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on China |
| By: | Robert C. Feenstra; Shang-Jin Wei |
| Abstract: | Over the last three decades, the value of Chinese trade has approximately doubled every four years. This rapid growth has transformed the country from a negligible player in world trade to the world's second largest exporter, as well as a substantial importer of raw materials, intermediate inputs, and other goods. This paper provides an overview of the microstructure of Chinese trade, its macroeconomic implications, trade disputes with other WTO member countries, and the role of foreign firms. |
| JEL: | F1 |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:14716&r=cna |
| By: | Belton Fleisher (Department of Economics, Ohio State University); Xiaojun Wang (Department of Economics, University of Hawaii at Manoa); Haizheng Li (School of Economics, Georgia Institute of Technology); Shi Li (School of Economics and Business, Beijing Normal University) |
| Abstract: | We apply a semi-parametric latent variable model to estimate selection and sorting effects on the evolution of private returns to schooling for college graduates during China’s reform between 1988 and 2002. We find that there were substantial sorting gains under the traditional system, but they have decreased drastically and are negligible in the most recent data. We take this as evidence of growing influence of private financial constraints on decisions to attend college as tuition costs have risen and the relative importance of government subsidies has declined. The main policy implication of our results is that labor and education reform without concomitant capital market reform and government support for the financially disadvantaged exacerbates increases in inequality inherent in elimination of the traditional "wage-grid." |
| Keywords: | Return to schooling, selection bias, sorting gains, heterogeneity, financial constraints, comparative advantage, China |
| JEL: | J31 J24 O15 |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:osu:osuewp:09-02&r=cna |
| By: | Xu, Yingfeng (University of Alberta, Department of Economics); Yan, Xiaoyi (Department of Human Resources and Social Development Canada) |
| Abstract: | It is widely accepted that China needs to shift from its past mode of export-led growth and start to rely more on domestic demand. What role could the real appreciation of the Chinese yuan play in this regard? We attempt to quantify the impact on the structure of the Chinese economy of the real appreciation of the Chinese yuan. We argue that the potential of the service sector to generate income and jobs may be significantly under-estimated by official statistics, as a result of the under-estimation of household consumption of services. While there is no evidence of large under-valuation for the Chinese yuan, we do find that a real appreciation in the order of 20% would bring the Chinese price level in line with the world average level, after the Balassa-Samuelson effect is factored in. In turn, such a real appreciation could increase the service share of employment by 7%. |
| Keywords: | China; real exchange rate; service sector |
| JEL: | E01 E21 F31 O53 |
| Date: | 2009–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:ris:albaec:2009_011&r=cna |
| By: | Jin Feng; Lixin He; Hiroshi Sato |
| Abstract: | We relate household saving to pension reform, to explain the high household saving rates in urban China from a new perspective. We use the exogenous-policy induced-variation in pension wealth to explicitly estimate the impact of pension wealth on household saving, and obtain a significant offset effect of pension wealth on household saving. Our estimations show that pension reform boosted the household saving rate in 1999 by about 6 percentage points for cohort aged 25-29 and by about 3 percentage points for cohort aged 50-59. Our results also indicate that declining pension wealth reduces expenditure on education and health more than on other consumption items. |
| Keywords: | pension reform, pension wealth, household saving rate, urban China |
| JEL: | E21 H55 P43 |
| Date: | 2009–02 |
| URL: | http://d.repec.org/n?u=RePEc:hst:ghsdps:gd08-030&r=cna |
| By: | Du, Jun; Girma, Sourafel |
| Abstract: | Using a comprehensive firm-level dataset spanning the period 1998-2005, this paper provides a thorough investigation of the relationship between firm size, total factor productivity growth and financial structure in China, controlling for the endogeneity of the latter. Generally, it finds financing source matters for firms of different size, and the extent to which financing source matters for firm growth is greater for small firms than big firms. Self-raised finance appears to be most effective in promoting small firms to grow, and bank loan seems to be more supportive to big firms. The relationship between size, finance and growth also depends on ownership. In addition, there exist strong complementarities between formal and informal finance, as well as between indigenous and foreign finance. |
| Keywords: | China, finance, firm size, growth |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:rp2009-03&r=cna |
| By: | Yu-Wei Hu; Fiona Stewart |
| Abstract: | China currently has a highly diversified structure of pension regulation and supervision. In this paper we first review the legal framework of private pension fund regulation and supervision in other economies, including Australia, Chile, Hong Kong China, Poland, Turkey, the United Kingdom and the United States. Then, based on international practices and experiences identified, and taking into account China‘s unique situation, we examine potential ways to improve the current private pension regulatory and supervisory structure in the country.<P>Réglementation des agréments et structure de contrôle des pensions privées : Pratiques à l’échelle internationale et implications pour la Chine<BR>La structure actuelle de réglementation et de contrôle des pensions en Chine est très hétérogène. Le présent rapport examine, dans un premier temps, le cadre juridique de la réglementation et du contrôle des pensions privées dans d'autres pays, comme l'Australie, le Chili, Hong Kong-Chine, la Pologne, la Turquie, le Royaume-Uni et les États-Unis. Ensuite, en s'appuyant sur les pratiques recensées à l'échelle internationale et sur la situation particulière de la Chine, il étudie les possibilités d'amélioration de la structure de réglementation et de contrôle des pensions privées actuellement en vigueur dans le pays. |
| Keywords: | private pensions, pension privée, licensing, China, plans de pensions professionnelles, enterprise annuity, Chine, pension regulation, réglementation des pensions, supervisory structure, structure de contrôle, agrément |
| JEL: | G23 I32 |
| Date: | 2009–01 |
| URL: | http://d.repec.org/n?u=RePEc:oec:dafaab:33-en&r=cna |
| By: | Martin Schaaper |
| Abstract: | This working paper provides input to the OECD Review of Innovation Policy for China (OECD, 2008), which was released in September 2008. Science and technology (S&T) have been pinpointed by the Chinese State Council as a key driving force for sustainable economic growth and the transformation of China into an innovation-oriented nation on the basis of the development of a national innovation system with strong indigenous innovation capacity. One of the targets set in the National Guidelines for the Medium- and Long-term Plan for Science and Technology Development (2006-20) is to raise the ratio of R&D to GDP to 2% by 2010 and to 2.5% or more by 2020. This is an extremely ambitious target, as it implies the need for R&D expenditure to increase by at least 10-15% annually.<P>Évaluation du système d'innovation de la Chine : Spécificités nationales et comparaisons internationales<BR>Ce document de travail est une contribution à la Revue de l’OCDE sur les politiques d’innovation pour la Chine (OCDE, 2008) qui a été publiée en septembre. La science et la technologie (S-T) ont été identifiées par le Conseil d’État chinois comme étant des ressorts essentiels pour l’instauration d’une croissance économique durable et la transformation de la Chine en un pays orienté vers l’innovation grâce à la mise en oeuvre d’un système national d’innovation doté d’une solide capacité d’innovation propre. Les lignes directrices nationales pour les programmes à moyen et long termes de développement de la science et de la technologie (2006-2020) ont notamment pour objectif de porter la R-D à 2 % du PIB d’ici 2010 et à 2,5 % ou plus d’ici 2020. Il s’agit là d’un objectif extrêmement ambitieux qui suppose que les dépenses de R-D augmentent d’au moins 10 à 15 % par an de manière continue. |
| Date: | 2009–01–15 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaaa:2009/1-en&r=cna |