A Bridge on Economic Issues between China and the World
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When History Matters Little: Political Hierarchy and Regional Development in China, AD 1000-2000
Ying Bai, Ruixue Jia, Jan 09, 2019Regime changes in China between AD 1000 and 2000 systematically altered the relative importance of different regions in the political hierarchy of that time. The evolution of Chinese provincial capitals and economic activities during this period throws light on how political factors shape economic geography. Employing a panel dataset...
Chinese and Indian Multinationals: Do Their Shopping Sprees in Advanced Countries Make Them More Innovative?
Vito Amendolagine, Elisa Giuliani, Arianna Martinelli, Roberta Rabellotti, Nov 14, 2018Chinese and Indian multinationals are continuously expanding their operations in Europe and the United States through cross-border acquisitions (CBAs), with the aim of tapping into international knowledge located in target firms and innovative hubs. Amendolagine, Giuliani, Martinelli, and Rabellotti have looked into impacts that CBAs have on...
Faking Trade for Capital Control Evasion: Evidence from Dual Exchange Rate Arbitrage in China
Renliang Liu, Liugang Sheng, Jian Wang, Nov 25, 2020We examine whether firms over-report international trade to evade capital controls for foreign exchange arbitrage, by specifically testing whether the aggregate bilateral trade data gap between trading partners is positively (negatively) correlated with the exchange rate spread when the spread is positive (negative). At the disaggregated level, we also employ Benford’s law to detect trade data manipulations...
The Two-Pillar Policy for the RMB from December 2015 to May 2017
Urban J. Jermann, Bin Wei, Vivian Yue, Aug 16, 2017We document that since December 2015 the People’s Bank of China (PBC) has followed a “two-pillar” exchange rate policy that aims to achieve both stability and flexibility. Based on a no-arbitrage model and options price data we estimate the credibility of the policy as well as its impact on the RMB/USD exchange rate. The model was able to correctly forecast the end of the two-pillar policy in May 2017.
BigTech Lending as a New Form of Financial Intermediation
Jon Frost, Leonardo Gambacorta, Yi Huang, Hyun Song Shin, Pablo Zbinden, Jun 19, 2019BigTech firms, i.e. large technology firms whose primary business is digital services, are entering finance. Their entry into finance started with payments. Increasingly, they have expanded beyond payments into the provision of credit, insurance, and toward savings products, either directly or in partnership with incumbent financial institutions...
