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dc.contributor.authorHuang, Yipingen_US
dc.contributor.authorTao, Kunyuen_US
dc.date.accessioned2011-04-27en_US
dc.date.accessioned2011-12-15T12:28:06Z-
dc.date.available2011-12-15T12:28:06Z-
dc.date.issued2011en_US
dc.identifier.urihttp://hdl.handle.net/10419/53756-
dc.description.abstractThe current account surplus of the People's Republic of China (PRC) has drawn much foreign and domestic attention. This paper focuses on the reasons and remedies for the PRC's current account surpluses. Rather than deploying the standard explanations, we argue that asymmetric market liberalization and the related factor market distortion is the root reason for the PRC's external imbalances. These cost distortions have artificially lowered PRC production costs, raised profits, and improved their products' international competitiveness which has not only stimulated the economy, but also brought about severe structural risks. We completed a crude estimation for factor cost distortions in the PRC during 2000-2009 which matched its current account surpluses quite well. In order to rebalance the economy, we recommend that the PRC should adopt a comprehensive reform package focusing on removing the factor market distortions.en_US
dc.language.isoengen_US
dc.publisherAsian Development Bank Institute Tokyoen_US
dc.relation.ispartofseriesADBI working paper series 279en_US
dc.subject.jelF32en_US
dc.subject.jelO11en_US
dc.subject.jelH24en_US
dc.subject.jelE61en_US
dc.subject.ddc330en_US
dc.subject.stwZahlungsbilanzungleichgewichten_US
dc.subject.stwKausalanalyseen_US
dc.subject.stwChinaen_US
dc.titleCauses of and remedies for the people's Republic of China's external imbalances: The role of factor market distortionen_US
dc.typeWorking Paperen_US
dc.identifier.ppn656907916en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:ADBI Working Paper Series, Asian Development Bank Institute

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