Transcript Trade and Diffusion of the Industrial Revolution, NBER August 2007

OBOR and Cultural Exchanges
Danyang Xie
Professor of Economics, HKUST
Dean, Economics and Management School of Wuhan University
One Belt, One Road
An Initiative Proposed by China
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Global Positioning of the Chinese Economy
My Personal Assessment
2025
RMB to become one
of the top 3 major
currencies
2030
World
Knowledge
Center
2040
GDP to reach $60
trillion（2000 PPP）
1/4 of the World GDP
 For developing countries, keep Opening
up is a pre-requisite for catching up and
sustainable growth
 One Belt, One Road is an initiative that
contains a set of strategies that counter
the increasingly protectionist thinking
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Catching up is not automatic
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Opening Up is a pre-requisite
Lucas: Trade and Diffusion of the Industrial Revolution, NBER August 2007
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Benefits of One Belt, One Road
 Strengthen connections across countries
 Freer movement of goods and talents
 Learning more advanced and efficient
management know-how
 Broader markets for all, which will lead to
finer specialization and higher efficiency
 Open and fair competition will enhance
efficiency
 Returns to capital to be improved
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Challenges of One Belt, One Road
 One Road: Oceangoing “21 Century
Maritime Silk Road”
 Infrastructure: Convention of the High Seas
 Freedom of Navigation
 High Seas as a public good is well maintained
and protected world-wide
 One Belt: The land-based “Silk Road
Economic Belt”
 Infrastructure: to be constructed
 Territorial disputes and Religious diversity
 Hold-up problems (change of governments)
 Rise of China (mistrust from the West)
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To respond to the challenges
 Multiple Belts
 North Belt, Central Belt and South Belt
 Joint Financing: Asian Infrastructure
Investment Bank (expanded to include
European countries)
 Think outside the box
 Need OBOR countries to make institutional
arrangements to secure access to the trade routes
 Need to improve understanding between people across
countries through cultural exchanges in general, and
exchanges and collaborations in education of business
and laws in particular
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OBOR and Factor Mobility
 OBOR is not just for the liberalization of the flow
of goods, services, capital and skilled labor. It
should also bring the liberalization of human
capital through mutually accepted college and
professional training degrees, through joint
degree programs, through exchange of students
and faculty members
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OBOR and Cultural Co-existence
 The world is often described as
confrontational
 Clash of Civilizations (Samuel Huntington,
1997)
 OBOR aims at Cultural Coexistence
 Das zusammenleben der Kulturen: ein
Gegenentwurf zu Huntington (Harald
Müller, 1998)
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Exchanges and Collaborations in Education of
Business and Law (1)
 Hong Kong
 A natural stepping-off point for Maritime Silk
Road
 Hong Kong – Shenzhen cooperation in Qianhai
Free Trade Zone which will help attract
enterprises from other OBOR countries to
Qianhai
 Hong Kong University of Science and Technology
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In 2013, HKUST Business School and Saudi Aramco
Joined Forces to Offer MBA Program in Saudi Arabia
HKUST leadership is thinking about broadening a similar
program to other OBOR countries.
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Exchanges and Collaborations in Education of
Business and Law (2)
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Wuhan




Hub of China’s High Speed Rail system
It reaches 80% of China’s population within 4-5 hours of
high speed travel
“Switzerland in the East”
Number 1 in China (Forbes Talent Index)


1.2 million college enrollment
Wuhan University: Strong in Business Education (EQUIS) and
Law
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1141 International students from 45 OBOR countries
190 International students in Economics and Management School
from 35 OBOR countries such as Kazakhstan, Vietnam, Thailand,
Pakistan, Indonesia, Malaysia, Turkey, etc.
Our EMBA programs for example contain courses such as ChinaWestern Culture, Confucianism & Enterprising Spirits, and Arabian
Culture and Middle East Issues
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High Speed Rail Network
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Remember to Invest in Wuhan ……
First Stop for Visitors from Overseas
Attraction to Global Talents
A
World
City
in one
generation
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See you in Wuhan!
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