A Bridge on Economic Issues between China and the World
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What Do a Billion Observations Say about Distance and Relationship Lending?
Haoyu Gao, Hong Ru, Xiaoguang Yang, Nov 07, 2018Using big data of the locations of bank branches and borrowers in China, we document a non-trivial amount of distant lending. The inter-firm network helps banks collect soft information which facilitates the distant lending. We also use novel data of monthly internal loan rating changes to directly measure soft information and find that banks have better soft information and predict delinquent events more accurately for borrowers connected via the inter-firm network.
Primary Care Chronic Disease Management in Rural China
Yiwei Chen, Hui Ding, Min Yu, Jieming Zhong, Ruying Hu, Xiangyu Chen, Chunmei Wang, Kaixu Xie, Karen Eggleston, Dec 11, 2019Health systems globally face increasing morbidity and mortality from chronic diseases, yet many — especially in low- and middle-income countries — lack strong primary care. Among recent contributions to understanding how economic incentives can be harnessed to address this challenge is a study in which we analyze China’s efforts to promote primary care management for rural residents with chronic disease...
Hayek, Local Information, and the Decentralization of Chinese State-owned Enterprises
Lixin Colin Xu, May 23, 2018Hayek (1945) predicts that where local information is important, the organization of production should be decentralized. This prediction is tested and supported in the context of the decentralization of Chinese state-owned enterprises (SOEs). SOEs are more likely to decentralize with increasing distance from the seat of the oversight government. This likelihood is especially strong when performance heterogeneity is greater and/or transportation costs are higher.
Going Bankrupt in China
Bo Li, Jacopo Ponticelli, Aug 26, 2020We use a new case-level dataset to document a set of stylized facts on bankruptcy in China and study how the introduction of specialized courts across Chinese cities affected insolvency resolution and the local economy. We find that specialized courts hire better-trained judges and are 35% faster at dealing with bankruptcy cases than civil courts within the same city. We also find evidence that their introduction benefited the local economy by fostering firm entry, increasing average capital productivity, and favoring the reallocation of employment out of "zombie" firm–intensive sectors.
State Versus Market: China’s Infrastructure Investment
Shuoge Qian, Hong Ru, Wei Xiong, Mar 13, 2024In 2005, the Chinese government launched the landmark “36 Clauses” reform, marking a critical step toward forging a more favorable market environment.
