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Trade, capital flows and external balance: is China unique in two hundred years of globalisation?

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  • Yiping Zhu

Abstract

This study examines China's growth patterns through its exports, foreign capital inflows, balance of payments and terms of trade, and projects them into a comparative framework. It brings together, for the first time, various sources of historical data from the first globalisation era, relating to four of the most industrialised economies - the UK, the US, Germany and Japan. By comparison, it finds that China's trade expansion has no doubt exceeded that of any of the industrialised economies in the first globalisation era; however, this trade boom is a characteristic of post-war globalisation. Large capital inflows, surplus in both current and capital accounts, and the negative correlation between terms of trade and exports are not unique Chinese phenomena in the history of globalisation. However, China's trade liberalisation, industrialisation policy, FDI strategy and cautious foreign exchange policy have all contributed to the exploitation of the positive effects of globalisation.

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  • Yiping Zhu, 2010. "Trade, capital flows and external balance: is China unique in two hundred years of globalisation?," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 8(1), pages 1-22.
  • Handle: RePEc:taf:jocebs:v:8:y:2010:i:1:p:1-22 DOI: 10.1080/14765280903488322
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    Cited by:

    1. Simplice A, Asongu, 2011. "Political crises and risk of financial contagion in developing countries: Evidence from Africa," MPRA Paper 37459, University Library of Munich, Germany.
    2. Simplice A Asongu, 2013. "Modeling the future of knowledge economy: evidence from SSA and MENA countries," Economics Bulletin, AccessEcon, pages 612-624.
    3. Asongu, Simplice A, 2014. "Sino-African relations: a review and reconciliation of dominant schools of thought," MPRA Paper 66597, University Library of Munich, Germany.
    4. Asongu, Simplice A, 2014. "A Development Consensus reconciling the Beijing Model and Washington Consensus: Views and Agenda," MPRA Paper 58757, University Library of Munich, Germany.
    5. Fischer, A.M., 2010. "Is China turning Latin?," ISS Working Papers - General Series 19431, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    6. Simplice Asongu & John Ssozi, 2016. "Sino-African Relations: Some Solutions and Strategies to the Policy Syndromes," Journal of African Business, Taylor & Francis Journals, pages 33-51.
    7. Simplice A, Asongu, 2012. "Are Proposed African Monetary Unions Optimal Currency Areas? Real and Monetary Policy Convergence Analysis," MPRA Paper 36056, University Library of Munich, Germany.
    8. Simplice A. Asongu & Gilbert A.A. Aminkeng, 2013. "The economic consequences of China--Africa relations: debunking myths in the debate," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, pages 261-277.
    9. Simplice Asongu & Jacinta C. Nwachukwu & Gilbert A. A. Aminkeng, 2014. "China’s Strategies in Economic Diplomacy: A Survey of Updated Lessons for Africa, the West and China," Working Papers 14/036, African Governance and Development Institute..
    10. Terheggen, Anne, 2010. "The new kid in the forest: the impact of China's resource demand on Gabon's tropical timber value chain," MPRA Paper 37982, University Library of Munich, Germany.
    11. Simplice A. Asongu & Gilbert A.A. Aminkeng, 2013. "The economic consequences of China--Africa relations: debunking myths in the debate," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, pages 261-277.

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