Unequal Transition: The Widening Wealth Gap amidst China’s Rapid Growth
Yangtian Jiang, Yu Zheng, Lijun Zhu, Nov 08,
2023
We examine the drivers of rising wealth inequality in urban China since 1995. We highlight the intertwined nature of growth and equity during China’s transition toward a market-oriented economy.
Migration,Tariffs,and China’s Export Surge
Chen Liu, Xiao Ma, Oct 18,
2023
China’s exports have increased dramatically in recent decades. We build a multi-sector spatial general equilibrium model and combine rich data sources to account for China’s export surge between 1990 and 2005 from three policy changes: China’s import tariffs, tariffs imposed on China’s exports, and barriers to internal migration in China.
Reluctant Entrepreneurs: Evidence from China’s SOE Reform
Hanming Fang, Ming Li, Zenan Wu, Yapei Zhang, Oct 09,
2023
In this column, we examine how the presence of state-owned enterprises (SOE) affects the private sector by influencing the allocation of skills across SOEs, private sector waged employment and entrepreneurship.
Employee Output Response to Stock Market Wealth Shocks
Teng Li, Wenlan Qian, Wei A. Xiong, Xin Zou, Sep 27,
2023
Exploiting individual-level data linking worker performance and stock investment, we show that a 10% increase in stock investment returns is associated with a decrease in the same investor’s work output by 3.8% in the following month.
Trade Policy Uncertainty and New Firm Entry: Evidence from China
Chuantao Cui, Leona Shao Zhi Li, Sep 20,
2023
Exploiting China’s WTO accession as a quasi-natural experiment, this study finds that reduced trade policy uncertainty (TPU) in a major destination market promotes domestic entrepreneurial activities in China
Implicit Guarantees and the Rise of Shadow Banking: the Case of Trust Products
Franklin Allen, Xian Gu, C. Wei Li, Jun Qian, Yiming Qian, Sep 06,
2023
The prevalent implicit guarantees provided by financial intermediaries have been a central feature of shadow banking products in China. Our theoretical investigation shows that providing implicit guarantees can be the second-best arrangement and mitigate capital misallocation.
Homemade Foreign Trading
Zhiguo He, Yuehan Wang, Xiaoquan Zhu, Jul 26,
2023
Our recent study provides evidence that Chinese mainland insiders tend to evade see-through surveillance by round-tripping via the Stock Connect program.