Most Popular

FDI and Firm Productivity in Host Countries: The Role of Financial Constraints

Wontae Han, Jian Wang, Xiao Wang, Mar 03, 2021

Using the Chinese firm-level data, we find that FDI firms may have even lower cutoff productivity than local firms, although FDI firms are still, on average, more productive than their local counterparts. In addition, these findings are more pronounced in financially more vulnerable sectors. We argue that easy access to international financial markets by FDI firms has played an important role in driving our empirical findings...

Spillovers in Childbearing Decisions and Fertility Transitions: Evidence from China

Pauline Rossi, Yun Xiao, Mar 24, 2021

To what extent and through which mechanisms are couples influenced by others when choosing their own family size? Recent research exploits exemptions in China’s family planning policies to show that conformism and competition drove the diffusion of small families, and hence accelerated the fertility transition in China.

No Winners but Only Losers in the China-US Trade War

Marlene Amstad, Leonardo Gambacorta, Chao He, Dora Xia, Mar 31, 2021

Trade tensions between China and the United States have played an important role in swinging global stock markets, but the effects are difficult to quantify. Using a comprehensive database constructed by Wisers, we develop a novel trade sentiment index (TSI) based on textual analysis that assesses the positive or negative tone of Chinese media coverage of the China-US trade situation and evaluates the TSI’s capacity to...

The Productivity Consequences of Pollution-Induced Migration in China

Gaurav Khanna, Wenquan Liang, Ahmed Mushfiq Mobarak, Ran Song, Apr 07, 2021

Severe air pollution induces workers to move from productive to unproductive regions, reducing their contribution to the aggregate productivity in China. In this paper, we quantify the productivity and welfare consequences of this important new pattern of migration. We find that the productivity losses from pollution through the indirect migration channel are approximately as much as the direct health costs of pollution.