This course introduces students to the theories and practices of economic development and uses exemplary case studies from China and Southeast Asia to illustrate differences between theory and practices in economic development approaches. Concepts of growth, structural change, internal migration, income inequality, industrialization and urbanization will be discussed and demonstrated by approaches to market reform and resulting effects in China and Southeast Asia. The region offers a natural space for comparison as these countries, all with varying demographics, political systems, resource distributions, and approaches to economic policy making have all embarked on market-based reform tracks within the last fifty years. Commonalities that run throughout and unite the examined states are export-led growth models and integration into the global trade and value-added supply chain. These commonalities and the effects of FDI accumulation and international trade as well as currency regime management will be discussed in depth. (3 credits).
The course wraps up with a look at regional cooperation and examining a case of the design of cross-border economic zones (CBEZ) between China and Vietnam. Students will work in groups to design optimal arrangements for a CBEZ and discuss these arrangements with Chinese and Vietnamese economic policy makers. Finally the course also looks at the causes and effects of and solutions to economic crises in Asia as well as a discussion of how developing countries can escape the “middle income trap” and continue sustained economic growth and development.
Prerequisites:
Introduction to Economics and Introduction to Statistics/Quantitative Methods required, prior coursework in Macro- and/or Micro-economics preferred.
Learning outcomes:
By the end of the course students will be able to complete the following outcomes:
Analyze and internalize basic concepts of economic development and the experiences of these concepts in China and Southeast Asia
Discuss the structure and drivers of economic growth along with alternative growth indicators such as the UN Millennium Development Goals, Green GDP, etc alongside of developing an understanding of different states’ interpretations and approaches to economic growth.
Develop a frame work of understanding economic development modeling by interpreting data and statistics presented in class and collected outside of class.
Discuss the effects of FDI and international trade with policy makers and corporate managers involved in regional trade and investment projects.
Identify key challenges to regional economic cooperation and integration by applying economic theory learned in class to actual present day case studies as well as applying a nuanced understanding of the endowments and development tracks of involved states.
Develop methods for interpreting relevant data and collecting up-to-date research on regional economic development to help to facilitate further research and analysis after the conclusion of the course.
Method of presentation:
Lectures, seminar discussions, and field study. This 10 week course will meet for 20 classroom sessions in Kunming including field trips to a local high-tech investment zone, foreign invested enterprises, and a survey of Chenggong new city located 40km from Kunming. Students will also take a 4 day field trip to Pu’er City and Xishuangbanna to discusses issues involved with attracting FDI, international trade and logistics, and structural changes in local agriculture industries.
Required work and form of assessment:
Participation—15%
2 Quizzes – 10% each
Cross Border Economic Zone proposal and discussion —15%: Drawing on knowledge of economic endowments in China and Vietnam, competitive advantages between the two states, and trends in regional economic cooperation, students will design a basic structure of a cross-border economic development zone at Hekou, PRC and Lao Cai, Vietnam. Students will consider weigh choices between joint investment zones, customs zones, processing zones, industrial parks, a combination of these or entirely different arrangements. Designs will be presented to economic policy makers in Yunnan and Vietnam who also work on this project for analysis and discussion. This project is relevant because economic policy makers have yet to decide on the optimal structure for a CBEZ between Hekou and Vietnam.
Group presentation—20%: Students working in groups of 3-5 choose a general or specific economic development concept discussed in class and present on its significance and effects in China and Southeast Asia. Students will present individually on sub-topics within this general theme. Sub-topics could be cross-country comparison, issues and challenges that arise from the application of the particular concept, etc. Individual presentations will last for 10 minutes each.
Final paper—30%: Students will write a 10-15 page paper on the sub-topic discussed above in the group presentation. Students are expected to conduct outside research and use current data to support their findings as well as demonstrate understanding of economic development theory and the specific issues that support theory and practical challenges that refute theory.
There will be NO unexcused absence during the term. Any unexcused absence will result in your grade being lowered a half-grade (i.e. from a B+ to a B) Proper Documentation MUST be provided for all absences.
content:
Class 1: Intro to geography, demographics and economic indicators in China and Southeast Asia
• Perkins, et al. Chapter 1: Introduction. Pp 1-26
• Naughton, Barry. Chapter 1: Geography of China.
• ADB. 2012 Economic Outlook for China and GMS countries. Pp 1-44
• Boothe, Anne. “The Economic Development of Southeast Asia.” Australian Economic History Review. March 1991. Pp 20-52.
Class 2: Measuring GDP and the Harrod Domar Growth Model
• Perkins, et al. Chapter 2. “Economic growth: Theory and Empirical Patterns.” Pp 27-47.
• Lardy, Et al. “Sustaining Economic Growth in China” 105-136 in China Rising Challenges and Opportunities.
Class 3: Solow Growth Model and Millenium Development Goals
• Perkins, et al. Chapter 2. “Economic growth: Theory and Empirical Patterns.” Pp 48-64
• Between-Country Disparities in MDGs: The Asia and Pacific Region. 2011.
• REFERENCE: UNESCAP. “Millennium Development Goals Progress Report: Asia and the Pacific 2007.” Pp 1-65.
Class 4: Population and labor distribution
• Perkins, et al. Chapter 7. Pp 245-279
• Naughton, Barry. Chapter 7. Pp 161-180.
• ADB. “Impact of Aging Populations on Asia’s Growth.” 2011.
• ADB. “Past and Future of the Labor Force in Emerging Asian Economies.” 2010.
Class 5: Poverty and income distribution
• Perkins, Chapter 4. Pp 118-147.
• ADB. Asian Development Outlook: Rising Inequality in Asian Countries. Part 2. 2012.
• Naughton, Barry. Chapter 9. Pp 209-227
Class 6: Toward market reforms in 4 GMS countries: China, Laos, Vietnam, and Burma
• Naughton, Barry. Chapter 4. “Market Transition: Strategy and Process.” Pp85-100.
• Hatthachan Phimphanthavong. Economic Reform and Regional Development of Laos Modern Economy, 2012, 3, 179-186.
• Tranh, Vo Ti. “Vietnam’s Economic Reforms and Lessons We Can Learn from It.” Pp 1-13. 2005.
• “An Opening in Burma: The regime's tentative liberalization is worth testing for sincerity.” Wall Street Journal, November 2011.
• Soe, Ti. “A Case Study of Economic Reform in Myanmar.” Journal of International Economic Cooperation, June 2005.
Class 7: Structural change: Transition from agriculture to industrialization China, Vietnam, Thailand
• Perkins, et al. Chapter 3. Pp 83-112.
• ADB. Earnings and Quality of Female Labor in the Border Areas of Viet Nam and the Implications for GMS Cooperation. 2011.
• Martin, W. and Warr, P.G., 1994. “Determinants of agriculture's relative decline: Thailand.” Agricultural Economics 11, 219-235.
Class 8: Labor and internal migration
• Perkins, et al. Chapter 8. Pp 281-318.
• ADB. Rural-Urban Migration and Employment Quality: A Case Study from Thailand. 2010
• Naughton Chapter 5 113-135
• Murphy, Rachel. “Migration, Remittances, and Goals.” in How Migrant Labor is Changing China. Cambridge: Cambridge, 2002. Chapter 4, (pp88-123).
Class 9: Savings and Investment Rates
• Perkins, et al. Chapter 11. Pp 377-395.
• ADB. Asia’s Savings Rates Trends and Prospects for Growth. 2011.
• ADB. “Infrastructure’s Role in Sustaining Asia’s Growth.” 2012.
• Why are savings rates of urban households in China rising?, Marcos Chamon, Eswar Prasad, American Economic Journal, 2010 vol. 2 (1) pp. 93-130
Class 10: Rural Industrialization: TVEs in China, Village enterprise in Vietnam, SME in Thailand. QUIZ 1
• O’Connor, David. “Rural Enterprise Development in Vietnam and China.” OECD 1998.
• “The Comparison Effects of Community-based Rural Enterprises, Thailand. Edition No. 1” VDM Publishing House, Sep 2009.
Class 11: Industrialization and CSR: State Owned Enterprises in China and Vietnam vs. Corporatization in Thailand (CP visit)
• Perkins, et al. Chapter 17. Pp 652-665.
• Naughton Chapter 13 Industry: Ownership and Governance 297-325
• Naughton, Barry. “SASAC and Rising Corporate Power in China.” Pp 1-12
• Corporate Social Responsibility in Thailand. CSR institute at AIT. Pp 1-6
• Frank, Wolfgang. Successful Partnerships for CSR in Thailand: Case study of Nike village development. Pp 1-20.
Class 12: Corruption and effects on growth: profiles of GMS countries, theories and effects, measuring corruption (indices)
• Corruption in China’s economic reform: a review of recent observations and explanations Olivia Yu, Crime Law Soc Change (2008) 50:161–176
• Schleifer and Vishny (pdf)
• Emil P. Bolongaita, Jr., Emil P. Fighting Corruption in Southeast Asia: A Comparative Analysis of Contemporary Conditions.” Pp 1-20.
Class 13: Urbanization: sprawl and land transfer; government land sales in China (Kunming and city villages) and Laos vs private property regimes in Thailand and Vietnam
• “Urbanization, Agglomeration, and Economic Development.” Quigley, John M. 2008. Commission for Growth and Development (April 18): 1–36.
• “Preparing for the China’s Urban Billion”, McKinsey Global Institute, March 2008.
• ADB. Cross-Border Contract Farming Arrangements: Variations and Implications in the Lao People’s Democratic Republic
• “Land market forces and government's role in sprawl: the case of China”, T Zhang, Cities, Vol. 17, No. 2, pp. 123–135, 2000
Next three classes on trip to Pu’er and Xishuangbanna Class 14: FDI: domestic perspective and inter-regional vs. aid and BOT projects (SEZs in China, Thailand, and Vietnam) vs infrastructure development in Laos (visit Kunming SEZ)
• Perkins, et al. Chapter 14. Pp 521-533
• Naughton, Barry. Chapter 17. Pp 401-422.
• ADB. “Winners and Losers of Multinational Firms in Developing Countries: Study of SEZs in China.” 2011.
• ADB. “The Role of South-South FDI in the Developing Economies of Asia.” 2011.
• Kohpaiboon, A. (2006). “Foreign direct investment and technology spillover: a cross-industry analysis of Thai manufacturing.” World Development.
Class 15: International trade
• Perkins, et al. Chapter 16: Primary Exports. Pp 619-650.
• Booth, Anne (2004). “Linking, delinking and relinking: Southeast Asia in the global economy in the twentieth century”. Australian Economic History Review 44(1):35-51.
• Naughton, Barry. Chapter 16. Pp 377-399
• “China as a Global Manufacturing Powerhouse: Strategic Considerations and Structural Adjustment”, Huw McKay, Ligang Song, China & World Economy / 1 – 32, Vol. 18, No. 1, 2010
Class 16: International trade continued
• Perkins, et al. Chapter 18: Trade and Development pp 677-704.
• Adjustment in global imbalances and the future of trade growth”, Chapter 2 in Rebalancing the Global Economy: A Primer for Policymaking, 2009, CEPR
• ADB. Production Networks and Trade Patterns in East Asia: Regionalization or Globalization? 2012.
• Past Successes and New Challenges: China’s Foreign Trade at a Turning Point, Françoise Lemoine, China & World Economy / 1 – 23, Vol. 18, No. 3, 2010
Class 17: Free-trade agreements
• ADB. “Asian FTAs: Trends, Prospects, and Challenges.” 2010
• ASEAN-China Free Trade Area and the Competitiveness of Local Industries: Lao PDR
• ADB. Impediments to Growth of the Garment and Food Industries in Cambodia: Exploring Potential Benefits of the ASEAN-PRC FTA
Class 18: International trade and foreign currency regimes
• Perkins, et al. Chapter 18: Trade and Development pp 705-732.
• “Is China a Currency “Manipulator”?” Morris Goldstein, Peterson Institute for International Economics, 28 January 2009
• Testimony: Correcting the Chinese Exchange Rate. Bergsten, C Fred. 2010. U.S. Congressional Testimony. September 15.
• Ahmed, Shaghil. 2009. “Are Chinese exports sensitive to changes in the exchange rate?.” Board of Governors of the Federal Reserve System International Finance Discussion Papers
• Rajan, Ramid. Post Crisis Exchange Markets in Southeast Asia: Is there a market for currency baskets.” 2007. Pp 1-20.
Class 19: Monetary policy in the GMS: Controlling macro-economic cycles: Financial repression in China, fiscal and monetary policy in the GMS; hyperinflationary pressures in Vietnam
• Perkins, et al. Chapter 13. Pp 476-509.
• “Chinese Banks, Growth of Leverage Still Outpacing GDP Growth”, Fitch Ratings, 2011
• China's Financial Repression, James A. Dorn, Washington Times May 21, 2008
• Michaël Goujon. Fighting inflation in a dollarized economy: The case of Vietnam. The Journal of Comparative Economics. June 2006. Pp 1-18.
Class 20 Financial Crises: factors, responses, and solutions QUIZ 2
• Krugman, Paul (1999), “All fall down: Asia’s crash”, Ch. 5 in The Return of Depression Economics (Norton), pp. 83-117.
• Stiglitz, Joseph (2002), “The East Asia crisis: how IMF policies brought the world to the verge of a global meltdown”, in Globalization and its Discontents (Norton), pp. 89-132.
• ADB. The Global Economic Crisis: Trade and growth prospects for East Asia: 2011.
• The Sustainability of China’s Recovery from the Global Recession, Nicholas Lardy, PB10-7, Peterson Institute for International Economics, March 2010
Class 21 Regional cooperation: Cross border economic zones (China Thailand, China/Vietnam) Begin CBEZ design project (2 week project)
• ADB. The Greater Mekong Subregion Economic Cooperation Program Strategic Framework (2012-2022)
• ADB. ASEAN Economic Integration: Features, Fulfillments, Failures and the Future. 2012
• ADB. Regional Corridors Development and Regional Cooperation. 2011.
Class 22: Case Studies on Regional Cooperation – panel and discussion of CBEZ design with regional economic policymakers
• ADB. Factors Affecting Firm-Level Investment and Performance in Border Economic Zones and Implications for Developing Cross-Border Economic Zones between the People's Republic of China and its Neighboring GMS Countries
• ADB. Trade and Investment in the Greater Mekong Subregion: Remaining Challenges and the Unfinished Policy Agenda
• ADB. Improving Accessibility of Financial Services in the Border-Gate Areas to Facilitate Cross-Border Trade: The Case of Viet Nam and Implications for Greater Mekong Subregion Cooperation
Class 23 Getting out of the middle income trap: development of service industry and HR, Thailand and China; Lewis model; technology and innovation in Vietnam and Thailand
• ADB. “Tracking the Middle Income Trap.” 2012.
• ADB. Exports and Employment in Indonesia: The Decline in Labor-Intensive Manufacturing and the Rise of Services
Final group presentations; papers due
Required readings:
In addition to the published articles listed above the course will be complemented by readings from the following key textbooks:
ADB. 2012 Economic Outlook for China and GMS countries. Pp 1-44
ADB. “The Greater Mekong Subregion Economic Cooperation Program Strategic Framework (2012-2022).” 2010.
ADB. “ASEAN Economic Integration: Features, Fulfillments, Failures and the Future.” 2012
ADB. “Regional Corridors Development and Regional Cooperation.”2011.
ADB. “Factors Affecting Firm-Level Investment and Performance in Border Economic Zones and Implications for Developing Cross-Border Economic Zones between the People's Republic of China and its Neighboring GMS Countries.” 2009.
ADB. “Trade and Investment in the Greater Mekong Subregion: Remaining Challenges and the Unfinished Policy Agenda.” 2008.
ADB. “Improving Accessibility of Financial Services in the Border-Gate Areas to Facilitate Cross-Border Trade: The Case of Viet Nam and Implications for Greater Mekong Subregion Cooperation.” 2008.
ADB. “Tracking the Middle Income Trap.” 2012.
ADB. “Exports and Employment in Indonesia: The Decline in Labor-Intensive Manufacturing and the Rise of Services.” 2010.
ADB. Between-Country Disparities in MDGs: The Asia and Pacific Region. 2011.
ADB. “Impact of Aging Populations on Asia’s Growth.” 2011.
ADB. “Past and Future of the Labor Force in Emerging Asian Economies.” 2010.
ADB. Asian Development Outlook: Rising Inequality in Asian Countries. Part 2. 2012.
ADB. “Earnings and Quality of Female Labor in the Border Areas of Viet Nam and the Implications for GMS Cooperation.” 2011.
ADB. “Asia’s Savings Rates Trends and Prospects for Growth.” 2011.
ADB. “Infrastructure’s Role in Sustaining Asia’s Growth.” 2012
ADB. “Cross-Border Contract Farming Arrangements: Variations and Implications in the Lao People’s Democratic Republic.” 2008.
ADB. “Winners and Losers of Multinational Firms in Developing Countries: Study of SEZs in China.” 2011.
ADB. “The Role of South-South FDI in the Developing Economies of Asia.” 2011.
ADB. Production Networks and Trade Patterns in East Asia: Regionalization or Globalization? 2012.
ADB. “Asian FTAs: Trends, Prospects, and Challenges.” 2010
ADB. ASEAN-China Free Trade Area and the Competitiveness of Local Industries: Lao PDR. 2010.
ADB. Impediments to Growth of the Garment and Food Industries in Cambodia: Exploring Potential Benefits of the ASEAN-PRC FTA. 2007.
ADB. “The Global Economic Crisis: Trade and growth prospects for East Asia.” 2011.
ADB. Rural-Urban Migration and Employment Quality: A Case Study from Thailand. 2010
Adjustment in global imbalances and the future of trade growth”, Chapter 2. Rebalancing the Global Economy: A Primer for Policymaking, 2009, CEPR.
Ahmed, Shaghil. 2009. “Are Chinese exports sensitive to changes in the exchange rate?.” Board of Governors of the Federal Reserve System International Finance Discussion Papers.
“An Opening in Burma: The regime's tentative liberalization is worth testing for sincerity.” Wall Street Journal. November 2011.
Bergsten, C Fred. “Testimony: Correcting the Chinese Exchange Rate.” U.S. Congressional Testimony. September 15, 2010.
Bolongaita, Jr., Emil P. “Fighting Corruption in Southeast Asia: A Comparative Analysis of Contemporary Conditions.” Pp 1-20.
Boothe, Anne. “The Economic Development of Southeast Asia.” Australian Economic History Review. March 1991. Pp 20-52.
Booth, Anne (2004). “Linking, delinking and relinking: Southeast Asia in the global economy in the twentieth century”. Australian Economic History Review. 44(1):35-51.
Chamon, Marcos and Prasad, Eswar. “Why are savings rates of urban households in China rising?” American Economic Journal. 2010 vol. 2 (1) pp. 93-130.
“Chinese Banks, Growth of Leverage Still Outpacing GDP Growth”, Fitch Ratings, 2011.
“Corporate Social Responsibility in Thailand.” CSR institute at AIT. Pp 1-6. 2007.
Dorn, James A. China's Financial Repression. Washington Times. May 21, 2008
Frank, Wolfgang. Successful Partnerships for CSR in Thailand: Case study of Nike village development. Pp 1-20. 2008.
Goldstein, Morris. “Is China a Currency “Manipulator?” Peterson Institute for International Economics, 28 January 2009.
Goujon, Michael. “Fighting inflation in a dollarized economy: The case of Vietnam.” The Journal of Comparative Economics. June 2006. Pp 1-18.
Hatthachan Phimphanthavong. Economic Reform and Regional Development of Laos Modern Economy. 2012, 3, 179-186.
Kohpaiboon, A. (2006). “Foreign direct investment and technology spillover: a cross-industry analysis of Thai manufacturing.” World Development.
O’Connor, David. “Rural Enterprise Development in Vietnam and China.” OECD. 1998.
Lardy, Et al. “Sustaining Economic Growth in China” 105-136 in China Rising Challenges and Opportunities.
Lardy, Nicholas. “The Sustainability of China’s Recovery from the Global Recession.” PB10-7, Peterson Institute for International Economics, March 2010.
Krugman, Paul (1999), “All fall down: Asia’s crash”, Ch. 5 in The Return of Depression Economics. (Norton), pp. 83-117.
Lemoine, Françoise. “Past Successes and New Challenges: China’s Foreign Trade at a Turning Point” China & World Economy / 1 – 23, Vol. 18, No. 3, 2010
Martin, W. and Warr, P.G., 1994. “Determinants of agriculture's relative decline: Thailand” Agricultural Economics. 11, 219-235.
McKay, Huw and Ligang Song. “China as a Global Manufacturing Powerhouse: Strategic Considerations and Structural Adjustment.” China & World Economy / 1 – 32, Vol. 18, No. 1, 2010.
Murphy, Rachel. “Migration, Remittances, and Goals.” How Migrant Labor is Changing China. Cambridge: Cambridge, 2002. Chapter 4, (pp88-123).
Naughton, Barry. “SASAC and Rising Corporate Power in China.” Pp 1-12. 2008
Naughton, Barry. The Chinese Economy: Transitions and Growth. MIT Press, 2006.
Perkins, Dwight, et al. The Economics of Development. Norton, 2007.
“Preparing for the China’s Urban Billion.” McKinsey Global Institute, March 2008Quigley, John M. “Urbanization, Agglomeration, and Economic Development.” 2008. Commission for Growth and Development (April 18): 1–36.
Rajan, Ramid. Post Crisis Exchange Markets in Southeast Asia: Is there a market for currency baskets.” 2007. Pp 1-20.
Soe, Ti. “A Case Study of Economic Reform in Myanmar.” Journal of International Economic Cooperation. June 2005.
Stiglitz, Joseph (2002), “The East Asia crisis: how IMF policies brought the world to the verge of a global meltdown”, in Globalization and its Discontents (Norton), pp. 89-132.
“The Comparison Effects of Community-based Rural Enterprises, Thailand. Edition No. 1” VDM Publishing House, Sep 2009.
Tranh, Vo Ti. Vietnam’s Economic Reforms and Lessons We Can Learn from It. Pp 1-13. 2005.
Yu, Olivia. “Corruption in China’s economic reform: a review of recent observations and explanations.” Crime Law Soc Change (2008). 50:161–176.
Zhang, T. “Land market forces and government's role in sprawl: the case of China.” Cities, Vol. 17, No. 2, pp. 123–135, 2000.
Economic Development In China And Southeast Asia
This course introduces students to the theories and practices of economic development and uses exemplary case studies from China and Southeast Asia to illustrate differences between theory and practices in economic development approaches. Concepts of growth, structural change, internal migration, income inequality, industrialization and urbanization will be discussed and demonstrated by approaches to market reform and resulting effects in China and Southeast Asia. The region offers a natural space for comparison as these countries, all with varying demographics, political systems, resource distributions, and approaches to economic policy making have all embarked on market-based reform tracks within the last fifty years. Commonalities that run throughout and unite the examined states are export-led growth models and integration into the global trade and value-added supply chain. These commonalities and the effects of FDI accumulation and international trade as well as currency regime management will be discussed in depth. (3 credits).
The course wraps up with a look at regional cooperation and examining a case of the design of cross-border economic zones (CBEZ) between China and Vietnam. Students will work in groups to design optimal arrangements for a CBEZ and discuss these arrangements with Chinese and Vietnamese economic policy makers. Finally the course also looks at the causes and effects of and solutions to economic crises in Asia as well as a discussion of how developing countries can escape the “middle income trap” and continue sustained economic growth and development.
Introduction to Economics and Introduction to Statistics/Quantitative Methods required, prior coursework in Macro- and/or Micro-economics preferred.
By the end of the course students will be able to complete the following outcomes:
Lectures, seminar discussions, and field study. This 10 week course will meet for 20 classroom sessions in Kunming including field trips to a local high-tech investment zone, foreign invested enterprises, and a survey of Chenggong new city located 40km from Kunming. Students will also take a 4 day field trip to Pu’er City and Xishuangbanna to discusses issues involved with attracting FDI, international trade and logistics, and structural changes in local agriculture industries.
There will be NO unexcused absence during the term. Any unexcused absence will result in your grade being lowered a half-grade (i.e. from a B+ to a B) Proper Documentation MUST be provided for all absences.
Class 1: Intro to geography, demographics and economic indicators in China and Southeast Asia
• Perkins, et al. Chapter 1: Introduction. Pp 1-26
• Naughton, Barry. Chapter 1: Geography of China.
• ADB. 2012 Economic Outlook for China and GMS countries. Pp 1-44
• Boothe, Anne. “The Economic Development of Southeast Asia.” Australian Economic History Review. March 1991. Pp 20-52.
Class 2: Measuring GDP and the Harrod Domar Growth Model
• Perkins, et al. Chapter 2. “Economic growth: Theory and Empirical Patterns.” Pp 27-47.
• Lardy, Et al. “Sustaining Economic Growth in China” 105-136 in China Rising Challenges and Opportunities.
Class 3: Solow Growth Model and Millenium Development Goals
• Perkins, et al. Chapter 2. “Economic growth: Theory and Empirical Patterns.” Pp 48-64
• Between-Country Disparities in MDGs: The Asia and Pacific Region. 2011.
• REFERENCE: UNESCAP. “Millennium Development Goals Progress Report: Asia and the Pacific 2007.” Pp 1-65.
Class 4: Population and labor distribution
• Perkins, et al. Chapter 7. Pp 245-279
• Naughton, Barry. Chapter 7. Pp 161-180.
• ADB. “Impact of Aging Populations on Asia’s Growth.” 2011.
• ADB. “Past and Future of the Labor Force in Emerging Asian Economies.” 2010.
Class 5: Poverty and income distribution
• Perkins, Chapter 4. Pp 118-147.
• ADB. Asian Development Outlook: Rising Inequality in Asian Countries. Part 2. 2012.
• Naughton, Barry. Chapter 9. Pp 209-227
Class 6: Toward market reforms in 4 GMS countries: China, Laos, Vietnam, and Burma
• Naughton, Barry. Chapter 4. “Market Transition: Strategy and Process.” Pp85-100.
• Hatthachan Phimphanthavong. Economic Reform and Regional Development of Laos Modern Economy, 2012, 3, 179-186.
• Tranh, Vo Ti. “Vietnam’s Economic Reforms and Lessons We Can Learn from It.” Pp 1-13. 2005.
• “An Opening in Burma: The regime's tentative liberalization is worth testing for sincerity.” Wall Street Journal, November 2011.
• Soe, Ti. “A Case Study of Economic Reform in Myanmar.” Journal of International Economic Cooperation, June 2005.
Class 7: Structural change: Transition from agriculture to industrialization China, Vietnam, Thailand
• Perkins, et al. Chapter 3. Pp 83-112.
• ADB. Earnings and Quality of Female Labor in the Border Areas of Viet Nam and the Implications for GMS Cooperation. 2011.
• Martin, W. and Warr, P.G., 1994. “Determinants of agriculture's relative decline: Thailand.” Agricultural Economics 11, 219-235.
Class 8: Labor and internal migration
• Perkins, et al. Chapter 8. Pp 281-318.
• ADB. Rural-Urban Migration and Employment Quality: A Case Study from Thailand. 2010
• Naughton Chapter 5 113-135
• Murphy, Rachel. “Migration, Remittances, and Goals.” in How Migrant Labor is Changing China. Cambridge: Cambridge, 2002. Chapter 4, (pp88-123).
Class 9: Savings and Investment Rates
• Perkins, et al. Chapter 11. Pp 377-395.
• ADB. Asia’s Savings Rates Trends and Prospects for Growth. 2011.
• ADB. “Infrastructure’s Role in Sustaining Asia’s Growth.” 2012.
• Why are savings rates of urban households in China rising?, Marcos Chamon, Eswar Prasad, American Economic Journal, 2010 vol. 2 (1) pp. 93-130
Class 10: Rural Industrialization: TVEs in China, Village enterprise in Vietnam, SME in Thailand. QUIZ 1
• O’Connor, David. “Rural Enterprise Development in Vietnam and China.” OECD 1998.
• “The Comparison Effects of Community-based Rural Enterprises, Thailand. Edition No. 1” VDM Publishing House, Sep 2009.
Class 11: Industrialization and CSR: State Owned Enterprises in China and Vietnam vs. Corporatization in Thailand (CP visit)
• Perkins, et al. Chapter 17. Pp 652-665.
• Naughton Chapter 13 Industry: Ownership and Governance 297-325
• Naughton, Barry. “SASAC and Rising Corporate Power in China.” Pp 1-12
• Corporate Social Responsibility in Thailand. CSR institute at AIT. Pp 1-6
• Frank, Wolfgang. Successful Partnerships for CSR in Thailand: Case study of Nike village development. Pp 1-20.
Class 12: Corruption and effects on growth: profiles of GMS countries, theories and effects, measuring corruption (indices)
• Corruption in China’s economic reform: a review of recent observations and explanations Olivia Yu, Crime Law Soc Change (2008) 50:161–176
• Schleifer and Vishny (pdf)
• Emil P. Bolongaita, Jr., Emil P. Fighting Corruption in Southeast Asia: A Comparative Analysis of Contemporary Conditions.” Pp 1-20.
Class 13: Urbanization: sprawl and land transfer; government land sales in China (Kunming and city villages) and Laos vs private property regimes in Thailand and Vietnam
• “Urbanization, Agglomeration, and Economic Development.” Quigley, John M. 2008. Commission for Growth and Development (April 18): 1–36.
• “Preparing for the China’s Urban Billion”, McKinsey Global Institute, March 2008.
• ADB. Cross-Border Contract Farming Arrangements: Variations and Implications in the Lao People’s Democratic Republic
• “Land market forces and government's role in sprawl: the case of China”, T Zhang, Cities, Vol. 17, No. 2, pp. 123–135, 2000
Next three classes on trip to Pu’er and Xishuangbanna
Class 14: FDI: domestic perspective and inter-regional vs. aid and BOT projects (SEZs in China, Thailand, and Vietnam) vs infrastructure development in Laos (visit Kunming SEZ)
• Perkins, et al. Chapter 14. Pp 521-533
• Naughton, Barry. Chapter 17. Pp 401-422.
• ADB. “Winners and Losers of Multinational Firms in Developing Countries: Study of SEZs in China.” 2011.
• ADB. “The Role of South-South FDI in the Developing Economies of Asia.” 2011.
• Kohpaiboon, A. (2006). “Foreign direct investment and technology spillover: a cross-industry analysis of Thai manufacturing.” World Development.
Class 15: International trade
• Perkins, et al. Chapter 16: Primary Exports. Pp 619-650.
• Booth, Anne (2004). “Linking, delinking and relinking: Southeast Asia in the global economy in the twentieth century”. Australian Economic History Review 44(1):35-51.
• Naughton, Barry. Chapter 16. Pp 377-399
• “China as a Global Manufacturing Powerhouse: Strategic Considerations and Structural Adjustment”, Huw McKay, Ligang Song, China & World Economy / 1 – 32, Vol. 18, No. 1, 2010
Class 16: International trade continued
• Perkins, et al. Chapter 18: Trade and Development pp 677-704.
• Adjustment in global imbalances and the future of trade growth”, Chapter 2 in Rebalancing the Global Economy: A Primer for Policymaking, 2009, CEPR
• ADB. Production Networks and Trade Patterns in East Asia: Regionalization or Globalization? 2012.
• Past Successes and New Challenges: China’s Foreign Trade at a Turning Point, Françoise Lemoine, China & World Economy / 1 – 23, Vol. 18, No. 3, 2010
Class 17: Free-trade agreements
• ADB. “Asian FTAs: Trends, Prospects, and Challenges.” 2010
• ASEAN-China Free Trade Area and the Competitiveness of Local Industries: Lao PDR
• ADB. Impediments to Growth of the Garment and Food Industries in Cambodia: Exploring Potential Benefits of the ASEAN-PRC FTA
Class 18: International trade and foreign currency regimes
• Perkins, et al. Chapter 18: Trade and Development pp 705-732.
• “Is China a Currency “Manipulator”?” Morris Goldstein, Peterson Institute for International Economics, 28 January 2009
• Testimony: Correcting the Chinese Exchange Rate. Bergsten, C Fred. 2010. U.S. Congressional Testimony. September 15.
• Ahmed, Shaghil. 2009. “Are Chinese exports sensitive to changes in the exchange rate?.” Board of Governors of the Federal Reserve System International Finance Discussion Papers
• Rajan, Ramid. Post Crisis Exchange Markets in Southeast Asia: Is there a market for currency baskets.” 2007. Pp 1-20.
Class 19: Monetary policy in the GMS: Controlling macro-economic cycles: Financial repression in China, fiscal and monetary policy in the GMS; hyperinflationary pressures in Vietnam
• Perkins, et al. Chapter 13. Pp 476-509.
• “Chinese Banks, Growth of Leverage Still Outpacing GDP Growth”, Fitch Ratings, 2011
• China's Financial Repression, James A. Dorn, Washington Times May 21, 2008
• Michaël Goujon. Fighting inflation in a dollarized economy: The case of Vietnam. The Journal of Comparative Economics. June 2006. Pp 1-18.
Class 20 Financial Crises: factors, responses, and solutions QUIZ 2
• Krugman, Paul (1999), “All fall down: Asia’s crash”, Ch. 5 in The Return of Depression Economics (Norton), pp. 83-117.
• Stiglitz, Joseph (2002), “The East Asia crisis: how IMF policies brought the world to the verge of a global meltdown”, in Globalization and its Discontents (Norton), pp. 89-132.
• ADB. The Global Economic Crisis: Trade and growth prospects for East Asia: 2011.
• The Sustainability of China’s Recovery from the Global Recession, Nicholas Lardy, PB10-7, Peterson Institute for International Economics, March 2010
Class 21 Regional cooperation: Cross border economic zones (China Thailand, China/Vietnam) Begin CBEZ design project (2 week project)
• ADB. The Greater Mekong Subregion Economic Cooperation Program Strategic Framework (2012-2022)
• ADB. ASEAN Economic Integration: Features, Fulfillments, Failures and the Future. 2012
• ADB. Regional Corridors Development and Regional Cooperation. 2011.
Class 22: Case Studies on Regional Cooperation – panel and discussion of CBEZ design with regional economic policymakers
• ADB. Factors Affecting Firm-Level Investment and Performance in Border Economic Zones and Implications for Developing Cross-Border Economic Zones between the People's Republic of China and its Neighboring GMS Countries
• ADB. Trade and Investment in the Greater Mekong Subregion: Remaining Challenges and the Unfinished Policy Agenda
• ADB. Improving Accessibility of Financial Services in the Border-Gate Areas to Facilitate Cross-Border Trade: The Case of Viet Nam and Implications for Greater Mekong Subregion Cooperation
Class 23 Getting out of the middle income trap: development of service industry and HR, Thailand and China; Lewis model; technology and innovation in Vietnam and Thailand
• ADB. “Tracking the Middle Income Trap.” 2012.
• ADB. Exports and Employment in Indonesia: The Decline in Labor-Intensive Manufacturing and the Rise of Services
Final group presentations; papers due
In addition to the published articles listed above the course will be complemented by readings from the following key textbooks: