nep-cna New Economics Papers
on China
Issue of 2006‒12‒09
three papers chosen by
Zheng Fang
Ohio State University

  1. Villages where China’s Ethnic Minorities Live By Bjorn Gustafsson; Ding Sai
  2. Employment Effects of Privatisation and Foreign Acquisition of Chinese State-Owned Enterprises By Yundan Gong; Holger Görg; Sara Maioli
  3. The Long Run Health and Economic Consequences of Famine on Survivors: Evidence from China’s Great Famine By Xin Meng; Nancy Qian

  1. By: Bjorn Gustafsson (University of Göteborg and IZA Bonn); Ding Sai (Chinese Academy of Social Sciences)
    Abstract: This paper investigates how ethnic minorities in rural China are faring compared with the ethnic majority. The village is the unit of analysis and large surveys for 2002 are used. Minority villages in northeast China are found to have a somewhat better economic situation than the average majority village, but minority villages in the southwest are clearly faring worse. Industrialisation, inputs in agricultural production, stock of human capital of the labour force, wage level on the local labour market as well as indicators of path dependency are all found to affect the economic situation of a village. Location is the single most important circumstance working against a favourable economic situation for minority villages in the north- and particularly the southwest. Low village income results in long-distance migration for many ethnic minorities, but for some minorities their ethnicity hinders migration.
    Keywords: China, ethnic minorities, income, wealth, migration
    JEL: J15 O12 P32
    Date: 2006–11
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp2418&r=cna
  2. By: Yundan Gong (University of Nottingham); Holger Görg (GEP, University of Nottingham and IZA Bonn); Sara Maioli (University of Newcastle)
    Abstract: This paper investigates the effects of domestic privatisation or foreign acquisition of Chinese State Owned Enterprises (SOEs) on employment growth, using firm level data for China and a combination of propensity score matching and difference-in-differences in order to identify the causal effect. Our results suggest that, controlling for output growth there is some evidence that domestic privatisation leads to contemporaneous reductions in employment growth compared to firms that did not undergo an ownership change. By contrast, there is some evidence that foreign acquisitions show higher employment growth in the post acquisition period than non-acquired SOEs.
    Keywords: privatisation, foreign acquisition, employment growth, difference-in-differences
    JEL: P2 F2
    Date: 2006–11
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp2453&r=cna
  3. By: Xin Meng (Australian National University and IZA Bonn); Nancy Qian (Brown University)
    Abstract: In the past century, more people have perished from famine than from the two World Wars combined. Many more were exposed to famine and survived. Yet we know almost nothing about the long run impact of famine on these survivors. This paper addresses this question by estimating the effect of childhood exposure to China’s Great Famine on adult health and labor market outcomes of survivors. It resolves two major empirical difficulties: 1) data limitation in measures of famine intensity; and 2) the potential joint determination of famine occurrences and survivors’ outcomes. As a measure of famine intensity, we use regional cohort size of the surviving population in a place and time when there is little migration. We then exploit a novel source of plausibly exogenous variation in famine intensity to estimate the causal effect of childhood exposure to famine on adult health, educational attainment and labor supply. The results show that exposure to famine had significant adverse effects on adult health and work capacity. The magnitude of the effect is negatively correlated with age at the onset of the famine. For example, for those who were one year old at the onset of the famine, exposure on average reduced height by 2.08% (3.34cm), weight by 6.03% (3.38kg), weight-for-height by 4% (0.01 kg/cm), upper arm circumference by 3.95% (0.99cm) and labor supply by 6.93% (3.28 hrs/week). The results also suggest that famine exposure decreased educational attainment by 3% (0.19 years); and that selection for survival decreased withinregion inequality in famine stricken regions.
    Keywords: health, education, famine, China
    JEL: I10 I2 J1
    Date: 2006–11
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp2471&r=cna

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