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Industrial Policy: Lessons from Shipbuilding Dec 18, 2024

Overpricing in Municipal Bond Markets and the Unintended Consequences of Regulatory Measures: Evidence from China Dec 03, 2024

Let a Small Bank Fail: Implicit Non-guarantee and Financial Contagion Nov 27, 2024

How Does Salient Academic Rank Affect Student Performance? Insights from a Chinese Middle School Study Nov 20, 2024

How House Prices Affected China’s Birth Rate Decline Nov 13, 2024

Government as Venture Capitalists in AI Nov 06, 2024

Rural Road Stimulus and the Role of Matching Mandates on Economic Recovery in China Oct 30, 2024

Migration and Resource Misallocation in China Oct 23, 2024

How Do Firms Withstand Global Economic Shocks: Evidence from Within-Firm Responses Oct 16, 2024

Understanding the Evolution of China’s Production and Trade Patterns Oct 09, 2024

VoxChina Economic Observation: The Hybrid Work '3+2' Model: A Boon for Workers? Aug 23, 2024

VoxChina Economic Observation: Exclusive Interview on the 27th Anniversary of Hong Kong's Return to China (Part II) Jul 05, 2024

VoxChina Economic Observation: Exclusive Interview on the 27th Anniversary of Hong Kong's Return to China (Part I) Jul 01, 2024

VoxChina Economic Observation: Gender Differences in the Choice of Retaking the NCEE Among Male and Female Students After Unsuccessful Attempts (Differential Analysis) Jun 07, 2024

VoxChina Economic Observation: A Contest of Listening Comprehension in the NCEE (Research Section) May 31, 2024

Industrial Policy: Lessons from Shipbuilding Panle Jia Barwick, Myrto Kalouptsidi, Nahim Bin Zahur, Dec 18, 2024 The article discusses that although China's industrial policy (IP) in the shipbuilding industry significantly increased domestic shipbuilding production and global market share, it had limited effects on improving domestic welfare and led to inefficient allocation of resources.

How Do Public Pensions Affect Eldercare Mode and Son Preference? An Empirical Study on the New Rural Pension Scheme in China Naijia Guo, Wei Huang, Ruixin Wang, Dec 11, 2024 How do public pension schemes reshape eldercare and social norms with son preference? Using variations in the timing of the New Rural Pension Scheme (NRPS) across rural Chinese counties..

Overpricing in Municipal Bond Markets and the Unintended Consequences of Regulatory Measures: Evidence from China Laura Xiaolei Liu, Qiao Liu, Xiaoyu Liu, Ni Zhu, Dec 03, 2024 Chinese municipal bonds are considerably overpriced in the primary market, leading regulators to set a lower bound on the issuance yield spread. This paper investigates the underlying reasons for this overpricing and evaluates the effects of implementing restrictions on yield spreads. Our findings indicate that underwriters may inflate prices to receive undisclosed benefits from local governments, such as local treasury cash deposits. We further show that the lower bounds severely impede price discovery in the primary municipal bond market. Even bonds not restricted by the lower limit are priced at the reference spread, exacerbating overpricing of riskier bonds. Local governments exploit these fixed prices by increasing the bond issuance amount and extending bond maturity. Our findings suggest that regulatory interference in pricing can have unintended consequences for pricing efficiency and that attempts to rectify mispricing may result in even more severe mispricing.

Let a Small Bank Fail: Implicit Non-guarantee and Financial Contagion Liyuan Liu, Xianshuang Wang, Zhen Zhou, Nov 27, 2024 The research findings indicate that after the failure of a small bank, regulatory authorities did not fully bail out all creditors as had been the norm, and this policy shift affected the funding costs and market confidence of banks with lower systemic importance (SU).

How Does Salient Academic Rank Affect Student Performance? Insights from a Chinese Middle School Study Rigissa Megalokomomou, Yi Zhang, Nov 20, 2024 This article reveals interesting insights into the effects and mechanisms of achievement rank when it becomes salient to students and their parents.

How House Prices Affected China’s Birth Rate Decline Ziqian Liu, Yu Zhang, Nov 13, 2024 The article discusses how house prices have affected China's birth rate and explores the implications for the country's housing market and demographic future.

Government as Venture Capitalists in AI Martin Beraja, Wenwei Peng, David Yang, Noam Yuchtman, Nov 06, 2024 This article discusses that government venture capital funds in China are more geographically dispersed than private venture capital, particularly in inland and less developed areas, and they are more inclined to invest in AI companies with weaker ex-ante productivity signals.

Rural Road Stimulus and the Role of Matching Mandates on Economic Recovery in China Anthony Howell, Oct 30, 2024 The findings show that the temporary cost share exemption boosts short-term income growth, increases local investment in infrastructure, and promotes entrepreneurial activities, particularly among returning migrants.

Migration and Resource Misallocation in China Xiaolu Li, Lin Ma, Yang Tang, Oct 23, 2024 This article discusses how reducing frictions across Chinese provinces could significantly improve aggregate output, lower spatial inequality, and discourage population concentration in large cities.

How Do Firms Withstand Global Economic Shocks: Evidence from Within-Firm Responses Xiao Cen, Vyacheslav Fos, Wei Jiang, Oct 16, 2024 The article discusses that the adaptation strategies of American firms against the backdrop of China's industrial policies are as follows: Firstly, they carry out strategic shifts within the American market, avoiding direct competition and turning to upstream and downstream areas of the supply chain; secondly, they redistribute production across national borders by directly establishing production bases in China to fully leverage China's policy advantages. These strategies demonstrate the strategic flexibility and strong adaptability of American firms in the face of global economic shocks.

Recent

How Liberalizing Trade with China Led to a Boom in International Students in the US Gaurav Khanna, Kevin Shih, Ariel Weinberger, Mingzhi Xu, Miaojie Yu, Aug 16, 2023 Focusing on China’s accession to the World Trade Organization, we show that Chinese cities with more exposure to trade liberalization sent more students to US universities.

Regional Variation of GDP per Head within China, 1080–1850: Implications for the Great Divergence Debate Stephen Broadberry, Hanhui Guan, Sep 28, 2022 We provide the first regional breakdown of GDP per head for China from the Song dynasty to the Qing, so that regions of similar size can be compared between Europe and Asia to establish the timing of the Great Divergence of living standards.

Combating Cross-Border Externalities Shiyi Chen, Joshua Graff-Zivin, Huanhuan Wang, Jiaxin Xiong, Sep 21, 2022 China implemented a pioneering policy in 2011, the Ecological Compensation Initiative (ECI), which establishes side payments between upstream and downstream provinces in the Xin’an River Basin.

Assessing and Addressing the Coronavirus-Induced Economic Crisis: Evidence from 1.5 Billion Sales Invoice Zhuo Chen, Pengfei Li, Li Liao, Zhengwei Wang, Aug 31, 2022 We probe the effects of the COVID-19 pandemic and the subsequent containment policies on business activities in China by exploiting big data on 1.5 billion sales invoices. The average drop in sales was between 23% and 35%, depending on firm size, for the 12-week period after the Wuhan lockdown.

Industrial Land Discount in China: A Public Finance Perspective Zhiguo He, Scott Nelson, Yang Su, Anthony Lee Zhang, Fudong Zhang, Jul 25, 2022 Local governments, which serve as monopolistic land sellers in China, face a trade-off when deciding to supply residential land versus industrial land. This trade-off is determined by the different time profiles of revenues from industrial and residential land sales, local governments’ financial constraints, and the extent of local governments’ tax revenue sharing with other levels of government.

Industry/Policy View Omnia Juncta in Uno: Foreign Powers and Trademark Protection in Shanghai’s Concession Era Laura Alfaro, Cathy Ge Bao, Maggie X. Chen, Junjie Hong, Claudia Steinwender, Jul 20, 2022 Trademarks, which identify the source of goods and services, account for the majority of intellectual property filings worldwide. We investigate how firms adapt to the introduction of trademark institutions by exploring a historical precedent: China’s trademark law of 1923, an unanticipated and disapproved response to end foreign privileges in China.

Dollar Funding Stresses in China Laura Kodres, Leslie Sheng Shen, Darrell Duffie, Jul 13, 2022 The need for US dollar funding during the financial stresses of March 2020, as the COVID-19 pandemic shocked markets, was evident in a number of countries (Avdjiev, Eren, and McGuire 2020; Bahaj and Reis 2020).

Serial Entrepreneurship in China Loren Brandt, Ruochen Dai, Gueorgui Kambourov, Kjetil Storesletten, Xiaobo Zhang, Jul 06, 2022 New firms have been an important engine of growth in the Chinese economy (Brandt, Van Biesebroeck, and Zhang 2012). Drawing on data on the universe of all firms in China, we study entrepreneurship and the creation of new firms in China through the lens of entrepreneurs who operate a series of firms over their lifetime, i.e., serial entrepreneurs (SE).

An Empirical Overview of Chinese Capital Market Grace Xing Hu, Jun Pan, Jiang Wang, Jun 29, 2022 We provide an empirical review of the Chinese capital market, focusing on the basic return and risk characteristics of its major asset classes, as well as a comparison to the US market. All major asset classes in China have significant higher volatilities than their counterparts in the US market, but they do not always yield larger returns. Small-company stocks, short-, medium-, and long-term treasury bonds outperform their US counterparts, while large stocks underperform and long-term enterprise bonds yield similar returns.

Share Pledging in China: Funding Listed Firms or Funding Entrepreneurship? Zhiguo He, Bibo Liu, Feifei Zhu, Jun 01, 2022 Our recent study analyzes the use of share pledging funds in the context of China. Survey evidence shows that a majority of the largest shareholders (67.3%) used pledging funds outside their listed firms, including financing their entrepreneurial activities.

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