A Bridge on Economic Issues between China and the World
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Foreign Business Exposure, Policy Uncertainty, and Capital Flight from Home: Evidence from China
Dongxu Li, Xiaoxue Hu, Sep 22, 2021Using subsidiary-level data of 3,863 Chinese nonfinancial firms from 2000 to 2019, we show that the multinationals have 5.3% higher capital expenditures than the domestic firms relative to the average. The multinational firms’ offshore investment increases with policy uncertainty about the domestic markets. Our analysis suggests that in the face of domestic uncertainty, multinational firms switch to...
Financing Micro-entrepreneurship in Online Crowdfunding Markets: Local Preference versus Information Frictions
Jian Ni, Yi Xin, Sep 30, 2020Crowdfunding has become an important financing alternative for micro-entrepreneurship. We study to what extent bias toward local entrepreneurs is prevalent in crowdfunding markets, determine the main driving forces for such bias, and examine how crowdfunding platforms and policymakers can leverage these forces to stimulate micro-entrepreneurship. Even though online crowdfunding platforms are designed to overcome geographic barriers, we find evidence of strong local bias induced by both informational frictions and local preference, with the former being more important.
What Gets Measured Gets Managed: Investment and the Cost of Capital
Zhiguo He, Guanmin Liao, Baolian Wang, Aug 09, 2023To improve capital allocative efficiency, starting in 2010, Chinese regulators switched from using return on equity to economic value added (EVA).
How China’s Business Registration Reform Boosted Entrepreneurship and Productivity
Panle Jia Barwick, Luming Chen, Shanjun Li, Xiaobo Zhang, Nov 05, 2025China’s 2014 business registration reform spurred greater market dynamism by lowering entry barriers, which increased firm turnover and allowed smaller yet more productive entrepreneurs to establish new businesses, boosting overall productivity and growth.
“I Still Haven’t Found What I’m Looking For”: Evidence of Directed Search from a Field Experiment
Haoran He, David Neumark, Qian Weng, Jun 16, 2021We explore the impact of wage offers on job applications, testing implications of the directed search model and trying to distinguish it from random search. We use a field experiment conducted on an online Chinese job board, with real jobs for which we randomly varied the wage offers across three ranges. We find that higher wage offers raise application rates overall, which is consistent with directed search...
