, Ligang	Journal Article
	0 Rating(s) & 0 Review(s)

Publication

2010.

Summary/Abstract

This study examines the nature and consequences of China's rise to the center of world economic affairs through manufacturing-led development. Our historical analysis shows that China is still well short of the point in its developmental process where its growth might be reasonably expected to slow, or the energy, resource and carbon intensity of growth to recede. The study argues that the current trajectory of industrialization will have to be altered when China becomes more actively engaged in dealing with structural issues at home and abroad against the background of the unwinding of global imbalances. One profitable strategy that China might employ would be to approximate the incredibly fruitful mass-market integration efforts of the USA that eventually elevated it to its position of global primacy. The cyclical re-emergence of excess capacity in Chinese heavy industry, serious questions about the medium term ability of other major regions to accommodate further large gains in Chinese market share, and the stark conflict between the contemporary style of industrial development and the health of the biosphere indicate strongly that now is the time to catalyze the required adjustment and reform processes that will underpin sustainable long-run prosperity.

Key Words

Industrialization ; Energy Intensity ; Carbon Constraint ; Export Dependency ; Global Imbalance

In Basket

Export

ID: 169158

Global imbalance adjustment: stylized facts, driving factors and China's prospects / Zhang, Ming; Liu, Yao

Zhang, Ming	Journal Article
	0 Rating(s) & 0 Review(s)

Summary/Abstract

This paper summarizes global imbalance adjustment after the GFC and analyzes the evolution of balance of payments using a four‐quadrant diagram. We construct the framework of a stock adjustment mechanism to analyze the main driving factors for the imbalance in surplus/deficit countries and debtors/creditors in an attempt to determine the sustainability of imbalance adjustment. We find that imbalances have been reduced to some extent, but most countries have not achieved rebalance after the global financial crisis. Therefore, we propose an ideal path for global imbalance adjustment and summarize the policy practices of representative countries that have followed this route. Based on our analysis, we suggest that China should learn from the Australian experience and adopt a macro‐prudential assessment policy, actively adjust the domestic economic structure and optimize the structure of balance of payments.

Key Words

Global Imbalance ; Net Foreign Assets ; Current Account ; Flow Adjustment ; Stock Adjustment

In Basket

Export

ID: 120841

Renminbi internationalization as a response to the global imbal / Gao,Yuning; Coffman, D'Maris

Gao,Yuning	Journal Article
	0 Rating(s) & 0 Review(s)

Publication

2013.

Summary/Abstract

The build-up of huge foreign exchange reserve makes China a net creditor and also brings in significant challenges to the Chinese economy. Considering the internationalization of the renminbi as China's response to the global imbalance, this paper analyzes the effect of renminbi internationalization on the formation of reserves and compares its benefits and costs in rebalancing China's external position with those of outward direct investment. It assesses the current progress in the practice of using the renminbi in cross-border trade settlement and in the development of the offshore renminbi market. It further examines the possibility of the renminbi serving as a global reserve currency in the future.

Key Words

Renminbi Internationalization ; Global Imbalance ; Outward Direct Investment ; Offshore Renminbi Market

In Basket

Export