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Does China’s Place-Based Land Policy Lead to Spatial Misallocation?
Min Fang, Libin Han, Zibin Huang, Ming Lu, Li Zhang, Nov 17, 2021After 2003, the Chinese central government implemented an inland-favoring land supply policy that distributed more construction land quotas to underdeveloped non-eastern regions. We investigate the effect of the policy and find that it drastically increased land and housing prices in more-developed eastern regions, which consequently created substantial spatial misallocation of land and labor. The policy seems to reduce regional output gaps; however, it hurt...
How the Internet Changed Chinese Exports before Ali Baba Came
Ana M. Fernandes, Aaditya Mattoo, Huy Nguyen, Marc Schiffbauer, May 16, 2018The roll-out of the internet in China boosted firms’ exports and overall performance even before the rise of broadband and major e-commerce platforms. This finding is relevant for the many developing countries trying to strike a balance between widening access to basic internet services and deepening it through the creation of broadband networks and connections to major e-commerce platforms.
Can Investment Incentives Crowd Out Innovation? Evidence from China
Shaowei Ke, Yao Lu, Xinzheng Shi, Yeqing Zhang, Nov 06, 2019The Chinese government has been using strong fiscal stimuli to encourage investment. While these fiscal policies, such as investment tax credits, often encourage firm investment, we find that investment tax incentives may generate an unintended reduction of firms’ innovation. Moreover, the crowding-out effect is non-monotonic in the level of financial constraints.
Unequal Transition: The Widening Wealth Gap amidst China’s Rapid Growth
Yangtian Jiang, Yu Zheng, Lijun Zhu, Nov 08, 2023We 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.
Higher Education and Corporate Innovation
Dongmin Kong, Bohui Zhang, Jian Zhang, Jul 22, 2020This paper investigates the impact of higher education on corporate innovation using a difference-in-differences approach. We find that Chinese firms in skilled industries generate better innovation outcomes, especially firms headquartered in provinces with more science and engineering college graduates, young firms that are more likely to hire young graduates, and firms located near universities. Also, we show that technological innovation is a mechanism...
