Analysis on the effect of economic interaction＇s pulse from the Sino-US trade perspective

In an open economy, the economic concussion in sole country will transmit to other countries which make the international economic concussion play an important role in the formation of economic fluctuation. Both America and China, as two prominent economy units, have a great impact not only on the regional economy but also international economy. This paper constructs a shock-response model for China-America bilateral trade relations by using of impulse-response function of the vector auto-regressive model. The fluctuation of mutual economic growth caused by the shock of bilateral trade variances is empirically analyzed. Further more; the paper also uses variance decomposition technology to estimate its contribution-rate. The empirical analysis result shows that American economy has a notable impact on China, and Chinese economy will depend on American economy more and more.     

China, Asia, and the World Economy： The Implications of an Emerging Asian Core and Periphery

I. IntroductionThe effect of China’s rapid growth on other Asian economies is felt most directly through itsimpact on international trade and foreign investment. However, not only is the magnitude of this impact uncertain, even its direction is disputed. Some authors emphasize that China’s emergence as an economic power is applying intense competitive pressure to its neighbors. China’s immense reserves of cheap labor enable it to out-compete neighboring economies in the production of low-…     

Decomposing the Effects of FDI on Guangdong＇s Economic Growth

Guangdong has been experiencing rapid economic growth, while this rapid growth was accompanied by a boom in inward foreign investment and the establishment of a direct link with the outside world. Using city-level panel data from 1996 to 2002, the four-year moving fixed effects FDI-led growth model empirically shows that Hong Kong, Macao and Taiwan （HMT） investment will not continue to make up the bulk of FDI in Guangdong for long, and that its dominant influence on Guangdong＇s economic growth will be gradually replaced by other sources of investment in the near future due to various political and economical reasons.     

The economic uncertainty and private investment nexus in Iran： Application of the EGARCH model and the ARDL approach

This paper examines the impact of economic uncertainty on private investment in lran. In addition, the authors also examine the impact of other economic factors on the level of private investment. The Autoregressive Distributed Lag （ARDL） approach is applied to investigate the relationship of these variables. The data span is from 1975 to 2007. The results indicate that economic uncertainty has a significant negative effect on private investment. Public investment and the availability of financing have a significant positive effect on private investment, while the impact of output gap and the exchange rate is negative. Hence, government should aim at creating a stable macro-economic environment in order to makes private investment attractive.     

Does Foreign Direct Investment Affect the Growth of Local Firms？ The Case of China＇s Electrical and Electronics Industry

Does foreign direct investment(FDI) into developing countries affect the growth of local firms in host countries? Using a dataset of 38 sectors in China’s electrical and electronics industry,in this paper,we analyze whether FDI has a positive effect on local firms,with technology spillovers,added value and increasing total factor productivity,or a negative, market stealing,effect.Estimating the relationship between growth of local firms and investment of foreign firms,our results show that FDI is likely to have a negative impact on the growth of local firms in sectors with large disparities in technology and less experience in business.Therefore,local firms lacking in technology need to find markets with no competition from foreign firms or determine strategies to compensate technology disparities.     

Financial Intermediation Development and Economic Growth： Does the Chinese Counterexample Exist？

In terms of the degree-of-freedom of bank loan decision-making, the ratio of loans of private enterprises and individuals to total loans is used to measure the development of China ＇s financial intermediation. Applying generalized method of moments estimation developed for dynamic panel data models, the present paper finds that the effect of financial intermediation development on economic growth is positive and statistieally significant when controlling for other variables, such as human capital foreign direct investment, securitization and foreign trade. The empirical results indicate that the concept of the so-called Chinese counterexample in financial development is questionable. Financial system reforms, including encouraging banks to operate independently, reducing or eliminating mandatory loans, and maldngfinancial decision-making more market-oriented, are important for China＇s economic growth.     

The Trade Performance of Bangladesh in Clothing

We examine the impact of the trade liberalization on me textiles ana clothing industry in different regions based on an applied general equilibrium model using the Trade Analysis System （TAS）, the COMTRADE database of the United Nations Statistics Division （UNSD）. We also examine the competitive positions of Bangladesh and selected developing countries, which are competitors of Bangladesh in textiles and clothing. We found that the USA market is more competitive and volatile, compared with the European market and the major exporting countries are China, Mexico, Philippines, Hong Kong, Sri Lanka, Pakistan, Thailand, Malaysia, India, Indonesia, Taiwan, Korea Republic as well as Bangladesh. These are the main competitor countries for Bangladesh.     

Pursuing Sustainable Development： A Comment on China as the Largest Foreign Investment Recipient

This paper examines the role of foreign investment in China with particular focus on its implications for environment. It shows that most of investments generate both positive and negative effects on China＇s environment. Many of these projects are located in the so-called pollution-intensive industries. This paper tries to elaborate the existing greater environmental implications by the foreign investments. It is concluded that only by honestly evaluating the environmental and social impact of liberalizing trade and investment can China determine whether expand or contract foreign capital utilization for further development.     

Bank Lending and Economic Growth of Chinese Cities

Using a city-level dataset over the period 2004-2006,the present study investigates the relationship between bank lending and the economic growth of Chinese cities.Unlike past studies,we divide bank lending into loans from three types of banks:foreign banks,city banks and other banks.Our findings are threefold.First,the lending of foreign banks exhibits a strong and positive association with the economic growth of Chinese cities. Second,foreign direct investment in the sampled cities enhances the lending effects of foreign banks,but reduces the lending effects of other banks on the economy of Chinese cities.Third, the effects of city competitiveness are similar to those of foreign direct investment;that is,city competitiveness augments the lending effects of foreign banks but reduces the lending effects of other banks.     

Impact of Cross-Strait Trade Liberalization： A Computable General Equilibrium Analysis

This paper applies a computable general equilibrium model to investigate the potential economic effects of trade liberalization across the Taiwan Strait. Our simulation results reveal that cross-Strait trade liberalization will have significant positive impacts on external trade, domestic investment and real GDP for the economies in this area in general and in Taiwan in particular. Furthermore, the negative impact from the formation of a free trade arrangement between Taiwan and Chinese Mainland on Hong Kong seems to be rather small. These results suggest that cross-Strait trade liberalization is very likely to bring about a win-win situation for the economies in this area.     

Changing Engines of Growth in China： From Exports, FDI and Marketization to Innovation and Exports

This paper investigates the changing sources of growth in post-reform China. Using crossprovince regressions, this paper finds that, in earlier periods, exports, foreign direct investment and marketization were significantly related to per capita income growth, whereas＇ since the late 1990s, foreign direct investment and marketization have lost their significance and have been replaced by new sources of growth, such as innovation and knowledge, with only exports continuing to be important. This finding is robust after controlling for other variables representing other economic policies and provincial characteristics. We also tackle the possible endogeneity of innovation variables using the instrumental variables estimation method.     

More effective utilization of FDI by China

Emerged from 1950＇s, with the huge emergences of multinational enterprises, foreign direct investment is developing along with international trade, and both of them present two main motivations of the world economy. Used to be one of the most closed countries, China has now been an indispensable part of the international economy since its economic reform in 1978. Normally big countries receive large amount of foreign direct investment, and as a huge country, China receives the top amount of FDI recently. For China, how to attract more FDI is less important than how to utilize FDI efficiently. If China uses FDI more efficiently, FDI could contribute more to its economic reform and developments. However, the efficient use of FDI is not an easy task for China with such large volume. This paper discusses the current situation of international capital flow and FDI to China, and then analyzes the issues concerning FDI in China from several different perspectives like terms of trade,, technology spillover, dual economy, domestic investment, MNEs in China, and spatial distribution of FDI in China, etc.. Finally, the paper gives conclusion of the situation of FDI in China and suggestion for the policies of efficient usage of FDI in China.     

Economic impact studies of Beijing 2008 Olympic Games

The paper provides an ex-ante analysis of the financial burden and potential economic benefit of the Beijing 2008 Olympic Games. Owing to the lack of uniform financial data, cost and benefits analysis is not possible, so we have adopted a multi-criteria analysis （MCA） as a part of an Olympic Games impact study, to asses the possible economic impact of hosting the Olympics in Beijing. There are many aspects of a country that may change as a result of hosting the Olympic Games. Studies on the impact of previous Olympic Games have indicated that inward investment has been attracted by preparations for the Olympics which has increased the host cities global profile and by the legacy of additional facilities afterward. Beijing is already an establish city and prime destination for inward investment in China and Asia. Hosting the Olympics in 2008 might be expected to give rise to tangible positive effects on the over all level of economic activities.     

Has China Crowded out Foreign Direct Investment from Its Developing East Asian Neighbors？

This paper applies a gravity model to investigate the determinants of foreign direct investment (FDI) in East Asia. Economic fundamentals, such as market size, per capita income and country risk indicators, economic and cultural ties, exchange rate volatilities and information asymmetry are found to be important determinants for FDI. Globally, the inward FDI among high-income OECD economies declined significantly on average over the period of 1990-2003, whereas the inward FDI of the high-income OECD economies in emerging market economies gained substantially. In the East Asian region, the ASEAN-4 (Indonesia, Malaysia, the Philippines and Thailand) received above-average inward FDI from the high-income OECD economies after controlling for their economic fundamentals. By contrast, China's FDI from the high-income OECD economies is below average relative to its economic fundamentals. Therefore, it is difficult to establish that China has crowded out FDI from its developing ASEAN neighbors.     

Recognition of the Economic Security in the Form of Assurance Fund as a Protection to Landowners and the Economic

The increase of land fraud statistics in Malaysia＇s administration system shows that the legal security, at present, is not able to guarantee landowners in the long run. Furthermore, there are registered landowners who are not able to recover their losses due to the stripping of title done erroneously by the government. This occurs due to the Malaysia＇s administration system only practices two principles out of the three principles in the Torrens systems, which are the mirror principle and the curtain principle. The retention of these two principles for the last 40 years since the National Land Code came into effect on the 1st January, 1966, and this has revealed the failure of the government in guaranteeing the landowners in the form of the economic security. This can indirectly impact the real estate investment in Malaysia due to the complaints pertaining to the loss of trust in the Malaysia administration system. Based on the studies conducted, we can see that the recognition towards economic security in the form of assurance fund can impact the increase of real estate investment in Malaysia. This can bring benefits not only to land owners as a protection but also towards the increased securities legislation in the form of the Malaysia land administration system, which could attract in an increase in the interest of investors to invest in Malaysia. So, the interviews with the directors of the land office in Peninsular Malaysia, legal practitioners, and insurance companies have been conducted to support this study. The results of this study hopefully will assist our land administration system in creating a form of economic security in order to make our system more guarantees, efficient, and good governance in resolving matters related to land, especially to address the issue of fraud and forgery. Furthermore, it is expected to help the landowners and innocent buyer in seeking protection of economic loss is not due to their own mistakes and to increase the investment in Malaysia.     

Impact of Global Financial Crises on the Indonesian Economy： An Input-Output Analysis

The debt crisis in the European Union （EU） and the U.S. has significant potential impact on the economy of Indonesia. U.S. sub-prime mortgage crisis in 2008 has a strong impact on Indonesian economy, that Indonesia＇s gross domestic product （GDP） slowed down to below 5% during 2009. Until October 2012, Indonesia＇s export growth is starting to grow negatively on some sectors when the crises in the EU and the U.S. have started or overall grew by -6%. Although the slowdown does not occur in all sectors, the impact spreads to other sectors as the existence of industrial linkage among sectors. The objective of the study is to look at the impact on the sector level on various indicators such as GDP （value added） and employment. Input-output analysis will be used in the simulation. Indonesia input-output table of 2005 is applied as the data base. The simulation results show that if exports decline occurs in the U.S., the economic growth will be -0.20%. Meanwhile, if it occurs in the EU, the growth of GDP will be -0.24%. If some Asian countries face the fall of demand of Indonesian export, GDP growth declines by 0.61%. The fall of exports demand from some Asian countries, EU countries and the U.S. will cause the GDP growth by -1.06%. The crisis occurring in both the US and the EU has decreased export demand from those countries and region including some Asian countries. The impact to employment seemed to be minimal, only -0.47% of total labour force.     

Inflation-inflation uncertainty nexus in Iran——Using TARCH model

This paper examines the relationship between inflation and inflation uncertainty in Iran economy using monthly data of Iran over the period 1990-2009. TARCH model is used to peruse the stochastic variation and asymmetries in the economic instruments. The result indicates that there is a positive relationship between inflation and inflation uncertainty. Also, the authors investigate from the Granger causality test that inflation is Granger causality of inflation uncertainty.     

The Empirical Analysis of the Reason and the Influence of the Rapid Growth of Foreign Exchange Reserves in China

The fluctuation of Chinese foreign exchange （Forex） reserve is affected by those factors, such as the volume of the Balance of Payments, the M2, the balance of external debts and so on. In this paper, the author establishes a model for the fluctuation of China＇s official foreign exchange reserve with the method of econometrics, finding out that it is the surplus of the balance of payments that results in the rapid growth of foreign exchange reserves. Then, this paper uses substantial data to objectively demonstrate the negative impact of position for Forex purchase and its sterilization operation on monetary policy and the economic development of the diverse sectors and regions.     

Geographical Distribution of Foreign Investment in China：Industrial Clusters and Their Significance

The incorporation of massive amounts of foreign direct investment (FDI) has been a major motive force behind the high-speed growth of the Chinese economy over the last decade. A high degree of geographical concentration in certain of this country is a salient feature of foreign invested enterprises (FIEs). FIEs in some industries are closely clustered in industrial zones ranging from several kilometers to more than 100 km in diameter. Such industrial clusters are a remarkable phenomenon among FDI industries. High FDI concentration is having a striking impact on the competitiveness of the enterprises involved and the regions where they are located.