Is China's Export-Oriented Growth Sustainable?

Is China's Export-Oriented Growth Sustainable?
Author: Kai Guo
Publisher: International Monetary Fund
Total Pages: 32
Release: 2009-08
Genre: Business & Economics
ISBN:

This paper assesses the sustainability of China's export-oriented growth over the medium to longer term. It shows that maintaining the current export-oriented growth would require significant gains in market share through lower prices in a range of industries. This, in turn, could be achieved through a combination of increases in productivity, lower profits, and higher implicit or explicit subsidies to industry. However, the evidence suggest that it will prove difficult to accommodate such price reductions within existing profit margins or through productivity gains. Moving up the value-added chain, shifting the composition of exports, diversifying the export base, and increasing domestic value added of exports could give room to further export expansion. However, experiences from Asian economies that had similar export-oriented growth suggest there are limits to the global market share a country can occupy. Rebalancing growth toward private consumption would provide a large impetus to output growth and reduce the need for gaining further market share.

On the Sustainability of China's Export Oriented Development Strategy

On the Sustainability of China's Export Oriented Development Strategy
Author: Xiang Tang
Publisher:
Total Pages: 13
Release: 2010
Genre:
ISBN:

Most western economists have denied the linkage between the rise in the skill premium in the North and North-South trade. Their main argument is that the volume of Southern exports is too small (about 2% of Northern GDP) to produce large labor-market effects. By exploring the nature of North-to-South outsourcing of low skill activities, we propose a CGE model in which a small volume of imports (e.g. 1% of Northern GDP) can cause the observed rise in skill premium. The implication of this is that trade may eventually be recognized as responsible for widening wage inequality, leading to heightened protectionist pressures in the west. Hence China's current export oriented development strategy is not sustainable.

China's Export-Led Growth Strategy

China's Export-Led Growth Strategy
Author: Yingfeng Xu
Publisher:
Total Pages: 0
Release: 2010
Genre:
ISBN:

A pressing challenge for China is determining where to accommodate millions of migrant workers displaced by the closing of many export-oriented factories. The current global financial crisis has exposed the fragility of the export-led growth strategy China has adopted over the past 30 years. Is there a better alternative for providing non-agricultural jobs than the sweatshops of cheap export production? In the present paper, international experience is reviewed to shed light on China's situation. Using pooled regression models, we analyze data from the World Bank for 209 economies. We investigate the experience of other economies to answer the following questions: What is the common process of expanding the non-agricultural economy? How is that process affected by the level of the real exchange rate? Is export production a common way of absorbing surplus rural labor? Finally, what are the ways that domestic demand and service employment can be expanded?

Export Dependence and Sustainability of Growth in China

Export Dependence and Sustainability of Growth in China
Author: Yilmaz Akyz
Publisher:
Total Pages: 0
Release: 2014
Genre:
ISBN:

This paper examines the contribution of exports to growth in China since the early years of the decade. It is estimated that, despite a high import content ranging between 40 and 50 percent, approximately one-third of Chinese growth before the global crisis was a result of exports, due to their phenomenal growth of some 25 percent per annum. This figure increases to 50 percent if spillovers to consumption and investment are allowed for. The main reason for excessive dependence on foreign markets is underconsumption. This is due not so much to a high share of household savings in GDP as to a low share of household income and a high share of profits. It is argued that China can no longer maintain such high growth rates for its exports, and, therefore, needs to turn to consumption-led growth by expanding the share of wages and household income in GDP and accelerating public spending in social infrastructure.

China

China
Author: Ross Garnaut
Publisher: Asia Pacific Press
Total Pages: 268
Release: 2004
Genre: Business & Economics
ISBN:

So important is China to the international economy that its recent announcement of its plans to reduce demand and growth sent a shudder through global financial markets. People are asking whether China's strong growth, which has continued now for a quarter of a century despite many challenges, is sustainable. The question matters not only for China, but also for the regional, as well as the global, economy. This book approaches the question of the sustainability of Chinese growth from a number of perspectives, with contributions from leading analysts on the Chinese economy based in Australia and China.

China 2049

China 2049
Author: David Dollar
Publisher: Brookings Institution Press
Total Pages: 444
Release: 2020-06-09
Genre: Political Science
ISBN: 0815738064

How will China reform its economy as it aspires to become the next economic superpower? It's clear that China is the world's next economic superpower. But what isn't so clear is how China will get there by the middle of this century. It now faces tremendous challenges such as fostering innovation, dealing with ageing problem and coping with a less accommodative global environment. In this book, economists from China's leading university and America's best-known think tank offer in depth analyses of these challenges. Does China have enough talent and right policy and institutional mix to transit from input-driven to innovation-driven economy? What does ageing mean, in terms of labor supply, consumption demand and social welfare expenditure? Can China contain the environmental and climate change risks? How should the financial system be transformed in order to continuously support economic growth and keep financial risks under control? What fiscal reforms are required in order to balance between economic efficiency and social harmony? What roles should the state-owned enterprises play in the future Chinese economy? In addition, how will technological competition between the United States and China affect each country's development? Will the Chinese yuan emerge as a major reserve currency, and would this destabilize the international financial system? What will be China's role in the international economic institutions? And will the United States and other established powers accept a growing role for China and the rest of the developing world in the governance of global institutions such as the World Trade Organization and the International Monetary Fund, or will the world devolve into competing blocs? This book provides unique insights into independent analyses and policy recommendations by a group of top Chinese and American scholars. Whether China succeeds or fails in economic reform will have a large impact, not just on China's development, but also on stability and prosperity for the whole world.

China's Changing Trade and the Implications for the CLMV

China's Changing Trade and the Implications for the CLMV
Author: Mr.Koshy Mathai
Publisher: International Monetary Fund
Total Pages: 84
Release: 2016-09-01
Genre: Business & Economics
ISBN: 1475531710

China’s trade patterns are evolving. While it started in light manufacturing and the assembly of more sophisticated products as part of global supply chains, China is now moving up the value chain, “onshoring” the production of higher-value-added upstream products and moving into more sophisticated downstream products as well. At the same time, with its wages rising, it has started to exit some lower-end, more labor-intensive sectors. These changes are taking place in the broader context of China’s rebalancing—away from exports and toward domestic demand, and within the latter, away from investment and toward consumption—and as a consequence, demand for some commodity imports is slowing, while consumption imports are slowly rising. The evolution of Chinese trade, investment, and consumption patterns offers opportunities and challenges to low-wage, low-income countries, including China’s neighbors in the Mekong region. Cambodia, Lao P.D.R., Myanmar, and Vietnam (the CLMV) are all open economies that are highly integrated with China. Rebalancing in China may mean less of a role for commodity exports from the region, but at the same time, the CLMV’s low labor costs suggest that manufacturing assembly for export could take off as China becomes less competitive, and as China itself demands more consumption items. Labor costs, however, are only part of the story. The CLMV will need to strengthen their infrastructure, education, governance, and trade regimes, and also run sound macro policies in order to capitalize fully on the opportunities presented by China’s transformation. With such policy efforts, the CLMV could see their trade and integration with global supply chains grow dramatically in the coming years.

China

China
Author: Gungwu Wang
Publisher: World Scientific
Total Pages: 556
Release: 2013
Genre: Business & Economics
ISBN: 9814425834

China has achieved significant socio-economic progress and has become a key player on the international stage after several decades of open-door and reform policy. Looking beyond China's transformation, this book focusses on the theme of governance which is widely regarded as the next most critical element to ensure that China's growth remains sustainable.Today, China is confronted with a host of pressing challenges that call for urgent attention. These include the need to rebalance and restructure the economy, the widening income gaps, the poor integration of migrant populations in the urban areas, insufficient public housing and healthcare coverage, the seeming lack of political reforms and the degree of environmental degradation. In the foreign policy arena, China is likewise under pressure to do more to address global concerns while not appearing to be overly aggressive. The next steps that China takes would have a great deal to do with governance, in terms of how it tackles or fails to address the myriad of challenges, both domestic and foreign.China: Development and Governance, with 57 short chapters in total, is based on up-to-date scholarly research written in a readable and concise style. Besides China's domestic developments, it also covers China's external relations with the United States, Japan, Korea and Taiwan. Non-specialists, in particular, should find this volume accessible and useful in keeping up with fast-changing developments in East Asia.

China and Sustainable Development in Latin America

China and Sustainable Development in Latin America
Author: Rebecca Ray
Publisher: Anthem Press
Total Pages: 201
Release: 2017-01-02
Genre: Social Science
ISBN: 1783086165

During Latin America’s China-led commodity boom, governments turned a blind eye to the inherent flaws in the region’s economic policy. Now that the commodity boom is coming to an end, those flaws cannot be ignored. High on the list of shortcomings is the fact that Latin American governments—and Chinese investors—largely fell short of mitigating the social and environmental impacts of commodity-led growth. The recent commodity boom exacerbated pressure on the region’s waterways and forests, accentuating threats to human health, biodiversity, global climate change and local livelihoods. China and Sustainable Development in Latin America documents the social and environmental impact of the China-led commodity boom in the region. It also highlights important areas of innovation, like Chile’s solar energy sector, in which governments, communities and investors worked together to harness the commodity boom for the benefit of the people and the planet.