nep-cna New Economics Papers
on China
Issue of 2006‒06‒24
four papers chosen by
Zheng Fang
Fudan University

  1. Is China a Northern Partner to Mercosul? By Renato Galvão Flôres Junior; Masakazu Watanuki
  2. The role of geography and size By David Hummels
  3. Economic liberalization with rising segmentation on China’s urban labor market By Sylvie Démurger; Martin Fournier; Li Shi; Wei Zhong
  4. Do Peers Affect Student Achievement in China%u2019s Secondary Schools? By Weili Ding; Steven F. Lehrer

  1. By: Renato Galvão Flôres Junior (EPGE/FGV); Masakazu Watanuki
    Date: 2006–06
  2. By: David Hummels
    Abstract: This report focuses on issues for Latin America and the Caribbean from China's expanding presence in the world economy, with a particular interest in questions related to China's size and proximity to markets.The authors begin with a basic overview of facts, including a characterization of trade and trade growth for China and Latin America and the Caribbean (LAC). Next, the following issues are addressed: Relative proximity of China and LAC countries to major markets. Detailed data on shipping costs to address the size of the import wedge, the price of goods at the exporter's departure port telative to the importing destination and the size of the sourcing wedge and its determinants. LAC's proximity to the US market. Overview of literature discussing the importance of country size
    Keywords: Trade, Goods transport, Transport costs, China, Latin America
    JEL: F13 F16
    Date: 2006–04
  3. By: Sylvie Démurger (HIEBS, The University of Hong Kong and CNRS (France)); Martin Fournier (GATE, Université Lyon 2 (France))); Li Shi (School of Economics and Business, Beijing Normal University); Wei Zhong (Institute of Economics, Chinese Academy of Social Sciences (Beijing))
    Abstract: The massive downsizing of the state-owned sector and the concomitant impressive growth of the private sector at the end of the 1990s have altered the nature of the Chinese labor market. By bringing in more competition and market mechanisms, they have contributed to increasing labor turnover and competitiveness in market wages. Using two urban household surveys for 1995 and 2002, this paper analyzes the evolution of labor market segmentation in urban China, by applying an extended version of Oaxaca-Blinder decomposition methods. During the 7-year period, the sharp increase in earnings for all workers however shows substantial differences across ownership, economic sectors, and regions. We find strong evidence of a multi-tiered labor market along these three major lines and highlight increasing segmentation within each of the three dimensions, the gap between the privileged segments of the labor market and the most competitive segments widening over time.
    Keywords: labor market, earnings differentials, segmentation, China.
    JEL: J31 J41 P23 O53
    Date: 2006
  4. By: Weili Ding; Steven F. Lehrer
    Abstract: Peer effects have figured prominently in debates on school vouchers, desegregation, ability tracking and anti-poverty programs. Compelling evidence of their existence remains scarce for plaguing endogeneity issues such as selection bias and the reflection problem. This paper firmly establishes a link between peer performance and student achievement, using a unique dataset from China. We find strong evidence that peer effects exist and operate in a positive and nonlinear manner; reducing the variation of peer performance increases achievement; and our semi-parametric estimates clarify the tradeoffs facing policymakers in exploiting positive peers effects to increase future achievement.
    JEL: I2 Z13 P36
    Date: 2006–06

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