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Misallocation, Selection, and Productivity: A Quantitative Analysis with Panel Data from China

Tasso Adamopoulos, Loren Brandt, Jessica Leight, Diego Restuccia, Jan 05, 2022

We examine the distorting effects of China’s land institutions on aggregate agricultural productivity and other outcomes. We argue these distortions affect two key margins: (1) the allocation of resources across farmers (misallocation); and (2) the type of farmers who operate in agriculture (selection).

How the Internet Changed Chinese Exports before Ali Baba Came

Ana M. Fernandes, Aaditya Mattoo, Huy Nguyen, Marc Schiffbauer, May 16, 2018

The 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.

China’s Health Insurance Evolution: Unpacking the Monumental Role of the NCMS

Jonathan Gruber, Mengyun Lin, Junjian Yi, Jul 31, 2024

This article discusses that the New Cooperative Medical Scheme (NCMS) implemented in China from 2003 to 2008 significantly reduced mortality rates among rural residents and greatly enhanced national health outcomes, serving as a model for developing countries in achieving universal health coverage.

Currency Carry Trade by Trucks: The Curious Case of China’s Massive Imports from Itself

Xuepeng Liu, Heiwai Tang, Zhi Wang, Shang-Jin Wei, Apr 13, 2022

Capital controls are common in many developing countries. With capital controls, the standard financial market transactions needed for currency carry trade are hard to implement. Yet, as long as there is a big difference between domestic and foreign interest rates, the incentive to engage in currency carry trade is present.

Higher Education and Corporate Innovation

Dongmin Kong, Bohui Zhang, Jian Zhang, Jul 22, 2020

This 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...