By Alfred Bosch, Peter Koslowski, Reinhold Veit
Read or Download General equilibrium or market process: Neoclassical and Austrian theories of economics (Wirtschaftswissenschaftliche und Wirtschaftsrechtliche Untersuchungen) PDF
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Extra info for General equilibrium or market process: Neoclassical and Austrian theories of economics (Wirtschaftswissenschaftliche und Wirtschaftsrechtliche Untersuchungen)
Sample text
3 per cent in 1997 and contributed to over 35 per cent of GDP growth. While China had trade deficits during most of the 1980s, the next decade it had surplus. 2a–c). 27 Source: State Statistical Bureau (various years). 0 Source: MOFTEC internal documents, 1998. 0 80 Source: Tariff Adjustment Table in 1997, State Customs, Beijing, 1998. imports. By the end of 1996, China achieved its renminbi (Rmb) convertibility on the current account. China also benefits a great deal from foreign investment, especially foreign direct investment (FDI).
Among provinces undergoing slower growth of the non-state sector, we would expect relatively wealthy provinces to try to protect and subsidize their firms, while being less activist in promoting restructuring (partly because of the relative difficulty of the process). This seems to describe the north-eastern provinces, particularly Liaoning, which has traditionally enjoyed abundant financing, but currently faces serious difficulties. Solinger cites scattered statistics on retraining and re-employment programmes in a variety of cities, indicating that Shenyang set aside 100 million Rmb for reemployment projects; while in Wuhan, a city of similar size, only 30 million Rmb was spent.
I argue here that there is fundamentally an ‘unequal footing’ problem in globalization: the developing countries are constrained by their domestic problems in international competition and are subsequently more vulnerable to international market risks. In order to achieve prosperity, all countries need more than capital inflow, transferred technology and local cheap labour. Other factors matter in the production function of a nation. ), and even basic education. All four elements are necessary for cheap labour to become a real factor of comparative advantage, and therefore to be crucial for further economic prosperity and catching up.