The Experts below are selected from a list of 3198 Experts worldwide ranked by ideXlab platform
Joshua Aizenman - One of the best experts on this subject based on the ideXlab platform.
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chinese outwards Mercantilism the art and practice of bundling
Research Papers in Economics, 2015Co-Authors: Joshua Aizenman, Yothin Jinjarak, Huanhuan ZhengAbstract:The Global Financial Crisis (GFC) brought to the fore the limits of the Chinese export led-growth strategy and the need for Chinese rebalancing of its international business approaches. Our paper takes stock of what may be the new chapter of Chinese outward-Mercantilism, which aims at securing a higher rate of returns on its net foreign asset position, leveraging its success in manufacturing exports, natural resource imports and RMB internationalization. Using micro-level project data and macroeconomic covariates, we find positive association of Chinese trade and financial flows with China’s outward direct investment (ODI). The relationship is stronger for ODI originated from the Chinese state-owned enterprises, and strengthened by the provision of RMB swap-line agreements with China’s trading partners. The evidences support the conjecture that Chinese ODI is bundled to trade and financial linkages with its investment and trading partners.
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chinese outwards Mercantilism the art and practice of bundling
Social Science Research Network, 2015Co-Authors: Joshua Aizenman, Yothin Jinjarak, Huanhuan ZhengAbstract:The Global Financial Crisis (GFC) brought to the fore the limits of the Chinese export led-growth strategy and the need for Chinese rebalancing. The Chinese export-led growth strategy of the 2000s coincided with the country becoming one of the largest net global creditors. Intriguingly, the Chinese net income from its global creditor position was negative, reflecting the large share of its low-yielding assets (mostly international reserves), and its high share of high-yielding liabilities (mostly foreign direct investment in China). Our paper takes stock of what may be the next new chapter of Chinese outward-Mercantilism, which aims at securing a higher rate of returns on its net foreign asset position, leveraging its success in becoming the global manufacturing hub and the supplier of swap-lines. The emerging new trend has been manifested by Chinese outward-oriented FDI in natural resources, commodities and mining, and providing a wide spectrum of infrastructure and construction services to developing countries. These activities are frequently bundled with access to finance and the export of Chinese capital products and labor services. We trace and analyze these trends, identifying the positive associations between Chinese trade, finance, and outward FDI (aggregate flows as well as greenfield capital investment). The positive association between Chinese outward FDI and commodities imports increases with the provision of RMB swap-lines to China’s trading partners. The association between Chinese FDI outflows in the natural resources sector and commodities imports has become stronger since the GFC. The association of RMB swap-lines with the Chinese outward FDI in the natural resources sector is especially large, thus supporting the conjecture that in the aftermath of the GFC Chinese outward FDI is bundled with trade and financial linkages.Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.
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financial versus monetary Mercantilism long run view of large international reserves hoarding
The World Economy, 2008Co-Authors: Joshua Aizenman, Jaewoo LeeAbstract:The sizable hoarding of international reserves by several East Asian countries has been frequently attributed to a modern version of monetary Mercantilism – hoarding international reserves in order to improve competitiveness. Taking a long-run perspective, we point out that manufacturing exporters in East Asia frequently used financial Mercantilism – subsidizing the cost of capital – during decades of high growth. The switches to sizable hoarding of international reserves happened when growth floundered or deep crises erupted, exacerbating financial fragility as the legacy of past financial Mercantilism. As financial fragility may lead to currency crises, the rise of non-performing loans provides impetus for the precautionary hoarding of international reserves, making it harder to disentangle the monetary Mercantilism from precautionary response to the heritage of past financial Mercantilism. Monetary Mercantilism also raises the prospects of competitive hoarding -- exporters of competing manufacturing goods to third markets would adopt a similar hoarding policy, in order to mitigate their deteriorating competitiveness following the adoption of monetary Mercantilism by a competitor. Competitive hoarding, owing to the negative externalities associated with it, can dissipate competitiveness gains and result in excess reserves. It may also encourage the formation of institutions like regional funds, in an attempt to curb these adverse externalities.
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international reserves management and the current account
National Bureau of Economic Research, 2007Co-Authors: Joshua AizenmanAbstract:The paper assesses the costs and benefits of active international reserve management (IRM), shedding light on the question of how intense should IRM be for an emerging market. In principle, an active IRM strategy could lower real exchange rate volatility induced by terms of trade shocks; provide self insurance against sudden stops; reduce the speed of adjustment of the current account; and even allow for higher growth if it fosters exports (“mercantilist” motive). The message of the report is mixed – management of reserves is not a panacea. The mercantilist case for hoarding international reserves, as an ingredient of an export led growth strategy, is dubious. Done properly, IRM augments macro economic management in turbulent times, mitigating the impact of external adverse shocks and allowing for a smoother current account adjustment. These benefits are especially important for commodity exporting countries, and countries with limited financial development.
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financial versus monetary Mercantilism long run view of large international reserves hoarding
Research Papers in Economics, 2006Co-Authors: Joshua Aizenman, Jaewoo LeeAbstract:The sizable hoarding of international reserves by several East Asian countries has been frequently attributed to a modern version of monetary Mercantilism – hoarding international reserves in order to improve competitiveness. From a long-run perspective, manufacturing exporters in East Asia adopted financial Mercantilism—subsidizing the cost of capital— during decades of high growth. They switched to hoarding large international reserves when growth faltered, making it harder to disentangle the monetary Mercantilism from precautionary response to the heritage of past financial Mercantilism. Monetary Mercantilism also lowers the cost of hoarding, but may be associated with negative externalities leading to competitive hoarding.
Jaewoo Lee - One of the best experts on this subject based on the ideXlab platform.
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financial versus monetary Mercantilism long run view of large international reserves hoarding
The World Economy, 2008Co-Authors: Joshua Aizenman, Jaewoo LeeAbstract:The sizable hoarding of international reserves by several East Asian countries has been frequently attributed to a modern version of monetary Mercantilism – hoarding international reserves in order to improve competitiveness. Taking a long-run perspective, we point out that manufacturing exporters in East Asia frequently used financial Mercantilism – subsidizing the cost of capital – during decades of high growth. The switches to sizable hoarding of international reserves happened when growth floundered or deep crises erupted, exacerbating financial fragility as the legacy of past financial Mercantilism. As financial fragility may lead to currency crises, the rise of non-performing loans provides impetus for the precautionary hoarding of international reserves, making it harder to disentangle the monetary Mercantilism from precautionary response to the heritage of past financial Mercantilism. Monetary Mercantilism also raises the prospects of competitive hoarding -- exporters of competing manufacturing goods to third markets would adopt a similar hoarding policy, in order to mitigate their deteriorating competitiveness following the adoption of monetary Mercantilism by a competitor. Competitive hoarding, owing to the negative externalities associated with it, can dissipate competitiveness gains and result in excess reserves. It may also encourage the formation of institutions like regional funds, in an attempt to curb these adverse externalities.
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financial versus monetary Mercantilism long run view of large international reserves hoarding
Research Papers in Economics, 2006Co-Authors: Joshua Aizenman, Jaewoo LeeAbstract:The sizable hoarding of international reserves by several East Asian countries has been frequently attributed to a modern version of monetary Mercantilism – hoarding international reserves in order to improve competitiveness. From a long-run perspective, manufacturing exporters in East Asia adopted financial Mercantilism—subsidizing the cost of capital— during decades of high growth. They switched to hoarding large international reserves when growth faltered, making it harder to disentangle the monetary Mercantilism from precautionary response to the heritage of past financial Mercantilism. Monetary Mercantilism also lowers the cost of hoarding, but may be associated with negative externalities leading to competitive hoarding.
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financial versus monetary Mercantilism long run view of large international reserves hoarding
IMF Working Papers, 2006Co-Authors: Jaewoo Lee, Joshua AizenmanAbstract:The sizable hoarding of international reserves by several East Asian countries has been frequently attributed to a modern version of monetary Mercantilism-hoarding international reserves in order to improve competitiveness. From a long-run perspective, manufacturing exporters in East Asia adopted financial Mercantilism-subsidizing the cost of capital- during decades of high growth. They switched to hoarding large international reserves when growth faltered, making it harder to disentangle the monetary Mercantilism from a precautionary response to the heritage of past financial Mercantilism. Monetary Mercantilism also lowers the cost of hoarding through its short-term boost to external competitiveness, but may be associated with negative externalities leading to competitive hoarding.
Huanhuan Zheng - One of the best experts on this subject based on the ideXlab platform.
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chinese outwards Mercantilism the art and practice of bundling
Research Papers in Economics, 2015Co-Authors: Joshua Aizenman, Yothin Jinjarak, Huanhuan ZhengAbstract:The Global Financial Crisis (GFC) brought to the fore the limits of the Chinese export led-growth strategy and the need for Chinese rebalancing of its international business approaches. Our paper takes stock of what may be the new chapter of Chinese outward-Mercantilism, which aims at securing a higher rate of returns on its net foreign asset position, leveraging its success in manufacturing exports, natural resource imports and RMB internationalization. Using micro-level project data and macroeconomic covariates, we find positive association of Chinese trade and financial flows with China’s outward direct investment (ODI). The relationship is stronger for ODI originated from the Chinese state-owned enterprises, and strengthened by the provision of RMB swap-line agreements with China’s trading partners. The evidences support the conjecture that Chinese ODI is bundled to trade and financial linkages with its investment and trading partners.
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chinese outwards Mercantilism the art and practice of bundling
Social Science Research Network, 2015Co-Authors: Joshua Aizenman, Yothin Jinjarak, Huanhuan ZhengAbstract:The Global Financial Crisis (GFC) brought to the fore the limits of the Chinese export led-growth strategy and the need for Chinese rebalancing. The Chinese export-led growth strategy of the 2000s coincided with the country becoming one of the largest net global creditors. Intriguingly, the Chinese net income from its global creditor position was negative, reflecting the large share of its low-yielding assets (mostly international reserves), and its high share of high-yielding liabilities (mostly foreign direct investment in China). Our paper takes stock of what may be the next new chapter of Chinese outward-Mercantilism, which aims at securing a higher rate of returns on its net foreign asset position, leveraging its success in becoming the global manufacturing hub and the supplier of swap-lines. The emerging new trend has been manifested by Chinese outward-oriented FDI in natural resources, commodities and mining, and providing a wide spectrum of infrastructure and construction services to developing countries. These activities are frequently bundled with access to finance and the export of Chinese capital products and labor services. We trace and analyze these trends, identifying the positive associations between Chinese trade, finance, and outward FDI (aggregate flows as well as greenfield capital investment). The positive association between Chinese outward FDI and commodities imports increases with the provision of RMB swap-lines to China’s trading partners. The association between Chinese FDI outflows in the natural resources sector and commodities imports has become stronger since the GFC. The association of RMB swap-lines with the Chinese outward FDI in the natural resources sector is especially large, thus supporting the conjecture that in the aftermath of the GFC Chinese outward FDI is bundled with trade and financial linkages.Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.
Gijs Rommelse - One of the best experts on this subject based on the ideXlab platform.
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the role of Mercantilism in anglo dutch political relations 1650 74
The Economic History Review, 2009Co-Authors: Gijs RommelseAbstract:The three Anglo-Dutch wars of the seventeenth century are traditionally seen as mercantile confrontations. This view has been challenged by political historians. Firstly, this article discusses the historiographic developments in this field. Secondly, it aims to explore the relationship between Anglo-Dutch mercantile competition and political and diplomatic relations in the period 1650 to 1674. It favours an integrated approach in which all these dimensions are taken into account. The article argues that the 1667 Peace Treaty of Breda was a major turning point in Anglo-Dutch relations after which Mercantilism ceased to dominate Anglo-Dutch political relations.
Yothin Jinjarak - One of the best experts on this subject based on the ideXlab platform.
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chinese outwards Mercantilism the art and practice of bundling
Research Papers in Economics, 2015Co-Authors: Joshua Aizenman, Yothin Jinjarak, Huanhuan ZhengAbstract:The Global Financial Crisis (GFC) brought to the fore the limits of the Chinese export led-growth strategy and the need for Chinese rebalancing of its international business approaches. Our paper takes stock of what may be the new chapter of Chinese outward-Mercantilism, which aims at securing a higher rate of returns on its net foreign asset position, leveraging its success in manufacturing exports, natural resource imports and RMB internationalization. Using micro-level project data and macroeconomic covariates, we find positive association of Chinese trade and financial flows with China’s outward direct investment (ODI). The relationship is stronger for ODI originated from the Chinese state-owned enterprises, and strengthened by the provision of RMB swap-line agreements with China’s trading partners. The evidences support the conjecture that Chinese ODI is bundled to trade and financial linkages with its investment and trading partners.
-
chinese outwards Mercantilism the art and practice of bundling
Social Science Research Network, 2015Co-Authors: Joshua Aizenman, Yothin Jinjarak, Huanhuan ZhengAbstract:The Global Financial Crisis (GFC) brought to the fore the limits of the Chinese export led-growth strategy and the need for Chinese rebalancing. The Chinese export-led growth strategy of the 2000s coincided with the country becoming one of the largest net global creditors. Intriguingly, the Chinese net income from its global creditor position was negative, reflecting the large share of its low-yielding assets (mostly international reserves), and its high share of high-yielding liabilities (mostly foreign direct investment in China). Our paper takes stock of what may be the next new chapter of Chinese outward-Mercantilism, which aims at securing a higher rate of returns on its net foreign asset position, leveraging its success in becoming the global manufacturing hub and the supplier of swap-lines. The emerging new trend has been manifested by Chinese outward-oriented FDI in natural resources, commodities and mining, and providing a wide spectrum of infrastructure and construction services to developing countries. These activities are frequently bundled with access to finance and the export of Chinese capital products and labor services. We trace and analyze these trends, identifying the positive associations between Chinese trade, finance, and outward FDI (aggregate flows as well as greenfield capital investment). The positive association between Chinese outward FDI and commodities imports increases with the provision of RMB swap-lines to China’s trading partners. The association between Chinese FDI outflows in the natural resources sector and commodities imports has become stronger since the GFC. The association of RMB swap-lines with the Chinese outward FDI in the natural resources sector is especially large, thus supporting the conjecture that in the aftermath of the GFC Chinese outward FDI is bundled with trade and financial linkages.Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.
