China's huge appetite for resources is reshaping the Australian economy. This Lowy Institute International Economy Comment argues that the China-led rise in the terms of trade is reshaping the Australian economy in a wide range of ways, contributing to an increase in national income (and hence Australian living standards) and a change in the structure...

China’s already large influence on the world economy continues to grow, and to change. China is the economy at the leading edge of the Great Convergence. According to Angus Maddison’s estimates, for example, its economy accounted for almost one third of global output (measured on a PPP basis) in 1820. The onset of the Great...

Emerging markets' cyclical growth prospects remain tied to developments in the rich world, but there are signs that their trend growth rates may have decoupled. Image: Trains decoupling, richardluyy / flickr

In September 2009, the Pittsburgh Summit designated the G-20 as the world’s premier forum for international cooperation. The G-20 gives East Asia a significant presence at the top table of the world economy: six regional economies, including Australia, are members. This creates important new opportunities for the region. But making use of these opportunities requires...

On 16 November last year, G20 leaders made a commitment to resist protectionism. According to the World Bank, by the end of February 2009, seventeen of the twenty had already ‘implemented 47 measures whose effect is to restrict trade.’ When the leaders meet in Pittsburgh on 24 September 2009, they will have an opportunity to...