In 2016, Latin America and the Caribbean’s (LAC) economic relationship with China showed little change. Exports were flat, while investment and finance fell slightly. However, one sector in particular reinforced its centrality in all three major channels: extraction. China’s interest in LAC as a source of extractive raw materials has remained, even as other […]
How has China expanded into global energy markets? In addition to the rising volume of energy commodities the country sources from all over the world as the world’s largest consumer, evidence of China’s expanding energy footprint has been mounting on two fronts over the past 15 years. First, and contrary to the conventional wisdom, China […]
In just over a decade, Chinese policy banks have emerged as global leaders in development finance in general and in finance for energy projects in developing country governments in particular. China has founded or co-founded two new multilateral development banks (MDBs) and at least 13 regional and bilateral funds that will increase Chinese development finance […]
Development banks have a unique role to play in Latin America and the Caribbean (LAC) and in emerging market and developing countries across the globe. Development banks seek to correct key market and government failures and crowd-in private sector economic activity into areas such as infrastructure and cleaner energy technologies, as well as into policy […]
China experienced significant volatility in its housing market from 2005-2013. Economists analyzing the determinants of volatility in these markets find that the bubble was largely driven by factors specific to the Chinese economy and Chinese economic policy. In a 2015 working paper, Yuan Tian and Kevin P. Gallagher examine the extent to which short-term capital […]
The re-emergence of China in the last part of the 20th century is having multiple impacts on a global scale. There has been increasing literature on the domestic impacts of China’s rise and on its role in Latin America and the Caribbean. However, there have been few analyses or attempts at understanding how China’s new […]
In Ruling Capital: Emerging Markets and the Re-regulation of Cross-Border Finance, Kevin P. Gallagher demonstrates how several emerging markets and developing countries (EMDCs) managed to re-regulate cross-border financial flows in the wake of the global financial crisis, despite the political and economic difficulty of doing so at the national level. Gallagher also shows that some […]
In just over a decade, China has become a major source of finance for emerging markets and developing country governments. China and recipient governments have been less than transparent with respect to the scale, terms and composition of this finance, engendering a great deal of speculation about its nature. In a 2014 journal article published […]
The North American Free Trade Agreement (NAFTA) between Mexico, the United States and Canada promised export, employment and gross domestic product (GDP) growth for each country. Traditional theory supported the same outcome, arguing the agreement would allow each nation to specialize in the sectors where each had a comparative advantage. However, the models assumed that […]
Since the 1950s, Korean and Japanese banks have loaned billions of dollars in loans to their “national champion” companies to encourage overseas investment. Now, Chinese state-owned banks have loaned billions to state-owned companies as part of China’s “Go Global” policy. While studies have compared China’s liberalization, inward foreign directing investment (FDI) attraction and export promotion […]