The present paper explores the role of China in the creation of the current global financial crisis and the impacts of the crisis on its economy. It argues against the view that the "saving glut" in China (along with other Asian emerging economies) played a significant causal role in the crisis....

Foreign direct investment (FDI) is often considered as a cost-effective and risk-reducing source for development finance. This paper, however, shows that FDI finance often entails underestimated risks and costs. FDI might react sensitively to business cycles and might not be as "permanent" as...