Robert Koopman, Zhi Wang, Shang-Jin Wei, 08 August 2008

Many policy assessments, such as the effect of a currency revaluation on trade balances, are sensitive to the share of domestic content in a country’s exports. The current method might be problematic for countries with a high share of processing exports, such as China, Mexico and Vietnam. This column introduces a new method for calculating domestic content shares and presents some striking estimates for China. The share of domestic content in China’s exports is about 50%, much lower than most other countries: this implies that an exchange rate appreciation is likely to have a smaller effect on China’s trade surplus than for other countries.

Joseph Francois, 01 August 2008

The WTO talks were as much a distraction as an opportunity. The agenda was aimed at a world that no longer exists. Negotiations of some form should and will resume: the questions are "where?" and "between whom?" Success will require a different game, with different rules and different players. This column considers the options.

Stefan Tangermann, 22 July 2008

New research shows that India, China, and speculators are not the culprits in the food price explosion. Biofuels were a significant element in the 2005-2007 food price surge as they accounted for 60% of the growth in global consumption of cereals and vegetable oils. There cannot be any doubt that biofuels were a significant element in the rise of food prices. Since new research also shows that biofuel support policies are disappointingly ineffective on environmental grounds, governments should reconsider them.

Sourafel Girma, Yundan Gong, Holger Görg, Zhihong Yu, 08 July 2008

China has largely reduced the scope of its production and innovation subsidies at the firm level, but some still remain. Recent research shows that such production subsidies do, on average, boost firm-level exports especially in more innovative and capital-intensive industries and especially for firms with previous export experience.

Christian Broda, 03 July 2008

Conventional wisdom says globalisation has increased US income inequality. This column says that is dead wrong, as China and Wal-Mart have increased the purchasing power of the poor more than the rich.

Raphael Auer, Andreas Fischer, 13 June 2008

Research using a novel empirical technique suggests that import competition from low-wage countries dampens US producer price inflation for manufactured goods by more than 2 percentage points annually.

Patrick Messerlin, Jinghui Wang, 24 May 2008

EU-Chinese trade relations are disappointingly stagnant. This column proposes a new European strategy for China, suggesting a small, feasible bargain to jump-start economic engagement with the emerging giant.

Judith Dean , Mary Lovely, 14 May 2008

Chinese trade and pollution have exploded over the last decade. But new evidence shows that trade isn’t to blame for the pollution. In fact, Chinese imports and exports are becoming cleaner over time.

Yao Amber Li , John Whalley, Shunming Zhang , Xiliang Zhao, 18 April 2008

Unlike most developing economies, China’s educational policy focuses on upgrading higher education. This column summarises the major transformation occurring in China – including nearly a quintupling in enrolments – and highlights its implications for the global economy.

Lionel Fontagné, Guillaume Gaulier, Soledad Zignago, 28 March 2008

China and Germany have nearly the same export profile in terms of breadth, but the prices and quality of their exports differ greatly. Here are some of the policy implications of international specialisation across varieties within products.

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.

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