2/10/2006

China and the World Economy

Chen-yuan Tung

Spring Semester 2006, Wednesday 18:30-21:00

(O)Tel: 2938-7291E-mail:

Office: Room 270706, North Wing, GeneralBuilding

Course website:

Office hours: one hour prior to the class or by appointment

Course description

This course examines the impact of China’s integration into the world economy on the Chinese economy as well as other economies, with particular emphasis on Asia-Pacific economies. After briefly discussingChina’s economic reforms and China’s integration into the world economy, this course analyzes various aspects of interaction between the Chinese economy and the world economy. These aspects include foreign direct investment in China, China and the Asian Financial Crisis, China’s accession to the World Trade Organization (WTO), China’s new regional trade agreements, economic relations between Taiwan and China, debates on the Renminbi exchange rate, and finally China as a globalized economy.

Requirements

As this course is a seminar, it requires active participation. Students are expected to have done the readings and to come prepared to discuss each week’s issues in class. In addition, students need to prepare course materials for presentation. Presentation topics will be assigned by the instructor. Finally, students should form a3-people team to write and present a research paper fitting within one of the topics discussed in class.The topic for the research paper will be determined by week four in consultation with the instructor on the basis of a proposed outline. The research papers will be completed and presented to the seminar during the final weeks of the course.

Course grades will be determined as follows:

  1. Regular attendance and active participation in class discussion. (10%)
  2. Selected course material and team paper presentations. (30%)
  3. A teamresearch paper. (60%)
  1. China’s Economic Reforms and Development(40 pages)

Chen-yuan Tung, “Overview of Chinese Economic Reforms: Initiatives, Approaches and Consequences,” presented at the international conference of “Is There an Economic Orthodoxy for Developing Nations?,” organized by NationalChengchiUniversity, Taipei, September 28-29, 2005. (18 pages)

Paul Heytens and Harm Zebregs, “How Fast Can China Grow?,”in Wanda Tseng and Markus Rodlauer (eds.), China: Competing in the Global Economy (Washington, DC: International Monetary Fund, 2003), pp. 8-29.

  1. China’s Integration into the World Economy(70pages)

Margaret M. Pearson, “China’s Integration into the International Trade and Investment Regime,” in Elizabeth Economy and Michel Oksenberg (eds.), China Joins the World: Progress and Prospects (New York: Council on Foreign Relations Press, 1999), pp. 161-205.

Nicholas R. Lardy, “China’s Integration into the International Financial System,” in Elizabeth Economy and Michel Oksenberg (eds.), China Joins the World: Progress and Prospects (New York: Council on Foreign Relations Press, 1999), pp. 206-230.

  1. Foreign Direct Investment in China(85pages)

Wanda Tseng and Harm Zebregs, “Foreign Direct Investment in China: Some Lessons for Other Countries,” in Wanda Tseng and Markus Rodlauer (eds.), China: Competing in the Global Economy (Washington, DC: International Monetary Fund, 2003), pp. 68-88.

Harm Zebregs, “Foreign Direct Investment and Output Growth,” in Wanda Tseng and Markus Rodlauer (eds.), China: Competing in the Global Economy (Washington, DC: International Monetary Fund, 2003), pp. 89-100.

Busakorn Chantasasawat, K. C. Fung, Hitomi Lizaka, and Alan Siu, “The Giant Sucking Sound: Is China Diverting Foreign Direct Investment from Other Asian Economies?,”Asian Economic Papers, Vol. 3, No. 3 (2005), pp. 122-140.

Chen-yuan Tung, “Foreign Direct Investment in China and Its Contribution to China’s Economic Development,”China Economic Analysis Working Papers, No. 2 (August 2003). (5 pages)

BohmPark and Keun Lee, “Comparative Analysis of Foreign Direct Investment in China,”Journal of the Asia Pacific Economy, Vol. 8, No. 1 (2003), pp. 57-84.

  1. China and the Asian Financial Crisis: Part I(90pages)

Steven Radelet and Jeffrey D. Sachs, “The East Asian Financial Crisis: Diagnosis,Remedies, Prospects,” manuscript, pp. 74.

  1. China and the Asian Financial Crisis: Part II(126pages)

World Bank, China: Weathering the Storm and Learning the Lessons (Washington, D.C.: World Bank, 1999). (95 pages)

Hongying Wang, “The Asian Financial Crisis and Financial Reforms in China,” Pacific Review, Vol. 12, No. 4 (1999), pp. 537-556.

Paul Gruenwald and Jahangir Aziz, “China and the Asian Crisis,”in Wanda Tseng and Markus Rodlauer (eds.), China: Competing in the Global Economy (Washington, DC: International Monetary Fund, 2003), pp. 101-112.

  1. China’s Accession to the WTO: Part I(105pages)

Nicholas R. Lardy, Integrating China into the Global Economy (Washington, DC: Brookings Institution, 2002), chapter 1-3, pp. 1-105.

  1. China’s Accession to the WTO: Part II(148pages)

Nicholas R. Lardy, Integrating China into the Global Economy (Washington, DC: Brookings Institution, 2002), chapter 4-5, pp. 106-230.

Thomas Dorsey, David Robinson,Yongzheng Yang, and Harm Zebregs, “The Impact of WTO Accession,” in Wanda Tseng and Markus Rodlauer (eds.), China: Competing in the Global Economy (Washington, DC: International Monetary Fund, 2003), pp. 192-214.

  1. China’s Accession to the WTO: Part III(92pages)

Jun Ma, “Quantifying the Impact of China’s WTO Entry,” Deutsche Bank, December 14, 2001. (12 pages)

Elena Ianchovichina and Will Martin, “Evaluating Accession to WTO by China and Chinese Taipei,” manuscript, May 2002. (26 pages)

Yongzheng Yang, “China’s Integration into the World Economy: Implications for Developing Countries,” IMF Working Paper, WP/03/245, December 2003. (29 pages)

Thomas Rumbaugh and Nicolas Blancher, “China: International Trade and WTO Accession,”IMF Working Paper, WP/04/36, March 2004. (24 pages)

Elena Ianchovichina and Terrie Walmsley, “Impact of China’s WTO Accession on East Asia,”Contemporary Economic Policy, Vol. 23, No. 2 (April 2005), pp. 261-278.

  1. China’s New Regional Trade Agreements: Part I(131 pages)

Jo-Ann Crawford and Roberto V. Fiorentino, “The Changing Landscape of Regional Trade Agreements,” World Bank Discussion Paper, No. 8 (2005). (33 pages)

World Bank, Global Economic Prospects: Trade, Regionalism, and Development (Washington, DC: World Bank, 2005), chapters 2-5, pp. 27-124.

  1. China’s New Regional Trade Agreements: Part II(107pages)

Jun Ma and Zhi Wang, “Options and Implications of Free Trade Arrangements in East Asia,” presented at the 5th Annual Conference on Global Economic Analysis, Taipei, June 5-7, 2002. (28 pages)

World Trade Organization, World Trade Report 2003 (Geneva: World Trade Organization, 2003), pp. 46-66.

TubagusFeridhanusetyawan, “Preferential Trade Agreements in the Asia-Pacific Region,” IMF Working Paper, WP/05/149 (2005). (39 pages)

Agata Antkiewicz and John Whalley, “China’s New Regional Trade Agreements,”World Economy, Vol. 28, No. 10 (2005), pp. 1539-1557.

  1. Economic Relations Between Taiwan and China: Part I(95pages)

Chen-yuan Tung, 2002, China’s Economic Leverage and Taiwan’s Security Concerns with Respect to Cross-Strait Economic Relations, Ph.D. dissertation (Baltimore, MD: JohnsHopkinsUniversity, 2002), chapter 2, pp. 18-90.

Jack W. Hou and Kevin H. Zhang, “Taiwan’s Outward Investment in MainlandChina,” in Hung-Gay Fung and Kevin H. Zhang, Financial Markets andForeign Direct Investment in Greater China (Armonk, N.Y.: M.E. Sharpe, 2002), pp. 182-203.

  1. Economic Relations Between Taiwan and China: Part II(75pages)

Chen-yuan Tung, “Made by Taiwan but Made in China: The Impact of Taiwanese Businesspeople’s Outward Investment in the Information Technology Industry in China on Their Competitiveness and China’s Economy,” in Kevin H. L. Zhang (ed.), China as a World Workshop (London: Routledge, forthcoming). (28 pages)

Jun Ma, Wenhui Zhu, and Alan Kwok, “China-Taiwan Economic Integration: Trends and Implications,” Deutsche Bank, September 2002. (31 pages)

Zhi Wang, “WTO Accession, ‘Greater China’ Free Trade Area and Economic Integration across the Taiwan Strait,” China Economic Analysis Working Papers, No. 3, September 2003. (16 pages)

  1. Debates on the Renminbi Exchange Rate: Part I(85pages)

Morris Goldstein, “Adjusting China’s Exchange Rate Policies,” presented at a seminar on foreign exchange system, held by the IMF, Dalian, China, May 26-27, 2004. (54 pages)

Eswar Prasad, Thomas Rumbaugh, and Qing Wang, “Putting the Cart Before the Horse?: Capital Account Liberalization and Exchange Rate Flexibility in China,”IMF Policy Discussion Paper, PDP/05/1, January 2005. (31 pages)

  1. Debates on the Renminbi Exchange Rate: Part II(71pages)

Jeffrey Frankel, “On the Renminbi: The Choice between Adjustment under a Fixed Exchange Rate and Adjustment under a Flexible Rate,” presented at a seminar on foreign exchange system, held by the IMF, Dalian, China, May 26-27, 2004. (26 pages)

Chen-yuan Tung, “The Renminbi Exchange Rate in the Increasingly Open Economy of China: A Short-Run Solution and A Long-Run Strategy,” manuscript, April 2005. (35 pages)

Steven Dunaway and Xiangming Li, “Estimating China’s Equilibrium” Real Exchange Rate,”IMF Working Paper, WP/05/202, October 2005. (10 pages)

  1. China as a Globalized Economy(60pages)

Pieter Bottelier, “China’s Exchange Rate, US-China Economic Relations and Globalization,”China Economic Analysis Working Papers, No. 9, February 2004. (28 pages)

Yongjin Zhang, China Goes Global (London: Foreign Policy Centre, 2005). (32 pages)

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