A Bridge on Economic Issues between China and the World
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QR Code-Based Mobile Payments and Financial Inclusion
Thorsten Beck, Leonardo Gambacorta, Yiping Huang, Zhenhua Li, Han Qiu, Nov 09, 2022By means of a unique dataset of around half a million Chinese firms, we investigate the link between the use of a QR code-based mobile payment system and financial inclusion.
Does ESG Travel around the World? Evidence from Multinational Firms in China
Dongxu Li, Xiaoxue Hu, Oct 20, 2021Using a sample of 3,770 Chinese listed firms during 2015–2020, we find that firms’ ESG ratings increase with foreign sales ratios. The higher-rated multinationals have more foreign subsidiaries located in countries with better ESG conditions, and their equity shares are held to a greater extent by institutional investors, especially by foreign institutions. The multinationals’ higher ESG ratings can be justified by...
Innovation versus imitation: Where all that Chinese R&D is going
Michael König, Zheng (Michael) Song, Kjetil Storesletten, Fabrizio Zilibotti, Jan 26, 2022China is aiming to become a technological innovation powerhouse by 2050, with Premier Li Keqiang recently announcing an increase in R&D investments by 7% for the next five years. But greater R&D investment is no guarantee of success. This column examines the effects of R&D investments by Chinese firms on aggregate productivity and growth.
Did the US-China Tariff War Affect China’s Economy? Evidence from Night Lights
Davin Chor, Bingjing Li, Dec 08, 2021We infer the impact of the US-China tariff war on China’s economy, using high-frequency satellite data on nighttime luminosity. Through a grid-level panel analysis, we find evidence that the US tariffs levied between 2018–2019 on China’s exports had a negative impact on income per capita and manufacturing employment that was very skewed across locations within China. By contrast, China’s retaliatory tariffs on imports from the United States did not have a discernible impact on economic outcomes at the local level.
The Impact of FDI on Domestic Firm Innovation: Evidence from Foreign Investment Deregulation in China
Yan Liu, Xuan Wang, Aug 04, 2021This paper studies the impact of foreign direct investment (FDI) on domestic firms’ innovation in China. Using firm level patent application records that cover all manufacturing firms with annual sales above 5M Yuan from 1998 to 2007, our results show that both the quantity and quality of domestic firms’ innovation benefit from FDI. In addition to the traditional spillover effect from FDI in the same industry, the paper emphasizes the importance of knowledge spillover...
