461 - The Chinese Economy
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| Books & Films
461/661 Chinese Economy (3+0) 3 credits
Historical examination of
China's economic development,
with a special emphasis on its varying development strategies, and its
- UNR General
will cover the
Chinese economy, both historical and current. It will focus on the
development of its economic institutions, on its varying economic
policies and strategies,
and in particular how economic reform affected different sectors of the
economy. This class is a capstone in
the university core curriculum, and a diversity
class. Prerequisites include: ECON 100 or ECON 102 or RECO
100; ENG 102; CH 201; and junior or senior standing
J.B. (2010), Understanding China, 3rd
Edition, Hill &
B. (2007), The Chinese Economy: Transitions and Growth,
Other readings may be
assigned in class, and will be on reserve
in the Knowledge Center. The China
Economic Review is available in the library (see
if this link works), and online. Another good
journal is the China
Quarterly, though its focus is more on the historical,
philosophical aspects of China.
will be a number of films you are expected to view. A couple will
be shown in class, but most will be scheduled outside of class, as
v. 1 (1997): China
in Revolution, 1911-1949 V04909
v. 2 (1997): The
Mao Years, 1949-1976 V04908
v.3 (1997): Born
under the Red Flag, 1976-1997, V06654
- China in the Red
are expected to attend these film showings at the time I schedule.
If for some good reason
cannot make one of them, you may check the film out
afterwards for later viewing.
I also recommend these optional
- Legacy, program 3
The Mandate of
- The Pacific Century, pt.
1 (1992): The Two Coasts
of China V04550
- All Under Heaven (1985) V05991
- The Gate of
(1990), V05608, V05609
There will be a
over some of the material in the introduction, two midterm exams (20%
short research paper on an assigned topic (15%), a class presentation
and a final exam (25%). Keeping up with readings, participation
in discussion, along with attendance
in class and at the films will count for another 10% of the grade.
Except for the first midterm, exams will
generally be in-class, closed-book essay questions.
Any cheating will be severely punished.
Cheating includes both copying someone else's
work as well as letting your work be copied, bringing in notes, text
messaging or taking pictures of the exam, plagiarizing other
people's words or ideas and passing them off as your own, et cetera.
a minimum, you will receive a failing grade for the assignment or other
portion of the course, with no chance to redo it, and the incident will
be reported to Student Judicial Affairs. If the dishonesty is
egregious you will fail the course, and if it is a repeat offense then
you can be suspended or expelled from the university.
who are caught cheating also
their chance at college scholarships.
I am serious
as a heart
attack about this, and the university faculty are also becoming more
and more serious about this.
Sign up for and research one of the
following current economic topics, or propose an alternative topic on a
issue of the Chinese economy. In your own words, write a
paper based on your research. Look up
and present data from the China
Due Date: Monday,
June 4, 2012. Late
papers will lose one-half grade per day.
The paper should be approximately seven
pages long, not including the cover page and any references or
This is just a target, and your paper can be a little bigger or smaller
needs be. This paper must be typewritten and double-spaced.
Use APA style for your references and
Choose one of the
following current economic topics, or use one of the chapters
Starr or Naughton as a starting point for research:
- China's automotive
- China's software
- China’s sources
- Current conditions in
- The Impact of U.S.
Food Exports to China
- The Chinese-U.S.
Bilateral Trade Deficit
- What would happen if
the Yuan floated?
- China’s foreign
- China's effect on
world oil prices
- How was China affected
by the Asian Financial Crisis?
- Privatization and
consolidation in Chinese State-owned Enterprises
- Chinese fiscal policy
- Chinese monetary policy
- Chinese price inflation
- Why is China’s
savings rate high?
- China's banking
- Foreign banks in the
- Chinese Stock Markets
- Science and technology
- How did WTO Accession
affect China's trade?
- Official Corruption in
- China’s Growth
Monday, May 23, e-mail me with your choice of topics. If
you have your own idea, you may ask for my approval. No more than
one person per topic, so fast movers get first choice.
Prepare a ten-minute Powerpoint presentation on your
research paper. You will present this the last week of class, and
presentation will be graded by both the instructor and your fellow
More on the Paper Format...
Your paper should have a cover page that has your
name, my class, the date, the title, and a one-paragraph abstract that
summarizes your paper. You should have an introduction that
begins on page 1, and a conclusion at the end. Use section
headings to clarify your paper's organization. Put page numbers
at the bottom, but do not number the cover page and abstract, your
references page, or any endnotes (not footnotes) if you have
them. Any figures or tables should each be put on their own page
at the back of the paper, and they should be referred to in the text as
Figure 1 or Table 4, for example. Again, the cover page,
references, and tables are not numbered, and are not included in the
Remember this is NOT an opinion paper, and it is not
a creative writing project! As much as possible, you are expected
to base your paper on material you have studied for this class, and on
outside research, and not base it on opinions that you had coming into
this class. I like papers that try to be objective, and I suggest
you avoid being flip, funny or sarcastic. Remember that you are
expected to find and present data related to your topic.
Make sure that any data you use is from reliable
sources, and please cite primary sources, not secondary ones.
When you do outside research, rely primarily on
books, articles in professional and business journals, and articles in
academic publications. Minimize your reliance on unpublished
internet sources; though these sources can be more current, they do not
go through any review or editing process to determine whether their
arguments are valid or substantiated by evidence. Online
magazines or journals, or official institutional websites, are OK
though not preferred; you must avoid using blogs or websites written by
random kooks or their kooky organizations. Wikipedia is not an
acceptable source, but it is sometimes helpful to start with it and
refer to the sources cited.
Again, I want you to use
APA style for your references and citations, as much as possible.
The library has information on this at http://www.library.unr.edu/depts/reference/webref/style.html#APA,
and Long Island University has a helpful website at http://www.liu.edu/CWIS/CWP/library/workshop/citapa.htm.
In particular, pay attention to how to cite online websites.
You need to cite all sources you use in your paper, and list
your references alphabetically after your conclusion, not
in footnotes. Use single-spaced endnotes only to explain
points in more detail, if you feel it is necessary and do not want to
clutter the text. Again, do not use endnotes (or footnotes) for
citations of your references.
Citations briefly list your
sources in the relevant parts of your text, and references list the
full information on how to find those sources. References are
included at the end of the paper, in a separate section called References.
or Works Cited.
All citations are referenced, and all references are cited.
styles can vary a little, but you will need to cite your sources by
surname(s) and year, not title, journal, or url. In your
citations, put the surname(s) and the year sepated by a comma, in
parentheses. For example, the seven references listed below would
be cited in the text as (Olson, 2000), (Cargill & Parker, 2003),
(Parker, 1995), (Banks, Parker, & Wendel, 2001), (Economist, 1997),
(World Bank, 1993), and (IMF, 2001). In citations and references,
you may use the ampersand "&" for multiple authors, but in text use
"and" instead. Only use first names in the text if the person is
the subject, not the source.
Page numbers are appropriate for a quote and for a citation from a
book, but are not necessary for an idea from a journal article.
You may use a colon before the page number(s), if appropriate,
instead of the "pp." abbreviation, e.g., (Olson, 2000:
For sources with more than
two authors, cite all authors the first time and then later use "et
al." (et alia, Latin for "and others"), though if there are more
than three you can use "et al." the first time. For example,
source (4) below would be cited as (Bhattacharyya, et al., 1994).
If you are citing two sources with the same author(s) and year, cite
and reference them with the year plus a, b, c, ..., e.g., (Parker,
1995a) and (Parker, 1995b). If the paper is not yet published, you
might use the word "forthcoming" instead. Again, you should use
full names for historical figures, but only last names for your
I have pet peeves you
should know about. Some are careless errors, and some are issues of
- "It's" means "it is," while "its" is
- "Lose" is a verb (pronounced like "looze"), while
"loose" is an adjective (with a "s" sound, not a "z").
- "Boarder" is somebody who rents a room in your
house, not a boundary between countries.
- Paragraphs need to hold together, not be too long
or too short (i.e, more than a sentence, less than a page). The
first sentence should give the reader some clue of what the paragraph
- Vary your sentences a little for more interesting
- Your paper should not ramble, and should make
- Learn to use colons and semicolons properly. For
example, a semicolon separates two stand-alone sentences making a
- In the U.S., commas and periods go within the
ending quote mark (though not if there is a citation at the end of the
- Don't quote unless the quote is just too good to
pass up; instead, learn to paraphrase.
- All sentences must have, at minimum, a subject and
- The abbreviation e.g. means "for example," while
i.e. means "in other words."
- "et al." is an abbreviation for "et alia," which
means "and others." It needs a period like all abbreviations.
- I don't like too many exclamation points!
Use the College Handbook
or similar source for a style guide. I like papers that try to be
professional and objective, and I suggest you avoid being flip, funny
or sarcastic as much as possible.
The university has a strict policy against
academic dishonesty, and this includes plagiarism. I strongly
support this policy. Write with your own words, and if you need to
use more than a few words from somebody else you must quote them and
cite your source. When you are using somebody else's ideas and
information, you must still cite them even if you have used your own
Every semester I catch somebody cheating. At a minimum, I will fail you on the
assignment, and if the plagiarism is blatant I will fail you
in the course. I will also report the matter to the
Office of Student Judicial Affairs, and if the plagiarism is
particularly egregious or if you are a repeat offender, they may even
expell you from the university. Academic dishonesty also makes you
ineligible for future scholarships.
As long as you are making a good effort at citing your sources, I will
be reasonable, and a mere phrase here and there will not necessarily
set off alarm bells. You don't have to go overboard and cite the
same source over and over within the same paragraph, as long as it is
apparent that you are giving appropriate credit where credit is
due. But lifting somebody else's work, using their words or
stealing their ideas without proper attribution, is plagiarism.
Getting material off the internet, copying sentences out of a book
without using quotation marks, or even buying a paper from a "research
service" is dangerous and stupid. It is better
that you drop out of school now to save us all the trouble.
Every semester somebody
forgets to back up their document, and they lose it the night before it
is due when a virus hits them or their computer crashes. I don't
know how, but your computer seems to know when you are stressed.
Make a second copy on another diskette, for security.
Your paper will be graded for grammar,
spelling, clarity, logic, and flow as well as accuracy and originality
of content. Have somebody read it over for typographical errors
and things that just don't make sense. Don't turn in a rough
draft, turn in a polished document.
I prefer that you write this paper in a professional tone, and avoid
being flippant. Originality matters, but it is an issue of
content and how you put together material you have learned, not an
issue of creative style.
A good paper will be interesting and original, and will make a logical
argument that addresses the assigned topic. A good paper will be
well-organized and well-written, will follow the format requested
above, and will also demonstrate that the writer has a good grasp on
the material. A good paper will be analytical, will back up
potentially controversial or unusual statements with evidence, and will
make a solid case.
OUTLINE AND SCHEDULE
In this section, we first discuss
the growing importance
of China in the world economy, and why China's economy is so important
(and interesting) for economists to study. We will then cover
basic necessities of studying about China, including basic statistics,
geography, and language (i.e., how to romanize it, how to pronounce it,
how names work, and what some common place names mean).
Pass/Fail Quiz on Basic
Geography, History, and Pronunciation
(Tuesday for first try, after class for later tries)
Economic History of China "Before Liberation"
A. China's Economy during the Ming and
In this section, we will review
the economic and political
history of China, in order for you to appreciate the depth and
of Chinese history, and to answer a number of fundamental questions.
How did China's level of development compare with the rest of the
world, and how can economic theories of development apply to Imperial
economic and historical patterns appear to repeat themselves? Why
did China become so
inward-looking? How and
did China's economy change over time? What are the theoretical answers
to the Needham Question?
the Opium Wars to the
Why did China, once one of the
most advanced economies, become the "sick man of Asia" by the end of
19th Century? How was China affected by its interaction
with the outside
world, particularly after the arrival of the Western Barbarians? Why
didn't China's first revolution succeed, and how was China ripe for
revolution, this time one led by the Chinese Communist Party?
Economic Development in the Maoist Era
In this section, we will cover the
development of socialism
A. Socialism and the Thought of
Marx, Lenin, Stalin,
We begin first with a discussion of the
Marx and Lenin, and the development of the Stalinist model in the USSR.
We then discuss some key elements of "Mao Zedong Thought," as it
to Chinese economic development.
Collectivization, and the PRC's
We then move on to how the Socialist economy
implemented in China. In particular, we will discuss initial
strategies and performance, and how the Chinese peasant's life was
by changes in China's agricultural policies.
C. China from the Great Leap
Forward to the Cultural
We will first discuss the campaigns that set
the stage for
the Great Leap Forward. We will then discuss the economics
behind the Great Leap Forward and the Cultural Revolution, and how this
turmoil affected China's economic development.
D. An Economic Overview of China under
What do the theories and available data tell us
about China's economic development under Chairman Mao?
First Midterm Exam -- take-home exam due
Tuesday, May 22
IV. Economic Reform under Deng Xiaoping
This section will cover how China changed
- Read Naughton, ch. 4, 6, 8, 12, 13, 16.
- Read Parker, E. (1995),
for the state-owned enterprise in China's Socialist Market Economy,"
Perspective 19(1): 7-35.
- Film: China, v.3 (1997): Born
under the Red Flag, 1976-1997.
Lecture Notes 4
We will discuss the problems of China's
after Mao, the first steps toward reform by Mao and his successor, Hua
Guofeng, and finally the rise (and fall, and rise, and fall, and rise)
of Deng Xiaoping as China's paramount leader.
B. Reform under the Four
In this section, we will start first with
the new political
climate under Deng, and how economic reform attacked the stagnant
economy. We will then cover China's new "Open Door" policies, and how
affected the economy. Next, we will discuss the second wave of
reform, and how it ultimately transformed the Chinese economy in ways
unexpected by the leadership. We will then review the economic lessons
of China's reform, the contradictions of economic reform, and the
leading to "Liu Si" in Tian'anmen square fifteen years ago.
C. An Economic Overview of China in Reform
What do the theories and available data tell us
about China's economic performance during the reform period? What
problems needed to be addressed?
The Socialist Market Economy
This section will focus on China's
drive to a market economy
in the 1990s.
A. The Reformists Win
- Read Starr, ch. 5, 6, 12, 13, 14.
- Read Naughton, ch. 5, 9, 18-19.
- Read Cargill, T.F., & E. Parker (2001), "Financial
liberalization in China: Limitations and lessons of the Japanese regime,"
Journal of the
Asia-Pacific Economy 6(1): 1-21.
- Film: China in the Red
Lecture Notes 5
We will discuss the problems that emerged
under the retrenchment
period, and the counter-examples of Hong Kong, Singapore, and Taiwan.
will discuss the major philosophical changes and reforms that began and
ultimately characterized the Shehuizhuyi Shichang Jingji.
B. State-owned Enterprises and
the Financial Crisis
We first discuss the problems of China's
and the role of the state-owned commercial banks. We will
the Asian Financial Crisis, and how this both affected China and
particularly important lessons for China's future economic
VI. The Rise of China in the World Economy
will discuss what led China to become one of the world's major trading
economies, and what issues and challenges this presented to China and
the United States.
- Read Starr, ch. 18.
- Read Naughton, ch. 17.
- Read Cargill, T.F., F. Guerrero, & E. Parker (2006), "Policy
traps and the linkage between China's financial and foreign exchange
systems," in China as a World Workshop, edited by K.H. Zhang: ch.
11, pp. 188-221 (Routledge, Taylor & Francis).
Lecture Notes 6
Second Midterm Exam -- in-class exam on
Friday, June 1
VII. Recent and Future Issues in the Chinese Economy
Students will share their
papers on current issues in the economy, and I will lecture on selected
topics from the readings.
Recommended Academic Journals -- all available online:
Business Journals or Newspapers:
- China Economic Review
- China Journal
- Chinese Economy:
Translations and Studies
- Economic Inquiry
of Asian Studies
- Journal of
- Journal of
- Journal of
the Asia Pacific Economy
of Comparative Economics
- China Economic Review
Books from the Reform Period - in addition to your texts:
- Asian Wall Street Journal
- China Daily
Eastern Economic Review
- Straits Times
- Bernstein, T.P. (1977), Up to the
Mountains and Down to the
The Transfer of Youth from Urban to Rural China (Yale
- Bowles, P. & G. White
(1993), The Political
Economy of China's Financial
Reforms: Finance in Late Development (Westview Press,
- Eastman, L.A. (1988), Family,
and Change in China's Social and Economic History, 1550-1949
- Chow, G.C. (2001), China's
- Elvin, M. (1973), The
Pattern of the Chinese
Past: A Social and
Economic Interpretation (Stanford University Press).
- Fairbank, J.K., & M. Goldman (2006), China: A New History, enlarged
edition (Belknap Press).
W. (1993), editor, China's Economic
Reform (1990 Institute,
- Huang, Y. (2001), China's
Last Steps Across the
and Banking Reforms (Asia Pacific Press).
N.R. (1978), Economic Growth and
Distribution in China (Cambridge
- Lardy, N.R. (1983), Agriculture
in China's Modern
(Cambridge University Press).
- Lardy, N.R. (1992), Foreign
Trade and Economic
Reform in China, 1978-1990 (Cambridge
- Lardy, N.R. (1998), China's
Unfinished Economic Revolution.
- Lardy, N.R. (2002), Integrating
China into the Global Economy.
- Lieberthal, K. (1995), Governing
From Revolution to Reform
(W.W. Norton & Co., New York).
- McMillan, J.
& B. Naughton (1996), Reforming
Asian Socialism : The
Growth of Market Institutions (University of Michigan Press).
J.C. (1989), State and Peasant in Contemporary
Political Economy of Village Government (University of
- Oi, J.C., & A.G. Walder
(1999), Property Rights and
in China (Stanford University Press).
W.H. (1993), The Rise of China:
How Economic Reform
is Creating a New Superpower (W.W. Norton, New York).
J.S. (1990), Reform in China and Other
(AEI Press, Washington D.C.).
- Rawski, T.G. (1980), China's
Industrialism : Producer
Goods and Economic Development in the Twentieth Century
of Michigan Press).
- Rawski, T.G. (1989), Economic
Growth in Prewar
of California Press).
- Rawski, T.G., & L.M.
Li (1992), Chinese
History in Economic Perspective (University
of California Press).
- Reynolds, B.L. (1988), Chinese
Economic Reform :
How Far, How Fast?
(Academic Press, Boston).
- Riskin, C. (1991), China's
Political Economy: The
Quest for Development
since 1949 (Oxford University Press).
States Congress, Joint Economic Committee (1997), China's
Future: Challenges to U.S. Policy (M.E. Sharpe,
- Vogel, E.F. (1989), One Step
China: Guangdong under Reform
(Harvard University Press).
- Walder, A.G. (1986), Communist
Neo-Traditionalism: Work and Authority
in Chinese Society (University of California Press).
G.J., & D. Xu (1997), The
Reformability of China's State Sector
(World Scientific Press, Singapore).
- White, G.
(1993), Riding the Tiger: The
Politics of Economic Reform
in post-Mao China (Stanford University Press).
S. (1995), China's New Political
Economy: The Giant Awakes (Westview
Press, Boulder, CO).
- Translations of Chinese sources may be available
via FBIS or JPRS on
- The World Bank, the Asian Development
Bank, the IMF, and the
Federal Reserve may have a large number of authoritative monographs
on various topics.
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