|
on China |
| By: | John Gibson; Bongguen Kim; Hengyun Ma; Les Oxley (University of Canterbury) |
| Abstract: | With its rapid economic growth, China’s primary energy consumption has exceeded domestic energy production since 1994, leading to a substantial expansion in energy imports, particularly of oil. China’s energy demand has an increasingly significant impact on global energy markets. In this paper Allen partial elasticities of factor and energy substitution, and price elasticities of energy demand, are calculated for China using a two-stage translog cost function approach. The results suggest that energy is substitutable with both capital and labour. Coal is significantly substitutable with electricity and complementary with diesel while gasoline and electricity are substitutable with diesel. China’s energy intensity is increasing during the study period (1995-2004) and the major driver appears to be due to the increased use of energy intensive technology. |
| Keywords: | China; Interfactor/interfuel substitution; Technology; Energy intensity decomposition |
| JEL: | D24 O33 Q41 |
| Date: | 2008–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:cbt:econwp:08/01&r=cna |
| By: | Rod Tyers; Iain Bain |
| Abstract: | With exports almost half of its GDP and most of these directed to Europe and North America, negative financial shocks in those regions might be expected to retard China’s growth. Yet mitigating factors include the temporary flight of North American and European savings into Chinese investment and some associated real exchange rate realignments. These issues are explored using a dynamic model of the global economy. A rise in American and European financial intermediation costs is shown to retard neither China’s GDP nor its import growth in the short run. Should the Chinese government act to prevent the effects of the investment surge, through tighter inward capital controls or increased reserve accumulation, the associated losses would be compensated by a trade advantage since its real exchange rate would appreciate less against North America than those of other trading partners. The results therefore suggest that, so long as the financial shocks are restricted to North America and Western Europe, China’s growth and the imports on which its trading partners rely are unlikely to be significantly hindered. |
| JEL: | C68 E17 F21 F17 F43 F47 O5 |
| Date: | 2008–04 |
| URL: | http://d.repec.org/n?u=RePEc:acb:camaaa:2008-08&r=cna |
| By: | Wang, Lili (UNU-MERIT); Szirmai, Adam (UNU-MERIT) |
| Abstract: | This paper provides new estimates of capital inputs in the Chinese economy. Estimates are made for the total economy (1953-2003), for the industrial sector (1978-2003) and for the manufacturing sector (1985-2003). The estimates for industry and manufacturing are broken down by thirty regions. The main contribution of this paperlies in constructing hitherto unvailable estimates of capital inputs at the level of Chinese regions. The paper makes a systematic attempt to apply SNA concepts to the estimation of Chinese capital inputs, according to the Perpetual Inventory Method. It makes a clear distinction between capital services and wealth capital stocks. After a general discussion of theoretical issues in capital measurement, the paper provides a detailed analysis of the relevant Chinese statistical concepts and data. It goes on to discuss previous capital estimates in the light of the modern conceptual and theoretical discussions. It ends with an explanation of the procedures followed in constructing the national and regional capital input series. |
| Keywords: | Capital Inputs, Capital Services, Regions, China, Industry, Manufacturing |
| JEL: | O47 R11 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:unumer:2008028&r=cna |
| By: | David Weinstein; Christian Broda |
| Abstract: | Between 1992 and 2002, the Japanese Import Price Index registered a decline of almost 9 percent and Japan entered a period of deflation. We show that much of the correlation between import prices and domestic prices was due to formula biases. Had the IPI been computed using a pure Laspeyres index like the CPI, the IPI would have hardly moved at all. A Laspeyres version of the IPI would have risen 1 percentage point per year faster than the official index. Second we show that Chinese prices did not behave differently from the prices of other importers. Although Chinese prices are substantially lower than the prices of other exporters, they do not exhibit a differential trend. However, we estimate that the typical price per unit quality of a Chinese exporter fell by half between 1992 and 2005. Thus the explosive growth in Chinese exports is attributable to growth in the quality of Chinese exports and the increase in new products being exported by China. |
| JEL: | E31 F1 F12 |
| Date: | 2008–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:13942&r=cna |
| By: | Wendy Dobson (Rotman School of Management); Paul R. Masson (Rotman School of Management) |
| Abstract: | China has emerged as a major power in the world economy, so it seems natural to consider whether its currency will also have a major role. However, at present it is not used internationally. We look at the factors that contribute to the international use of currencies, and focus on the aspects of China’s financial system that would have to change before the renminbi emerged as an important regional or world currency. Even with important reforms, two important questions would remain: whether the authorities would want to encourage its international use, and whether an economy with substantial party control could gain international acceptance for its currency. |
| Date: | 2007–12 |
| URL: | http://d.repec.org/n?u=RePEc:ttp:iibwps:10&r=cna |