上财国际金融系主任金洪飞国际金融课件chapter 22

capital inflows from abroad and now carry substantial debts to foreigners. • Developing country borrowing can lead to gains from trade that make both borrowers and lenders better off.
Alternative Forms of Capital Inflow
• Five major channels through which developing
countries have financed their external deficits:
– Bond finance – Bank finance – Official lending – Direct foreign investment – Portfolio investment in ownership of firms
• History of extensive direct government control of the
•
• • • •
economy History of high inflation reflecting government attempts to extract seigniorage from the economy Weak credit institutions and undeveloped capital markets Pegged exchanged rates and exchange or capital controls Heavy reliance on primary commodity exports High corruption levels
The Gap Between Rich and Poor
• The world's economies can be divided into four main
categories according to their annual per-capita income levels:
– Low-income economies – Lower middle-income economies – Upper middle-income economies – High-income economies
Lectured by Dr Jin Hongfei
Slide 22-4
Income, Wealth, and Growth in the World Economy
Table 22-1: Indicators of Economic Welfare in Four Groups of Countries, 1999
Chapter Organization
Introduction Income, Wealth, and Growth in the World Economy Structural Features of Developing Countries Developing Country Borrowing and Debt Latin America: From Crisis to Uneven Reform East Asia: Success and Crisis Lessons of Developing Country Crises Reforming the World’s Financial “Architecture” Summary
Lectured by Dr Jin Hongfei
Slide 22-5
GDP per capita of China mainland, 2002
The GDP of P. R. China Mainland is 10239.8

billions of Yuan. The population is 1294.9 millions So, the GDP per capita is 7907.8 Yuan or $955.4
Lectured by Dr Jin Hongfei
Slide 22-2
Introduction
The macroeconomic problems of the world’s
developing countries affect the stability of the entire international economy.
Lectured by Dr Jin Hongfei
Slide 22-14
Developing Country Borrowing and Debt
• History of capital flows to developing countries:
– Early 19th century
– A number of American states defaulted on European loans they had taken out to finance the building of canals.
Slide 22-9
Lectured by Dr Jin Hongfei
Structural Features of Developing Countries
Figure 22-1: Corruption and Per Capita Income
Lectured by Dr Jin Hongfei
Lectured by Dr Jin Hongfei
Slide 22-7
Income, Wealth, and Growth in the World Economy
Table 22-2: Output Per Capita in Selected Countries, 1960-1992 (in 1985 U.S. dollars)
• There has been greater economic dependency between
developing and industrial countries since WWII.
This chapter examines the macroeconomic problems
of developing countries and the repercussions of those problems on the developed countries.
– Great Depression (1930s)
– Nearly every developing country defaulted on its external debts.
Lectured by Dr Jin Hongfei
Slide 22-15
Developing Country Borrowing and Debt
Lectured by Dr Jin Hongfei
Slide 22-8
Structural Features of Developing Countries
Most developing countries have at least some of the
following features:
– This channel has been reinforced by many developing countries’ efforts at privatization.
Lectured by Dr Jin Hongfei
Slide 22-16
Developing Country Borrowing and Debt
பைடு நூலகம்
– Throughout the 19th century
– Latin American countries ran into repayment problems (e.g., the Baring Crisis).
– 1917
– The new communist government of Russia repudiated the foreign debts incurred by previous rulers.
Lectured by Dr Jin Hongfei
Slide 22-11
Developing Country Borrowing and Debt
Table 22-3: Current Account Balances of Major Oil Exporters, Other Developing Countries, and Industrial Countries, 1973-2000 (billions of dollars)
• Example: Causes and effects of the East Asian
financial crisis in 1997
Lectured by Dr Jin Hongfei
Slide 22-3
Income, Wealth, and Growth In the World Economy
Chapter 22 Developing Countries: Growth, Crisis, and Reform
Lectured by Jin Hongfei To Accompany International Economics: Theory and Policy, Sixth Edition by Paul R. Krugman and Maurice Obstfeld
per capita incomes. • Developing countries have not shown a uniform tendency of convergence to the income levels of industrial countries.