When Chau Ju-Kua completed his Chu-Fan-Chih (Record of Various Barbarous Nations) in 1225, he occupied the position of Superintendent of Foreign Trade Shipping or Governor of the Customhouse at the port of Chuanchao (presently Quanzhou). In the time of Chau Ju-Kua, there were only two sea ports in China. One was Canton (presently Guangzhou) and the other was Chuanchao. The latter was the primary international trading port during that period. The Chu-Fan- Chih provides Chinese and foreign traders’ descriptions of Chinese trade with the islands in the South Seas in the twelfth and thirteenth centuries as well as information at the beginning of the thirteenth century regarding the inhabitants and products of Eastern and Southern Asia, Africa and Europe. As regards the focus of this study, Chau Ju-Kua’s work contains accounts of Chinese trade in areas identified by scholars as the Philippines as a group of islands or individual polities within the present Philippines (Wu, 1959). The places mentioned in his book that are identified by scholars as part of the Philippines are grouped as Ma-yi, San-su, and Pi-sho-ye (Hirth & Rockhill, 1912; Wu, 1959).
16 Read more
While these goods are produced in China, the extent to which they are really Chinese goods is open to question. The large growth in Chinese trade has been in part achieved by the expansion of foreign companies that locate their operations in China with a view to exporting finished goods to the West. As these exports often contain components produced outside China, bilateral trade statistics may not be the best way of determining the nationality of a product. But the role of external actors only tells half of the story. Encouraged by the success (before the financial crises of 1997 at least) of the export led growth strategies of other Asian states, the Chinese government has actively promoted and supported its own export industries. At the same time, they have protected domestic producers from the vagaries of participation in the global economy. As this paper will demonstrate, when viewed in combination, these two factors go a long way to explaining both the growth of Chinese trade in the recent era, and the significance of this growth for the West.
34 Read more
Fig.1 shows the real value and forecasting value of stock market price, the RMB exchange rate and the trade balance from July 2012 to April 2013. Thickened black line changes in the graphs represent the prediction results at different time points. The two dotted lines upper and lower is obtained through the prediction results which add and subtract RMS error t at different time point respectively, and then they form an error band. If the actual value falls into the standard error band in any unilateral side, , it is considered that this prediction is accurate.
This study empirically examines the causal relationship between the changing comparative advantages and the net exports of the Chinese low-technology manufactures, with an attempt to answer the question of whether the governmental export facilitation efforts can effectively improve the comparative advantage of specific industries. By employing panel data analysis of the Chinese trade in low-technology manufactures ranging from 1987 to 2011, we find that 1) the Chinese net export capabilities are significantly above the comparative advantage, strongly indicating a tendency of the Chinese trade protection which is featured with export facilitation in the past decades; 2) comparative advantage Granger causes net exports in long-run, which is consistent to the Ricardian prediction that comparative advantage determines net exports of an industry; 3) the short-run effect of comparative advantage upon the net exports of the Chinese low-technology manufactures is significantly negative, implying that a drop in the comparative advantage does encourage the Chinese government to take export facilitation measures; and 4) the Granger causal relationship is uni-directional. Specifically, we find no evidence that export facilitation can effectively improve the comparative advantages of the Chinese low-technology manufactures. A possible explanation is that the export facilitation mainly targets at improving the domestic employment instead of the technology-based comparative advantages.
protectionist policy under imperfect competition, with Grossman and Helpman(1994)’s “protection for sale” framework of political trade economics as the foundation. Meanwhile, it makes use of the data of 2004-2012 Chinese 36 sectors to test the results. The results show that: domestic and foreign interest groups are the key factors affecting Chinese trade protectionist policy. Political relation with type of delegation is domestic groups’ way. Foreign interest groups lobby their government to put the political pressure on the counterpart. When domestic interest groups are organized in one sector, the sector is likely to get more protection from government; when foreign interest groups are organized in one sector, the sector is likely to do the free trade.
16 Read more
Abstract Abstract Trade policy is not determined by the government whose target is pursuing the maximum welfare of the society. It is the result of the competition between the administration and interest group. A model is built in the political and market context of China, which takes the competition between government and national and international interest group. The result finds that the larger political impact interest group has, the easier they will have the dominate trade policy. Moreover, the validity and significance of the proposition from theoretical model is tested by the data of Chinese sectors. It contributes a new perspective and thought to knowing about which decides Chinese trade policy.
12 Read more
the exception of state-owned enterprises, a joint union was not per- mitted to be established even under the same owner (Ho 2006: 113). Therefore, workers’ collective bargaining power within a small union is very limited. Chen et al. emphasised that the political-ideological control of the KMT was through fragmented unions (Chen, Ko, and Lawler 2003: 319). The party actively established its own political organisations at the factory level, not only to incorporate workers, but also to monitor workers in order to counter or prevent com- munist ideology. Apart from small-sized unions, employee-based organisations were divided into two categories: occupational unions and industry unions. The logic of this distinction is that industry unions covered more than one occupation (Cooney 1996: 17–18). Both kinds of unions belonged to regional union branches, and those re- gional unions were under the CFL. If we based Taiwanese workers’ ability to fight for their class interest on the rate of union member- ship, it would be quite misleading. According to Huang and many others who have researched Taiwan’s trade union movement (Chu 1996: 499; Huang 2002: 313; Chen, Ko, and Lawler 2003: 320; Ho, 2006: 112), the reason that Taiwan has a consistently higher union membership rate than other countries is that the Taiwanese govern- ment has, since the early1980s, been in the process of licensing newly established occupational unions. This policy allows easy access to government-subsided labour health insurance. Many people, in order to claim health insurance at a certain age, joined occupational unions, regardless of whether they were employed.
29 Read more
For the collection of quantitative data, the use of the Eurostats database will prove to be a useful tool. Through Eurostats it is possible to evaluate the phenomenon under study in a proper way. Eurostats serves as the databank for analysis of all kind of research concerning the European Union and its Member States. It contains data about economic as well as sociological developments and thus provides Europe‟s largest data collection for the comparison of regions and countries. In addition, the data set is updated in a regular basis. Eurostats code of practice prescribes the highest quality of data possible due the independence, actuality, anonymity and neutralityof its sources. Consequently, the reliability can also be considered as high (Eurostats, 2012). The data collected can be perceived in ANNEX B in the respective country‟s sectorial and data breakdown.Qualitative data can be found especially in governmental / negotiation reports as well as newspaper articles and other economic assessments. To list some examples, the negotiation reports on the Third High Level Economic and Trade Dialogue are taken into considerations. Its bias can be abandoned since the protocol reflects to the detailed analysis of both the European and China‟s position. Combined with their relatively current publications (2010-2012), one can assume that these reports are valid and reliable. (Newspaper) articles used for the study of this paper have to be seen from different perspectives. Hereby, it strongly depends on the journal or its publisher. Sage publication, for instance just publishes publicly funded research. Furthermore, a sophisticated publishing method is applied, whereby anonymous researchers co-read written articles to check for mistakes, actuality, reliability and plagiarism. 10 This also accounts for, e.g., the publisher Oxford University Press. 11 However one has to be careful when it comes to newspapers, which can be biased. So it was not possible to find a code of conduct for, e.g. articles published in the Economist. Nonetheless, the reputation and the reliability of the chosen sources characterize the underlying study in this paper and thus make it to a valid reference. The selection depended on the counts of citations (google scholar, web of science), the content and if available, current or recent publications. A list of articles and sources used can be perceived in the Bibliography part of this paper.
45 Read more
The division of the global value chain has an indispensable influence toward the economic development of a country. The position of a country in the global value chain and its degree have an impact on the economic car- bon emission through the resource consumption and domestic value chain. Concerning the carbon emission, the thing that is to let the exporting countries take all the responsibilities or the importing countries take all the re- sponsibilities is an extreme method. This paper analyzes the responsibility borne problems based on the trade in value-added data and concludes that the responsibility borne should be determined according to the remains of the greenhouse gas emission in the manufacturing country during the production process. The consuming coun- try should be the primary responsibility taker of the carbon emission during the manufacturing process. The por- tion is related to the trade in value-added, the lower the added value is, the higher portion of the responsibility the consuming country should take. Therefore, the trade in value-added factors should be taken into account in order to establish a more reasonable and fair carbon emission responsibility mechanism in the future. From the corporations’ perspective, they should modify their production mode into environmental-friendly mode, and join the division system of the global value chain actively. Corporations should pay attention to the upgrade of the manufacture techniques, developing their brand reputation and using their innovation to facilitate the low-carbon transition, while expanding their exports. From the governments’ perspective, they should establish effective industrial development policy and construct new industrial value chain.
One of the most effective ways to overcome cultural discount is localization, which means combining the fundamental characteristics of Chinese cultural with foreign needs and expectations and introducing the products from a perspective more familiar to foreign customers (Liu, 2013). In 2012, a Chinese documentary called A Bite of China is popular around the world. The program has already been broadcasted on Taiwan, Hong Kong and Singapore TVs. Compared with former Chinese documentaries; we have to acknowledge that A Bite of China is a successful model for many Chinese cultural products. Just as the chief editor of the documentary Chen Xiaoqing said “Our aim of producing this program is to exhibit the cultural traits of ceremony, ethnics and interests brought by food through showing various details of Chinese cuisine” “In order to simplify the description from a global point of view, the form of this program is closer to the aesthetic expectation of international audience.” Instead of simply praising and advertising Chinese culture, the producers of A Bite of China made efforts on broadening the topic and types of the documentary and changing the theme of traditional Chinese documentary from dull history to people’s real-life. In order to promote the program to foreign audience, producers learned techniques by studying BBC documentaries, especially Wild China and making many reformations to the program, including emphasizing on people’s relationship rather than the key person and replacing the gastrosophs and cuisine competitions with common people, etc.
11 Read more
Abstract—In this paper, the data of Chinese stock markets is analyzed by the statistical methods and computer sciences. The fluctuations of stock prices and trade volumes are investigated by the method of Zipf plot, where Zipf plot technique is frequently used in physics science. In the first part of the present paper, the data of stocks prices and trade volumes in Shanghai Stock Exchange and Shenzhen Stock Exchange is analyzed, the statistical behaviors of stocks prices and trade volumes are studied. We select the daily data for Chinese stock markets during the years 2002-2006, by analyzing the data, we discuss the statistical properties of fat tails phenomena and the power law distributions for the daily stocks prices and trade volumes. In the second part, we consider the fat ails phenomena and the power law distributions of Shanghai Stock Exchange Index and Shenzhen Stock Exchange Index during the years 2002-2007, and we also compare the distributions of these two indices with the corresponding distributions of the Zipf plot.
There are two ways of translating Chinese into English-literal translation and liberal translation. Literal translation is difficult to describe implicit elements of Chinese tea culture, such as the natural view of unity of heaven and humans. Foreign customers who are affected by ancient Greek philosophy can not under- stand the natural view of unity of heaven and humans. So literal translation will encounter challenges when expressing the Chinese tea culture information. While liberal translation is to express the information by translators’ own understand- ings and experience. But this way can not guarantee that the translators can master the tea culture accurately.
Elu, Juliet U. Price, Gregory N. (2010) show that trade between China and sub-Saharan Africa results in productivity-enhancing technology transfers to sub-Saharan African manufacturing firms. As trade flows between countries potentially results in interactions that lead to technological improvements in the production of goods and services, we parameterize the level of total factor productivity for African manufacturing firms as a function of foreign direct investment flow, and for the country in which it operates, trade openness with China, and its interaction with foreign direct investment. With micro-level data on manufacturing firms in five sub-Saharan African countries, we estimate the parameters of firm-level production functions between 1992 and 2004. Our parameter estimates reveal that across the firms and countries in our sample, there is no relationship between productivity-enhancing foreign direct investment and trade with China. In addition, increasing trade openness with China has no effect on the growth rate of total factor productivity. To the extent that total factor productivity and its growth is a crucial determinant of economic growth and living standards in the long run, our results suggest that increasing trade openness with China is not a long-run source of higher living standards for sub-Saharan Africa.
These results appear to be robust to many tests, including treating imports as endogenous using China’s accession to the World Trade Organization in 2001 which lead to differential abolition of quotas across industries. In terms of magnitudes, China could account for around 15% of the overall technical change in Europe between 2000 and 2007. These are likely to be underestimates as we also identify a similar sized role for offshoring to China in increasing TFP and IT adoption (although not for innovation) and obtain much larger effects under IV. This suggests that increased import competition with China has caused a significant technological upgrading in European firms in the affected industries through both faster diffusion and innovation. In terms of policy, our results imply that reducing import barriers against low wage countries like China may bring important welfare gains through technical change. A caveat to this optimistic view is that our empirical models are partial equilibrium and do not capture all of the complex welfare effects of trade with China. 53 What we directly estimate is the impact of increasing trade on innovation on an
43 Read more
10 Article 22(2) TEU are in line with the objectives of development policy. Those are (b) the consolidation of human rights and the principles of international law, the rule of law in general and support for democracy, (c) preventing conflict and preserving peace, (f) the improvement of environmental quality, with regard to the sustainable management of global natural resources, (g) assistance to populations, regions and countries confronted with man-made or natural disasters and (h) the promotion of an international system, which is based on good global governance and stronger multilateral cooperation (New Consensus on Development, 2018). The primary objective of the EU’s development cooperation with third countries is clearly articulated in Article 208 of the Treaty on the Functioning of the European Union (TFEU), namely the reduction of poverty and its eradication in the long run. Further it is determined that “The Union shall take account of the objectives of development cooperation in the policies that it implements which are likely to affect developing countries.” (Art. 208 (1) TFEU) and that “The Union and the Member States shall comply with the commitments and take account of the objectives they have approved in the context of the United Nations and other competent international organisations” (Art. 208 (2) TFEU). The JAES, born at the December Lisbon Summit of 2007, is regarded as the cornerstone of the doctrine shaping the relation between Africa and the European Union, based on a consolidation process of fifty years of development cooperation and trade and it represents the long term framework for cooperation between the African Union (AU) and the EU (Pirozzi, Sartori, & Venturi, 2017). Its four main objectives are (I) to address common challenges and issues of shared concern, by elevating political partnership institutional ties in the peace and security, migration, environmental protection and development, (II) to promote peace, security, human rights, fundamental freedoms and democratic governance on the basis of continental and regional integration and industrialization in Africa to ensure the achievement of MDG’s by 2015 in African countries, (III) to sustain and promote jointly an effective system of multilateralism in order to reform the UN system to better address common global concerns and challenges, and (IV) to create conditions enabling non-state actors to be involved actively in democracy building , post-conflict reconstruction, conflict prevention and development in order to promote holistic approaches to development processes by fostering the dialogue with the private sector, civil society and local stakeholders (European External Action Service, 2007).
28 Read more
triggering a significant decline in world prices for New Zealand’s major agricultural commodities. The latter once again highlighting New Zealand’s vulnerability of its export mix, Abbott (2007) reporting that the decline in terms in trade resulted in a turnaround in the current account balance from a $0.25 billion surplus to a $2.5 billion deficit (or 3.3% of GDP) in 1974. Rob Muldoon, elected as Prime Minister in 1975 and self-appointed finance minister, took issue with his predecessors’ use of government debt to stimulate the economy by reducing government expenditure in his initial term. Re-elected in 1978 and 1981 policies were implemented to promote export and economic growth including the introduction of supplementary minimum prices (SMP) on key agricultural commodities, devaluation of the exchange rate, and implementation of various industrial projects. To assist the agriculture and manufacturing sectors further import tariffs and quotas were increasingly used; progressively New Zealand became one of the most distorted markets in the OECD. This combination of policy proved to be very costly to the government and inflationary, the latter of which was artificially controlled by across the board price and wage freezes. The moderate growth during this period continued to lag behind other OECD countries. Due to other political matters 31 Muldoon lost power in 1984 to the David Lange led Labour Party, bringing in Roger Douglas as finance minister to manage the inherited government debt. “Rogernomics”, as it came to known,
164 Read more
the double-log form of inverse residual demand function, Carter et al. (1999) estimated the price flexibility for the U.S. wheat exports to Japan directly. They applied the likelihood ratio (LR) tests for model selection. There were three alternative market structure models: the competitive model, the monopsony model and the U.S. price leadership model, based on Love and Murniningtyas (1992) Cournot or Bertrand competition in international wheat markets. Carter et al. (1999) find that the Japanese wheat market is imperfectly competition for the exporters by the first approach and the LR tests suggest that they could not rule out the competitive model in the Japanese wheat market. Song (2006) examined the Chinese soybean market using two-country partial equilibrium trade model which was developed of residual- demand model and residual-supply model, and compared who has more market power: US exporters versus Chinese importers, in the Chinese soybean import market. This approach measures the market profits of both soybean importers and exporters in the Chinese soybean market and has more restricted comparing with the inverse residual models because it includes an equilibrium condition. Song (2006) shows there are complement relationship between U.S. and South American countries (Argentina and Brazil) through their monthly stock and export data. Song (2006) focused on oligopoly (U.S., Brazil and Argentina) verses monopsony (China). However, Song (2006) did not cover South American soybean imports which are approximately 40% of total Chinese soybean imports. U.S. soybean imports in China are approximately 56% of total Chinese soybean imports. Thus, this is not enough to mention Chinese importer market power. The author examines only U.S-China case and finds that “the market power of Chinese soybean importers is stronger than that of U.S. soybean exporters.”
11 Read more
We study the effects of two features of the destination markets, i.e. the exchange rate volatility and the distance from the home country, on the choices of export scopes by firms. Among the previous papers, Hericourt and Poncet (2015), Sauer and Bohara (2001), and Aghion et al. (2009) studied how the exchange rate volatility in the destination markets would affect the performance of the export firms.These authors focus on the effect of exchange rate volatility on the firms’ price, quality, and investment strategies. Among them, the study by Hericourt and Poncet (2015) is the most closely related to ours. Hericourt and Poncet (2015) studied how the Chinese firms adjust their export scopes in reaction to different exchange rate schemes among destination countries. Basically, there are two main findings in Hericourt and Poncet (2015): (i) the exchange rate risks have negative effects on the firms’ entry decision, the trade volume, and export scopes to the foreign markets; and (ii) the negative effects are more significant among firms that have severe financial constraints. However, they didn’t provide the theoretical model to explain their results. In addition, they didn’t study the other variables of the trade cost involved in our analysis, i.e. the distance and the tariff rate. One of our research targets is to fill up these gaps in the relevant studies by: providing theoretical foundations to the linkage between exchange rate volatility and export scope; and providing firm-level empirical evidence of the effect of distance on export scope. As addressed by Hericourt and Poncet (2015), Greenaway and Kneller (2007) and Ethier (1973), the effect of exchange rate volatility is equivalent to that of an increase in the variable and sunk costs in trading. However, none of the papers constructed the theoretical frameworks to show how this mechanism works. To fill up this gap among Hericourt and Pocet (2015) and other existing literature, we also construct a theoretical framework to explain how the exchange rate volatility affects the firms’ choices on export scopes.
45 Read more
the high productive firms will produce and export high quality products while the low productive firms will export low quality products. Before the tariff-reduction process, the firms export the varieties that they are good at producing (with relatively low marginal cost). When the destination market reduces their import tariff rates, then two directed effects will apply: firstly, the marginal revenue for each product will raise up and then it incentives the firms to expand their export scopes and start to export the varieties that require higher marginal cost; secondly, as the increase of the exporting volume and varieties, the market competition in the destination market will be more intensive, which will crow out some varieties. As the prices and markups for high quality products are higher than those for the low quality products, the firms who exporting the high quality products (high productive firms) will receive more tax returns by each unit of products in the trade-liberalization process. In this case, the high productive firms are expected to expand more of their export scope than the low productive firms. At the same time, as the increase of the exported varieties and volume, the competition among destination markets become more intensity. The increase of the market-competition intensity could crowd out some varieties. If the crowding out effect is large enough, then the net effect on the low productive firms will be negative. That means the low productive firms will reduce their export scope. Our empirical result further shows that in response to the trade liberalization, the change of the production scopes for both types of firms is insignificant. The explanation for this result is as follows. Firstly, the firms do not export their whole varieties to every country. The variety with the highest marginal cost is exported to the countries where the tariff rates are relatively low. We call these countries as marginal countries and the rest of countries as non-marginal countries. If the tariff rate is not reduced deeply enough, then the change of the export scope in the non-marginal countries won’t touch the production constraint. In another words, the firms are no necessary to expand their production scope to meet the change of the market demand in the non-marginal countries. Contrarily, if the tariff reduction occurs among the marginal countries, the firms need to expand their production scope in order to meet the increasing demand among these countries. However, during our observation periods (2001 to 2006), the tariff reduction occurs mostly among the countries which impose relatively high level of initial tariff rates and the tariff reduction among the marginal countries is not significant. In this case, the firms adjust little on their production scopes.
45 Read more
The problem is not limited to labor markets. European product and credit markets are not conducive to adjusting through the creation and growth of new businesses. The OECD (2003) has shown that while the birth and death rates of new companies are roughly the same in Europe and the United States, after a few years the typical newly founded Euro- pean company has barely increased the number of employees on its pay- roll, whereas the typical new US company has doubled in size. In other words, the process of adjusting to economic change is much slower in Eu- rope than in the United States. This means that adjusting to a change such as the development of China’s production and export is often painful for European economies, even when they are poised to gain from restructur- ing their own production and foreign trade.
16 Read more