A Bridge on Economic Issues between China and the World
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State Versus Market: China’s Infrastructure Investment
Shuoge Qian, Hong Ru, Wei Xiong, Mar 13, 2024In 2005, the Chinese government launched the landmark “36 Clauses” reform, marking a critical step toward forging a more favorable market environment.
Improving Regulation for Innovation: Evidence from China’s Pharmaceutical Industry
Ruixue Jia, Xiao Ma, Jianan Yang, Yiran Zhang, Mar 06, 2024In 2015, China revamped its pharmaceutical regulations, drawing inspiration from the US, to accelerate drug approvals. Using data at the drug and firm levels during 2011–2021, this study reveals three key outcomes.
The Pre-Announcement Drift in China: Government Meetings and Macro Announcements
Jun Pan, Qing Peng, Mar 20, 2024Confirming Chinese equity market is policy-driven, this study reveals a significant pre-Govt return before top government meetings, akin to the US pre-FOMC drift. It highlights the market's anticipation of these events and their impact on asset pricing, underscoring the centralized financial system in China.
Good Finance, Bad Finance, and Resource Misallocation: Evidence from China
Jiapin Deng, Qiao Liu, Apr 03, 2024The development of finance driven by Chinese local governments exacerbates the problem of resource misallocation, whereas market-driven finance significantly improves allocative efficiency. This highlights the policy implication that modern finance in China should prioritize the efficient utilization of resources rather than mere expansion in scale.
Has COVID-19 permanently changed the nature of economic shocks on the Chinese economy?
Kaiji Chen, Patrick Higgins, Tao Zha, Apr 10, 2024In latest study, Kaiji Chen and his colleagues at Emory University investigated the impact of COVID-19 on the Chinese economy. Through the construction of a GDP expenditure dataset and the application of SVAR modeling, they found that the constrained consumption shock during the pandemic significantly affected China's economy and may potentially alter its economic shock nature permanently.
