China's exchange rate and the balance of trade

This paper examines the responsiveness of the balance of trade of the People's Republic of China to the real exchange rate. We find that, in both the short-run and the long-run, devaluation serves to improve the balance of trade. Using quarterly data for 1980:I to 1989:IV we show that the bulk of the response to devaluation occurs over a one year period, with noJ-curve effect. These results suggest that the two-tier price system and other measures to liberalize the Chinese economy have made the exchange rate an effective indirect tool for regulating trade.     

The Soviet Union and the GATT: A Framework for Western Policy

An American economist, editor of the Journal of Comparative Economics, questions the desirability of Soviet membership in the GATT. Viewed from the framework of the theory of clubs, the Soviet Union is not a desirable member. This is partly because it does not seek the same level of liberalization of world trade as do other members and partly because it is not able to contribute effectively to the liberalization of the international trading system. A critical evaluation of an opposing view leads to conclusions that Soviet membership in the GATT would be costly to members and yield few tangible benefits. Journal of Economic Literature, Classification Numbers: 027, 124, 420.     

The Transformation from Communism to Capitalism: How Far? How Fast?

A prominent American specialist on Soviet and East European economies argues that there are important gains to be obtained from rapid market liberalization and privatization in the transition from communism to capitalism. These gains depend on the responsiveness of firms to market signals. A review of the available evidence suggests that rapid privatization is an important factor promoting such responsiveness. The paper also refutes “evolutionary” criticisms of rapid transition policies on the basis of available evidence from East Europe, historical evidence, and the incompatibility between evolutionary approaches and the desire for democratic regimes in East Europe and the former USSR. Journal of Economic Literature, Classification Numbers: E61, H11, L33, P21.     

The exchange rate and the balance of trade: The Turkish experience

In this article, we examine the responsiveness of Turkey's trade balance to devaluation accompanied by trade liberalisation. Our results show that the trade balance was responsive to changes in the exchange rate that were brought about by the economic reforms introduced in the 1980s, suggesting that exchange rate policy was able to create and maintain a satisfactory balance of trade position in the 1980s and early 1990s.     

Reviews

Rosalinde Sartorti, Pressefotografie und Industrialisierung in der Sowjetunion. Die Pravda 1925–33. Berlin and Wiesbaden: Otto Harrassowitz. 1981. 339 pp. 58 DM.

P. G. Hare, H. K. Radice and N. Swain (eds.), Hungary: A Decade of Economic Reform. London: George Allen & Unwin, 1981. xiv+257 pp. £15.00.

Philip Hanson, Trade and Technology in Soviet‐ Western Relations. London and Basingstoke: The Macmillan Press Ltd., 1981. xiv + 271 pp. £20.

Peter Wiles (ed.), The New Communist Third World. London and Canberra: Croom Helm, 1982. 392 pp. £15.95.

Arthur J. Klinghoffer: The Angolan War: a study in Soviet policy in the Third World. Colorado: Westview Press Inc., 1980. viii + 229 pp. $22.50.

Morris Rothenberg: The USSR and Africa: new dimensions of Soviet global power. Washington: Advanced International Studies Institute, 1980. viii + 280 pp. $8.95 and $ 12.95.

Seweryn Bialer (ed.), The Domestic Context of Soviet Foreign Policy. Studies of the Research Institute on International Change, Columbia University. Boulder, Colorado: Westview Press/London: Croom Helm, 1981. xviii + 441 pp. £14.95.

Igor Birman, Secret incomes of the Soviet state budget. The Hague: Martinus Nijhoff, 1981. 313 pp. DFL. 180.00, US $78.50.

James R. Millar, The ABCs of Soviet Socialism. University of Illinois Press, 1981. xvi + 215 pp. £8.72 paperback.

Adam B. Ulam, Russia's Failed Revolutions: from the Decembrists to the Dissidents. London: Weidenfeld & Nicolson, 1981. vii + 453 pp. £10.00.

Richard B. Day, The ‘Crisis’ and the ‘Crash’: Soviet Studies of the West, (1917–1939). London: NLB, 1981. x + 300 pp. £9.50.

Bogdan Szajkowski (ed.), Marxist Governments: A World Survey, 3 vols. London: Macmillan, 1981. xix + 822 pp. £20 per volume, £50 the set.

Thomas Remeikis, Opposition to Soviet Rule in Lithuania 1945–1980. Chicago: Institute of Lithuanian Studies Press, 1980. 680 pp. $15.00.