A Bridge on Economic Issues between China and the World
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Stabilizing China’s Housing Market
Richard Koss, Xinrui Shi, Jul 25, 2018The sharp rise of house prices in China’s Tier-1 cities has fostered a great deal of commentary about the possibility of bubbles forming there. However, China’s unique housing market characteristics make it difficult to assess the macroeconomic severity of bursting bubbles, even if they exist. These characteristics include the setting of land supply and prices by the government, among many others. This paper looks at proposals to shore up the mortgage underwriting and legal infrastructure to help China withstand the impact of falling prices, should this occur.
Anxiety or Pain? The Impact of Tariffs and Uncertainty on Chinese Firms in the Trade War
Felipe Benguria, Jaerim Choi, Deborah Swenson, Mingzhi Xu, Nov 04, 2020We analyze the firm-level impacts of the US-China trade war since it is of great economic importance to understand how the unprecedented and dramatic increases in the import and export tariffs confronting Chinese firms affected the firm-level policy environment and firm operational outcomes. To contribute to this effort, we study how increases in US tariffs and Chinese retaliatory tariffs raised Chinese firms’ trade policy...
Optimising Production: Industrial Policies in Networks
Ernest Liu, Mar 13, 2019Many developing countries adopt industrial policies favoring upstream sectors. Liu (2018) shows these policies might enhance aggregate production efficiency. When sectors form a production network, market imperfections generate distortions that compound through input demand linkages, accumulating into upstream sectors and creating an incentive for...
Does VAT Have Higher Tax Compliance Than a Turnover Tax? Evidence from China
Jianjun Li, Xuan Wang, Jan 15, 2020We study the effects of compliance with the value-added tax (VAT) by exploiting the reform that replaced business tax (BT) with VAT in China beginning in 2012. We find that replacing the BT with VAT significantly increases the reported sales and costs for treated firms, and the impact is much stronger for business-to-business (B2B) transactions than for business-to-consumer (B2C) transactions. Buyers in B2B transactions...
Brain Drain to the State Sector: Job Preferences and Outcomes for China’s College Graduates
Hongbin Li, Lingsheng Meng, Yanyan Xiong, Sinclair Cook, Feb 28, 2024Despite private enterprises dominating China’s labor market, college-educated workers are still highly concentrated in the state sector. Using data from the Chinese College Student Survey, we find that 64% of students in the sample expressed a strong preference for state-sector employment.
