Most Popular

Credit Constraints and Fraud Victimization: Evidence from a Representative Chinese Household Survey

Nan Gao, Yuanyuan Ma, Lixin Colin Xu, Jun 09, 2021

How and why do household credit constraints affect fraud victimization when households face fraud schemes? Using the urban sample of a novel nationally representative data set on fraud victimization and household finance, we find that households facing credit constraints are associated with a higher probability of becoming fraud victims and suffer from higher economic losses from frauds than households...

The Value of Big Data in a Pandemic

Kairong Xiao, May 05, 2021

This article summarizes a study of the economic and public health effects of the Health Code app in China. By exploiting the staggered implementation of this technology across 322 Chinese cities, this study finds that the Health Code app significantly reduced virus transmission and facilitated economic recovery during the COVID-19 pandemic. A macroeconomic susceptible-infectious-recovered (SIR) model calibrated to the micro-level estimates shows...

Foreign Business Exposure, Policy Uncertainty, and Capital Flight from Home: Evidence from China

Dongxu Li, Xiaoxue Hu, Sep 22, 2021

Using subsidiary-level data of 3,863 Chinese nonfinancial firms from 2000 to 2019, we show that the multinationals have 5.3% higher capital expenditures than the domestic firms relative to the average. The multinational firms’ offshore investment increases with policy uncertainty about the domestic markets. Our analysis suggests that in the face of domestic uncertainty, multinational firms switch to...

Outward FDI and Domestic Input Distortions: Evidence from Chinese Firms

Cheng Chen, Wei Tian, Miaojie Yu, Sep 08, 2021

A recent study shows that domestic input distortions faced by private firms in China have generated extra incentives for those firms to invest and produce abroad. This finding helps explain an astonishing increase in China’s outward foreign direct investment (FDI) flows since the financial crisis.

Financing Micro-entrepreneurship in Online Crowdfunding Markets: Local Preference versus Information Frictions

Jian Ni, Yi Xin, Sep 30, 2020

Crowdfunding has become an important financing alternative for micro-entrepreneurship. We study to what extent bias toward local entrepreneurs is prevalent in crowdfunding markets, determine the main driving forces for such bias, and examine how crowdfunding platforms and policymakers can leverage these forces to stimulate micro-entrepreneurship. Even though online crowdfunding platforms are designed to overcome geographic barriers, we find evidence of strong local bias induced by both informational frictions and local preference, with the former being more important.