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Exporting like China: The Determinants of Trade Status

Russell Cooper, Guan Gong, Guanliang Hu, Ping Yan, Feb 03, 2021

We study the export decision of Chinese manufacturing firms, both public and privately owned enterprises. In 2019, China’s exports of goods accounted for 13% of goods exported in the world and around 20% of China’s GDP. The importance of understanding the determinants of trade patterns in China goes beyond its national borders. Observed export decisions contradict the prediction of the standard trade model...

The Quiet Revolution in Women’s Human Capital and the Gender Earnings Gap in the People’s Republic of China

Zhengyang Li, Guochang Zhao, Jul 08, 2020

Since the 1980s, girls’ educational attaintment increased more quickly than boys’. As a result, the gender education gap decreased and even reversed in China. How does the gender earnings gap change in the face of increasing female human capital? What are the implications for the Chinese gender earnings gap in the future? This column will shed light on this interesting topic within and across cohorts.

The Fertility Consequences of Air Pollution in China

Xuwen Gao, Ran Song, Christopher Timmins, Sep 07, 2022

We incorporate pollution exposure into Becker’s Quantity-Quality (Q-Q) model of fertility and evaluate how air pollution distorts individuals’ fertility behaviors in China. We find that increased pollution over time negatively affects the fertility of ethnic Han people, but does not affect the fertility of ethnic minorities. China’s One-Child Policy increased Han people’s demand for child quality (e.g., health status and education achievement), which can explain the negative association between pollution and fertility for Han people.

Doing Business in China: Parental Background and Government Intervention Determine Who Owns Business

Ruixue Jia, Xiaohuan Lan, Gerard Padró i Miquel, May 19, 2021

The 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.

Clean Air as an Experience Good in Urban China

Matthew E. Kahn, Weizeng Sun, Siqi Zheng, Oct 14, 2020

If clean air is a valued experience good, then the short-term reduction in pollution in the spring of 2020 due to the COVID-19 shutdown could have persistent medium-term effects on reducing urban pollution levels as cities adopt new “blue sky” regulations to maintain recent pollution progress. Using data from 144 cities in China, we find that the largest experience good effect should take place for cities featuring a high pollution-sensitive population and where air quality has sharply improved during the pandemic. The residents...