A Bridge on Economic Issues between China and the World
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Clean Air as an Experience Good in Urban China
Matthew E. Kahn, Weizeng Sun, Siqi Zheng, Oct 14, 2020If clean air is a valued experience good, then the short-term reduction in pollution in the spring of 2020 due to the COVID-19 shutdown could have persistent medium-term effects on reducing urban pollution levels as cities adopt new “blue sky” regulations to maintain recent pollution progress. Using data from 144 cities in China, we find that the largest experience good effect should take place for cities featuring a high pollution-sensitive population and where air quality has sharply improved during the pandemic. The residents...
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.
Does Spatial Misallocation in China’s Housing and Land Markets Drive Up Housing Prices?
Yongheng Deng, Yang Tang, Ping Wang, Jing Wu, Mar 23, 2022We documented pervasive spatial misallocations in the housing and land markets in China. We find larger cities with more competitive land markets and strict land supply restrictions have fewer subsidies in housing sales, and consequently a higher housing price compared to its frictionless benchmark. Removing frictions brings welfare gain because more individuals live in larger cities.
Tournament-Style Political Competition and Local Protectionism: Theory and Evidence from China
Hanming Fang, Ming Li, Zenan Wu, Feb 22, 2023Inter-jurisdictional competition in a regionally decentralized authoritarian regime distorts local politicians’ incentives in resource allocation among firms from their own city and a competing city.
The Impact of FDI on Domestic Firm Innovation: Evidence from Foreign Investment Deregulation in China
Yan Liu, Xuan Wang, Aug 04, 2021This paper studies the impact of foreign direct investment (FDI) on domestic firms’ innovation in China. Using firm level patent application records that cover all manufacturing firms with annual sales above 5M Yuan from 1998 to 2007, our results show that both the quantity and quality of domestic firms’ innovation benefit from FDI. In addition to the traditional spillover effect from FDI in the same industry, the paper emphasizes the importance of knowledge spillover...
