The Rise of China and Structural Changes in Korea and Asia

The Rise of China and Structural Changes in Korea and Asia

Edited by Takatoshi Ito and Chin Hee Hahn

This book brings together studies conducted by researchers in East Asian countries who seek to better understand the impact of China’s rise and the consequent policy challenges.


Takatoshi Ito and Chin Hee Hahn

Subjects: asian studies, asian economics, economics and finance, asian economics, regional economics


Takatoshi Ito and Chin Hee Hahn RISE OF CHINA This volume consists of chapters that were originally submitted as papers to the KDI conference, Growth and Structural Changes of the Korean Economy after the Crisìs: Coping with the Rise of China, 21–22 July 2008. After the conference the chapters were revised in light of comments by discussants and other participants in the conference, as well as the editors. A common theme is the rise of the Chinese economy and its impact on Asia, in particular Korea. After a sharp downturn in 1998, the Asian economies have recovered. The V-shaped recovery and continuing growth in East Asia are impressive. Among others, China’s performance, with its apparent acceleration of growth, stands out. The chapter by Quah, (Chapter 1) describes the growth process of Asia, in particular China, and how that was made possible. He emphasizes the roles of high human capital investment, in particular education. In order to sustain growth, however, a country needs to maintain productive dynamism and improve its resiliency to shocks in response to changes in the economic environment. In this regard, the rise of China and its integration into the world economy is probably one of the most important changes in the world economy for the past several decades. Since the economic reform in the late 1970s, the Chinese economy has made tremendous advances in economic growth, driven by the expansion of a modern, export-oriented industrial sector. The growth rate has been around 10 percent since...