Found 118 article(s) for author 'China'

The Impact of Intranational Trade Barriers on Exports: Evidence from a Nationwide VAT Rebate Reform in China

The Impact of Intranational Trade Barriers on Exports: Evidence from a Nationwide VAT Rebate Reform in China. Jie Bai, December 2019, Paper, “It is well known that various forms of non-tariff trade barriers exist within a country. Empirically, it is difficult to measure these barriers as they can take many forms. We take advantage of a nationwide VAT rebate policy reform in China as a natural experiment to identify the existence of these intranational barriers due to local protectionism and study the impact on exports and exporting firms. As a result of shifting tax rebate burden, the reform leads to a greater incentive of the provincial governments to block the domestic flow of non-local goods to local export intermediaries. We develop an open-economy heterogenous firm model that incorporates multiple domestic regions and multiple exporting technologies, including the intermediary sector. Consistent with the model’s predictions, we find that rising local protectionism leads to a reduction in interprovincial trade, more “inward-looking” sourcing behavior of local intermediaries, and a reduction in manufacturing exports. Analysis using micro firm-level data further shows that private companies with greater baseline reliance on export intermediaries are more adversely affected.Link

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The High Stakes of the Coming Digital Currency War

The High Stakes of the Coming Digital Currency War. Kenneth Rogoff, November 11, 2019, Opinion, “Facebook CEO Mark Zuckerberg was at least half right when he recently told the United States Congress that there is no US monopoly on regulation of next-generation payments technology. You may not like Facebook’s proposed Libra (pseudo) cryptocurrency, Zuckerberg implied, but a state-run Chinese digital currency with global ambitions is perhaps just a few months away, and you will probably like that even less.Link

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China’s economic weakness could drive ‘problematic’ nationalism

China’s economic weakness could drive ‘problematic’ nationalism. Lawrence Summers, November 8, 2019 , Video, “Weakness of the Chinese economy could generate “a certain truculence in its international relations” by driving nationalism in the country and “scapegoating of foreigners”, according to economist Larry Summers. The former World Bank chief economist and senior US Treasury Department official, also said de-escalation of trade tensions between the United States and China is not yet an indication for a substantial deal despite the progress.Summers, who has advised two past US presidents, spoke with the South China Morning Post on November 6, 2019, during Credit Suisse’s 10th China Investment Conference in Shenzhen.Link

 

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How to Get Past the US-China Trade War

How to Get Past the US-China Trade War. Dani Rodrik, November 7, 2019, Opinion, “China and the United States, like all other countries, should be able to maintain their own economic model. But international trade rules should prohibit national governments from adopting “beggar-thy-neighbor” policies that provide domestic benefits only by imposing costs on trade partners.Link

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US-China ‘phase one’ trade deal won’t lead to ‘economic nirvana’

US-China ‘phase one’ trade deal won’t lead to ‘economic nirvana’. Lawrence Summers, November 6, 2019, Video, “The so-called phase one trade deal that the U.S. and China are expected to sign won’t solve all the problems the global economy faces right now, former U.S. Treasury Secretary Larry Summers said Wednesday.
U.S. President Donald Trump said both countries were looking for a location to sign the partial deal — which according to Reuters, could take place this month. That development has fueled recent optimism in financial markets.Link

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Undisclosed Debt Sustainability

Undisclosed Debt Sustainability. Laura Alfaro, 2019, Paper, “Over the past decade, non–Paris Club creditors, notably China, have become an important source of financing for low- and middle-income countries. In contrast with typical sovereign debt, these lending arrangements are not public, and other creditors have no information about their magnitude. We transform the traditional sovereign debt and default model to quantitatively study incomplete information arrangements and find they greatly reduce traditional/Paris Club creditors’ debt sustainability. Disclosure of nontraditional debt would imply significant welfare gains for the recipient countries but would reduce its sustainability. We discuss the implications of nontraditional lending on standard assumptions of sovereign debt models.Link

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Trump’s Mercantilist Mess

Trump’s Mercantilist Mess. Robert Barro, September 5, 2019, Opinion, “When US President Donald Trump boasted that trade wars are “easy to win” in March 2018, it was convenient to dismiss the remark as a rhetorical flourish. Yet it is now clear that Trump meant it, because he genuinely believes the bizarre and anachronistic macroeconomic theories underlying his approach.Link

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Jeffrey Frankel Says More…

Jeffrey Frankel Says More... Jeffrey Frankel, September 2019, Opinion, “Welcome to Say More, a weekly newsletter that brings Project Syndicate’s renowned contributors closer to readers. Each issue invites a selected contributor to expand on topics covered in their commentaries, address new ones, and share recommendations, offering readers exclusive insights into the ideas, interests, and personalities of the world’s leading thinkers. This week, Project Syndicate catches up with Jeffrey Frankel, Professor of Capital Formation and Growth at Harvard University’s Kennedy School of Government.Link

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