The past 20 years of globalisation have witnessed a dramatic expansion in the fragmentation of production across countries. Firms today can not only trade in final goods, but also conduct intermediate stages of manufacturing by importing foreign inputs, processing and assembling them into finished products, and re-exporting these to consumers and distributors abroad.
Firms and credit constraints along the global value chain: Processing trade in China
Kalina Manova, Zhihong Yu , 13 May 2013
Finance and growth in China and India: Have firms benefited from the capital-market expansion?
Tatiana Didier, Sergio Schmukler, 6 May 2013
China and India are hard to ignore. Over the past 20 years they have risen as global economic powers, at a very fast pace. By 2012, China has become the second-largest world economy (based on nominal GDP) and India the tenth. Together, they account for about 36% of world population.
Investigating the effect of exchange-rate changes in Japan, China, east Asia, and Europe
Willem Thorbecke, 26 February 2013
Policymakers are concerned about currency wars and competitive devaluations. Many complain that trading partners are artificially lowering their exchange rates through quantitative easing and managed exchange rates in order to gain price competitiveness for their exporters.
China and the end of extrapolation
George Magnus, 31 January 2013
That the Chinese economy is slowing down as it quickly matures should come as no surprise. The global economic conditions of the two decades leading up to the financial crisis were exceptional; things are far more sober now.
Many of China’s development achievements are unrepeatable. Only once can you:
Exchange-rate volatility is a problem for trade … especially when financial development is low
Jérôme Héricourt, Sandra Poncet, 19 January 2013
The increasing volatility of exchange rates after the fall of the Bretton Woods agreements has been a constant source of concern for both policymakers and academics.
Capital controls: Gates versus walls
Michael W Klein, 17 January 2013
Capital controls are no longer considered rogue policies.
Trade liberalization and embedded institutional reform: Evidence from Chinese exporters
Amit Khandelwal, Shang-Jin Wei, Peter K. Schott , 2 December 2012
Vox readers can download CEPR Discussion Paper 9246 for free here.
Growth slowdowns redux: Avoiding the middle-income trap
Barry Eichengreen, Donghyun Park, Kwanho Shin, 11 January 2013
The rapid economic growth of so-called emerging markets is one of the leading storylines of our age. Arguably, it is the most important economic development affecting the world’s population in the first decade of the 21st century. Rapid economic growth has lifted millions out of poverty.
The appreciating renminbi
Philippe Bacchetta, Kenza Benhima, Yannick Kalantzis, 9 January 2013
In the recent US presidential campaign, China was accused again of currency manipulation. In other words, the Chinese central bank is accused of maintaining the exchange rate at an artificially low level compared to its equilibrium value, including heavy intervention in the foreign exchange market.
Trade liberalisation and embedded institutional reform: Evidence from Chinese exporters
Amit Khandelwal, Peter K. Schott , Shang-Jin Wei, 15 January 2013
Economists traditionally assess the welfare losses of trade barriers without considering the underlying institutions that support them. In fact, these institutions may amplify welfare losses substantially.
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