A Bridge on Economic Issues between China and the World
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Capital Regulations, Bank Risk-Taking, and Monetary Policy in China
Xiaoming Li, Zheng Liu, Yuchao Peng, Zhiwei Xu, Nov 18, 2020China implemented Basel III in 2013 and tightened bank capital regulations. Empirical evidence shows that the new regulations significantly reduced bank risk-taking following monetary policy easing. To meet the tightened capital requirements, banks respond to a balance-sheet expansion by raising the share of lending to state-owned enterprises (SOEs) that are perceived as low-risk borrowers under government...
Book Synopsis The Clash of Capitalisms? Chinese Companies in the United States
Ji Li, Oct 31, 2018Chinese companies in the United States are generally adaptive to their host country’s legal and regulatory institutions. However, the adaptation varies in accordance with the companies’ ownership structure and the institutional distance between the two countries across different subject matter areas.
Dollar Appreciation and Asian Economies
Zheng Liu, Mark M. Spiegel, Andrew Tai, Jun 20, 2017The sharp appreciation of the U.S. dollar between mid-2014 and mid-2015 raised concerns in the U.S. and its major trading partners. Zheng Liu, Mark Spiegel, and Andrew Tai from the San Francisco Fed evaluate the impact of dollar appreciation on economic conditions in the United States and its three major Asian trading partners: South Korea, Japan, and China.
Lessons from the Baby Bonus in South Korea: Increased Births and Restored Natural Sex Ratio
Wookun Kim, Jan 20, 2021I study the causal effects of South Korea’s baby bonus on fertility by exploiting temporal and spatial variation in pro-natalist cash transfers provided to families with newborn babies. Based on registry records spanning the universe of births from 2000 to 2015, I find that the baby bonus increased completed fertility: in the absence of the policy, the total fertility rate in 2015 would have been lower by 3%, which is equivalent to 450,000 fewer babies born...
Production Networks and Firm Value: Evidence from the US-China Trade War
Yi Huang, Chen Lin, Sibo Liu, Heiwai Tang, Mar 25, 2020This paper discusses the effects on the financial markets of the several rounds of tariff hikes during the 2018–19 US-China trade war. It illustrates that US firms that are more dependent on exports to and imports from China have lower stock prices around the announcement date, while the expectation of weakened Chinese import competition due to US tariffs plays an economically minimal role. Firms with indirect exposure to US-China trade through domestic supply chains also...
