A Bridge on Economic Issues between China and the World
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Outward FDI and Domestic Input Distortions: Evidence from Chinese Firms
Cheng Chen, Wei Tian, Miaojie Yu, Sep 08, 2021A 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.
Competitive Effects of China’s Listing Suspensions
Frank Packer, Mark M. Spiegel, Oct 28, 2020China’s suspensions of initial public offerings (IPOs) provide a unique opportunity to evaluate the competitive effects of IPO activity on listed firms, as existing studies are challenged by the influence of market conditions on IPO timing. We evaluate the stock returns of listed firms on the Shanghai and Shenzhen exchanges over the three most recent suspensions. We confirm adverse effects on listed firms from IPOs, both from direct competition and from the creation of close asset substitutes. We also find that weaker firms are more exposed to the adverse effects of IPO listings.
China’s Health Insurance Evolution: Unpacking the Monumental Role of the NCMS
Jonathan Gruber, Mengyun Lin, Junjian Yi, Jul 31, 2024This article discusses that the New Cooperative Medical Scheme (NCMS) implemented in China from 2003 to 2008 significantly reduced mortality rates among rural residents and greatly enhanced national health outcomes, serving as a model for developing countries in achieving universal health coverage.
The Value of Childhood Vaccination in China
Hamid Reza Oskorouchi, Alfonso Sousa-Poza, David Bloom, Sep 09, 2020Using data from the China Health and Retirement Longitudinal Study (CHARLS) we estimated the effect of childhood vaccination on later-life schooling and cognitive abilities of elderly Chinese. We found that being vaccinated in childhood increases schooling by one year and improves numeracy and episodic memory scores by 6 percent on average. These encouraging results confirm the powerful and long-lasting benefits of childhood vaccination.
Debt Management and Strategic Interactions in Top-down Bureaucracy: Evidence from China
Xi Qu, Zhiwei Xu, Jinxiang Yu, Apr 30, 2025The Chinese central government implemented a series of measures to establish a top-to-bottom debt ceiling management system starting in 2015. Under this regulatory framework, public debt issuance for a prefecture city is subject to a ceiling (quota) determined through a hierarchical procedure. Based on a comprehensive dataset, we investigate what factors determine the allocations of debt ceiling to prefectural cities in China after the debt management reform. We find that the distributional outcome of the debt ceilings relies on the bilateral interactions of local and their superior governments. We also estimate the effect of ceiling allocation on the real economy, as well as the potential risk associated with implicit debt accumulation.
