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THE ROLE OF INSTITUTIONAL FACTORS IN THE COMPETITION BETWEEN THE CHINA AND THE US ECONOMIES: AN INPUT OUTPUT ANALYSIS

Year 2022, , 511 - 528, 30.07.2022
https://doi.org/10.51551/verimlilik.946321

Abstract

Purpose: The Chinese economy has become the world's second largest economy evolving from an underdeveloped country. Today, its impact on the US economy is discussed. The purpose of this study is to find an answer to the question of which growth model has China followed to achieve economic power.


Methodology:
An input-output analysis is used in the study. The competition war between China and the USA within the framework of the export-led growth model is addressed. This comparison is analyzed for the periods of 1990-2003 and 2003-2011.

Findings: The analysis revealed different outcomes for China and the USA. China has gained competitive power with low-cost production, low-value exchange rate policy, and high technology. In the 1990-2003 and 2003-2011 periods, it gained economic strength with the export-driven growth model. In the USA, on the other hand, high-cost production was dominant. Over time, USA competitiveness against China decreased and it had a constant deficit in foreign trade. For this reason, the study concluded that China's competitiveness and its role in the economy of the USA were of great importance.

Originality: Unlike the studies in the literature, this article compared two different periods and examined the competition between the two countries through institutional factors, using input-output analysis. It also investigated the relationship between wage increase and the exchange rate.

References

  • Acemoglu, D., Johnson, S. ve Robinson, J.A. (2005). “Institutions as A Fundamental Cause of Long-Run Growth”, Handbook of Economic Growth, Volume IA.
  • Adams, F.G., Gangnes, B. ve Shachmurove, Y. (2006). “Why Is China So Competitive? Measuring and Explaining China's Competitiveness”, The World Economy, 29, 2, 95-121.
  • Angresano, J. (2005). “China’s Development Strategy: A Game of Chess that Countered Orthodox Development Advice”, The Journal of Socio Economics, 34, 471-498.
  • Bağcı, E. (2016). “Türkiye’nin İmalat Sanayi Sektörünün Uluslararası Rekabet Gücü Analizi”, Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi, 38 (1), 73-92.
  • Balassa, B. (1963). “Some Observations on the Beckerman’s ‘Export-Propelled’ Growth Model”, Economic Journal, 73, 763-784.
  • Baumol, W. (1986). “Productivity Growth, Convergence, and Welfare: What the Long-Run Data Show”, American Economic Review, 76 (5), 1072-1085.
  • Boyer, R. (2004). “New Growth Regimes, But Still Institutional Diversity”, Socio-Economic Review, 2(1), 1-32.
  • Charles, S., Karouni, I.E. (2008). “Post Socialist Transformation and Growth Regime: Some Comments about the Chinese Case”, International Journal of Development Issues, Emerald Group Publishing, 7(2), 7.
  • Dietzenbacher, E., Los, B., Stehrer, R., Timmer, M. ve Vries G. (2013). “The Construction of World Input–Output Tables in the WIOD Project”, Economic Systems Research, 25, 71–98.
  • Dünya Bankası (2020). https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG?view=chart, (Erişim Tarihi: 01.02.2020).
  • Dünya Bankası (2020). https://data.worldbank.org/indicator/NV.IND.TOTL.KD.ZG?view=chart&locations=CN, (Erişim Tarihi: 02.01.2020).
  • Dünya Bankası (2020). https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?view=chart, (Erişim Tarihi: 09.03.2020).
  • Harrod, R.F. (1933). “A Further Note on Decreasing Costs”, The Economic Journal, 337-341.
  • Hicks, J.R. (1953). “An Inaugural Lecture”, Oxford Economic Papers, 5(2), 117-135.
  • Hughes, N. (2005). A Trade War with China?, Foreign Affairs, 84(4), 94-106, www.jstor.org/stable/20034423, (Erişim Tarihi 22.01.2022).
  • Kaldor, N. (1966). “Causes of the Slow Growth in the United Kingdom”, Cambridge University Press, London, 1-40.
  • Kaufman, B.E. (2007). “The Institutional Economics of John R. Commons: Complement and Substitute for Neoclassical Economic Theory”, Socio Economic Review, 5, 3-45.
  • Liu, A. ve Geoffrey W. (2005). Human Resources Development in China”, Annals of Tourism Research, 32, 689-710.
  • McKinnon, R. (2005). Exchange Rate or Wage Changes in International Adjustments?, http://www-siepr.stanford.edu/workp/swp05007.pdf, (Erişim Tarihi 20.01.2022).
  • Morrison, M.W. (2013). “China’s Currency Policy: An Analysis of The Economic Issues”, CRS Report, 1.
  • North, D. (1990). “Institutions Institutional Change and Economic Performance”, Cambridge University Press, 3, Cambridge.
  • Pasinetti, L.L. (1993). “Structural Economic Dynamics: A Theory of the Economic Consequences of Human Learning”, Cambridge University Press, Cambridge.
  • Pei, J., Oosterhaven J. ve Dietzenbacher E. (2012). “How Much Do Exports Contribute to Chına's İncome Growth?”, Economic Systems Research, 24:3, 275-297, DOI: 10.1080/09535314.2012.660746.
  • Polatay, S.S. (2020). “Who Likes Cooperation? A Long-Term Analysis of the Trade War between the US, the EU and China”, Uluslararası İlişkiler Dergisi, Advanced Online Publication, 17 (67), 41-60.
  • Qian, Y. (2000). “The Process of China’s Market Transition (1978-1998); The Evolutionay, Historical and Comperative Perspectives”, Journal of Institutional and Theoretical Economics (JITE), 156 (1), 151-171.
  • Ricardo, D. (1817). “On the Principles of Political Economy and Taxation”, Batoche Books, Third Edition, Ontario.
  • Rodrik, D. (2006). “What’s so Special about China’s exports?”, NBER Working Paper, No. 11947.
  • Sachs J.D. ve Woo, W.T. (2003). “China’s Economic Growth After WTO Membership”, Journal of Chinese Economic and Business Studies, 1 (1), 1-31.
  • Samuelson, P.A. (1964). “Theoretical Notes on Trade Problems”, The Review of Economics and Statistics, 46 (2), 145-154.
  • Silva, R.J. (2006). “The Development of China’s Export Performance”, IMF Speeches, http://www.imf.org/external/np/speeches/2006/030706.htm, (Erişim Tarihi 15.09.2020).
  • The Economist (2020). “China’s Economy and the WTO”, http://www.economist.com/node/21541448, (Erişim Tarihi 03.07.2020).
  • UN Comtrade (2020). https://www.trademap.org/countrymap/Country_SelProduct_Graph.aspx?nvpm=%7c%7c%7c%7c%7cTOTAL%7c%7c%7c2%7c1%7c1%7c2%7c1%7c1%7c2%7c1%7c%7c2, (Erişim Tarihi: 03.01.2020).
  • Uni, H. (2007). “Export-Biased Productivity Increase and Exchange Rate Regime in East Asia and Europe”, The Kyoto Economic Review ,76(1), 117–138.
  • Ünal, E. (2012). “Düzenleme Teorisi: Büyük Buhran ve 2008 Krizi”, Ekonomi Bilimleri Dergisi, 4(1), 35-36.
  • Ünal, E. (2016a). “A Comparative Analysis of Export Growth in Turkey and China through Macroeconomic and Institutional Factors”, Evolutionary and Institutional Economics Review, 13(1), 7-34.
  • Ünal, E. (2016b). “How Can Turkey be Part of the EMU?: Turkey’s Economic and Monetary Integration into the EMU and the Analyses of Macroeconomic and Institutional Factors by Export-Led Growth”, The Kyoto Economic Review, 85(1-2), 2-41.
  • Ünal, E. (2018). “An Institutional Approach and Input-Output Analysis for Explaining the Transformation of the Turkish Economy”, Journal of Economic Structures, 7 (3), 1-38.
  • Ünal, E. (2021). “Industrial Growth Models by Input–Output Analysis and an Anstitutional Approach to the Automotive Industry in China and Turkey”, Evolutionary and Institutional Economics Review, 18, 175-203.
  • Ünal, E. ve Köse, N. (2018). “Türkiye Birleşik Krallık’ta Grevde Kaybolan İşgünü Sayısının Ücret Üzerindeki Etkisi”, Verimlilik Dergisi, 2, 143-168.
  • WIOD (2020). https://www.rug.nl/ggdc/valuechain/wiod/?lang=en, (Erişim Tarihi: 01.04.2020).
  • Yan, C. (2014). “Structural Changes in the Labor Market and Social Security System in China: From the Viewpoint of Flexicurity”, Discussion paper no. E-14-005, Research Project Center, Kyoto University.
  • Yu, M. (2011). “Patterns of Trade, Comparative Advantage and Productivity in the ASEAN-China-India Region”, China Center for Economic Research (CCER) Peking University, 28, 1-35.

ÇİN VE ABD EKONOMİLERİ ARASINDAKİ REKABETTE KURUMSAL FAKTÖRLERİN ROLÜ: GİRDİ-ÇIKTI ANALİZİ

Year 2022, , 511 - 528, 30.07.2022
https://doi.org/10.51551/verimlilik.946321

Abstract

Amaç: Çin ekonomisi, az gelişmiş ülke konumundan dünyanın en büyük ikinci ekonomisi konumuna gelmiştir. Günümüzde, ABD ekonomisi üzerindeki etkisi tartışılmaktadır. Bu çalışmanın amacı ise Çin, hangi büyüme modelini izleyerek ekonomik güç elde etmiştir sorusuna cevap bulmaktır.

Yöntem: Çalışmada girdi-çıktı analizi kullanılmıştır. Çin-ABD arasında yaşanan rekabet savaşı, ihracata dayalı büyüme modeli çerçevesinde ele alınmıştır. Bu karşılaştırma 1990-2003 ile 2003-2011 dönemlerine ayrılarak incelenmiştir.

Bulgular: Yapılan analiz sonucuna göre Çin ve ABD için farklı sonuçlar elde edilmiştir. Çin; düşük maliyetli üretim, değersiz döviz kuru politikası ve yüksek teknoloji ile rekabet gücü elde etmiştir. 1990-2003 ve 2003-2011 dönemlerinde ihracata dayalı büyüme modeli ile ekonomik güç kazanmıştır. ABD’de ise yüksek maliyetli üretimin süreklilik taşıdığı görülmüştür. Zamanla Çin’e karşı rekabet gücü azalmış ve dış ticarette sürekli açık vermiştir. Bu nedenle Çin’in rekabet gücü, ABD ekonomisi üzerinde rolünün büyük önem taşıdığı tespit edilmiştir.

Özgünlük: Literatürdeki çalışmalardan farklı olarak, iki farklı döneme ayrılıp iki ülke arasındaki rekabetin kurumsal faktörler yoluyla, girdi-çıktı analizi ile incelenmesidir. Ücret artışı ile döviz kuru arasındaki ilişki çalışılmıştır.

References

  • Acemoglu, D., Johnson, S. ve Robinson, J.A. (2005). “Institutions as A Fundamental Cause of Long-Run Growth”, Handbook of Economic Growth, Volume IA.
  • Adams, F.G., Gangnes, B. ve Shachmurove, Y. (2006). “Why Is China So Competitive? Measuring and Explaining China's Competitiveness”, The World Economy, 29, 2, 95-121.
  • Angresano, J. (2005). “China’s Development Strategy: A Game of Chess that Countered Orthodox Development Advice”, The Journal of Socio Economics, 34, 471-498.
  • Bağcı, E. (2016). “Türkiye’nin İmalat Sanayi Sektörünün Uluslararası Rekabet Gücü Analizi”, Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi, 38 (1), 73-92.
  • Balassa, B. (1963). “Some Observations on the Beckerman’s ‘Export-Propelled’ Growth Model”, Economic Journal, 73, 763-784.
  • Baumol, W. (1986). “Productivity Growth, Convergence, and Welfare: What the Long-Run Data Show”, American Economic Review, 76 (5), 1072-1085.
  • Boyer, R. (2004). “New Growth Regimes, But Still Institutional Diversity”, Socio-Economic Review, 2(1), 1-32.
  • Charles, S., Karouni, I.E. (2008). “Post Socialist Transformation and Growth Regime: Some Comments about the Chinese Case”, International Journal of Development Issues, Emerald Group Publishing, 7(2), 7.
  • Dietzenbacher, E., Los, B., Stehrer, R., Timmer, M. ve Vries G. (2013). “The Construction of World Input–Output Tables in the WIOD Project”, Economic Systems Research, 25, 71–98.
  • Dünya Bankası (2020). https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG?view=chart, (Erişim Tarihi: 01.02.2020).
  • Dünya Bankası (2020). https://data.worldbank.org/indicator/NV.IND.TOTL.KD.ZG?view=chart&locations=CN, (Erişim Tarihi: 02.01.2020).
  • Dünya Bankası (2020). https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?view=chart, (Erişim Tarihi: 09.03.2020).
  • Harrod, R.F. (1933). “A Further Note on Decreasing Costs”, The Economic Journal, 337-341.
  • Hicks, J.R. (1953). “An Inaugural Lecture”, Oxford Economic Papers, 5(2), 117-135.
  • Hughes, N. (2005). A Trade War with China?, Foreign Affairs, 84(4), 94-106, www.jstor.org/stable/20034423, (Erişim Tarihi 22.01.2022).
  • Kaldor, N. (1966). “Causes of the Slow Growth in the United Kingdom”, Cambridge University Press, London, 1-40.
  • Kaufman, B.E. (2007). “The Institutional Economics of John R. Commons: Complement and Substitute for Neoclassical Economic Theory”, Socio Economic Review, 5, 3-45.
  • Liu, A. ve Geoffrey W. (2005). Human Resources Development in China”, Annals of Tourism Research, 32, 689-710.
  • McKinnon, R. (2005). Exchange Rate or Wage Changes in International Adjustments?, http://www-siepr.stanford.edu/workp/swp05007.pdf, (Erişim Tarihi 20.01.2022).
  • Morrison, M.W. (2013). “China’s Currency Policy: An Analysis of The Economic Issues”, CRS Report, 1.
  • North, D. (1990). “Institutions Institutional Change and Economic Performance”, Cambridge University Press, 3, Cambridge.
  • Pasinetti, L.L. (1993). “Structural Economic Dynamics: A Theory of the Economic Consequences of Human Learning”, Cambridge University Press, Cambridge.
  • Pei, J., Oosterhaven J. ve Dietzenbacher E. (2012). “How Much Do Exports Contribute to Chına's İncome Growth?”, Economic Systems Research, 24:3, 275-297, DOI: 10.1080/09535314.2012.660746.
  • Polatay, S.S. (2020). “Who Likes Cooperation? A Long-Term Analysis of the Trade War between the US, the EU and China”, Uluslararası İlişkiler Dergisi, Advanced Online Publication, 17 (67), 41-60.
  • Qian, Y. (2000). “The Process of China’s Market Transition (1978-1998); The Evolutionay, Historical and Comperative Perspectives”, Journal of Institutional and Theoretical Economics (JITE), 156 (1), 151-171.
  • Ricardo, D. (1817). “On the Principles of Political Economy and Taxation”, Batoche Books, Third Edition, Ontario.
  • Rodrik, D. (2006). “What’s so Special about China’s exports?”, NBER Working Paper, No. 11947.
  • Sachs J.D. ve Woo, W.T. (2003). “China’s Economic Growth After WTO Membership”, Journal of Chinese Economic and Business Studies, 1 (1), 1-31.
  • Samuelson, P.A. (1964). “Theoretical Notes on Trade Problems”, The Review of Economics and Statistics, 46 (2), 145-154.
  • Silva, R.J. (2006). “The Development of China’s Export Performance”, IMF Speeches, http://www.imf.org/external/np/speeches/2006/030706.htm, (Erişim Tarihi 15.09.2020).
  • The Economist (2020). “China’s Economy and the WTO”, http://www.economist.com/node/21541448, (Erişim Tarihi 03.07.2020).
  • UN Comtrade (2020). https://www.trademap.org/countrymap/Country_SelProduct_Graph.aspx?nvpm=%7c%7c%7c%7c%7cTOTAL%7c%7c%7c2%7c1%7c1%7c2%7c1%7c1%7c2%7c1%7c%7c2, (Erişim Tarihi: 03.01.2020).
  • Uni, H. (2007). “Export-Biased Productivity Increase and Exchange Rate Regime in East Asia and Europe”, The Kyoto Economic Review ,76(1), 117–138.
  • Ünal, E. (2012). “Düzenleme Teorisi: Büyük Buhran ve 2008 Krizi”, Ekonomi Bilimleri Dergisi, 4(1), 35-36.
  • Ünal, E. (2016a). “A Comparative Analysis of Export Growth in Turkey and China through Macroeconomic and Institutional Factors”, Evolutionary and Institutional Economics Review, 13(1), 7-34.
  • Ünal, E. (2016b). “How Can Turkey be Part of the EMU?: Turkey’s Economic and Monetary Integration into the EMU and the Analyses of Macroeconomic and Institutional Factors by Export-Led Growth”, The Kyoto Economic Review, 85(1-2), 2-41.
  • Ünal, E. (2018). “An Institutional Approach and Input-Output Analysis for Explaining the Transformation of the Turkish Economy”, Journal of Economic Structures, 7 (3), 1-38.
  • Ünal, E. (2021). “Industrial Growth Models by Input–Output Analysis and an Anstitutional Approach to the Automotive Industry in China and Turkey”, Evolutionary and Institutional Economics Review, 18, 175-203.
  • Ünal, E. ve Köse, N. (2018). “Türkiye Birleşik Krallık’ta Grevde Kaybolan İşgünü Sayısının Ücret Üzerindeki Etkisi”, Verimlilik Dergisi, 2, 143-168.
  • WIOD (2020). https://www.rug.nl/ggdc/valuechain/wiod/?lang=en, (Erişim Tarihi: 01.04.2020).
  • Yan, C. (2014). “Structural Changes in the Labor Market and Social Security System in China: From the Viewpoint of Flexicurity”, Discussion paper no. E-14-005, Research Project Center, Kyoto University.
  • Yu, M. (2011). “Patterns of Trade, Comparative Advantage and Productivity in the ASEAN-China-India Region”, China Center for Economic Research (CCER) Peking University, 28, 1-35.
There are 42 citations in total.

Details

Primary Language Turkish
Journal Section Articles
Authors

Fatma Taş 0000-0001-9375-6373

Publication Date July 30, 2022
Submission Date June 1, 2021
Published in Issue Year 2022

Cite

APA Taş, F. (2022). ÇİN VE ABD EKONOMİLERİ ARASINDAKİ REKABETTE KURUMSAL FAKTÖRLERİN ROLÜ: GİRDİ-ÇIKTI ANALİZİ. Verimlilik Dergisi(3), 511-528. https://doi.org/10.51551/verimlilik.946321

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