China, India and the Commodity Boom: Economic and Environmental Implications for Low-income Countries
Abstract The international role of China has risen steadily for two decades - and has become even more important in the current global recession. The growing supply of labour-intensive manufactured exports from China has been accompanied by a huge expansion in its imports both of raw materials and of skill-intensive manufactured parts and components. This 'offshoring' of intermediates production by a large, labour-abundant economy has economic and environmental implications for other developing economies. More recently, the rapid expansion of the Indian economy and trade indicates that it too will soon exert similar effects on global markets. We sketch a model showing how the growth of these developing-country 'giants' generates adjustment pressures on other developing economies. We discuss in particular how differences in relative factor endowments of resource-rich economies can produce quite different outcomes in the context of product fragmentation and expanding commodity trade. We also explore the effects on production, trade, environment and prospects for future growth in resource-rich economies, particularly in the context of weak institutions and other market failures. We illustrate these different impacts by considering the cases of Indonesia, Malaysia and Thailand and highlight implications for growth, development and policy. Copyright 2010 Blackwell Publishing Ltd.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 33 (2010)
Issue (Month): 4 (04)
|Contact details of provider:|| Web page: http://www.blackwellpublishing.com/journal.asp?ref=0378-5920|
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=0378-5920|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Chris Manning & Pradip Bhatnagar, 2004. "The Movement Of Natural Persons In Southeast Asia: How Natural?," Departmental Working Papers 2004-02, The Australian National University, Arndt-Corden Department of Economics.
- Sanjaya Lall and Manuel Albaladejo (QEH), "undated".
"China’s Competitive Performance: A Threat To East Asian Manufactured Exports?,"
QEH Working Papers
qehwps110, Queen Elizabeth House, University of Oxford.
- Lall, Sanjaya & Albaladejo, Manuel, 2004. "China's Competitive Performance: A Threat to East Asian Manufactured Exports?," World Development, Elsevier, vol. 32(9), pages 1441-1466, September.
- Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1993. "Why Is Rent-Seeking So Costly to Growth?," American Economic Review, American Economic Association, vol. 83(2), pages 409-414, May.
- Kimura, Fukunari & Ando, Mitsuyo, 2005. "Two-dimensional fragmentation in East Asia: Conceptual framework and empirics," International Review of Economics & Finance, Elsevier, vol. 14(3), pages 317-348.
- Prema-chandra Athukorala, 2007.
"The Rise of China and East Asian Export Performance: Is the Crowding-out Fear Warranted?,"
Departmental Working Papers
2007-10, The Australian National University, Arndt-Corden Department of Economics.
- Prema-chandra Athukorala, 2009. "The Rise of China and East Asian Export Performance: Is the Crowding-Out Fear Warranted?," The World Economy, Wiley Blackwell, vol. 32(2), pages 234-266, 02.
- Athukorala, Prema-chandra & Yamashita, Nobuaki, 2006.
"Production fragmentation and trade integration: East Asia in a global context,"
The North American Journal of Economics and Finance,
Elsevier, vol. 17(3), pages 233-256, December.
- Prema-chandra Athukorala & Nobuaki Yamashita, 2005. "Production Fragmentation and Trade Integration: East Asia in a Global Context," Departmental Working Papers 2005-07, The Australian National University, Arndt-Corden Department of Economics.
- Auty, Richard M., 2001. "The political economy of resource-driven growth," European Economic Review, Elsevier, vol. 45(4-6), pages 839-846, May.
- Eichengreen, Barry & Tong, Hui, 2006. "Fear of China," Journal of Asian Economics, Elsevier, vol. 17(2), pages 226-240, April.
- Y.Chen & K. Rogoff, 2003.
"Commodity Currencies and Empirical Exchange Rate Puzzles,"
DNB Staff Reports (discontinued)
76, Netherlands Central Bank.
- Kenneth Rogoff & Yu-chin Chen, 2002. "Commodity Currencies and Empirical Exchange Rate Puzzles," IMF Working Papers 02/27, International Monetary Fund.
- Zahari Zen & Colin Barlow & Ria Gondowarsito, 2005. "Oil Palm in Indonesian Socio-Economic Improvement A Review of Options," Departmental Working Papers 2005-11, The Australian National University, Arndt-Corden Department of Economics.
- van Wijnbergen, Sweder J G, 1984. "The 'Dutch Disease': A Disease after All?," Economic Journal, Royal Economic Society, vol. 94(373), pages 41-55, March.
- L. Alan Winters & Shahid Yusuf, 2007. "Dancing with the Giants: China, India, and the Global Economy," World Bank Publications, The World Bank, number 6632, February.
- Harry G. Broadman, 2007. "Africa's Silk Road : China and India's New Economic Frontier," World Bank Publications, The World Bank, number 7186, February.
- Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 110(3), pages 681-712.
- Ando, Mitsuyo, 2006. "Fragmentation and vertical intra-industry trade in East Asia," The North American Journal of Economics and Finance, Elsevier, vol. 17(3), pages 257-281, December.
- Willenbockel, Dirk, 2007. "The Impact of China's Import Demand Growth on Sectoral Specialization in Brazil: A CGE Assessment," MPRA Paper 6200, University Library of Munich, Germany.
- Coxhead, Ian & Li, Muqun, 2008. "Prospects for Skills-Based Export Growth in a Labour-Abundant, Resource-Rich Economy: Indonesia in Comparative Perspective," Staff Paper Series 524, University of Wisconsin, Agricultural and Applied Economics.
When requesting a correction, please mention this item's handle: RePEc:bla:worlde:v:33:y:2010:i:4:p:525-551. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.