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Brain Drain: The Impact of Air Pollution on Firm Performance

Shuyu Xue, Bohui Zhang, Xiaofeng Zhao, Feb 12, 2020

By exploiting the exogenous variation in air pollution caused by China’s central heating policy, we find that air pollution reduces the accumulation of executive talent and high-quality employees. We also find that firms located in polluted areas have poorer performance, especially for firms with greater dependence on human capital.

The Impact of Intranational Trade Barriers on Exports: Evidence from a Nationwide VAT Rebate Reform in China

Jie Bai, Jiahua Liu, Feb 19, 2020

It is well known that various forms of non-tariff trade barriers exist within a country. Empirically, it is difficult to measure these barriers as they can take many forms. We take advantage of a nationwide VAT rebate policy reform in China as a natural experiment to identify the existence of these intranational barriers due to local protectionism and study the impact...

The Economic Impact of Distributing Financial Products on Third-Party Online Platforms

Claire Yurong Hong, Xiaomeng Lu, Jun Pan, Feb 26, 2020

The emergence of third-party online platforms in intermediating financial products has been a new and exciting development in FinTech. We find that, in China post-platform, fund flows become markedly more sensitive to fund performance, and the net flow to the top 10 percent–performing funds more than triples their pre-platform level. In response, fund managers increase their risk taking to enhance the probability of entering top rank.