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Resumen A partir de datos de encuestas de hogares, los autores observan que las primas por calificación aumentaron en toda China entre 1995 y 2002, pero solo en las provincias costeras entre 2002 y 2007, año en que estas también registraron mayor desigualdad salarial y contribuyeron más a la desigualdad salarial urbana total. Según un modelo de efectos fijos estimado, la privatización explica la evolución del primer periodo, y la integración de China en la economía mundial, la del segundo. Reducir la desigualdad exige, según los autores, la reforma del Registro de Población Hukou, que obstaculiza la movilidad de los trabajadores calificados y posiblemente también el crecimiento. [ABSTRACT FROM AUTHOR]

Using simulations projecting Chinese economic growth into the future, this paper first examines when China will overtake the USA to become the largest economy. Demographic changes that affect economic growth are taken into consideration in these projections. China is expected to become number one sometime in the mid-2020s, unless its growth rate of gross domestic product per worker declines dramatically, à la the lost decade of Japan. Next, the paper examines whether China becoming the number one economy will mean its currency, the renminbi (RMB), will become the international key currency. According to the basket currency regressions during the period that Chinese currency was gradually appreciating against the US dollar from July 2005 to August 2008, it is shown that the RMB has already acquired a strong influence on the Asian currencies. This shows that the RMB is fast gaining the status of a regional anchor currency for a possible regional joint float. As the Chinese government proceeds with internationalization of its currency, the RMB is expected to gain in the ranking of other aspects of international currency, such as the store of value and the medium of exchange. [ABSTRACT FROM AUTHOR]

After three decades of market development, the problem in China is no longer how to achieve growth but how to manage its consequences and how to sustain it. One of the most important consequences is the growing inequality – between skilled and unskilled workers, between the genders, between rural and urban areas, and between inland and coastal regions. The papers in this symposium shed light on the important issue of inequality during rapid market development in China. Analysis based on ground level empirical studies can help us to understand better the sources of the rising inequality and to illuminate the nature of the future challenges. [ABSTRACT FROM AUTHOR]

This paper uses regime-switching techniques to examine the similarities of GDP growth-cycle features of 10 East Asian countries. A third regime of rapid growth is relevant for most countries. In Japan, South Korea and Taiwan, there was no secular slowdown in growth since the rapid-growth regime re-emerged at some stage. Japan is special since it shares each of its features with different countries, while China shares almost all its features with most countries. Finally, the same countries that were correlated with Japan in the 1980s have been linked with China since the 1990s. Copyright © 2005 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

This paper studies the trade of China in the past 150 years, starting from the first opening of China after the Opium War. The main purpose of the paper is to identify what is (and was) China's 'normal' level of foreign trade, and how these levels changed under different trade regimes, from 1840 to the present. We present new evidence on China's foreign trade during the treaty port era (1842-1948), drawn from disaggregated trade data collected by the Chinese Maritime Customs Service, that yields important findings for current research. First, although the volume of foreign trade remained limited initially, there was a notable expansion in the diversity of products, with many new goods being imported into China. Second, the regional diffusion of foreign goods through China was greatly facilitated by the expansions of the port system. Third, the importance of Hong Kong as an intermediary in China's trade has undergone long-term fluctuations suggestive of learning effects. China's recent wave of liberalization has led by the early 1990s to a trade level comparable to the high of the 1920s. While much of China's recent growth in world trade is in line with her income growth, there is no doubt that China's trade openness today, comparable by some measures to Denmark's, is a stunning reversal relative to the pre-1978 and also the pre-1840 period. The paper emphasises the roles that history and institutional change have played in this. [ABSTRACT FROM AUTHOR]

In this paper, we investigate the relationship between economic growth and industrial pollution emissions in China using data for 112 major cities between 2001 and 2004. Using disaggregated data, we separate foreign direct investment inflows from Hong Kong, Macao, and Taiwan from those of other foreign economies. We examine two industrial water pollution indicators (wastewater and petroleum-like matter) and four industrial air pollution indicators (waste gas, sulfur dioxide, soot, and dust). Our results suggest that most air and water emissions rise with increases in economic growth at current income levels. The share of output of domestic- and foreign-owned firms increases several pollutants in a statistically significant manner while output of firms from Hong Kong, Macao, and Taiwan either reduces pollution or is statistically insignificant. [ABSTRACT FROM AUTHOR]

Using data from 1986–2005, the present paper estimates the impact of direct knowledge spilled over from G-7 countries on China's economy. We use telephone line penetration rates and personnel flows to estimate the direct spillover effect. Our results show that direct knowledge spillovers through telecommunication networks and personnel flows are important components of international R&D spillovers in China. These direct channels of spillover effectively accelerate China's economic growth. Therefore, China should invest more in human capital and in its telecommunication network to enhance the absorptive capacity of direct R&D spillovers, and to increase communication with other nations, in particular the USA and Japan. More subsidies to domestic R&D research and purchase of intermediate goods will help to raise China's R&D intensity. [ABSTRACT FROM AUTHOR]

This paper provides a survey of the literature on inequality in China – level, change, causes, and consequences. It attempts to answer six main questions. How much has inequality risen? What is its relation to poverty alleviation? What has happened to wealth inequality? What are the main dimensions of rising income inequality? The dimensions examined are: the rural–urban divide; urban labor market reform; regional divergence; rural–urban migration; and entrepreneurship, rent-seeking, and corruption. Was it inevitable that inequality should rise so much? Does it matter that inequality has risen? Income distribution in China is bound up with both economic reform and economic growth. This paper concludes by considering the countervailing forces that will determine the path of inequality in future years. [ABSTRACT FROM AUTHOR]

The outcomes and forms of urbanization and modernization in China following the reform and opening of the late 1970s have attracted extensive attention and competing interpretations in scholarly documentation. This paper focuses on Hainan Island, established in 1988 as the biggest special economic zone in China. Since then, considerable inflows of human as well as speculative capital have led to rapid real estate, in particular tourism-related, development. While urban expansion and improvements have been encouraged, the ongoing over-building, unregulated conversion of land use and degradation of the urban environment present serious social and economic problems. This paper summarizes the trajectory, causal factors and outcomes of this urban growth and consequent planning problems that make the island an atypical case in China’s urbanization experience. We argue that the establishment of a practical framework combining socioeconomic planning, land use planning, and the management of both, is crucial to achieve sustainable growth for this transitional economy. [ABSTRACT FROM AUTHOR]

Different comparative advantages may affect the pattern of regional specialization in many ways. In this paper, by employing panel data covering 20 main industrial sectors in 29 Chinese provinces over the period of 1988–2001, and applying the generalized method of moment techniques, the determinants of regional specialization in China are investigated, paying particular attention to the role of dynamic comparative advantages. It is found that changing comparative advantages arising from technical efficiency improvement, scale economies enhancement, and growing economic openness contribute positively and significantly to China's regional specialization. [ABSTRACT FROM AUTHOR]

Using a political ecology framework that explores livelihood vulnerability, this paper analyzes commodification of grapes as an economic development strategy in Southwest China. Ethnographic research found that during the past decade, a majority of households within a village have converted fields to a monocrop of grapes, introduced by the government as part of a program to promote red wine from the region for tourism purposes. Villagers have been motivated to take part due to high economic returns but have found themselves living with less diversified sources of income and increasing use of agricultural chemicals. Villagers display concern for food security as they have moved away from growing subsistence crops and rely heavily on funds produced by grapes for subsistence. Questions are raised regarding long-term sustainability and the outlook of development programs targeting rural farmers as producers of high-value commodities being consumed by China’s growing middle and upper classes. [ABSTRACT FROM AUTHOR]

Spatial models of port system evolution often depict linearly the emergence of hierarchy through successive concentration phases of originally scattered ports. The Chinese case provides a fertile ground for complementing existing works by a long-term perspective, given the early importance of river ports and seaports and the development irregularities caused by periods of closure and openness over time and across such a large land mass. In both qualitative and quantitative ways, this paper describes and analyses the changing spatial pattern of China's port system since the first unified empire (221 bc). Main results underline a certain stability of the port system with regard to the location of main sea-river gateways, notwithstanding important regional shifts from one period to the other. [ABSTRACT FROM AUTHOR]

Over the past several decades, China has made tremendous progress in market integration and infrastructure development. Demand for natural resources has increased from the booming coastal economies, causing the terms of trade to favour the resource sector, which is predominantly based in the interior regions of the country. However, the gap in economic development level between the coastal and inland regions has widened significantly. In this paper, using a panel dataset at the provincial level, we show that Chinese provinces with abundant resources perform worse than their resource-poor counterparts in terms of per capita consumption growth. This trend that resource-poor areas are better off than resource-rich areas is particularly prominent in rural areas. Because of the institutional arrangements regarding property rights of natural resources, most gains from the resource boom have been captured either by the government- or state-owned enterprises. Thus, the windfall of natural resources has more to do with government consumption than household consumption. Moreover, in resource-rich areas, greater revenues accrued from natural resources bid up the price of non-tradable goods and hurt the competitiveness of the local economy. [ABSTRACT FROM AUTHOR]

The impressive economic growth in a select group of Asian economies in the last several decades prompts some to argue that authoritarianism helps rapid economic growth while democracy hampers it. In this paper, we used the panel data approach to test this hypothesis for seven Asian economies, including South Korea, Singapore, and China. Our results reject the strong version of this hypothesis but fail to reject the weak version of it. Specifically, we found insignificant impacts of political freedom but significant effects of economic freedom on advancing economic convergence in these economies. [ABSTRACT FROM AUTHOR]

Based on economic growth theory and the World Bank's analytical framework relating to the quality of growth, the present paper constructs a framework that encompasses physical, international, human, natural and knowledge capital to synthetically interpret economic development. After defining the five types of capital and total capital, we analyze the dynamic changes of these types of capital in China and in other countries. The results show that since China's reform and opening up, knowledge, international, human and physical capital have grown rapidly, with speeds of growth higher than that of economic growth. As the five types of capital have all increased at varying paces, the savings level of total capital in China has quadrupled in 25 years and overtook that of the USA in the 1990s. The changes in the five types of capital and total capital reveal that there are progressively multiple driving forces behind China's rapid economic development. Implications for China's long-term economic development are thereby raised. [ABSTRACT FROM AUTHOR]

Most studies on regional inequality in China are based on macro regions and provinces. Studies on intraprovincial inequality remain limited, although there is a growing literature on Guangdong and Jiangsu. Zhejiang is a leading coastal province of China experiencing rapid economic growth and has been known for its Wenzhou model of development based on private enterprises. This paper uses time-series county data to examine regional inequalities in Zhejiang from 1952 to 1998, with a focus on the reform period of 1978–98. We find that intermunicipal and intercounty inequalities in Zhejiang increased substantially, and overall inequality also increased, especially in the 1990s when more radical market reforms were implemented. While cities like Hangzhou and Ningbo have maintained their higher level of wealth, some counties, particularly coastal counties in municipalities like Wenzhou and Taizhou, have recorded dramatic growth, centred on private enterprises. However, municipalities such as Quzhou, which were favoured by Mao's industrialisation policy, recorded slower growth, as did the traditionally poorer municipalities. We have analysed the role of localities, the state, and globalisation in the changing patterns of regional development in Zhejiang, with an emphasis on local agents of development. [ABSTRACT FROM AUTHOR]

Results derived from evaluations using different measures for China's economic growth are divergent, especially when the RMB exchange rate has experienced large depreciation. Focusing on the changes in the RMB exchange rate matching the demands of economic development, we offer some plausible explanations for the variations in the evaluation results. The significant gaps between different economic performance evaluation results before the mid-1990s, and evidence from international comparisons of factor productivity indicate that the quality of economic growth in China is different from that of other economies. Evaluation of economic development should take into account both quantitative expansion and qualitative improvement. From this perspective, evaluation results indicate qualitative improvement in the Chinese economy after the mid-1990s. [ABSTRACT FROM AUTHOR]

A number of official and Western estimates of China's national income for the period since 1949 are at present available. The official estimates are based on the Marxian production concept while the Western estimates are, in the main, based on the comprehensive production concept. The periods covered by the estimates vary; and even in cases where the periods covered are the same, the estimates vary in magnitude and, in most cases, in the implied rate of economic growth. Apart from differences arising from the different national income concepts and definitions employed in individual estimates, sources of discrepancies between series of estimates can be traced to the particular sets of primary data employed and also to the particular procedures followed in estimating the national income components. The present paper brings together the various estimates available to date and indicates for each, as far as possible, the basic production concept adopted, the particular national income aggregates estimated, the basic estimation approach employed, and the special procedures used for estimating some of the components of national income. Comparisons of the major series of estimates for the period 1952-1959 are made and the sources of disrepancies between the series are discussed. Finally, some problems are described which a researcher in the West has to contend with in working on China's national income accounting. [ABSTRACT FROM AUTHOR]

This article investigates the links between commodity price bubbles and macroeconomic factors, with an application to the agricultural commodity markets in China from 2006 to 2014. Price bubbles are identified using a newly developed, recursive right-tailed unit root test. A Zero-inflated Poisson model is used to analyze the factors contributing to bubbles. Results show that (a) there were speculative bubbles in most Chinese agricultural commodity futures markets during the sample period, though their presence was infrequent; (b) economic growth, money supply, and inflation have positive effects on bubble occurrences, while interest rates have a negative effect; and (c) among all macroeconomic factors considered, economic growth and money supply have the greatest impact in triggering bubbles. Our findings shed new light on the nature and formation of bubbles in the Chinese agricultural commodity markets. [ABSTRACT FROM AUTHOR]

Organizational goals shape performance feedback and have salient influences on strategic behaviours and outcomes. I develop a model of goal-setting by combining performance gap and bureaucratic control theories. I predict that governments set goal levels historically in line with their past goal levels and attainment discrepancies, horizontally targeting the comparable peers' goal levels and performance gaps, and vertically aligning with the upper-tier authorities' mandates. Using the data on annual economic growth of 31 Chinese provinces from 2000 to 2012, the within-between random-effects model substantially supports these hypotheses. [ABSTRACT FROM AUTHOR]

The institutional settings in China, including the land allocation system and the household registration system, lead to a rural-urban labour migration pattern that differs from that in other countries. Individual peasants' labour is often split (typically over different times of the year) into two or more parts as a result of institutional factors. Individuals work both as peasants on the land and as temporary migrant workers in urban areas (or in rural non-agricultural sectors). We examine this issue using province-level panel data. The present study provides a new interpretation of the phenomenon of labour shortages in coastal cities and rising rural migrant wages in China in recent years, and discusses whether the Lewisian turning point has been reached. Under part migration, the rural labour supply to urban areas is smaller than would be the case with full migration of workers to urban areas, so that the Lewisian turning point occurs earlier. This finding has important policy implications for China's future development. [ABSTRACT FROM AUTHOR]

China has made contradictory claims about its attitude toward the existing international order. Is China a 'responsible stakeholder' in the existing international regimes? Or has China been a new type of great power seeking to reform the existing world order, making it more friendly toward the global South? In this article, we look beyond Chinese rhetoric and examine China's behavior in global economic governance. A comparison with other emerging powers and traditional major powers shows that China has been actively involved in global economic governance. But, thus far, China has not exercised substantive leadership nor has it pushed hard for change to benefit the developing countries. The level of its support of the current regimes varies across issue areas and is primarily driven by its changing economic interest. [ABSTRACT FROM AUTHOR]

The article discusses the potential application of American legal realism in China as of June 2014, focusing on Chinese law reform efforts and a reported lack of an enforcement regime for formal property and contract rights in China (Rights Theory). Economic development (ED) in China and classical legal thought (CLT) in America are mentioned, along with Chinese social values and political structures. Economist Friedrich Hayek and the relationship between the rule of law and ED are examined.

Drawing on recent theoretical tenets regarding cross-border regions, this article analyzes China's state spatial policies that aim to transform Yunnan from a peripheral frontier into an economic bridgehead. The purposes of the present study are threefold: to contextualize the formation of Yunnan as China's frontier; to examine why Yunnan has been strategically selected as a bridgehead to promote China's transnational economies; and to explore the central-provincial alliance as an innovative institutional arrangement and look at how this alliance can convert Yunnan into a space of exception or new state space of development. This study finds that in order to convert regional assets into real competitiveness, the Chinese state (national, provincial and local) emphasizes transnational cooperation, endeavors to maximize Yunnan's place-specific locational advantages and promotes the differentiation of regional developmental trajectories across China's national territory. The article contributes to studies of institutional arrangements for cross-border cooperation in a non- Western context and sheds light on China's regional development policies in its hinterland. [ABSTRACT FROM AUTHOR]

This article presents a model of endogenous growth, in which a firm's technology and a country's human capital stock are complementary in the production of output. Production technologies are created by costly research and development (R&D) and are owned by firms that can freely choose where in the world to produce. Both production and R&D have a positive effect on a country's human capital stock. While all countries typically grow at the same rate in the long run, they differ in their levels of human capital, per capita output, and the quality of the technologies that are used in production. A country's relative position in terms of productivity is history dependent. Countries that start out with a lower human capital stock or industrialize later end up with a lower per capita GDP in long-term equilibrium. [ABSTRACT FROM AUTHOR]

ABSTRACT Recent developments in the biopharmaceutical industry in Taiwan, South Korea and China bear witness to the transformation of these states in nurturing an innovation-based industry. This article argues that the segmentation of the value chain of the biopharmaceutical industry has provided industrializing countries with a window of opportunity. These East Asian states have modified their former catching-up approaches by establishing a more effective institutional platform that can attract knowledge-creation players to the industry. Through case studies, the authors show that the Taiwan state's promotion of the biopharmaceutical industry has been based on an incremental approach; existing state policies have been modified to cope with the demands of the industry, which has resulted in the continuation of its SME-based industrial structure. The methods of the Korean state have been more radical, in that the policies that previously favoured the chaebols have gradually been reoriented toward the promotion of smaller, science-based firms that now co-exist alongside the chaebols. Finally, the Chinese state and local governments have sought to promote this innovation-based industry by building biotech parks. This approach has resulted in a boom in new science firms, which have become increasingly isolated from the flourishing domestic SOE-led market. [ABSTRACT FROM AUTHOR]

The rapid pace of China's economic and trade development has been considered as a great success since the entry of WTO in 2001. Most recently, China has succeeded in coping with the global financial crisis and achieved a rapid V-shaped recovery which rebounded to two digit growth rate and lead to strengthening its international status. Nevertheless, China has exposed many potential problems in face of the financial crisis which due to international and domestic unbalanced features of China's economic operation system. The pattern of 'China Manufacturing and World Consuming' is a game with no winners, while the investment leaded economic development mode achieves high growth rate but without enriches its own residents. The current imbalanced economic development mode cannot be sustained and shall be changed in the future which is not only the consensus of economists at home and abroad, but also a striving goal for the Chinese government for its '12th Five-Year Plan'. However, China will face great and formidable challenges by changing the economic development mode to achieve an equilibrium state. [ABSTRACT FROM AUTHOR]

China's urbanization is undergoing profound neoliberal shifts, within which urban redevelopment has emerged in the forefront of neoliberalization. This study aims to understand China's emerging neoliberal urbanism by examining the association between urban redevelopment and neoliberalism. Rather than a deliberate design, neoliberalization in China is a response to multiple difficulties/crises and the desire for rapid development. The neoliberalization process is full of controversies and inconsistencies, which involve conflicts between neoliberal practices and social resistance, and tensions between central and local states. Nevertheless, China's neoliberal urbanism has a responsive and resilient system to cope with the contradictions and imbalances inherent in neoliberalism. Meanwhile, neoliberal urbanism is more tangible at the sub-national scale, since the local state can most effectively assist neoliberal experiments and manage crises. This study not only contributes to the understanding of China's neoliberal urbanism, but also has multiple implications for neoliberalism studies in general. First, in examining the interrelationship between the state and market, it is the actual effect of legitimizing and facilitating market operation rather than the presence (or absence) of the state that matters. Second, a new nexus of governance has formed in the neoliberalization process. Not only the nation state but also the local state is of great significance in assisting and managing neoliberal projects. Third, this study further validates the importance and necessity of scrutinizing neoliberal practices, in particular the controversies and inconsistencies within the neoliberalization process. [ABSTRACT FROM AUTHOR]

Anthropometric indicators can shed light on the ‘Great Divergence’ debate on the timing of the welfare development in China and Europe. We mobilise two new datasets of some 13,000 Southern Chinese contract migrants who were sent to Suriname and Indonesia, and thus supplement the limited existing evidence on early to mid-nineteenth century China. The Southern Chinese were about as tall as Southern Europeans during the early and mid-nineteenth century, but notably shorter than Northwestern Europeans. Height development was stagnant or slightly downward over the period studied, which fits into the pattern of real wage developments at that time. [ABSTRACT FROM AUTHOR]

Using data on China's provincial economies for the period 1978–2005, we decomposed the causes and factors that have contributed to inter-regional per capita income disparity. Variance in capital per employee and variance in capital elasticity are found to be the two main sources of income disparity while the employment–labour force ratio is shown to be an important factor in containing the rise of income disparity. An analysis on inter-regional factor reallocation effects reveals their relatively small and insignificant contributions to overall growth performance. It is also discovered that capital has in most years flowed in the right direction to pursue higher marginal productivity across provincial economies. Inter-provincial labour movement, on the other hand, had not displayed significant equilibrating effects until institutional reforms started to allow freer inter-regional labour mobility in later years. Generally, we conclude that market-oriented factor mobility has played a crucial role in equalizing factor returns as well as enhancing growth efficiency across regions. [ABSTRACT FROM AUTHOR]

China's economy in 2006 continued to register high growth of 10.5 to 10.7 percent with low inflation (CPI at 1.3 percent), dissipating fears of a hard landing. Since its accession to the WTO, China has become a significant global economic player, and is the favorite destination for many regional and global production networks. China is now a truly economic power (jingji daguo). China s economic leadership is also increasingly confident of its ability to manage China s domestic economic growth and its growing relations with the outside world. Although China s growth is expected to slow down in 2007 to approximately 9.5 percent, the national mood now is one of “more balanced” growth rather than “fast growth”. Therefore, the building of a “harmonious society” is to be emphasized in China, while letting economic growth solve the burning social and environmental issues. In 2007, the government will also need to deal with various internal and external macroeconomic imbalances. The renminbi will be under even stronger pressure to revalue, given China s record trade surplus of US$160bn and foreign reserves of US$1tn. [ABSTRACT FROM AUTHOR]

The article discusses the global economy, which the article asserts is suffering from serious imbalances characterised by a deterioration of the U.S. current account deficit, rapid increases in oil and raw material prices, and excessive international liquidity. The article compares these issues with the rapidly growing Chinese economy, which is suffering from serious imbalances of another kind, characterised by rapid increases in the so-called "twin surpluses" (current account and capital account surpluses), persistence of excessive investment, acute energy shortages, deterioration of the environment, and the rapid widening of income gaps. Programs adopted by the Chinese government aimed at achieving a more balanced and sustainable growth pattern are discussed.

Foreign direct investment (FDI) has been viewed in many circles as one of the key drivers for economic development. Irrespective of their ideological differences, most countries around the world have been competing to attract FDI. China, for example, is a country formally characterized by communist ideology. It has been highly proactive in formulating policies amenable to FDI so much so that in 2003, China overtook the United States as the biggest recipient of FDI, having attracted U.S. $53 billion from Organisation for Economic Co-operation and Development (OECD) countries and elsewhere. In this article, an attempt is made to critically examine aspects of FDI, especially with reference to economic development in Saudi Arabia. The research study in this article reports new research findings based on a survey of Saudi managers/enterprises that highlight the current status of FDI in the Kingdom of Saudi Arabia. In particular, the study finds that while Saudi managers generally welcome FDI into the country, at the same time, they do retain ambivalent attitudes toward its perceived benefits. [ABSTRACT FROM AUTHOR]

This article examines China's socioeconomic transformation towards health and mortality that began during the late 1970s. These socioeconomic transformations have led to great economic growth, and living standards even in the poorest parts of China have improved over a twenty-five year time span. A survey was conducted by the author to gauge the scope and breadth of those economic reforms, and the study found that while living standards have improved greatly in China, an inequality of income distribution has emerged as well.

As Shanghai strives to build itself into an international center of finance, trade, and commerce, a new retail economy has evolved accordingly. In the past two decades, its retail sector has been transformed from a simple and inefficient distribution system to a much more complex and highly competitive market-oriented economy. The new retail economy in many ways resembles the contemporary capitalist retail economy in the Western cities, but it also exhibits significant differences with Chinese characteristics. While the affluent consumer market is the necessary condition for sustained retail growth, it is the retail deregulation that has been the fundamental driving force for the structural changes in Shanghai's retail sector. Its liberal policies attracted major international retailers to either choose Shanghai as the gateway city to enter the China market, or locate their China headquarters offices in Shanghai to command their operations throughout the country. Indeed, the retail transformation in post-reform Shanghai is a clear testimony of the Economic Transition Model. The main data sources for this empirical study are the 1999 Census of Commercial Activity in Shanghai and the Shanghai Statistical Yearbook. They are supplemented by data collected from reputable Web sites and through field work in Shanghai. [ABSTRACT FROM AUTHOR]

This article shows that the allocation of resources among enterprises of different types of ownership is important to economic growth. The data on 30 Chinese provinces indicate that the investment share of state enterprises is negatively related to the growth rate of per-capita GDP, while the investment share of private enterprises is positively related to the growth rate. Meanwhile, the effect of total investment on the growth rate of per-capita GDP appears to be insignificant. The share of trade in GDP was positively related to economic growth. Also, the illiteracy rate of employees was negatively related to economic growth. (JEL O11, 053, P2, P52) [ABSTRACT FROM AUTHOR]

The article focuses on communist China's economic growth. The purpose of this article is to throw light on communist China's asserted economic growth by comparing it with that of the Republic of China, Hong Kong, and Japan. This is not to minimize in any way the Indian development, which has been rapid during the Nineteen Fifties and which has given very encouraging evidence to Asia of what can be accomplished with free institutions. It is merely an attempt to put Communist China's claimed economic progress back into focus. It should be emphasized that this article does not intend to analyze how effective the Chinese communists have been in improving their military potential even though this appears to be a primary aim of their economic policy. Instead this report intends to outline an approach for analyzing the relative effectiveness of the Chinese communist system in promoting economic growth; it is this latter question that appears to be most hotly debated. It appears that many analysts are convinced that just because a regime can hold down consumption, theoretically it should, therefore, be promoting a large volume of sound investment and a huge growth potential.

The article reports that Malawi cut its diplomatic ties with Taiwan and established ties with China. According to Malawi's Foreign Affairs Minister Joyce Banda, the decision was made after considering the benefits that it would bring to their country. Moreover, Lilongwe and Beijing had formalized its diplomatic ties last December 27, 2007. China's government and its companies have invested in Africa in a bid to build political influence in the developing country, and others. Meanwhile, Banda claimed that projects funded by Taiwan won't be affected by the change in their diplomatic relations.

The article reports on the aid and trade relation between European Union (EU) and Africa to counter China in the quest for energy and other resources. It aims to position Europe more favorably than China in terms of economic growth. The comment from the European Commission on EU's partnership with Africa is stated. In relation, it also offers information on the EU-Africa summit to be held in December in Lisbon, Portugal, wherein efforts to improve control of African migration to Europe and human trafficking will be discussed.