The Mandarin Model of Growth Wei Xiong, Feb 13, 2019
The Mandarin Model of Growth Wei Xiong, Feb 13, 2019 The Mandarin model is defined by two key features of the Chinese economy. First, the government takes a central role in driving the economy through its active investment in infrastructure. Second, the agency problems between the central and local governments can lead to a rich set of phenomena in the Chinese economy---not only rapid economic growth propelled by the tournament among local governors, but also short-termist behaviors of local governors that directly affect China’s economic and financial stability.
China’s Joint Venture Policy and the International Transfer of Technology Kun Jiang, Wolfgang Keller, Larry D. Qiu, William Ridley, Feb 06, 2019 Chinas government mandates that foreign investors in certain industries form joint ventures with a domestic Chinese partner. We use a dataset that accounts for all joint ventures in China from 1998 to 2007 to show that this policy is successful in its aim of encouraging technology transfers from foreign investors to domestic operations. We find empirical evidence for the existence of at least three channels through which this transfer takes place.
Do CEOs Know Best? Evidence from China Nicholas Bloom, Hong Cheng, Mark Duggan, Hongbin Li, Franklin Qian, Jan 30, 2019 Using data from the China Employer-Employee Survey (CEES), a recent survey of Chinese manufacturing firms, we analyze the extent to which employees of differing levels are able to assess their firms’ management practices. Our study finds that of CEOs, managers, and workers, CEOs tend to have the most accurate appraisals of their firms. Additionally, we find that firms with higher levels of disagreement...
Market Expanding or Market Stealing? Competition with Network Effects in Bike-Sharing Guangyu Cao, Ginger Zhe Jin, Xi Weng, Li-An Zhou, Jan 16, 2019 Positive network effects may lead to winner-takes-all in some markets. The column analyses dockless bike-sharing in China to show instead how an incumbent can benefit from positive spillovers from a competitor’s entry. In the case of bike-sharing, consumers multi-home, the market exhibits positive network effects, and investment by two firms is more cost-efficient than investment by one.