A Bridge on Economic Issues between China and the World
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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.
The Impact of the COVID-19 Pandemic on Consumption: Learning from High Frequency Transaction Data
Haiqiang Chen, Wenlan Qian, Qiang Wen, May 26, 2021Based on daily transaction data in 214 cities and the difference-in-differences method, we document that daily offline consumption fell by 32%, or 18.57 million RMB per city, during the twelve-week period after China’s COVID-19 outbreak in late January 2020. This implies that China’s offline consumption decreased by over 1.22 trillion RMB in the three-month post-outbreak period, or 1.2% of China’s 2019 GDP. Our estimates suggest a significant economic benefit...
Doing Business in China: Parental Background and Government Intervention Determine Who Owns Business
Ruixue Jia, Xiaohuan Lan, Gerard Padró i Miquel, May 19, 2021The children of cadres have a higher likelihood of owning business in China, and this relationship varies greatly with government intervention in the economy. Connections with government are likely to be the explanation behind this pattern.
Judicial Independence, Local Protectionism, and Economic Integration in China
Ernest Liu, Yi Lu, Wenwei Peng, Shaoda Wang, Nov 23, 2022Exploiting the staggered rollout, since 2014, of judicial independence reform that removed local governments’ control over local courts’ financial and personnel decisions in China, we show that judicial independence can reduce local protectionism and foster cross-regional economic integration.
What You Import Matters for Productivity Growth: Experience from Chinese Manufacturing Firms
Jiawei Mo, Larry D. Qiu, Hongsong Zhang, Xiaoyu Dong, Dec 22, 2021We find that capital import has a substantially larger productivity effect than intermediates import, by generating significant long-term productivity gains through R&D-capital synergy, R&D-inducing, and direct dynamic productivity effects. Our findings highlight the importance of tariff structure in tariff liberalization: the change in tariff structure explains 18% of the productivity gains following China’s WTO accession.
