IDEAS home Printed from https://ideas.repec.org/a/gig/chaktu/v38y2009i2p3-26.html
   My bibliography  Save this article

Beijing Bubble, Beijing Bust: Inequality, Trade, and Capital Inflow into China

Author

Listed:
  • James Galbraith
  • Sara Hsu
  • Wenjie Zhang

Abstract

This paper explores the relationships between inequality, trade, and capital flows into China since the early 1990s and particularly in the first years of the present decade. We show that the rise in economic inequality in China has more to do directly with the activities associated with China’s financial and building boom, notably in Beijing, than with the massive growth in manufacturing employment and in Chinese exports since China joined the WTO in 2001. Nevertheless, it is likely that a flow of profits from the export boom did feed the speculative fires in the capital and elsewhere, and therefore it should be no surprise that the fall of one should be linked to the fall of the other, in a particularly painful reduction of economic inequality.

Suggested Citation

  • James Galbraith & Sara Hsu & Wenjie Zhang, 2009. "Beijing Bubble, Beijing Bust: Inequality, Trade, and Capital Inflow into China," Journal of Current Chinese Affairs - China aktuell, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 38(2), pages 3-26.
    • Handle: RePEc:gig:chaktu:v:38:y:2009:i:2:p:3-26
    as

    Download full text from publisher

    File URL: http://hup.sub.uni-hamburg.de/giga/jcca/article/view/43/43
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Maria Freire & Carmen Mendes, 2009. "Realpolitik Dynamics and Image Construction in the Russia-China Relationship: Forging a Strategic Partnership?," Journal of Current Chinese Affairs - China aktuell, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 38(2), pages 27-52.
    2. Yin-Wong Cheung & Dickson C. Tam & Matthew S. Yiu, 2008. "Does the Chinese interest rate follow the US interest rate?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 13(1), pages 53-67.
    3. Cheung, Yin-Wong & Chinn, Menzie D. & Fujii, Eiji, 2006. "The Chinese economies in global context: The integration process and its determinants," Journal of the Japanese and International Economies, Elsevier, vol. 20(1), pages 128-153, March.
    4. Nora Frisch, 2009. "Nationalism to Go - Coke Commercials between Lifestyle and Political Myth," Journal of Current Chinese Affairs - China aktuell, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 38(2), pages 85-120.
    5. World Bank, 2009. "World Development Indicators 2009," World Bank Publications - Books, The World Bank Group, number 4367, December.
    6. James K. Galbraith & Ludmila Krytynskaia & Qifei Wang, 2004. "The Experience of Rising Inequality in Russia and China during the Transition," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 1(1), pages 87-106, June.
    7. Guonan Ma & Robert N McCauley, 2008. "Efficacy Of China'S Capital Controls: Evidence From Price And Flow Data," Pacific Economic Review, Wiley Blackwell, vol. 13(1), pages 104-123, February.
    8. Yue Ma & Huayu Sun, 2007. "Hot Money Inflows and Renminbi Revaluation Pressure," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 5(1), pages 19-36.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Joseph Cheng, 2009. "Chinese Perceptions of Russian Foreign Policy During the Putin Administration: U.S.-Russia Relations and “Strategic Triangle” Considerations," Journal of Current Chinese Affairs - China aktuell, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 38(2), pages 145-168.
    2. André Laliberté, 2009. "The Regulation of Religious Affairs in Taiwan: From State Control to Laisser-faire?," Journal of Current Chinese Affairs - China aktuell, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 38(2), pages 53-83.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yin-Wong Cheung & Risto Herrala, 2014. "China's Capital Controls: Through the Prism of Covered Interest Differentials," Pacific Economic Review, Wiley Blackwell, vol. 19(1), pages 112-134, February.
    2. Tao Cai & Vinh Q. T. Dang & Jennifer T. Lai, 2016. "China's Capital and ‘Hot’ Money Flows: An Empirical Investigation," Pacific Economic Review, Wiley Blackwell, vol. 21(3), pages 276-294, August.
    3. Yin-Wong Cheung & Risto Herrala, 2014. "China's Capital Controls: Through the Prism of Covered Interest Differentials," Pacific Economic Review, Wiley Blackwell, vol. 19(1), pages 112-134, February.
    4. repec:zbw:bofitp:2013_022 is not listed on IDEAS
    5. Cheung, Yin-Wong (ed.), 2012. "The Evolving Role of China in the Global Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262018234, December.
    6. Jinzhao Chen, 2012. "Crisis, Capital Controls and Covered Interest Parity: Evidence from China in Transformation," PSE Working Papers halshs-00660654, HAL.
    7. André Laliberté, 2009. "The Regulation of Religious Affairs in Taiwan: From State Control to Laisser-faire?," Journal of Current Chinese Affairs - China aktuell, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 38(2), pages 53-83.
    8. Michael M Hutchison & Gurnain Kaur Pasricha & Nirvikar Singh, 2012. "Effectiveness of Capital Controls in India: Evidence from the Offshore NDF Market," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 60(3), pages 395-438, September.
    9. George M. von Furstenberg, 2007. "Aspects, Models and Measures for Assessing the Competitiveness of International Financial Services in a Particular Location," Working Papers 182007, Hong Kong Institute for Monetary Research.
    10. George Furstenberg, 2008. "Assessing the Competitiveness of International Financial Services in Particular Locations: A Survey of Methods and Perspectives," Open Economies Review, Springer, vol. 19(4), pages 539-556, September.
    11. Guonan Ma & Robert N McCauley, 2008. "Efficacy Of China'S Capital Controls: Evidence From Price And Flow Data," Pacific Economic Review, Wiley Blackwell, vol. 13(1), pages 104-123, February.
    12. Simeon Nanovsky & Yoonbai Kim, 2018. "International Capital Movement and Monetary Independence in Asia," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 24(2), pages 179-198, May.
    13. Joseph Cheng, 2009. "Chinese Perceptions of Russian Foreign Policy During the Putin Administration: U.S.-Russia Relations and “Strategic Triangle” Considerations," Journal of Current Chinese Affairs - China aktuell, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 38(2), pages 145-168.
    14. Li, Aijun & Du, Nan & Wei, Qian, 2014. "The cross-country implications of alternative climate policies," Energy Policy, Elsevier, vol. 72(C), pages 155-163.
    15. Erkki Karo & Rainer Kattel, 2010. "The Copying Paradox: Why Converging Policies but Diverging Capacities in Eastern European Innovation Systems?," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 2(2), pages 167-206, October.
    16. Okada, Keisuke, 2012. "The effects of female HIV/AIDS status on fertility and child health in Cambodia," Journal of Asian Economics, Elsevier, vol. 23(5), pages 560-570.
    17. Lise Rakner, 2012. "Foreign Aid and Democratic Consolidation in Zambia," WIDER Working Paper Series wp-2012-016, World Institute for Development Economic Research (UNU-WIDER).
    18. Augustin Kwasi Fosu, 2010. "The Global Financial Crisis and Development: Whither Africa," WIDER Working Paper Series wp-2010-124, World Institute for Development Economic Research (UNU-WIDER).
    19. Çakır, Mustafa Yavuz & Kabundi, Alain, 2013. "Trade shocks from BRIC to South Africa: A global VAR analysis," Economic Modelling, Elsevier, vol. 32(C), pages 190-202.
    20. Alireza Naghavi & Chiara Strozzi, 2011. "Intellectual Property Rights, Migration, and Diaspora," Working Papers 2011.60, Fondazione Eni Enrico Mattei.
    21. Chia-Lin Chang & Thanchanok Khamkaew & Michael McAleer, 2012. "IV Estimation of a Panel Threshold Model of Tourism Specialization and Economic Development," Tourism Economics, , vol. 18(1), pages 5-41, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gig:chaktu:v:38:y:2009:i:2:p:3-26. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Karsten Giese or Heike Holbig (email available below). General contact details of provider: https://edirc.repec.org/data/dueiide.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.