The Chinese Economic Renaissance: Apocalypse or Cornucopia?

286 Pages·2008·1.02 MB·English

by  Dilip K. Das

The Chinese Economic
Renaissance
Apocalypse or Cornucopia?
Dilip K. Das
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The Chinese Economic Renaissance
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Also by Dilip K. Das
MIGRATION OF FINANCIAL RESOURCES TO DEVELOPING COUNTRIES
INTERNATIONAL TRADE POLICY: A Developing-Country Perspective
KOREAN ECONOMIC DYNAMISM
IMPORT CANALISATION
THE YEN APPRECIATION AND THE INTERNATIONAL ECONOMY
FINANCING GROWTH:The External Contribution
THE ASIA-PACIFIC ECONOMY
THE FUTURE OF ASIAN EXPORTS
THE GLOBAL TRADING SYSTEM AT CROSSROADS: A Post-Seattle Perspective
THE ECONOMIC DIMENSIONS OF GLOBALIZATION
FINANCIAL GLOBALIZATION AND THE EMERGING MARKET ECONOMIES
REGIONALISM IN GLOBAL TRADE
ASIAN ECONOMY AND FINANCE:A Post-Crisis Perspective
THE DOHA ROUND OF MULTILATERAL TRADE NEGOTIATIONS:
Arduous Issues and Strategic Responses
CHINA AND INDIA: A Tale of Two Economies
THE EVOLVING GLOBAL TRADE ARCHITECTURE
Edited Books
AN INTERNATIONAL FINANCE READER (editor)
ASIAN EXPORTS (editor)
EMERGING GROWTH POLE:The Asia-Pacific Economics (editor)
INTERNATIONAL FINANCE: Contemporary Issues (editor)
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The Chinese Economic
Renaissance
Apocalypse or Cornucopia?
Dilip K. Das
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© Dilip K.Das 2008
All rights reserved.No reproduction,copy or transmission of this
publication may be made without written permission.
No paragraph of this publication may be reproduced,copied or transmitted
save with written permission or in accordance with the provisions of the
Copyright,Designs and Patents Act 1988,or under the terms of any licence
permitting limited copying issued by the Copyright Licensing Agency,90
Tottenham Court Road,London W1T 4LP.
Any person who does any unauthorised act in relation to this publication
may be liable to criminal prosecution and civil claims for damages.
The author has asserted his right to be identified as the author of this work
in accordance with the Copyright,Designs and Patents Act 1988.
First published 2008 by
PALGRAVE MACMILLAN
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Printed and bound in Great Britain by
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To Vasanti, for being the wind under my wings.
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See simplicity in the complicated.
Achieve greatness through little things.
In the universe difficult things are done by attempting the easy first.
In the universe great acts are made up of small deeds.
The sage does not attempt anything very big,
and by so doing achieves greatness.
—Wisdom of Tao Te King
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Contents
List of Tables xiii
Preface xiv
Acknowledgments xx
About the Author xxi
1 A Chinese Renaissance: Three Decades of Inexorable
Economic Progress 1
1.1 Making an economic U-turn 1
1.1.1 A unique development model 5
1.1.2 Why the reform and liberalization
program succeeded 7
1.1.3 Two vital variables: Saving and investment 11
1.1.4 Demographic bonus 14
1.1.5 Total factor productivity (TFP) growth 16
1.1.6 Rapid growth and relentless economic ascent 20
1.1.7 Downside of relentless economic ascent 25
1.2 Comparison with the other Asian high achievers 27
1.2.1 Larger potential global impact of China 29
1.2.2 China’s global acceptance 32
1.3 Evolution of a large trading economy 33
1.3.1 WTO accession: Marathon negotiations 37
1.3.2 Emergence of an export juggernaut 39
1.3.3 Outer-orientation and
economic transformation 43
1.4 A magnet for FDI 46
1.4.1 The quantitative dimension and geographical
concentration of FDI 48
1.4.2 Did China eat ASEAN’s lunch? 51
1.4.3 Did FDI stimulate growth? 51
1.4.4 Dawn of a dual economy 53
1.5 Multinational corporations (MNCs) in China 54
1.5.1 Stumbling blocks faced by the multinationals 54
1.5.2 Multinationals and Chinese trade 55
ix