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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...
The Value of Bankruptcy Court in Financial Distress: Evidence from Chinese Bond Market
Bo Li, Mai Li, Songnan Li, Laura Xiaolei Liu, Mar 15, 2023In this paper, we find that the introduction of specialized bankruptcy courts, which are run by better-trained judges and subject to less government intervention, reduces the cost of bond financing by around 10%.
Trade Policy Uncertainty and Firm Innovation
Qing Liu, Hong Ma, May 12, 2021This study proposes a novel channel through which trade liberalization may induce innovation through the reduction of trade policy uncertainties (TPU) in destination markets. To verify this link, we utilize the significant reduction of TPU engendered by China's accession to the World Trade Organization (WTO) in 2001 as a quasi-natural experiment. We find that reduction in TPU significantly encourages firms' patent applications and that firms' innovation responses to TPU reduction vary by productivity, ownership, exporting status, and the irreversibility of investment.
The Impact of Intranational Trade Barriers on Exports: Evidence from a Nationwide VAT Rebate Reform in China
Jie Bai, Jiahua Liu, Feb 19, 2020It is well known that various forms of non-tariff trade barriers exist within a country. Empirically, it is difficult to measure these barriers as they can take many forms. We take advantage of a nationwide VAT rebate policy reform in China as a natural experiment to identify the existence of these intranational barriers due to local protectionism and study the impact...
The Economic Impact of Distributing Financial Products on Third-Party Online Platforms
Claire Yurong Hong, Xiaomeng Lu, Jun Pan, Feb 26, 2020The emergence of third-party online platforms in intermediating financial products has been a new and exciting development in FinTech. We find that, in China post-platform, fund flows become markedly more sensitive to fund performance, and the net flow to the top 10 percent–performing funds more than triples their pre-platform level. In response, fund managers increase their risk taking to enhance...
