Our study also contributes to the broader discourse on industrial policy (see Juhász, Lane, and Rodrik 2023 for a recent review of related academic literature). As debates about green industrial policy gains traction in the U.S., Europe, and beyond, there is revived interest in developing a better understanding of how it might impact economic activity. Although economic growth and environmental regulation are often pitted against each other, our findings suggest that this need not be the case.
The Chinese government supports the development of dozens of industries today, but the long-run sustainability of this model depends crucially on policy efficiency.
This article discusses that The China Connect not only introduced new learning channels by improving market efficiency, but also increased domestic firms' sensitivity to global shocks and revealed the policy trade-offs between efficiency and volatility in liberalization.
In rural China, the son preference paradoxically reduces the likelihood of early mother-child separation for girls, while boys are more prone to such separation.
China’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.