The Impact of China on Global Commodity Prices: The Disruption of the WorldÆs Resource Sector

by Kaplinsky; Raphie

• ISBN13: 9780415597890
• ISBN10: 0415597897
• Edition: 1st
• Format: Hardcover
• Copyright: 2012-01-17
• Publisher: Routledge

Summary

This book looks at the growing economic impact of the Asian Driver economies and particularly China on global prices and through this on other low income economies. Farooki and Kaplinsky consider both the possibility of a sustained rise in commodity prices as well as the growing financialization of global commodity markets and exploring the interconnections between these issues discuss the theory and policy related challenges ahead.In the midst of a sustained global economic crisis, the authors argue that countries like China follow a commodities-intensive growth-path and that the strategic significance of commodities prices lies not so much in their nominal prices, but in their prices relative to other sectors (manufactures and services); thus, economic crisis will affect not only the commodities sector.

Table of Contents

List of figures	p. xiii
List of tables	p. xvi
Acknowledgements	p. xviii
List of acronyms	p. xx
Back to centre-stage	p. 1
From periphery to centre-stage	p. 12
Dispute amongst the aliens	p. 20
A new driver in the global economy	p. 22
Miracle economies in the twentieth century	p. 22
China as a driver economy	p. 24
The global impact of driver economies	p. 35
The primary vectors of China's interaction with the global economy	p. 38
China has gone global	p. 46
Commodities and economic growth	p. 47
What is a commodity?	p. 47
Why are commodities important for economic development?	p. 50
What, if anything, has changed?	p. 65
China as a driver of demand for commodities	p. 70
Existing patterns of resource use by China	p. 71
The dynamics of China's use of global commodities	p. 77
What explains China's resource-intensive growth path?	p. 84
China's industrial footprint makes heavy demands of commodities	p. 103
A lagged supply response and the impact on commodity prices	p. 104
The determinants of supply response: a general framework	p. 104
The determinants of the supply response in the soft commodities sectors	p. 111
The determinants of the supply response in the hard commodities sectors	p. 117
The determinants of the supply response in the energy commodities sectors	p. 129
The determinants of the supply response in commodities sectors: a synthetic overview	p. 139
The financialisation of the commodities sectors	p. 144
Financialisation in the late twentieth century	p. 145
The financialisation of the commodities sectors	p. 149
How are stakeholders responding to the commodities super-cycle?	p. 163
Stakeholder responses in the soft commodities sector	p. 163
Stakeholder responses in the hard commodities sector	p. 167
Stakeholder responses in the energy commodities sector	p. 174
Stakeholder responses to rising prices: an overview	p. 177
The reshaping of the natural resources sector	p. 180
Seven important lessons	p. 180
Seven important questions	p. 185
Bibliography	p. 194
Index	p. 204
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