The Chinese government supports the development of dozens of industries today, but the long-run sustainability of this model depends crucially on policy efficiency.
Despite private enterprises dominating China’s labor market, college-educated workers are still highly concentrated in the state sector. Using data from the Chinese College Student Survey, we find that 64% of students in the sample expressed a strong preference for state-sector employment.
To improve capital allocative efficiency, starting in 2010, Chinese regulators switched from using return on equity to economic value added (EVA).
China’s exports have increased dramatically in recent decades. We build a multi-sector spatial general equilibrium model and combine rich data sources to account for China’s export surge between 1990 and 2005 from three policy changes: China’s import tariffs, tariffs imposed on China’s exports, and barriers to internal migration in China.
China’s strategy for internationalizing the renminbi involves controlling the access of foreign investors to the domestic bond market.