A Bridge on Economic Issues between China and the World
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Gaokao, Ability, and Occupation Choice
Chong-En Bai, Ruixue Jia, Hongbin Li, Xin Wang, Jul 28, 2021In China, the college entrance exam score is predictive for both firm success and wage-job success in the future, yet higher-score individuals are less likely to create firms.
Book Synopsis Why Does China Need a New Breed of Companies?
Qiao Liu, Sep 06, 2017Understanding corporate China and its future dynamics is the key to understanding the Chinese economy and its undergoing transformation. The intellectual framework proposed in this work can be summarized by a simple identity: Growth Rate = Return on Invested Capital (ROIC) X Investment Rate. To successfully achieve China’s economic transition without losing a lot of growth at the same time, China needs to improve ROIC at the aggregate level.
Book Synopsis The Future of Cities: The Shanghai Model of Migrant Children’s Education
Yuanyuan Chen, Shuaizhang Feng, Nov 15, 2017Using a longitudinal survey conducted by the authors in Shanghai since 2010, we empirically examine the differences between migrant schools and public schools. We find that migrant students in migrant schools performed substantially worse than their counterparts in public schools in 2010, but the difference decreased by half in 2012, thanks to financial subsidies to migrant schools. We also show that even fortunate migrant students who are able to enroll in public schools tend to go to poorer quality schools; however, there is no evidence on negative peer effects of migrant children in public schools.
Chinese Economic Growth Doesn’t Appear Overstated, but Its Heavy Reliance on Credit May Be a Cause for Concern
Hunter Clark, Jeff Dawson, Maxim Pinkovskiy, Xavier Sala-i-Martin, Jun 20, 2017Are China's official GDP growth number exaggerated? Hunter Clark, Jeff Dawson and Maxim Pinkovskiy from the New York Fed and Xavier Sala-i-Martin from Columbia University use satellite measurements of the intensity of China’s nighttime light emissions to proxy for GDP growth. Their estimate of Chinese GDP growth, since 2012, was never appreciably lower, and was in many years higher, than the GDP growth rate reported in the official statistics.
The 2009 Monetary Stimulus in China
Kaiji Chen, Patrick Higgins, Daniel F. Waggoner, Tao Zha, Mar 21, 2018Massive monetary injections occurred in 2009Q1-Q4 as a result of a drastic change in monetary policy causing an unprecedented credit expansion in 2009-2011, which stimulated economic growth in the short-run. New credit was disproportionately allocated to real estate and its supporting heavy industries and fueled a sharp rise in land prices. The long-lasting consequence of this monetary stimulus resulted in a twin problem facing China: the high investment-to-GDP and debt-to-GDP ratios.
