A Bridge on Economic Issues between China and the World
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Competition and Quality: Evidence from High-Speed Railways and Airlines
Hanming Fang, Long Wang, Yang Yang, Aug 05, 2020This paper investigates whether competition spurs quality improvement using the entry of Beijing-Shanghai high-speed rail (HSR) as an exogenous increase in competition to affected flights to destination cities along the HSR line. We find that competition from the entry of HSR leads to significant reductions in the mean and variance of travel delays on the affected airline routes and that these improvements are mainly driven by reductions in departure delays and the duration of taxi-in time at the destination airport.
Did the US-China Tariff War Affect China’s Economy? Evidence from Night Lights
Davin Chor, Bingjing Li, Dec 08, 2021We infer the impact of the US-China tariff war on China’s economy, using high-frequency satellite data on nighttime luminosity. Through a grid-level panel analysis, we find evidence that the US tariffs levied between 2018–2019 on China’s exports had a negative impact on income per capita and manufacturing employment that was very skewed across locations within China. By contrast, China’s retaliatory tariffs on imports from the United States did not have a discernible impact on economic outcomes at the local level.
Special Deals from Special Investors: The Rise of State-Connected Private Owners in China
Chong-En Bai, Chang-Tai Hsieh, Michael Zheng Song, Xin Wang, Feb 10, 2021We document a hierarchy of private owners connected to the state through equity investment and a rapid expansion of this hierarchy over the past two decades. We build a model to show how the effects of a special deal from a state investor can be transmitted and amplified through the hierarchy. Our estimation suggests that the expansion in the span of state-connected private owners may have increased aggregate output of the private sector by 4.2% a year between 2000 and 2019.
Exporting out of Agriculture: The Effects of the China Shock in China
Jessica Leight, Jan 01, 2020This paper analyzes the effect of China's 2001 accession to the World Trade Organization on structural transformation at the local level, exploiting cross-sectional variation in tariff uncertainty faced by county economies pre-2001. Using a new panel of 1,800 Chinese counties from 1996 to 2013, we find that counties more exposed to the reduction in tariff uncertainty post-accession are characterized by increasing exports...
Feedback Trading and the Chinese Put Warrants Bubble
Neil D. Pearson, Zhishu Yang, Qi Zhang, Jul 27, 2022There was a bubble in the prices of put warrants traded on the Shanghai and Shenzhen stock exchanges during the summer of 2007. We use investor trading records from a large securities firm to show that put warrant investors engaged in a particular form of feedback trading. This feedback trading exacerbated an initial run-up in put warrant prices caused by a change in the stock transaction tax, and created the bubble.
