Is China's economic growth sustainable? A productivity analysis

Part I. Overview: 1. Macroeconomics and development Part II. A Benchmark Macroeconomic Model for an Emerging Economy: 2. Equilibrium in the domestic labor and goods markets 3. Equilibrium in the financial markets 4. Short-run macroeconomic equilibrium 5. Medium-term macroeconomic equilibrium Part III. Public Finance and Macroeconomic Performance: 6. The intertemporal budget constraint of the public sector 7. Consequences of insolvency I: high inflation 8. Consequences of insolvency II: public sector debt and economic growth 9. Measures for achieving fiscal credibility I: central bank independence 10. Measures for achieving fiscal credibility II: privatization Part IV. The Financial Sector and Macroeconomic Performance: 11. Finance, welfare, and growth 12. Financial repression 13. Financial reform, public policy, and financial crises 14. Financial openness and the sequencing of financial reform 15. Coping with capital inflows Part V. Exchange Rate Management: 16. Equilibrium real exchange rates: 17. Exchange rate regimes 18. Managing an officially-determined rate 19. Banking crises and exchange rate crises 20. Domestic macroeconomic management in emerging economies: lessons from the crises of the nineties.

http://catdir.loc.gov/catdir/samples/cam033/2002023391.pdf

Macroeconomics in Emerging Markets

Are the FDI inflow spillover effects on Malaysia's economic growth input driven?

The debate on the role of total factor productivity (TFP) in China's rapid economic growth has led to the emergence of a large pool of papers on this topic. There is however hardly any consensus in the literature. This paper surveys 74 studies published from the 1990s onwards and employs meta-analysis to investigate whether the empirical findings are systematically affected by the choice of methods, selection of samples, and objectives of individual studies. Insights gained are used to draw implications for further studies.

Total factor productivity growth in China: a review

Technology transfer from the developed countries has been made possible by foreign direct investments (FDI). The East Asian Miracle of industrial development with FDI has been led by the governments. The Newly Industrialized Economies (Korea, Taiwan, Hong Kong and Singapore), Malaysia and China, led by Japan, are currently moving towards knowledge-based economy from the product economy in the post-industrialization period. It is now well established that knowledge created through innovation and technological progress is the long-term driver of economic growth for the stated economies. The governments of the above mentioned economies have shown remarkable success in creating a knowledge-based economy through attracting large amount of FDI. It appears that countries with 'good governance' environments tend to attract more FDI. In the case of the selected countries of this study, FDI is contributing to the development of knowledge-based economy as it did during the industrialization period. This paper attempts to explain the impact of good governance in attracting FDI to promote knowledge-based economy in Japan, the Newly Industrialized Economies (NIES), Malaysia and China. In doing so, this paper investigates the good governance indicators and their role in attracting FDI to promote knowledge-based economy in the selected countries.

/pdf/the-role-of-good-governance-in-the-knowledge-based-economic-dvphrqt96d.pdf

The role of good governance in the knowledge-based economic growth of East-Asia : a study on Japan, Newly Industrialized Economies, Malaysia and China

This paper examines the different arguments raised by the studies that addressed the East Asian growth experience. The original arguments presented in this paper are all on the negative side, highlighting problems associated with some of the possible explanations for the East Asian miracle. The paper concentrates mainly on four dimensions of the debate about the East Asian growth experience: (i) The nature of economic growth intensive or extensive?; (ii) The role of public policy and of selective interventions; (iii) The role of high investment rates and a strong export orientation as possible engines of growth; and (iv) The importance of the initial conditions and their relevance for policy.

Michael Sarel

Papers

Growth in East Asia : what we can and what we cannot infer