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Judicial Independence, Local Protectionism, and Economic Integration in China

Ernest Liu, Yi Lu, Wenwei Peng, Shaoda Wang, Nov 23, 2022

Exploiting 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.

Throwing Good Money after Bad: Zombie Lending and the Supply Chain Contagion of Firm Exit

Yun Dai, Xuchao Li, Dinghua Liu, Jiankun Lu, Jan 19, 2022

Zombie lending to downstream firms does not reduce the exit likelihood of upstream firms. Worse, it distorts efficiency-based firm exit in upstream industries. The exit distortion effect works through the trade credit chain and is more profound in industries with stricter financial constraints and tighter supply chain connections

Centralization or Decentralization? The Evolution of State-Ownership in China

Franklin Allen, Junhui Cai, Xian Gu, Jun Qian, Linda Zhao, Wu Zhu, Apr 05, 2023

We developed an SOE index for all 40 million firms in China from 1990 to 2017 based on the dynamic EquiNet. This quantitative index is solely based on equity investments and thus clears up the mysteries of other self-report measures.

Growing Apart: Declining Within- and Across-Village Risk Sharing in Rural China

Orazio Attanasio, Costas Meghir, Corina Mommaerts, and Yu Zheng , May 25, 2022

China has embarked on an ambitious campaign to close income gaps, address regional inequality and unfair social welfare provision, and make solid progress toward common prosperity by 2035. This marks a shift in focus from overall growth to promoting equitable and balanced growth.

“I Still Haven’t Found What I’m Looking For”: Evidence of Directed Search from a Field Experiment

Haoran He, David Neumark, Qian Weng, Jun 16, 2021

We explore the impact of wage offers on job applications, testing implications of the directed search model and trying to distinguish it from random search. We use a field experiment conducted on an online Chinese job board, with real jobs for which we randomly varied the wage offers across three ranges. We find that higher wage offers raise application rates overall, which is consistent with directed search...