A Bridge on Economic Issues between China and the World
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Firm-to-Firm Referrals
Jing Cai, Wei Lin, Adam Szeidl, Dec 25, 2024Referring suppliers to clients reshaped the supplier-client network and improved business performance.
Bilateral Economies of Scope in International Trade
Yao Amber Li, Sichuang Xu, Stephen R. Yeaple, Tengyu Zhao, Jan 15, 2025This paper presents evidence that firms’ export and import decisions within the same foreign market are complementary, due to bilateral economies of scope that allow substantial cost savings when engaging in both activities. By quantifying these savings through a structural model, we show that bilateral economies of scope significantly enhance firms’ participation in international trade and amplify the effects of trade liberalization, offering new insights for policymakers and researchers.
Industrial Policy: Lessons from Shipbuilding
Panle Jia Barwick, Myrto Kalouptsidi, Nahim Bin Zahur, Dec 18, 2024The article discusses that although China's industrial policy (IP) in the shipbuilding industry significantly increased domestic shipbuilding production and global market share, it had limited effects on improving domestic welfare and led to inefficient allocation of resources.
Consumer-Financed Fiscal Stimulus Evidence from Digital Coupons in China
Jing Ding, Lei Jiang, Lucy Msall, Matthew J. Notowidigdo, Feb 05, 2025In 2020, local governments in China began issuing digital coupons to stimulate spending in targeted categories such as restaurants and supermarkets. We find that the coupons caused large increases in spending of 3.1–3.3 yuan per yuan spent by the government. The large spending responses do not come from substitution away from non-targeted spending categories or from short-run intertemporal substitution. We conclude that digital coupons are a cost-effective way to provide targeted fiscal stimulus to specific sectors of the economy.
