http://www.VoxEU.org Recent Shang-Jin Wei articles on VoxEU.org en http://www.VoxEU.org/index.php?q=node/8868 Amit Khandelwal, Peter K. Schott , Shang-Jin Wei, 15 January 2013

The institutions that manage trade barriers are subject to corruption, imposing additional distortions. This column shows that in China, the government misallocated quota licenses permitting firms to export. When the US and EU abolished quotas governing textile exports in 2005, China experienced productivity gains not only from the actual elimination of the quota but also from the termination of the misallocation due to inefficient licensing.

Full Article: The hidden gains from trade liberalisation]]> Tue, 15 Jan 2013 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/8868 http://www.VoxEU.org/index.php?q=node/8890 Amit Khandelwal, Peter K. Schott , Shang-Jin Wei, 2 December 2012

If trade barriers are managed by inefficient institutions, trade liberalization can lead to greater-than-expected gains. This paper examines Chinese textile and clothing exports before and after the removal of externally imposed quotas. Both the surge in export volumes and the decline in prices after the quota removal are driven by net entry, implying that the pre-liberalisation quota allocation is not based on firm productivity. Removing this misallocation accounts for a substantial share of the overall productivity gains associated with the quota removal.

Full Article: Trade liberalization and embedded institutional reform: Evidence from Chinese exporters]]> Sun, 02 Dec 2012 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/8890 http://www.VoxEU.org/index.php?q=node/4568 Shang-Jin Wei, 6 February 2010

What is the connection between China’s one-child policy and its savings glut? This column provides a pioneering explanation. China’s surplus of men has produced a highly competitive marriage market, driving up China’s savings rate and, therefore, global imbalances.

Full Article: The mystery of Chinese savings]]> Sat, 06 Feb 2010 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/4568 http://www.VoxEU.org/index.php?q=node/2816 Man-Keung Tang, Shang-Jin Wei, 22 January 2009

This column studies the growth and investment consequences of WTO/GATT accessions. Accessions tend to raise income but only for countries that were subject to rigorous accession procedures. Commitments associated with accessions are also found to be helpful especially for countries with poor governance.

Full Article: The value of making commitments externally: Evidence from WTO accessions]]> Thu, 22 Jan 2009 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/2816 http://www.VoxEU.org/index.php?q=node/2632 Menzie D. Chinn , Shang-Jin Wei, 1 December 2008

This column examines whether the pace at which a country’s current account balance adjusts to its average value depends upon the exchange rate regime. The benefits of exchange rate flexibility for current account adjustment are found to be greatly exaggerated. By some measures, a fixed exchange rate facilitates faster adjustment.

Full Article: Against false truisms: Exchange rate flexibility does not speed up current account adjustment]]> Mon, 01 Dec 2008 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/2632 http://www.VoxEU.org/index.php?q=node/1524 Robert B. Koopman, Zhi Wang, Shang-Jin Wei, 8 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.

Full Article: What share of Chinese exports is really made in China?]]> Fri, 08 Aug 2008 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/1524 http://www.VoxEU.org/index.php?q=node/675 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.

Full Article: Don’t believe the hype: renminbi flexibility]]> Mon, 29 Oct 2007 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/675 http://www.VoxEU.org/index.php?q=node/280 M Ayhan Kose, Eswar Prasad, Kenneth Rogoff, Shang-Jin Wei, 19 June 2007

Successful financial globalisation has “collateral benefits” – catalytic, indirect benefits on the domestic financial sector, macroeconomic discipline, and public and corporate governance. This has powerful implications for empirical analysis of its benefits.

Full Article: Does financial globalisation help?]]> Tue, 19 Jun 2007 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/280 http://www.VoxEU.org/index.php?q=node/265 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.

Full Article: Is China Investing too much?]]> Sat, 16 Jun 2007 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/265 http://www.VoxEU.org/index.php?q=node/217 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.

Full Article: Signs of modest but steady increase in flexibility in Chinese exchange rate regime]]> Mon, 23 Apr 2007 00:00:00 GMT http://www.VoxEU.org/index.php?q=node/217