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GDP Management to Meet or Beat Growth Targets

Changjiang Lyu, Kemin Wang, Frank Zhang, Xin Zhang, Oct 24, 2018

We apply the discontinuity methodology from the accounting literature to a political economy setting of GDP reporting and examine whether Chinese local governments manage regional GDP numbers. We find strong evidence of discontinuities around zero in the distribution of actual minus target GDP growth rates. The frequencies of just meeting or beating GDP growth targets are about five (four) times the frequencies of just missing targets at the prefecture (province) level. The results are stronger for governors with longer tenures and those without political connections to higher-level officials as well as for local governments with more resources under their control.

Spillovers in Childbearing Decisions and Fertility Transitions: Evidence from China

Pauline Rossi, Yun Xiao, Mar 24, 2021

To what extent and through which mechanisms are couples influenced by others when choosing their own family size? Recent research exploits exemptions in China’s family planning policies to show that conformism and competition drove the diffusion of small families, and hence accelerated the fertility transition in China.

Does China’s Place-Based Land Policy Lead to Spatial Misallocation?

Min Fang, Libin Han, Zibin Huang, Ming Lu, Li Zhang, Nov 17, 2021

After 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...

The Anatomy of Chinese Innovation: Insights on Patent Quality and Ownership

Philipp Boeing, Loren Brandt, Ruochen Dai, Kevin Lim, Bettina Peters, May 07, 2025

Chinese patenting has become narrower and less innovative over time. The role of overseas knowledge has also declined sharply. These findings are salient in the context of a marked slowdown in economic growth in China and rising concerns of technological decoupling with the US.

English Language Requirements and Educational Inequality in China

Hongbin Li, Lingsheng Meng, Kai Mu, Shaoda Wang, May 29, 2024

The introduction of the English listening test in the NCEE has exacerbated educational inequality between urban and rural areas in China, thereby affecting the college admission prospects and future income of rural students.