China’s Producer Price Reflation in 2016–2017: Capacity Cuts or Recovering Aggregate Demand?
Linxi Chen,Ding Ding,Rui C. Mano, Nov 23, 2018
In late 2015, the Chinese government launched a multi-year plan to reduce capacity in the coal and steel industries. Around the same time, producer price inflation in China started to pick up strongly after being trapped in negative territory for 4½ years. What is behind this broad reflation—cuts in coal and steel capacity or a strengthening of aggregate demand...
Chinese and Indian Multinationals: Do Their Shopping Sprees in Advanced Countries Make Them More Innovative?
Vito Amendolagine,Elisa Giuliani,Arianna Martinelli,Roberta Rabellotti, Nov 14, 2018
Chinese and Indian multinationals are continuously expanding their operations in Europe and the United States through cross-border acquisitions (CBAs), with the aim of tapping into international knowledge located in target firms and innovative hubs. Amendolagine, Giuliani, Martinelli, and Rabellotti have looked into impacts that CBAs have on...
What Do a Billion Observations Say about Distance and Relationship Lending?
Haoyu Gao,Hong Ru,Xiaoguang Yang, Nov 07, 2018
Using big data of the locations of bank branches and borrowers in China, we document a non-trivial amount of distant lending. The inter-firm network helps banks collect soft information which facilitates the distant lending. We also use novel data of monthly internal loan rating changes to directly measure soft information and find that banks have better soft information and predict delinquent events more accurately for borrowers connected via the inter-firm network.