China’s Hypercompetitive Car Market

Published on Author Mike

Today VW claimed sales of 2.35 million units in Jan-Sep. Meanwhile GM’s PR machine releases brand sales monthly. I track these, out of curiousity and because I teach a course on the Chinese economy (in which I use Michael Dunne’s American Wheels as one of 4 books I ask students to read). GM’s 9-month total… Continue reading China’s Hypercompetitive Car Market

Manufacturing in photos

Published on Author Mike

Here is toy manufacturing in China, the portfolio on this web site is very good. For the amateur side, I have pictures I took in garment, shoe and galvanizing plants uploaded in the media tab for class members to use in posts.

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Comparing standards of living

Published on Author Mike

How do we compare standards of living? We’ll discuss PPP measures and other formal means. We would like however to be comfortable that the results of our formal measures “make sense.” …47% pre-diabetic reflects prosperity, not poverty and not aging… As we’ll see, older Chinese remember hunger; younger Chinese may well know of aunts and… Continue reading Comparing standards of living

FT’s Wolf on China’s Growth Prospects

Published on Author Mike

Martin Wolf’s April 2 column in the Financial Times addresses China’s growth prospects, timely given the topic of today’s (April 3rd) class. He argues, without full details, for parallels between Japan and China that point towards the possibility of growth below the Chinese government projections he discusses. We’ll develop the simple Solow growth model today,… Continue reading FT’s Wolf on China’s Growth Prospects

Foreign Exchange Controls

Published on Author Mike

China catches flak for intervening in exchange markets. You should however think about the challenges faced by developing countries with small financial markets. A nice piece on that is on the Economist’s View blog, looking at Cyprus as the point of departure. Now that China is “large” in international markets the “hot money” argument is… Continue reading Foreign Exchange Controls

Sancha and Lishui

Published on Author Mike

Peter Hessler has a story in the latest National Geographic, revisiting a town in which he lived in 1996. He therein provides a sense of how rural areas have evolved over the past 15-odd years. For Country Driving, see here and here and herelinks for Sancha including photos of the Wei family. If you visit… Continue reading Sancha and Lishui

Reform or Revolution?

Published on Author Mike

Foreign Affairs‘s January-February 2013 issue has an interesting piece by Huang Yasheng, “Democratize or Die: Why China’s Communists Face Reform or Revolution.” (There’s a companion piece, “The Life of the Party: The Post-Democratic Future Begins in China” by Eric X. Li.) We don’t have time to pursue questions of the interactions of economic performance and… Continue reading Reform or Revolution?

Lewis, China and Slums

Published on Author Mike

For expository purposes, let’s stick with the extreme W. Arthur Lewis assumption of MPL=w=0 in the Chinese countryside by 1990. The list of contributing factors is long: electric pumps; mechanical threshers; chemical pesticides, herbicides and fertilizers; new cultivars; and finally (though post-dating 1990) new rice systems that did away with the need to prepare seedbeds… Continue reading Lewis, China and Slums

Wed 13 Feb Reading

Published on Author Mike

==> Meng, Xin (2012). “Labor Market Outcomes and Reforms in China.” Journal of Economic Perspectives  26:4, pp. 75-102. For your reference, this issue of JEP has the following additional articles on China. All are free to download via the link above. Li, Hongbin, Li, Lei and Xiong, Yanyan (2012). “The End of Cheap Chinese Labor.”… Continue reading Wed 13 Feb Reading

Appreciating RMB

Published on Author Mike

William Granruth highlighted the issue with a post on the exchange rate from the WSJ. As followup read the following substantive analysis “The appreciating renminbi” from the VoxEU blog. What is the “real” value of the RMB (= how measure)? Is it (too) weak (= [excessive] trade surplus)? Not surprisingly, the WSJ looks only at… Continue reading Appreciating RMB

Reeves Center lecture

Published on Author Mike

  Ron Fuchs of the Reeves Center hosted us in the Watson Pavilion to hear of the China export trade. He privaleged us with the opportunity to handle a piece from the dinner service of Pres George Washington and Gen Robert E Lee on Founders Day. Note the many economic themes: the Chinese government exercise… Continue reading Reeves Center lecture