Economics china essay

Further, the findings of this research will be supportive in ensuring that the United States maximizes from its economic relationship with China. It occurs when random variable have different variances therefore causing OLS to underestimate the variances and standard errors of the coefficients.

Major gains in industrial structure were registered by private firms. This is in contrary with China indigenous and protective innovation policies. In addition, inferential statistical approach will be Economics china essay to derive at the conclusion of the research study after data analysis and evaluation.

Y is the output which is the Real Gross Domestic Product. It is evident that the United States economy significantly depends on intellectual property and innovation, which comprises of a significant fraction of U.

Data on Research and Developments in IT industry reveal that Chinese enterprises are continuing to trail the global industry leaders in the United States. Limitation of Data and Empirical Analysis For many years, studies on the relationship between FDI and economic growth have been debated.

Human capital has also been proxied by school enrolment and for this study, secondary school enrolment is used. Graphs An important step in the analysis of this study is the graphs.

China is the largest bank that is in use by the U. As a result the investment of domestic companies has been increasing The research and development activities performed by the foreign-invested companies have enhanced the technological spillover effects Domestic companies may have increased the investments in research and development activities in order to gain competitive advantages.

The second challenge that China faces, regarding its innovation policy, is a potential conflict with Western countries, especially the United States. It is thought that a revaluation could cause an economic slowdowneven a recession in the United States. Mah show that FDI inflows have not caused real economic growth in China.

Analysis of the residuals show that there is evidence of serial correlation see Table 7 but no heteroskedasticity see Table 8 also the residuals are normally distributed see Figure 8.

This revaluation could bring a self-reinforcing downward economic spiral Davidson Chins seems to have a great deal of economic power across the globe.

And this would mean they would shut down or lay off workers. A Challenge to the U. This re-affirmation provided evidence of success, hence the increase in FDI. Finally, human capital proxied by secondary school enrolment is measured by number of secondary school pupils.

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Chapter 6 - Conclusion Most economists and policy makers in the United States and in China agree that, eventually, China will have to revalue its currency or the U. This in turn helps to increase competition across all markets which help to Economics china essay the global economy as a whole.

In the equation 2 for example, physical capital is required to estimate the growth model, but previous literature have used gross fixed capital as a substitute for this variable. For this research, the model used focuses on the augmented Solow growth model of the s. It increased the employment rate in China.

It has led to the building of an internationalised manufacturing sector, highly competitive in world markets. There are many reasons for the dominance of Baidu. In addition, China manipulates technological standards and restricts imports, which, in turn, shrinks global markets.

Urbanisation has experienced an accelerated growth pace. It takes account of loss of degrees of freedom.

Both China and the U. Almost all countries are seeking to attract FDI, because of the various amounts of benefits that it brings; which include income generation from capital inflows, advanced technology, management skills and market know-how. Dieter asserts that there are significant differences regarding the manner, in which the U.

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Domestic firms may find it cheaper to copy foreign firms by upgrading their technology for example, rather than generating new ideas or ways of doing things, therefore this process leads to domestic firms becoming more productive.

Further, the findings of this research will be helpful in ensuring that the United States maximizes from its economic relationship with China. However, when other variables are taken into account, the effect of FDI on economic growth in China is diminished meaning that other factors influence economic growth more than FDI.

This would result in mortgage and credit-card interest rates jumping upwards.

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FDI may provide better access to technologies for the local economy It can also lead to indirect productivity gains through spillovers. Creation of employment opportunities both directly and indirectly has been one of the most prominent impacts of FDI on the Chinese economy.

Ordinary Least square OLS method for regression is used for the statistical analysis.If this essay isn't quite what you're looking for, why not order your own custom Economics essay, dissertation or piece of coursework that answers your exact question?

Free Essay: Introduction China is one of the most populous countries of the world with over billion people and covering a geographical area of about China and the United States, as the two largest economy groups in today’s world who own more than 30 percent of the world’s GDP, Fair Use Policy; Economics Essay Writing Service Free Essays More Economics Essays Examples of Our Work Economics Dissertation Examples.

Essays; We can help with your essay Find out more. This China Essay covers a lot of areas relating to economic growth and development. Aimed at addressing a case study question in the HSC. China is one of the most populous countries of the world with over billion people and covering a geographical area of about million square kilometres.

It lies on the eastern end of the large Asia continent and enjoys a remarkably long coastline. It has a large economy, given the large. As China becomes, again, the world's largest economy, it wants the respect it enjoyed in centuries past.

But it does not know how to achieve or deserve it .

Economics china essay
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