Arvind Panagariya, 15 January 2008

Historically, successful development has involved exporting labour-intensive manufactures. Despite opening up to the world economy in many respects, India’s policies continue to retard the expansion of labour-intensive sectors. Here is a discussion of how India could speed its transition to a modern economy.

Simon Evenett, 15 December 2007

If the US and EU continue down the path of confronting China directly, they will face a choice between piecemeal trade actions that highlights the divergence between their words and deeds, or the imposition of a blatantly WTO-illegal restriction on Chinese exports that would ruin their reputations as good WTO members.

Alyson Ma, Bruce Blonigen, 13 November 2007

The allegation: China extracts rents and technology from foreign competitors, thus allowing it to grow even faster and longer than most would have imagined possible. The evidence: China’s industrial policies have been successful in attracting foreign investment, but not necessarily in increasing the sophistication of its own firms through technology transfer.

Lee Branstetter, Fritz Foley, 13 November 2007

Here are some hard facts countering the myth that Western MNEs have hollowed out their domestic economies in their quest to build up China as the world’s factory.

Shang-Jin Wei, 29 October 2007

Those urging China to adopt a more flexible exchange-rate regime sell the policy advice on the ground that it will substantially speed up the adjustment of global current accounts and that it will also substantially enhance the effectiveness of China’s domestic macroeconomic policies. Both supposed benefits may be exaggerated.

Peter Schott, 10 October 2007

Fear of China’s industry mirrors that of Japan’s in the 1980s when the Japanese were poised to take over the world’s manufacturing and it was the yen that was undervalued. Then as now, competition is painful for US and European firms, but firms don’t stand still. Some fail, others adapt, and the best of them not only survive, they thrive.

Philip Lane, 14 September 2007

Increasing the flexibility of the exchange rate regime is the major priority in setting a course towards the full integration of China into the international financial system.

Marvin Goodfriend, Eswar Prasad, 22 August 2007

US and EU pressure on China to revalue the renminbi create the mistaken impression that there is an unavoidable conflict of interests. A switch by China to a more flexible exchange rate regime, accompanied by a shift to a new nominal anchor, would serve China’s domestic interests and simultaneously defuse protectionist sentiments abroad. A politically savvy recasting of this issue as one of Chinese monetary-policy independence could help solve many problems.

Daniel Lederman, Marcelo Olarreaga, Guillermo Perry, 08 August 2007

Chinese and Indian growth has generally helped by pushing up prices of commodities where Latin America has a comparative advantage and by encouraging positive trade and FDI spillovers. Some industries and firms in some countries, however, have been hurt.

Jean Pisani-Ferry, 06 July 2007

When the IMF was a monitor of borrowers’ policies, dominance of the IMF Board by creditor countries was natural, but an institution whose main role is to facilitate global consultations and arbitrate currency disputes needs a more balanced shareholder structure.

Tim Besley, Masayuki Kudamatsu, 05 July 2007

Autocracies are bad, but are sometimes economically successful. Empirical analysis provides lessons on how to institutionalise good government in a wider context.

Richard Pomfret, 22 June 2007

Since 2000, East Asian countries have signed over 70 trade agreements. Is this ‘noodle bowl’ of regional agreements in the world’s most dynamic economic region a threat to the multilateral global trading system and to other regions’ economic prosperity?

Shang-Jin Wei, 16 June 2007

Data on 12,400 firms in 120 Chinese cities show that state-owned firms have lower marginal returns to capital than private or foreign firms. This inefficiency costs China 5% of its GDP and suggests there would be big gains to further financial and corporate-governance reforms.

Jeffrey Frankel, Shang-Jin Wei, 23 April 2007

The authors of CEPR DP6264 analyse the precise nature of China's exchange rate regime from July 2005 to early 2007 and make some surprising discoveries.



CEPR Policy Research