A Bridge on Economic Issues between China and the World
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Migration,Tariffs,and China’s Export Surge
Chen Liu, Xiao Ma, Oct 22, 2025China’s exports have increased dramatically in recent decades. We build a multi-sector spatial general equilibrium model and combine rich data sources to account for China’s export surge between 1990 and 2005 from three policy changes: China’s import tariffs, tariffs imposed on China’s exports, and barriers to internal migration in China. We find that the three policy changes jointly accounted for 30% of China’s export growth between 1990 and 2005 and that there is a positive interaction between tariff and migration policies.
Investor Memory and Biased Beliefs: Evidence from the Field
Zhengyang Jiang, Hongqi Liu, Cameron Peng, Hongjun Yan, Aug 20, 2025We explore how investor memory drives belief formation and trading behavior, fueling financial market volatility. Drawing on surveys of over 17,000 Chinese retail investors linked to trading records, our study finds that recollections of past returns—shaped by both salient market events in the past and current market conditions—strongly influence expectations of future returns and investors’ portfolio choices, often outweighing objective historical data. These findings suggest that memory-driven biases amplify boom-and-bust cycles, with policy implications for improving market stability by counteracting distorted recall.
Does Farming Culture Shape Household Financial Decisions?
Fang Yu, May 01, 2024This article discussing the collectivist culture from traditional rice farming in China leads households to prefer stock market investments and lottery purchases while reducing their need for insurance. This demonstrates the strong influence of cultural heritage on modern financial decisions and highlights the need to consider cultural factors in financial policy making.The collectivist culture from traditional rice farming in China leads households to prefer stock market investments and lottery purchases while reducing their need for insurance. This demonstrates the strong influence of cultural heritage on modern financial decisions and highlights the need to consider cultural factors in financial policy making.The collectivist culture from traditional rice farming in China leads households to prefer stock market investments and lottery purchases while reducing their need for insurance. This demonstrates the strong influence of cultural heritage on modern financial decisions and highlights the need to consider cultural factors in financial policy making.
Rural-Urban Migration and Market Integration
Dennis Egger, Benjamin Faber, Ming Li, Wei Lin, Nov 19, 2025Reductions in rural-to-urban migration barriers have led to economic gains for both rural origins and urban destinations by reducing information frictions and facilitating the flow of goods and investments between cities and the countryside.
Firm-to-Firm Referrals
Jing Cai, Wei Lin, Adam Szeidl, Dec 25, 2024Referring suppliers to clients reshaped the supplier-client network and improved business performance.
