Latest

How the Internet Changed Chinese Exports before Ali Baba Came

Ana M. Fernandes, Aaditya Mattoo, Huy Nguyen, Marc Schiffbauer, May 16, 2018

The roll-out of the internet in China boosted firms’ exports and overall performance even before the rise of broadband and major e-commerce platforms. This finding is relevant for the many developing countries trying to strike a balance between widening access to basic internet services and deepening it through the creation of broadband networks and connections to major e-commerce platforms.

Bright Side of Government Credit: Evidence from a Superbank in China

Hong Ru, May 09, 2018

This study traces the heterogeneous effects of government credit across different levels of the supply chain. I find that China Development Bank's industrial loans to state-owned enterprises crowd out private firms in the same industry but crowd in private firms in downstream industries. Moreover, China Development Bank's infrastructure loans crowd in private firms. It is important for policy makers to disentangle these opposing effects of government credit.

Book Synopsis How Reform Worked in China: The Transition from Plan to Market

Yingyi Qian, May 02, 2018

The general lesson from this book is this: for a reform to be successful, it is important to use the universal principles, even if they are not enough by themselves, and it is equally important to find specific ways to implement the reform by fully incorporating the initial historical conditions as well as contemporary constraints. The perspective of reform provided by this book’s analysis on China can also be useful beyond China, precisely because it emphasizes that to make reform work, it is not enough to understand why reform works, but also how reform works.

Evaluating the Burden of a U.S.-China Trade War

Meixin Guo, Lin Lu, Liugang Sheng, Miaojie Yu, Apr 25, 2018

Trade disputes between the United States and China greatly intensified recently as the two countries announced a 25 percent tariff hike on $50 billion worth of products imported from each other, raising the risk of a trade war between the two giant trading economies. Based on a standard multi-sector, multi-country general equilibrium trade model with input-output linkages, we evaluate the cost of a trade war in which the United States and China both increase their tariffs to 45% for all imports from each other. We find that the United States would be more likely to be the bigger loser and that the cost for China would be moderate.

Recent

E-Commerce Integration and Economic Development: Evidence from China

Victor Couture, Benjamin Faber, Yizhen Gu, Lizhi Liu, Apr 11, 2018 

The Role of Punctuation in the P2P Lending Market

Xiao Chen, Bihong Huang, Dezhu Ye, Apr 04, 2018 

The 2009 Monetary Stimulus in China

Kaiji Chen, Patrick Higgins, Daniel F. Waggoner, Tao Zha, Mar 21, 2018 

Bilateral Trade and Shocks in Political Relations: Evidence from China

Yingxin Du, Jiandong Ju, Carlos D. Ramirez, Xi Yao, Mar 14, 2018 

China’s Mobility Barriers and Employment Allocations

Liwa Rachel Ngai, Christopher Pissarides, Jin Wang, Mar 07, 2018 

Can Credit Still Prop Up the Chinese Economy?

Sophia Chen, Lev Ratnovski, Feb 28, 2018 

Connect to Trade

Haoyuan Ding, Haichao Fan, Shu Lin, Feb 21, 2018