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...city has benefited. It's received $230 million of Beijing's $585 billion stimulus package, which helped accelerate the construction of a new subway system, highways and other projects. A similar scenario has been playing out in other western China cities like Chengdu and Chongqing. BofA Merrill Lynch Global Research calculates that the GDP of China's western provinces grew 9.3% in the first half of 2009, compared with 6.5% in the east. This trend is likely to continue. "Growth is shifting to the interior," says Ting Lu, a BofA Merrill Lynch economist...

Author: /time Magazine | Title: Can China's Backwaters Save the Global Economy? | 11/30/2009 | See Source »

...less-developed Xi'an to capitalize on its lower costs and tap a cheaper labor market. About 70% of Xi'an's domestic investment comes from the southeast coast. For example, in late 2008 Shenzhen-based cell-phone maker ZTE announced it would invest $880 million in manufacturing and research facilities in Xi'an that will ultimately employ 26,000 people. Hybrid-car maker BYD, also headquartered in Shenzhen, has turned Xi'an into one of its main manufacturing centers, with almost all of the cars sold to Chinese consumers. Earlier this year, the company launched a $585 million plant...

Author: /time Magazine | Title: Can China's Backwaters Save the Global Economy? | 11/30/2009 | See Source »

...similar reasons. Unlike on the coast, where Hong Kong and Taiwan companies have set up countless export factories, the investments in Xi'an tend to be more domestically focused. In October, Applied Materials, a California-based maker of manufacturing equipment for the semiconductor industry, opened a solar-power research center in Xi'an, part of a $250 million investment in the city. The facility, unique to Applied Materials' global operations, will house solar-cell production lines to devise new ways of bringing down the costs of manufacturing panels. Though the results can be utilized in factories anywhere, the center...

Author: /time Magazine | Title: Can China's Backwaters Save the Global Economy? | 11/30/2009 | See Source »

...fashion and animal spirits. A trio of academics revisited a famous 1934 paper that debunked the predictions of Dow theorist Hamilton and found that, adjusted for risk, Hamilton's predictions beat the market. MIT's Andrew Lo, a top finance scholar, has made technical analysis one of his main research topics. So maybe there is something to it. Or maybe this is just evidence of a social wave in action...

Author: /time Magazine | Title: Riding the Waves of Irrational Behavior | 11/30/2009 | See Source »

SOURCE: ECONOMIC RESEARCH SERVICE/USDA...

Author: /time Magazine | Title: The World | 11/30/2009 | See Source »

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