| The dissertation explores the effects of China's comparative advantage in the production of rare earth elements. Rare earths are used within a broad range of modern technologies from defense to energy to high tech. China has dominated global production over the past thirty years, despite possessing less than half of known global reserves. Recent volatility in prices largely stemmed from changes in Chinese export policy intended to attract foreign investment in downstream industries that utilize rare earths. Relocation proved infeasible for many firms owing to the sensitive military and proprietary technologies in which the elements are used. In response to growing scarcity concerns, prices rose by a factor of over 25 between 2009 and 2011, with an increase of 700% during the first half of 2011 alone. (Abstract shortened by ProQuest.). |
