A Bridge on Economic Issues between China and the World
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Growing like China: Firm Performance and GVC Position
Davin Chor, Kalina Manova, Zhihong Yu, Apr 14, 2021We use firm-level customs and manufacturing survey data, together with Input-Output tables for China, to examine how Chinese firms position themselves in global production lines. We document a sharp rise in the upstreamness of China’s imports, while the positioning of its exports has remained relatively stable, over the 1992-2014 period. Participation in global value chains thus appears to have facilitated an...
Going Green in China: Firms’ Responses to Stricter Environmental Regulations
Haichao Fan, Joshua Graff Zivin, Zonglai Kou, Xueyue Liu, Huanhuan Wang, Apr 29, 2020Evidence from China shows that firms respond to stricter enforcement of the emission reduction target by reducing their pollution. This effect is stronger for firms in industries with higher pollution intensity. Stricter environmental regulations also lead to sharp declines in firms’ profits, capital, and labor. A sequence of tests of the underlying mechanisms reveals...
China’s Mobility Barriers and Employment Allocations
Rachel Ngai, Christopher Pissarides, Jin Wang, Mar 07, 2018Despite reforms to the hukou household registration system and the very large rural-urban migration experienced in China, rural households are still experiencing a risk of losing their land allocation if they migrate. We argue that this risk leads to an inefficient rental market with low rents and is an impediment to migration, with consequent over-employment in agriculture and low productivity.
Market Expanding or Market Stealing? Competition with Network Effects in Bike-Sharing
Guangyu Cao, Ginger Zhe Jin, Xi Weng, Li-An Zhou, Jan 16, 2019Positive network effects may lead to winner-takes-all in some markets. The column analyses dockless bike-sharing in China to show instead how an incumbent can benefit from positive spillovers from a competitor’s entry. In the case of bike-sharing, consumers multi-home, the market exhibits positive network effects, and investment by two firms is more cost-efficient than investment by one.
Are the Most Aggressive Investors in China Actually Informed?
Christian T. Lundblad, Zhishu Yang, Qi Zhang, Aug 30, 2017Using a unique Chinese data set capturing the trading behavior of particularly aggressive investors, we provide new evidence that is consistent with the presence of informational advantages. Critically, an advantage of our data is that we can also directly identify several plausible channels through which such an informational advantage could arise. Specifically, return predictability around key value-relevant events is most pronounced in the presence of aggressive traders who share the same geographic location as the firms in which they trade.
