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China's Changing Economic Structure and Implications for Regional Patterns of Trade, Production and Integration

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  • Kim Song Tan
  • Hoe Ee Khor

Abstract

Without intending to do so, China has in recent years played a major role in East Asia's economic integration. It has done so mainly through the production and supply chain networks it has spun across the region. This paper argues that given the developmental trends in the Chinese economy, the Chinese government should pursue a more active strategy towards a broader and more balanced economic integration with the region. The emergence of a multi-track production structure, increased importance of domestic consumption and the services sector, together with faster integration of the domestic economy, will fundamentally change China's trade and investment relationships with the rest of East Asia and necessitate a review of China's economic integration strategy. The paper also argues that ASEAN can play a useful role in facilitating the region-wide integration process. Copyright The official journal of The Institute of World Economics and Politics, Chinese Academy of Social Sciences (CASS) 2006.

Suggested Citation

  • Kim Song Tan & Hoe Ee Khor, 2006. "China's Changing Economic Structure and Implications for Regional Patterns of Trade, Production and Integration," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 14(6), pages 1-19.
  • Handle: RePEc:bla:chinae:v:14:y:2006:i:6:p:1-19
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    References listed on IDEAS

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    1. Dic Lo & Thomas M. H. Chan, 1998. "Machinery and China's nexus of foreign trade and economic growth," Journal of International Development, John Wiley & Sons, Ltd., vol. 10(6), pages 733-749.
    2. Hausmann, Ricardo & Rodrik, Dani, 2003. "Economic development as self-discovery," Journal of Development Economics, Elsevier, pages 603-633.
    3. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
    4. Jorg Mayer & Adrian Wood, 2001. "South Asia's Export Structure in a Comparative Perspective," Oxford Development Studies, Taylor & Francis Journals, vol. 29(1), pages 5-29.
    5. Eswar S Prasad, 2004. "China's Growth and Integration into the World Economy; Prospects and Challenges," IMF Occasional Papers 232, International Monetary Fund.
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    Cited by:

    1. Straub, Roland & Thimann, Christian, 2010. "The external and domestic side of macroeconomic adjustment in China," Journal of Asian Economics, Elsevier, pages 425-444.
    2. Francis Tuan & Agapi Somwaru & Sun Ling Wang & Efthimia Tsakiridou, 2016. "The Dynamics of China's Export Growth: An Intertemporal Analysis," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 14(1), pages 37-57.
    3. Urraca-Ruiz, Ana, 2013. "The ‘technological’ dimension of structural change under market integration," Structural Change and Economic Dynamics, Elsevier, vol. 27(C), pages 1-18.
    4. repec:bla:sajeco:v:85:y:2017:i:3:p:430-454 is not listed on IDEAS
    5. Mustafa Çakir & Alain Kabundi, 2014. "Working Paper – WP/14/05- Transmission of China’s Shocks to the BRIS Countries," Papers 6345, South African Reserve Bank.
    6. Yan Liang, 2008. "Why Are China's Exports Special?: The Role of FDI, Regional Trade, and Government Policies," Chinese Economy, Taylor & Francis Journals, vol. 41(6), pages 99-118, November.
    7. Mustafa Çakir & Alain Kabundi, 2017. "Transmission of China's Shocks to the BRIS Countries," South African Journal of Economics, Economic Society of South Africa, vol. 85(3), pages 430-454, September.

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