nep-cna New Economics Papers
on China
Issue of 2007‒08‒08
seven papers chosen by
Zheng Fang
Ohio State University

  1. Climate Change: National and Local Policy Opportunities in China By Fei Teng; Alun Gu
  2. Rural Poverty in China: Problem and Policy By Gregory C. Chow
  3. The Chinese economy, seen from Japan and the Netherlands By Wim Suyker
  4. Getting to know China By Tatom, John
  5. Interprovincial Migration in China: The Effects of Investment and Migrant Networks By Shuming Bao; Örn B. Bodvarsson; Jack W. Hou; Yaohui Zhao
  6. An Economic Analysis of Health Care in China By Gregory C. Chow
  7. Why Do Women Have Longer Unemployment Durations than Men in Post-Restructuring Urban China? By Fenglian Du; Jian-chun Yang; Xiao-yuan Dong

  1. By: Fei Teng (Tsinghua University); Alun Gu (Tsinghua University)
    Abstract: Climate Change poses a wide range of potentially very severe threats in China. This aggravates the existing vulnerability of China and is one of the big challenges faced by the Chinese government. Adaptation programmes and projects are being developed and implemented at national and local level. As China is engaged in heavy investment in infrastructure development as a consequence of the rapid process of development and urbanization, mainstreaming adaptation into such development process is a priority for China. China has also made positive contributions to reducing greenhouse gas emissions through participations in the CDM under the Kyoto Protocol framework. Although mitigation is not a priority at national or local level, it has been integrated into national and local development plans explicitly. This paper addresses the following questions: What is the policy space for climate change mitigation and adaptation policy at national and local level and what is already being done? The three case studies at local level - Beijing, Guangdong and Shanghai – presented here, highlight the local benefits in terms of local pollution of integrating mitigation policies into local development. However, financial constraints usually prevent such a positive policy integration. National policies and international cooperation aiming at bridging the financial gap and promoting technology transfer would help in integrating local pollution control and mitigation efforts in China today.
    Keywords: Climate Change, Local Policy, National Policy, Mitigation, Local Pollution
    JEL: H7 Q54 Q56 O53
    Date: 2007–07
  2. By: Gregory C. Chow (Princeton University)
    Abstract: This paper describes the economic conditions of rural China regarding poverty. By dividing the problem of rural poverty into three components it explains why rural poverty is China’s No. 1 economic problem in spite of the significant improvement in the living standard of the rural population. After discussing the solution proposed by the Chinese government it raises two policy questions, one concerning a proposal to eliminate the operational functions of township governments in the streamlining of the local government structure and the second on the possibility of controlling the abuse of power by local party officials that infringes on the rights of the farmers. A comparison with the conditions in India is provided.
    Date: 2006–09
  3. By: Wim Suyker
    Abstract: This paper assesses the consequences of the rapid Chinese economic development for Japan and the Netherlands. China has become the most important supplier of import goods for Japan and the fourth most important one for the Netherlands. With two-thirds of Dutch imports from China being re-exported, the emergence of China has enhanced the role of the Netherlands as European distribution centre. As for exports, China is now a major market for Japan, but not for the Netherlands. This is in line with gravity models of foreign trade. The same holds for differences in foreign direct investment (FDI), with Japan the biggest investor in China and the Netherlands a minor one. The emergence of China has increased purchasing power of Japanese and Dutch households, while its effects on labour markets and income distribution are relatively modest. In spite of differences between Japan and the Netherlands, the consequences for economic policy of the increasing role of China are very similar.
    Keywords: China; Dutch economy; Japan; globalisation; trade; scenario analysis; FDI
    JEL: F14 F23 F40 F47 J31 O40 O57
    Date: 2007–07
  4. By: Tatom, John
    Abstract: China, a low income country about the same geographic size as the US and with over four times the population, has had persistent rapid growth that averaged 9.6 percent per year since reform began in 1979. On a per capita basis, real GDP is eight times larger than it was 26 years earlier! China’s population is expected to continue to slow, reaching near zero in 30 years. It has already slowed markedly due to the one-child policy from about 1.5 percent per year in the late 1970s, to about 0.6 percent in recent years. China is likely to become the US’ third largest trading partner, supplying relatively cheap and high quality machinery, apparel and other goods, and a large market where US producers can produce and/or sell their products. At the same time, private Chinese investment is likely to become an important source of saving and financing for US economic activity. Doing business with China has always been a two-way street and that street is beginning to widen to include significant flows of entrepreneurial and financial resources in both directions.
    Keywords: China; growth; financial regulation; demographics
    JEL: O5 E6
    Date: 2007–01–26
  5. By: Shuming Bao (University of Michigan); Örn B. Bodvarsson (St. Cloud State University and IZA); Jack W. Hou (California State University, Long Beach); Yaohui Zhao (Beijing University)
    Abstract: Since the 1980s, China’s government has eased restrictions on internal migration. This easing, along with rapid growth of the Chinese economy and substantial increases in foreign and domestic investments, has greatly stimulated internal migration. Earlier studies have established that migration patterns were responsive to spatial differences in labor markets in China, especially during the 1990s. However, other important economic and socio-political determinants of interprovincial migration flows have not been considered. These include the size of the migrant community in the destination, foreign direct and domestic fixed asset investments, industry and ethnic mixes and geographic biases in migration patterns. We estimate a modified gravity model of interprovincial migration in China that includes as explanatory variables: migrant networks in the destination province, provincial economic conditions, provincial human capital endowments, domestic and foreign investments made in the province, industry and ethnic mixes in the province, provincial amenities and regional controls, using province-level data obtained from the National Census and China Statistical Press for the 1980s and 1990s. We find strong evidence that migration rates rise with the size of the destination province’s migrant community. Foreign and domestic investments influence migration patterns, but sometimes in unexpected ways. We find that as economic reforms in China deepened in the 1990s, the structure of internal migration did not change as much as earlier studies have suggested. Consequently, our results raise new questions about the World’s largest-scale test case of internal migration and strongly suggest a need for further research.
    Keywords: internal migration, investment, migrant networks
    JEL: J61
    Date: 2007–07
  6. By: Gregory C. Chow (Princeton University)
    Abstract: After describing the institutions for health care in China as they evolved since 1949, this paper presents statistical demand functions for health care. It applies the demand functions to explain the rapid increase in health care demand and the resulting rapid increase in price when supply failed to increase. The failure in increase in supply was traced to the system of public supply of healthcare in China. The reform experience of Suqian city in the privatization of healthcare is reported to demonstrate the positive effect of privatization on supply. The government’s health care program for the urban and rural population is described and an evaluation of it is provided.
    Date: 2006–08
  7. By: Fenglian Du; Jian-chun Yang; Xiao-yuan Dong
    Abstract: This paper provides the first systematic analysis of the reasons why women endure longer unemployment durations than men in post-restructuring urban China using data obtained from a national representative household survey. Rejecting the view that women are less earnest than men in their desire for employment, the analysis shows that women's job search efforts are handicapped by lack of access to social networks, social stereotyping (that married women are unreliable employees), unequal access to social reemployment services stemming from sex segregation prior to the displacement, and wage discrimination in the post-restructuring labor market.
    Keywords: Gender inequality, unemployment duration, Oaxaca-decomposition
    JEL: J16 J21 J64 J71 R20
    Date: 2007

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