Outward FDI and Domestic Input Distortions: Evidence from Chinese Firms
Cheng Chen, Wei Tian, Miaojie Yu, Sep 08, 2021
A recent study shows that domestic input distortions faced by private firms in China have generated extra incentives for those firms to invest and produce abroad. This finding helps explain an astonishing increase in China’s outward foreign direct investment (FDI) flows since the financial crisis.
Industry/Policy View The Natural Interest Rate in China
Daniel M. Rees, Guofeng Sun, Sep 01, 2021
The growth of China’s economy and development of its financial markets has created a need for tools to evaluate the stance of monetary policy in China. We contribute to this effort by providing estimates of China’s natural interest rate. We find that China’s natural interest rate averaged between 3–5 per cent between the late 1990s and 2010s, but declined over the next decade to around 2 per cent at the end of 2019. We attribute slightly more than half of the decline in China’s natural interest rate to a lower rate of potential output growth. Our results also suggest that real policy interest rates in China have closely tracked the natural rate over our sample.
VoxChina Covid-19 Forum (Second Edition): China’s Post-Lockdown Economic Recovery
VoxChina, Apr 18, 2020
The lockdowns induced by Covid-19 have led to unprecedented challenges to economies across the globe. The second edition of the VoxChina Covid-19 Forum focuses on China’s post-lockdown economic recovery, with three presentations that are based on data analysis of small businesses, consumption, e-commerce, and beyond, each for 15 minutes. There will be 30 minutes of Q&As.