In December 2010, the new president of Peking University’s Guanghua School of Management (GSM), was appointed. In comparison with his predecessors Professors Li Yining and Zhang Weiying, this 43-year-old man seemed too young to head GSM, one of the most famous and promising colleges in China. He is Professor Cai Hongbin, a leading young Chinese scholar in the field of economics with a PhD from Stanford University.
The way for China
From a small town in Jiangxi Province to PKU and finally to the international frontier of economics, Professor Cai has always been on the search for a unique way to describe the Chinese economy, and this search of his is strongly motivated by his experiences in his early life.
Jingdezhen, a town which is famous for Chinese porcelain, is the hometown of Professor Cai. Both his parents were engineers in a state-owned enterprise, and this childhood experience enriched his knowledge about the China society.
In the 1980s, the economic revolution of China had just begun to take place. At that time, Cai was an undergraduate student at Wuhan University. Despite the major in mathematics, he was very interested in social sciences and gave much thought to the ways China should undertake in its development. To seek the answer, Cai applied to study at the College of Economics at PKU. He came under the tutelage of Professor Li Yining, one of the greatest economists in China who became the first president of GSM years later. As a pioneer in the historical reforms of China, Professor Li provided Cai with great insights into the Chinese economy, which helped to shape his initial thoughts.
During his further studies, Cai never forgot the question he had about the Chinese economy. He was deeply aware that it was necessary to learn more about Western economic theories, for they would be of great help to China in its search for its own way of economic development. Thus, Cai was enrolled as a postgraduate student at Stanford University in 1992.
A professor in GSM
Since Professor Cai joined GSM in 2005, he has achieved huge success in both his teaching and research. With his strong interest in the domestic economy, as well as the realization of China’s backwardness in noticeable economic achievements, Professor Cai has worked hard to provide his students with high quality education in order to cultivate young talented economists. His vast knowledge, excellent teaching skills and sense of humor have distinguished his classes from others, attracting large numbers of listeners. Many of his students and counterparts are deeply appreciative of his lectures.
In addition, Professor Cai has made important contributions to many economic fields such as game theory, political economics and Chinese economy. He has also attached much importance to improving economic research methods, and many of his academic publications involve the combination of his own ideas and China’s economic situation. Cai has led many research groups consisting of young capable economists, and numerous papers of his have received international acclamation and are published in leading international economics and finance magazines such as the American Economic Review and the Journal of Financial Economics.
Fellow of the Econometric Society
On November 28th, 2008, Professor Cai became the first Chinese director of the Econometric Society Council. The Econometric Society is one of the most influential economic associations in the world where many outstanding economists gather to research on economics and promote the development of the world economy. The periodical issued by the association, Econometrica, is one of the top global economics journals, and the list of its fellows includes many important contemporary economists and previous Nobel laureates.
It is clear that becoming a member of this society is a huge achievement for Professor Cai, GSM and China. The fact that only when all of the directors are in unanimity can they accept a new member makes Professor Cai’s appointment even more remarkable. This also reflects the strengths of GSM, as well as the increasing international acceptance of China’s economic research and influence of Chinese economists.
Professor Cai stated that he is honored to be part of the council, and that he will most definitely make the most out of this wonderful opportunity and participate actively in it. At the same time, he also expressed his hope that, with advancements and progress in China’s economic studies, more Chinese voices can be heard in the global economic field. Guanghua School of Management is proud of Professor Cai’s accomplishment.
The past decade witnessed the deepening and widening internationalization of GSM, as a growing number of outstanding scholars from home and abroad, like Professor Cai, joined the school. They employ advanced international academic thoughts and research methods to the study of domestic issues, and have made many significant and successful attempts to improve the quality of education of GSM. Accordingly, the school’s overall scientific research strength has made substantial progress. Due to the efforts of Professor Cai and other scholars, GSM has maintained its leading position as the best local business school for years, and has also made important progress in becoming a world-class business school.
From China to the world
Professor Cai’s experience in Stanford has provided him with much food for thought, and he concluded that economic studies in China and America differ in two main ways. Firstly, databases in America are well-built and managed by specialized staff, but it is not the case in China. Secondly, economic phenomena are more complicated in China. In his words, “Chinese data tells a different story.” Therefore, Professor Cai believes in the necessity of adopting innovative theories to develop the Chinese economy. This involves more than economics, for the knowledge of Chinese culture, society and politics often affects the implementation of relevant theories.
Cai also cherishes the hope that research on the Chinese economy will become of international importance, for he deeply believes that Chinese economic theories will contribute to world economic development, especially that of developing countries.
By Cui Jingyuan and Zhao Yunqing
Update Date: March 31,2014
