ASSIGNMENT 1 :
LITERATURE REVIEW
TOPIC: IMPACT OF CHINA ON GLOBAL ECONOMY
DONE BY:
Anant Jethalia
19020621064
2164
DIARY ENTRY
PURPOSE
There has already been a lot of research that has been done studying China’s growth and its increasing domination and the purpose of my research is to study the existing research in depth, identify research gaps and accordingly work on my research keeping in mind the research gaps.
Review of literature
S.no
Author
Journal
Title
Citation
Findings
Inadequacies
1
John Osborg
The journal of Asian Studies
Global Capitalisms in Asia: Beyond state and Market in China
113
Impact of Communist Party which has been ruling in china for years has been giving direct autonomy to large private equities to control the economy of the country
The author in my opinion hasn’t taken into consideration some of the largest sectors of Chinese economy i.e technology.
2
US institute of Peace
US institute of Peace
China’s rise and the global economy: challenges for Europe
216
All-important sectors covered and linked to the European economy very well.
I feel the author even though has linked the research to Europe very well, it concentrates the research on the developed countries of Europe like Switzerland, Norway etc where the trade is comparatively less.
3.
Yu Yongding
Third World Network
Impact of Global Financial Crisis on Chinese Economy and China’s Policy Responses
16
Paper talks about the subprime crisis that hit America and how it effected the Chinese economy.
The paper doesn’t really focus on Chinese economy post the Global Financial Crisis.
4.
Kevin Nealer, Matthew P. Goodman
Centre for Strategic and International Studies
Introduction : The United States, China and the Global Economic Power in 2017
466
The link between the US economy and the Chinese economy has been explained in detail and covers almost all important sectors of the economy.
Data for the year 2017 has only been used and thus it does not provide complete information on how dependent the US is on China.
5
Nicholas Bloom Paul M. Romer Stephen J. Terry John Van Reenen
National Bureau of Economic Research
Trapped factors and China’s impact on global growth
62
Important aspects like economic fluctuations, international trade and investment have been included.
Focused mainly on the factors of low wages provided by china and its direct competitors rather than showing the impact.
6
Kevin G. Cai
Cambridge University Press
Outward Foreign Direct Investment: A Novel Dimension of China’s Integration into the Regional and Global Economy
111
Shows how China has become a growingly important FDI exporting country and how China increased its share in world-wide FDI outflows.
Focuses solely on the big players in the market.
7
Marcelo Abreu
Department of Economics PUC Rio- (Brazil)
China’s emergence in the global economy and Brazil
28
This paper focuses on the impact of China’s emergence on Brazil trade and investment flows and also on the policies and initiatives taken by the Brazilian public and private sectors seeking to meet the challenge raised by it.
Extra focus on trade policies of the countries and initiatives taken by the Brazilian government to improve the trade relations with China.
8
David Bach, Abraham Newman, Steven Weber
Instituto de Empresa Business School Working Paper.
China’s Impact on the Global Economy: From China Price to China Standard
10
Talks about the “china price” effect and discuses about the wage system and how it directly helps the big Chinese firms to cut costs.
Since the paper was published in the year 2005 I feel most of the content now isn’t that relevant since china has emerged as a superpower since then.
9
Rhys Jenkins, Chris Edwards
Journal of Asian Economics
The economic impacts of China and India on sub-Saharan Africa: Trends and prospects
155
The paper examines the impact of the emergence of China and India as important players in the global economy on 21 sub-Saharan African countries.
It is shown that for some African countries these impacts are by no means negligible and are likely to become more important in the foreseeable future therefore neglects a lot of sub Saharan countries.
10
Justin Yifu Lin
China Economic Journal
China and the global economy
109
Shows evidences of China’s unprecedented growth over the past two decades.
Context is limited to USA economy rather than global economy.
11
Premachandran Athukorala
Departmental Working Papers 2009-04, The Australian National University, Arndt-Corden Department of Economics.
China’s Impact on Foreign Trade and Investment in other Asian Countries
30
This paper talks about how china emerged as a major player in the global market and how it is affecting performance of foreign direct investment.
This paper has mainly focused on China’s growth in the market rather than the impact.
12
Jens Holscher, Enrico Marelli, Marcello Signorelli
Economic Systems
China and India in the global economy
25
This paper focuses on key structural features and compare the recent development processes of the two countries.
The author wasn’t quite able to link about India with the global economy in my opinion.
13
Alistair Dieppe, Robert Gilhooly, Jenny Han, Iikka Korhonen, David Lodge
ECB Occasional Paper No. 206
The Transition of China to Sustainable Growth – Implications for the Global Economy and the Euro Area
31
This paper analyses the recent evolution of China’s imbalances, the risks they pose to the economic outlook and the potential impact of a transition to sustainable growth in China on the global and euro area economies
The paper hasn’t covered some important sectors of the economy.
14
T. N. Srinivasan
Economic and Political Weekly
China, India and the World Economy
55
This paper talks about the rapid growth that has had a significant impact on the world economy and the influence of China on Indian Economy.
This paper showed more aspects on how India was dependent on Chinese economy rather than showing a relation of China and Indian economy with respect to world economy as the name suggests.
15
Barry EICHENGREEN, Hui TONG
Asian Economic Policy Review
How China is Reorganizing the World Economy
117
This paper analyses the impact of China’s integration into the global economy on other countries, Asian countries in particular.
Extra focus on only one aspect, trades and foreign direct investments.
16
Xingye Jin, David Daokui Li, Shuyu Wu
China Economic Review
How will China shape the world economy?
211
With the analysis of the prospects for China’s growth, this research ascertains China’s role in the world economy over the coming decades.
This research was excessively centric towards China’s impact on Asian countries and the USA, and important countries in Europe should also have been given more emphasis.
17
Oded Shenkar
Pearson Education
The Chinese century: The rising Chinese economy and its impact on the global economy, the balance of power, and your job
365
By changing the fundamental restructuring of the global business system, China will become the biggest economy in the world.
While this was a very convincing book, it focused too much on comparing China to the USA. Additionally, there should have been more statistics to back the argument.
18
Michael Webber, Mark Wang and Zhu Ying
Palgrave Macmillan
China’s transition to a global economy
71
While globalisation in China has been gradual and uneven, by stressing the liberalization of trade and investment flows, China is increasingly becoming a superpower.
According to me, emphasis on foreign direct investment was more than required.
19
Jinghai Zheng, Liming Wang
Emerging Markets Finance and Trade 50:sup6, pages 4-20
Institutions and Development: The Case of China in Comparative Perspectives
147
The key to the development of China into one of the most powerful nations was referring to the USA model, albeit tweaking it considerably.
While this paper takes a different approach to explain China’s development, it is not the most rational or conclusive explanation.
20
Ayittey, Foster K., Matthew K. Ayittey, Nyasha B. Chiwero, Japhet S. Kamasah, and Christian Dzuvor
Journal of Medical Virology 92, no. 5 (2020): 473-475
Economic impacts of Wuhan 2019‐nCoV on China and the world
29
In the first quarter of the year, the world is likely to lose over $280 billion.
This piece of research is too centric towards China and Wuhan, with there being very less insights into the global impact.
21
Chunlai Chen
Edward Elgar Publishing
China’s integration with the global economy: WTO accession, foreign direct investment and international trade
This book particularly focuses on China’s international trade and foreign direct investment.
Context is limited to Chinese economy. Other competitive economies should also have been compared.
22
Shaun Breslin
New Political Economy, 01 July 2000, Vol.5(2), pp.205-226University, Arndt-Corden Department of Economics.
Decentralisation, globalisation and China’s partial re-engagement with the global economy.
33
This research analyses and compares processes of regional integration of China with that of the rest of the world.
According to me, there was no particular inadequacy in this research.
23
Lombardi, Domenico, Siklos, Pierre L., Xie, Xiangyou
Journal Of Asian Economics
Monetary policy transmission in systemically important economies and China’s impact
16
This paper talks about the monetary policy transmission mechanism in four systemically important economies that is China,USA,Eurozone, Japan
Doesn’t concentrate on the global economy and doesn’t show direct relation/ impact of China on the global economy
24
Peterson K Ozili
SSRN Economic Journal
Spillover of Covid 19 – Impact on Global Economy
33
This paper talks about how a health crisis tuned into an economic crisis and how the virus brought the global economy down to its knees. The paper also talks about how china could have prevented the spillover.
A lot of conspiracy theories and controversies included in the paper without proper evidence.
25
Robert Feenstra, Akira Sasahara
Review of International Economics
The ‘China shock, exports and US employment : A global input – output analysis
71
This paper quantifies the impact on U.S. employment from imports and exports
Shows the direct relation of employment levels rather than trade of important economic sectors
RESEARCH GAP
After thoroughly studying various researches on China’s development which helped me gain a much deeper and statistical understanding of China’s growth and its impact, I was able to identify some research gaps that I should keep in mind while working on this research paper. The first is that different sectors of an economy were not separately analysed, which I feel should be there as it would give much deeper insight into the situation. Secondly, I feel that China’s impact on South America and Australia was not as deeply analysed as other nations or continents and this is something that I also intend to touch upon when I conduct my own research. Lastly, I feel that how China’s increasing domination will affect other economies in the future is something that was not explored in depth, and that is also something I plan to carefully study in my own research.
RESEARCH OBJECTIVE AND CONCLUSION
My major objective of choosing this particular topic was because in today’s world with what is going around in the world, I felt all countries one way or the other were inter dependent on China to succeed. With various speculations coming that the CoVid – 19 coronavirus was somewhat directly or indirectly linked to China, I somehow realized even though the countries wished to take actions against China they couldn’t completely disassociate themselves with China as almost all countries in the world are reliant on the Chinese economy. After reviewing over 25 research papers related to how China has had an impact on the global economy I can say that at least for the coming decades it will be tough to sideline China. A bold move taken by the Indian government to ban the Chinese apps is also another objective as to why I chose this topic to see and understand how long will it take for India to successfully be dependent on the new ‘Make In India’ objective.