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Author: John Costigan Publisher: ISBN: Category : Languages : en Pages :
Book Description
Abstract: Over the past several decades developing countries have attracted and relied on Foreign Direct Investment (FDI) to supply their economies with the investment needed to maintain high economic growth and development. In their pursuit of FDI, many developing countries have passed policies and regulations aimed at attracting inward FDI. Because of the high growth rates and high returns on investment in many of these economies they have experience a large increase in FDI inflow over the past few decades. As these economies have grown and investment has increased, the financial services sector in the developing world has grown to service the increased demand. In 2011 the World Bank and IMF’s Financial Sector Assessment Program on China found that between 2005 and 2010 total bank assets had grown nearly 19%, while the total assets of non-bank financial institutions had grown 35.1% from 2007 to 2010 (World Bank and IMF Financial Sector Assessment Program, 2011, p.25 & 27). With this massive growth in the financial services sector it is important to understand the effects of financial sector development on FDI’s relationship to economic growth in host countries. Keeping this in mind, as policy makers continue to attract FDI it is imperative they know not only its effects on growth but what policies they can enact at a provincial level to maximize positive effects. This study uses both national and provincial level data to assess the effects of financial sector development on FDI’s relationship to economic growth. While the scholarly literature on FDI is fairly well established, literature focusing specifically on financial sector development’s effect on FDI’s and growth is less robust. Many studies such as Carkovic and Levine (2002) find that the effect of FDI interacted with financial sector development on growth to be positive, but not robust. My research utilizes variation in financial sector development between provinces in China to determine the effect financial sector development has on FDI led growth.
Author: John Costigan Publisher: ISBN: Category : Languages : en Pages :
Book Description
Abstract: Over the past several decades developing countries have attracted and relied on Foreign Direct Investment (FDI) to supply their economies with the investment needed to maintain high economic growth and development. In their pursuit of FDI, many developing countries have passed policies and regulations aimed at attracting inward FDI. Because of the high growth rates and high returns on investment in many of these economies they have experience a large increase in FDI inflow over the past few decades. As these economies have grown and investment has increased, the financial services sector in the developing world has grown to service the increased demand. In 2011 the World Bank and IMF’s Financial Sector Assessment Program on China found that between 2005 and 2010 total bank assets had grown nearly 19%, while the total assets of non-bank financial institutions had grown 35.1% from 2007 to 2010 (World Bank and IMF Financial Sector Assessment Program, 2011, p.25 & 27). With this massive growth in the financial services sector it is important to understand the effects of financial sector development on FDI’s relationship to economic growth in host countries. Keeping this in mind, as policy makers continue to attract FDI it is imperative they know not only its effects on growth but what policies they can enact at a provincial level to maximize positive effects. This study uses both national and provincial level data to assess the effects of financial sector development on FDI’s relationship to economic growth. While the scholarly literature on FDI is fairly well established, literature focusing specifically on financial sector development’s effect on FDI’s and growth is less robust. Many studies such as Carkovic and Levine (2002) find that the effect of FDI interacted with financial sector development on growth to be positive, but not robust. My research utilizes variation in financial sector development between provinces in China to determine the effect financial sector development has on FDI led growth.
Author: James Riedel Publisher: Princeton University Press ISBN: 0691248060 Category : Business & Economics Languages : en Pages : 224
Book Description
Why investment and financial reform are essential to China's continued economic well-being Although China's economy has grown spectacularly over the last twenty-five years, economists disagree about how the Chinese economy is likely to fare in the short- and long-term future. Is China's growth sustainable, or has China relied too much on investment, which is subject to diminishing returns, and not enough on technological change? The first book on the relation between investment, finance, and growth in China, How China Grows dismisses this concern. James Riedel, Jing Jin, and Jian Gao argue that investment has not only been the engine of growth, but also the main source of technological progress and structural change in China. What threatens future growth instead, the authors argue, are the weaknesses of China's financial system that undermine efficiency in investment allocation. Financial-sector reform and development are necessary, not only for sustaining long-term growth, but also for maintaining macroeconomic stability. Although it includes some technical economic analysis, How China Grows is accessible to noneconomists and will benefit anyone who is interested in development finance in general and in China's economic growth in particular—whether economists, political scientists, bankers, or business people.
Author: James Laurenceson Publisher: Edward Elgar Publishing ISBN: 9781843767190 Category : Business & Economics Languages : en Pages : 188
Book Description
China's prospects of successfully completing the transition to a market economy and becoming the world's largest economy during the 21st Century depend on the future sustainability of high rates of economic growth. This book is a comprehensive, balanced and realistic assessment of China's financial reform program and future direction. Covering not only the banking sector but also non-bank financial institutions, stock market development and external financial liberalization, the authors examine the impact of financial reform on economic development in China during the reform period. This volume will facilitate a more accurate assessment of the Chinese approach to financial reform, and will therefore allow more informed future policy choices for both China and other developing and transitional countries.
Author: Charles W. Calomiris Publisher: Columbia University Press ISBN: 0231141920 Category : Business & Economics Languages : en Pages : 433
Book Description
China's increasing role in global economic affairs has placed the country at a crossroads: how many and what types of international capital-market transactions will China permit? How will China's financial system change internally? What kind of relationships will the Chinese government develop with foreign financial institutions, especially with those based in the United States? Can China broker a sustainable partnership with America that will avoid sending economic shock waves throughout the world? Drawing on the contemporary research of prominent international scholars, the experts in this volume outline the trajectory of China's financial markets since the advent of reform and anticipate their uncertain future. Chapter authors and commentators include Geert Bekaert, Loren Brandt, Lee Branstetter, Mary Wadsworth Darby, Michael DeStefano, Barry Eichengreen, Campbell Harvey, Fred Hu, Xiaobo Lu, Christian Lundblad, Ailsa Roell, Daniel Rosen, Shang-Jin Wei, Jialin Yu, and Xiaodong Zhu. The book begins with an overview of the history of financial-sector development, regulation, and performance and then focuses on the banking sector, discussing the progress, challenges, and prospects of current sector reform. Subsequent chapters describe the role of foreign capital in China's development and analyze the changes in capital flows and controls over time; explore various explanations for China's composition of foreign-capital and foreign-exchange policies, particularly the factors shaping China's reliance on foreign direct investment; and provide an international, comparative perspective on the remarkable growth experience of China and the contribution of its institutional environment to that experience. Contributors dispute the belief that stock market listing has done little to reform state-owned enterprises and take a hard look at the exchange rate regime choice for China, considering the potential long-run desirability of flexibility and the appropriate sequencing of reforms in foreign-exchange policy, domestic banking reform, and capital-market openness. The book concludes with a roundtable discussion in which prominent economists, including Peter Garber, Robert Hodrick, John Makin, David Malpass, Frederic Mishkin, and Eswar Prasad, debate the pace of the appreciation of China's currency and the likely consequences of that policy within and outside of China.
Author: Zhongmin Wu Publisher: Routledge ISBN: 1134104766 Category : Business & Economics Languages : en Pages : 318
Book Description
This book, based on extensive original research by a range of leading experts, examines many key aspects of current reforms in China's financial sector and China's increasing integration into the international economy. Subjects covered include: the derivatives market; stock market liberalisation; and international foreign direct investment by Chinese firms.
Author: Hung-Gay Fung Publisher: Routledge ISBN: 1315499207 Category : Business & Economics Languages : en Pages : 321
Book Description
Based on rigorous state-of-the-art research techniques, this book deals with critical issues regarding China's financial markets and foreign direct investment -- key components of China's economic transformation.
Author: James R. Barth Publisher: Springer Science & Business Media ISBN: 0387937692 Category : Business & Economics Languages : en Pages : 661
Book Description
China’s emerging financial markets reflect the usual contrast between the country’s measured approach toward policy, regulatory, and market reform, and the dynamic pace of rapid economic growth and development. But they also offer unusual challenges and opportunities. In the past five years, the pace of opening and reform has accelerated sharply. Recapitalization and partial privatization of the largest banks, and the allowance of some joint venture and branch operations for foreign financial institutions, are making rapid headway in developing and expanding financial services and improving access to domestic business and households. This book provides the most extensive look available at the evolving Chinese financial system. It begins with alternative perspectives on the evolution of the financial system and the broad outlines of its prospects and potential contribution to economic growth. Three articles review broad aspects of the financial system. Franklin Allen, Jun ‘‘QJ’’ Qian, Meijun Qian, and Mengxin Zhao lead off with overviews of the banking system and performance of the equity market and other institutions.
Author: Dominique De Rambures Publisher: Springer ISBN: 3319404512 Category : Business & Economics Languages : en Pages : 199
Book Description
This book examines the volatile landscape of the Chinese economy and the barriers to its continuing development. The author argues that underlying inefficiencies in China’s financial system currently prevent the further growth of its institutions and inhibit reform of monetary and fiscal policy. Rambures shows that, despite efforts to avoid a “middle income trap”, such long-overdue structural reforms are still faced with strong resistance from both economic and political circles. Chapters discuss approaches in tackling the Chinese national debt, the recent stock exchange collapse and subsequent currency devaluation, declining trade surplus, the wariness of foreign investors and its negative impact on foreign exchange reserves, and the heavy burden of state-owned “zombie companies”. The discussion positions current economic events within the context of China’s transition from a foreign trade and investment-led economy to one that is propelled by domestic consumption, service industries and innovation. Crucially, Rambures also addresses financial trends with reference to pervasive long-term influencing factors such as an ageing population, increasing inequality, corruption, pollution and migration.
Author: Congressional Research Service Publisher: Createspace Independent Publishing Platform ISBN: 9781976466953 Category : Languages : en Pages : 52
Book Description
Prior to the initiation of economic reforms and trade liberalization 36 years ago, China maintained policies that kept the economy very poor, stagnant, centrally-controlled, vastly inefficient, and relatively isolated from the global economy. Since opening up to foreign trade and investment and implementing free market reforms in 1979, China has been among the world's fastest-growing economies, with real annual gross domestic product (GDP) growth averaging nearly 10% through 2016. In recent years, China has emerged as a major global economic power. It is now the world's largest economy (on a purchasing power parity basis), manufacturer, merchandise trader, and holder of foreign exchange reserves.The global economic crisis that began in 2008 greatly affected China's economy. China's exports, imports, and foreign direct investment (FDI) inflows declined, GDP growth slowed, and millions of Chinese workers reportedly lost their jobs. The Chinese government responded by implementing a $586 billion economic stimulus package and loosening monetary policies to increase bank lending. Such policies enabled China to effectively weather the effects of the sharp global fall in demand for Chinese products, but may have contributed to overcapacity in several industries and increased debt by Chinese firms and local government. China's economy has slowed in recent years. Real GDP growth has slowed in each of the past six years, dropping from 10.6% in 2010 to 6.7% in 2016, and is projected to slow to 5.7% by 2022.The Chinese government has attempted to steer the economy to a "new normal" of slower, but more stable and sustainable, economic growth. Yet, concerns have deepened in recent years over the health of the Chinese economy. On August 11, 2015, the Chinese government announced that the daily reference rate of the renminbi (RMB) would become more "market-oriented." Over the next three days, the RMB depreciated against the dollar and led to charges that China's goal was to boost exports to help stimulate the economy (which some suspect is in worse shape than indicated by official Chinese economic statistics). Concerns over the state of the Chinese economy appear to have often contributed to volatility in global stock indexes in recent years.The ability of China to maintain a rapidly growing economy in the long run will likely depend largely on the ability of the Chinese government to implement comprehensive economic reforms that more quickly hasten China's transition to a free market economy; rebalance the Chinese economy by making consumer demand, rather than exporting and fixed investment, the main engine of economic growth; boost productivity and innovation; address growing income disparities; and enhance environmental protection. The Chinese government has acknowledged that its current economic growth model needs to be altered and has announced several initiatives to address various economic challenges. In November 2013, the Communist Party of China held the Third Plenum of its 18th Party Congress, which outlined a number of broad policy reforms to boost competition and economic efficiency. For example, the communique stated that the market would now play a "decisive" role in allocating resources in the economy. At the same time, however, the communique emphasized the continued important role of the state sector in China's economy. In addition, many foreign firms have complained that the business climate in China has worsened in recent years. Thus, it remains unclear how committed the Chinese government is to implementing new comprehensive economic reforms.China's economic rise has significant implications for the United States and hence is of major interest to Congress. This report provides background on China's economic rise; describes its current economic structure; identifies the challenges China faces to maintain economic growth; and discusses the challenges, opportunities, and implications of China's economic rise.
Author: Yingqi Wei Publisher: Edward Elgar Publishing ISBN: 9781782542544 Category : Business & Economics Languages : en Pages : 216
Book Description
'The data used is rich, including national, regional and industry-level statistics.' - Yue Ma, The China Journal 'Wei and Liu provide a comprehensive analysis of the determinants and impact of FDI on the economy of China. The book is to be recommended to students of international business for its elegant use of sophisticated econometric techniques and economic theory in exploring the role of FDI in a major emerging economy that hosts a substantial volume of FDI.' - V.N.Balasubramanyam, Lancaster University, UK China is now among the top hosts for foreign direct investment (FDI) inflows in the world. This fact, combined with recent developments in internationalisation and economic growth in China, ensures a perfect opportunity to identify the determinants and impact of FDI in the largest transition economy in the world.
Author: John Costigan
Author: John Costigan
Author: James Riedel
Author: James Laurenceson
Author: Charles W. Calomiris
Author: Zhongmin Wu
Author: Hung-Gay Fung
Author: James R. Barth
Author: Dominique De Rambures
Author: Congressional Research Service
Author: Yingqi Wei