A Bridge on Economic Issues between China and the World
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Going Bankrupt in China
Bo Li, Jacopo Ponticelli, Aug 26, 2020We use a new case-level dataset to document a set of stylized facts on bankruptcy in China and study how the introduction of specialized courts across Chinese cities affected insolvency resolution and the local economy. We find that specialized courts hire better-trained judges and are 35% faster at dealing with bankruptcy cases than civil courts within the same city. We also find evidence that their introduction benefited the local economy by fostering firm entry, increasing average capital productivity, and favoring the reallocation of employment out of "zombie" firm–intensive sectors.
Misallocation of Managerial Talent in China’s Housing Boom
Yu Shi, Feb 20, 2019The housing boom in China has raised great concerns about capital and credit misallocation. Recent research by IMF Economist Yu Shi finds that China’s imperfect financial market and regulations in the land market have also led to a misallocation of managerial talent, dampening productivity and growth in the non-real estate sectors. Productive managers in other sectors moved to the real estate sector...
Estimating China’s Growth Potential from Its Global Value Chain Position
Dazhong Cheng, Jian Wang, Zhiguo Xiao, Mar 04, 2020We find that China’s potential growth in GDP per capita is substantially underestimated if the level of GDP per capita is employed as the convergence indicator as done in previous studies (e.g., Barro, 2015 and 2016). Using data on China’s position in the global value chain (GVC) prior to 2010, we predict that the country’s GDP per capita could have grown at 7%–8% annually between 2010 and 2015, which is closer...
Can Information Influence the Social Insurance Participation of China’s Rural Migrants?
John Giles, Xin Meng, Sen Xue, Guochang Zhao, Apr 10, 2019We use a randomized information intervention to shed light on whether poor understanding of social insurance—in terms of both the enrollment process and the associated costs and benefits—drives the relatively low rates of participation in urban health insurance and pension programs among China's rural-urban migrants. Among workers without a contract...
Industrial Clusters, Networks, and Resilience of Firms to the Covid-19 Shock in China
Ruochen Dai, Dilip Mookherjee, Yingyue Quan, Xiaobo Zhang, Jan 06, 2021Both entry of new firms and performance of incumbents were less adversely affected by the Covid-19 shock in Chinese counties with a greater presence of industrial clusters. To explain these results, we find evidence of the role of two specific attributes of clusters: reliance on informal hometown-based entrepreneur networks and spatial proximity to suppliers and customers.
