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E-Commerce Development and Household Consumption Growth in China
Xubei Luo, Yue Wang, Xiaobo Zhang, Sep 04, 2019China has quickly become the largest e-commerce market in the world. E-commerce has reshaped consumption patterns in recent years. This paper examines how e-commerce development has shaped household consumption growth in China. It finds that e-commerce development is associated with higher consumption growth, that the link is stronger for the rural sample, inland regions, and poor households...
Book Synopsis New Cycle or Old (Guaranteed) Bubble?
Ning Zhu, Oct 04, 2017It seems necessary that one gains some deeper understanding of the sources of China’s phenomenal economic growth. Apart from all well-founded extant explanations, my recent book Guaranteed Bubble argues for another important yet previously overlooked source: the guarantees provided by the Chinese government.
Trading Restriction as a Channel of Financial Contagion—Evidence from China’s Stock Market
Laura Xiaolei Liu, Jiajie Xu, Ninghua Zhong, Oct 18, 2017China’s stock market imposes various trading restrictions such as daily price limits and trading suspension rules, which are intended to stabilize the market during turmoil. During China’s stock market crash in the summer of 2015, these trading restrictions made many highly valued stocks non-tradable and consequently caused mutual funds facing redemption pressure or with precautious concerns to sell other tradable stocks, exacerbating their price drops.
Mortgage Prepayment in China
Zhenyu Gao, Wenxi Jiang, Haohan Ren, Kemin Wang, Yuezhi Wu, Sep 10, 2025During the 2019–2024 monetary easing cycle, Chinese households used their savings to prepay unprecedented amounts of mortgage loans. Because refinancing was restricted, mortgage rates remained rigid, while savings returns quickly adjusted to rate cuts. The widening gap between borrowing costs and savings returns encouraged prepayment (deleveraging) and reduced consumption. Our findings suggest that the rigid mortgage rates have rendered China’s monetary easing counterproductive.
Rural Property Rights and Agricultural Productivity
A. V. Chari, Elaine M. Liu, Shing-Yi Wang, Yongxiang Wang, Jan 17, 2018The Rural Land Contracting Law (RLCL), announced in 2003, is a landmark law for agricultural households in rural China. It provides new legal protections for leasing agricultural land. In theory, increasing free market exchanges of land should improve agricultural productivity by facilitating the movement of land towards the most productive users. We find that the property rights reform led to a 10 percent increase in land rental activity among rural households, a redistribution of land towards more productive farmers, and a 7 percent increase in the aggregate productivity of land. We also observe an increased responsiveness of land allocation across crops to changes in crop prices.
