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Competition and Quality: Evidence from High-Speed Railways and Airlines

Hanming Fang, Long Wang, Yang Yang, Aug 05, 2020

This paper investigates whether competition spurs quality improvement using the entry of Beijing-Shanghai high-speed rail (HSR) as an exogenous increase in competition to affected flights to destination cities along the HSR line. We find that competition from the entry of HSR leads to significant reductions in the mean and variance of travel delays on the affected airline routes and that these improvements are mainly driven by reductions in departure delays and the duration of taxi-in time at the destination airport.

From Fog to Smog: The Value of Pollution Information

Panle Jia Barwick, Shanjun Li, Liguo Lin, Eric Zou, Feb 05, 2020

During 2013–2014, China launched a nation-wide real-time air quality monitoring and disclosure program, which was a watershed moment in the history of its environmental regulations. We present the first empirical analysis of this natural experiment by exploiting its staggered introduction across cities. The program substantially expanded public access to pollution information, and in turn, triggered a cascade...

Exporting like China: The Determinants of Trade Status

Russell Cooper, Guan Gong, Guanliang Hu, Ping Yan, Feb 03, 2021

We study the export decision of Chinese manufacturing firms, both public and privately owned enterprises. In 2019, China’s exports of goods accounted for 13% of goods exported in the world and around 20% of China’s GDP. The importance of understanding the determinants of trade patterns in China goes beyond its national borders. Observed export decisions contradict the prediction of the standard trade model...

School Enrollment Restriction on Migrant Children and Human Capital Losses

Zibin Huang, Nov 24, 2021

In China, migrant children are at a disadvantaged and sometimes cannot enroll in public schools in migration destinations due to policy restrictions. Some migrant workers then have to leave their children behind in their hometowns, which causes the left-behind children problem. This study finds that if the enrollment restriction on migrant children is relaxed, migration of parents and children will increase, and the average human capital in the society will also increase. Low-skill families from small cities benefit most.

The Impact of Migration Controls on Urban Fiscal Policies and the Intergenerational Transmission of Human Capital in China

Holger Sieg, Chamna Yoon, Jipeng Zhang, Oct 07, 2020

The study explores the impact of migration controls on urban fiscal policies and the intergenerational transmission of human capital accumulation in China. It shows that migrants provide large positive fiscal externalities to major cities. The study evaluates the feasibility and effectiveness of alternative migration policies that offer the potential of decreasing inequality within China, while at the same time promoting growth via increasing the aggregate level of human capital in the economy.