China and East Asia: An Appraisal of Regional Economic Integration

Three Taiwan-based economists evaluate regional economic integration in East Asia, using trade indicators to analyze the degree of trade concentration among East Asian nations, and employing the gravity model to identify key factors influencing bilateral trade flows among them. China is expected to play a key role in East Asia's economic development, and empirical analysis for the period 1990-2005 indicates that East Asia has already evolved into a trading block, expected to become one of three dominant blocks in the global economy. The study, which highlights the key role played by geographical distance and market size, suggests that the impact of the Association of Southeast Asian Nations (ASEAN) for East Asian trade will remain limited in the future. Journal of Economic Literature, Classification Numbers: F15, F31, O53, P33. 7 tables, 41 references.     

World City Network Integration in the Eurasian Realm

A team of authors from the Globalization and World Cities (GaWC) research network explores the main empirical features of the global economic integration of Eurasia through an analysis of the (shifting) position of that macroregion's key cities. More specifically, they examine the gateway roles played by key cities in four major subregions—China, the former Eastern Bloc (FEB, i.e., Central and Eastern Europe), former Soviet Union (FSU), and India—in the channeling of transnational flows of capital, goods, knowledge, and people in 2000-2008, focusing on the globalization of firms in the financial and business service sectors. Although cities in the four subregions share a common recent history of transition from closed and state-centered to open and market-based economies, the study reveals the persistence of distinctive geographical idiosyncrasies in their connections across the globe. Journal of Economic Literature, Classification Numbers: F020, F200, O180, P300. 4 figures, 3 tables, 1 appendix, 39 references.     

Hong Kong under Chinese Sovereignty: Economic Relations with Mainland China, 1978-2007

A Hong Kong—based economic geographer presents an array of statistical data through 2007 that place Hong Kong among the world's leading financial, foreign trade, and air cargo handling centers. The paper's main focus is the economic relationship with Mainland China, which has grown and expanded since the change of the city's sovereignty in 1997. Included in the presentation is a review of economic integration before and after the handover by the UK to China, the pattern of cross-border investments and foreign trade, the growth of the logistics and tourism industries, and the challenges posed by changing economic relations, partly due to the rapid development of Hong Kong's hinterland. Journal of Economic Literature, Classification Numbers: O16, O18, O20, R11. 2 figures, 5 tables, 64 references.     

Transnational Flows of E-Waste and Spatial Patterns of Recycling in China

Two geographers residing in Beijing discuss the inflows, processing, and consumption of electronic waste—a topic largely neglected in the current literature on globalization. Based on extensive interviews with electronics producers and recyclers in China, the paper explores the global flows of e-waste and concentration of related recycling in coastal China. The authors suggest that recycling activities (authorized as well as illegal) grew in tandem with the dramatic increase in electronics production during the last decade. They note that the country's recycling sector has played a significant role in rural industrialization and local economic development, albeit in conflict with the objectives of environmental protection. Journal of Economic Literature, Classification Numbers: F20, L63, O17, O19. 6 figures, 23 references.     

China's Exports and Imports of Agricultural Products under the WTO

An American economic geographer specializing in the agricultural sector of China's economy presents a study of that country's trade in agricultural products. The paper is focused on patterns of change in the regional distribution of agricultural and aquacultural exports and imports before and after China's accession to the World Trade Organization in 2001. Drawing on research during the course of a field trip in July 2008 and utilizing data compiled by China's Customs Bureau, the author provides a comprehensive assessment of the country's trade with 10 major world regions through the year 2007. Journal of Economic Literature, Classification Numbers: F14, F40, O13, Q17. 1 figure, 4 tables, 32 references.     

China's Emergence and Impact on Technology in East Asia: The Case of Machinebuilding

Two Taiwan-based economists estimate the technology content of exports by the machinebuilding industry of the East Asia region during 2004-2008, using comparative analysis to clarify changes in the relative competitiveness of four East Asian nations (China, Japan, South Korea, and Taiwan) accompanying the formation of a regional trading bloc and production networks. In particular, they examine the technology content of these countries' machinebuilding sub-industries' exports within the Southeast Asian market (documenting the rise of the machinebuilding industry in China) as well as the penetration of Japanese, South Korean, and Taiwanese sub-industries into China's market. The results point to areas of emerging competition among China, South Korea, Japan, and Taiwan for East Asian markets, which can only be expected to intensify in the future. Journal of Economic Literature, Classification Numbers: F14, F15, F36, O14, P23. 7 tables, 36 references.     

China's Economic and Political Penetration in Africa

A senior American specialist on China and noted geographer presents a study of that country's economic and political penetration into the African continent. The author identifies three key elements of China's objectives and plan, namely (1) support for Chinese policies in international affairs, particularly with regard to Taiwan, (2) search for oil and other mineral resources, and (3) creation of a new market for Chinese goods and services in tandem with additional jobs in China. The paper includes four case studies highlighting economic activities stimulated by Chinese loans and investments in the Republic of South Africa, Egypt, Sudan, and Angola. Considerable attention is devoted to oil imports, exports of cheap consumer goods, and construction and repair of infrastructure by Chinese technicians and laborers, as well as the competition between Chinese imports and host-country manufacturing and the PRC's diplomatic support of rogue African nations. Journal of Economic Literature, Classification Numbers: F020, F210, F350, F540. 11 figures, 1 table, 47 references.     

China and India Enter Global Markets: A Review of Comparative Economic Development and Future Prospects

An American economist specializing in the economic and business development of China as well as India presents the results of a focused comparison of their emergence as global economic powers in the late 20^th and early 21^st centuries. More specifically, she selectively reviews the body of published research comparing China and India, with emphasis on the literature covering the two countries' economic achievements, the nature of reforms and institutions, as well as the overall social contexts within which development and growth are occurring. The author addresses such major questions as the importance of timing and location in the two countries' development trajectories as well as the implications of different modes of guidance (market versus state direction) for those trajectories. A concluding section identifies several possible directions for future research. Journal of Economic Literature, Classification Numbers: F010, O110, O530, P200, P520. 1 figure, 2 tables, 120 references.     

The Impact of Global Financial Crisis on the Mechanism of Economic Growth in Russia

A noted specialist on the Russian economy presents an assessment of the impact of the global financial crisis on the mechanism of the country's economic growth. Focusing on the demand side of the economic ledger, the author explores the question of whether Russia will be able to re-attain the high economic growth rates of the period from 2000 to 2007 after recovering from the crisis. The paper analyzes the sharp drop in production in 2008 and the first quarter of 2009, attributing most of the damage to liquidity problems and declines in the price of oil. Empirical evidence is based primarily on data collected by the author from the Central Bank of Russia and the country's federal bureau of statistics (Rosstat). Journal of Economic Literature, Classification Numbers: E010, E200, E660, F210, G010. 11 figures, 3 tables, 29 references.     

The Aral Sea Crisis and Its Future: An Assessment in 2006

An American geographer and noted international authority on water management problems in Russia and Central Asia presents an account of an expedition, in late 2005 (under the sponsorship of the National Geographic Society) to Kazakhstan and Uzbekistan, focused on the Aral Sea. The steadily drying inland sea, with a surface area of 67,500 km² in 1960, had split into two parts and shrunk to 17,380 km2 in 2006. The paper provides an up-to-date overview of the crisis and presents an optimistic scenario of the sea's future, noting development of economic activities (particularly fisheries) in its surrounding settlements. Journal of Economic Literature, Classification Numbers: O13, Q15, Q25. 6 figures, 1 table, 55 references.     

Russia after the Global Financial Crisis

Two prominent American specialists on the Russian economy present a fundamental analysis of basic economic factors explaining how the global financial crisis has played out in Russia and its implications for the country's future. More specifically, the authors examine the consequences of Russia's dependence on and addiction to resource (oil and gas) rents and of the management system put in place under Vladimir Putin to maintain, secure, and distribute these rents. They then investigate how each of these factors has emerged from the crisis and how it might evolve in the years ahead. Focusing on the distinction between rent dependence and addiction, the authors question the conventional wisdom that diversification of Russia's economy (away from oil and gas) is a desirable objective that will render it less vulnerable to external shocks. Journal of Economic Literature, Classification Numbers: E020, F020, G010, O130. 15 figures, 44 references.     

China's Dynamic Industrial Sector: The Automobile Industry

Two leading Beijing- and Singapore-based economic geographers examine the recent developments and spatial change in China's automobile industry (currently the world's third largest). The paper covers changes in market share among major automobile transnational corporations as well as domestic assemblers; industrial restructuring in the form of product diversification (SUVs to hybrid cars) and production concentration; the massive increase in exports of motor vehicles; and the rise of new automobile production centers. Also included in the paper is a case study of the firm Chery to illustrate the development path of Chinese domestic car assemblers. The embeddedness of transnational corporations and deregulation by the Chinese government are advanced as the two major factors that shape the car industry's geographic distribution in China. Journal of Economic Literature, Classification Numbers: D20, F21, L62. 15 figures, 2 tables, 46 references.     

China's Energy Security: Challenges and Priorities

In a companion paper to the essays comparing China's and India's economic rise (Prime, 2009) as well as India's energy security (Dadwal, 2009), two specialists on China's energy industries review the country's challenges posed by the need to dramatically increase energy use in order to support economic growth while coping with pressures to reduce environmental impacts from emissions of greenhouse gases. After reviewing the current mix of fuels in the economy and discussing each major energy resource (in terms of proven reserves, production, consumption, and foreign import requirements), the authors focus on measures undertaken by the Chinese government and corporations to improve access to vital supplies. The paper covers efforts to enhance the country's energy security, which include diversifying sources of oil supply, purchasing oil and gas concessions and financing of energy infrastructure development in African and Central Asian countries, instituting reforms to encourage more efficient energy use, and developing alternative energy sources. Journal of Economic Literature, Classification Numbers: O130, P280, Q400. 7 figures, 2 tables, 82 references.     

The May 2004 Enlargement of the European Union: View from Two Years Out

A prominent American geographer and observer of political currents shaping modern Europe provides an introduction and background for three following papers on the nature and impacts of European Union's 2004 enlargement in different macroregions along the EU's eastern frontier. He outlines three major dimensions (economic, social-political, and institutional) that may be used to evaluate claims supporting and opposing enlargement, surveying the evidence to date for each. Concluding sections highlight the importance of scale in assessing the impacts of enlargement, the persistence of state nationalism as a curb to EU "deepening," and changes in the nature of the EU itself over time. Journal of Economic Literature, Classification Numbers: F02, F20, F40, O19. 2 figures, 20 references.     

The Siberian Curse: How Communist Planners Left Russia Out in the Cold. Fiona Hill and Clifford Gaddy

An American geographer examines the return migration of ethnic Kazakhs from Mongolia to their ancestral homeland of Kazakhstan, and the adjustment problems confronting them upon return. This specific example of "diasporic return migration" is emblematic of a process affecting nearly every state within the former USSR, and is especially acute in Central Asia. The study, based on the author's interviews, explores obstacles to the integration of Mongolian-Kazakhs into Kazakhstani society, and raises the question of whether this process might best be conceptualized as "repatriation" or "patriation." Journal of Economic Literature, Classification Numbers: F22, J61, O18, R23. 54 references.     

Energy Intensity in Light of China's Economic Transition

Two economic geographers examine the impacts of economic transition on the efficiency of energy use in China, the second-largest energy consumer in the world. Following a brief review of reform and deregulation in China's energy sector, they proceed to systematically test the relationship between economic transition (conceptualized as a triple process of marketization, decentralization, and globalization) and energy intensity using a panel data set. The statistical units of analysis are China's 30 provincial-level administrative regions, facilitating the investigation of spatial variations in energy intensity. Journal of Economic Literature, Classification Numbers: O53, P20, Q40, Q43. 9 figures, 5 tables, 62 references.     

The "Crisis" Geography of Contemporary Russia

Against the background of structural and geographical changes that brought about the economic crises of the 1990s in the Russian Federation and subsequent recovery in the early years of the 21st century, the authors analyze the challenges of (and responses to) the 2008 global economic and financial crisis in Russia. Quantitative data derived from official sources and the authors' own research is used to analyze developments at a variety of spatial scales, including inter- and intra-regional, urban and rural. The noted authors speculate about possible exit paths from the crisis and their impacts on spatial differentiation within the Russian Federation. Journal of Economic Literature, Classification Numbers: F210, G010, O150, O180. 6 figures, 1 table, 55 references.     

China's Shoe Manufacturing and the Wenzhou Model: Perspectives on the World's Leading Producer and Exporter of Footwear

A U.S.-based geographer and specialist on China advances his research on industrial districts and regional development by presenting a 2008 study of shoe manufacturing in Wenzhou (a major center in the world's largest footwear producing and exporting country). More specifically, the author examines how the model of economic development pioneered in Wenzhou (the Wenzhou model) has been transformed in an effort to meet the challenges posed by the global economy. He argues that the scaling up of Wenzhou's footwear industry, through the expansion of sales networks and factories across China and abroad, indicates that other adaptable city regions can overcome similar obstacles. The author challenges both the New Regionalism literature focused on local institutions and assets, as well as perspectives that overemphasize the benefits of globalization and global production networks. Journal of Economic Literature, Classification Numbers: O100, O140, O180. 2 figures, 3 tables, 60 references.     

Foreign Trade in China's Electronics Industry

Three Taiwan-based economists examine the effects of GDP, per capita GDP, geographic distance, FDI outflows and inflows, openness to trade, bilateral investment treaties, and other factors on the volume of bilateral trade between China and 40 of its trading partners in the up-, mid- and downstream segments of the country's electronics industry. Pooled cross-section and time-series data are employed in an empirical estimation for the period 1995-2005, which indicate that the Chinese electronics sector's import/export volumes have grown substantially alongside China's economy. The authors address a specific set of issues questioning whether FDI inflows have created a trade effect in the electronics industry, whether they have lead to a measure of import substitution in China's electronics industry, and whether the net impact of opening the market has been positive or negative on the sector's foreign trade. Journal of Economic Literature, Classification Numbers: F14, F21, L63, O53, P33. 6 tables, 23 references.     

Reflections on Ukraine's Current Economic Dilemma

A prominent specialist on economic transition in the former Soviet Union presents an overview of Ukraine's economic dilemma in the aftermath of the most recent elections in that country. The author, a former economic advisor to Ukraine's government and co-chair of the UN's Blue Ribbon Commission for Ukraine, relates his insights into the causes of three acute problems (inflation, corruption, and the lack of structural reforms). Focusing on the state of economic affairs in 2008, the paper, which includes data on economic growth and exchange rates, discusses inter alia the hryvnia's peg to the dollar and the potential consequences of rising food and commodity prices. Included in the analysis is a comparison with Russia. Journal of Economic Literature, Classification Numbers: E58, E60, O52, P26. 34 references.