nep-cna New Economics Papers
on China
Issue of 2009‒06‒10
three papers chosen by
Zheng Fang
Ohio State University

  1. The Chinese Export Bundles: Patterns, Puzzles and Possible Explanations By Zhi Wang; Shang-Jin Wei
  2. Where Did All the Remittances Go? Understanding the Impact of Remittances on Consumption Patterns in Rural China By Yu Zhu; Zhongmin Wu; Liquan Peng; Laiyun Sheng
  3. Participation in Payments for Ecosystem Services programmes in developing countries: The Chinese Sloping Land Conversion Programme By Katrina Mullan; Andreas Kontoleon

  1. By: Zhi Wang (Indian Council for Research on International Economic Rela); Shang-Jin Wei (Indian Council for Research on International Economic Rela)
    Abstract: China's exports have become increasingly sophisticated. This has generated anxiety in developed countries as the competitive pressure may be increasingly felt outside labor-intensive industries. Using product-level data on exports from different cities within China, this paper investigates the contributing factors to the rising export sophistication. Somewhat surprisingly, neither processing trade nor foreign invested firms are found to play an important role in generating the increased overlap in the export structure between China and high-income countries. Instead, improvement in human capital and government policies in the form of tax-favored high-tech zones appear to be the key in the country's evolving export structure. On the other hand, processing trade, foreign invested firms, and government-sponsored high-tech zones all have contributed significantly to raising the unit values of China's exports within a given product category.
    Keywords: China, India, Export sophistication, Export structure, high-tech zones,human capital
    JEL: F1 F14
  2. By: Yu Zhu; Zhongmin Wu; Liquan Peng; Laiyun Sheng
    Abstract: We focus on the impact of migrants’ remittances on consumption patterns in rural China, allowing for endogeneity of remittances and county fixed-effects. We find that the marginal propensity to consume out of remittances is close to unity, which is far greater than that out of non-migrant earnings or farm income. These findings imply that rural households take remittances as permanent income and are consistent with the prevalence of circular and repeat migration which is largely caused by the combination of the restrictive hukou (household registration) system and the rigid land tenure system in China.
    Keywords: Rural-Urban Migration; Remittances; Consumption Patterns; Fixed-Effect Instrumental-Variables Estimation
    JEL: D12 D13 J61 R23
    Date: 2009–05
  3. By: Katrina Mullan (North Carolina State University, Dept. of Forestry and Environmental Resources); Andreas Kontoleon (Department of Land Economy, University of Cambridge)
    Abstract: This paper contributes to the limited existing empirical evidence on assessing household participation in Payments for Ecosystem Services (PES) programmes in developing countries. We examine this issue for the case of the Sloping Land Conversion Programme (SLCP) in China, one of the largest PES schemes in the world, using household and village level data. Our analysis examines the determinants of both current and future participation in the SLCP and makes three key contributions. First, we show the importance of incorporating the influence of programme administrators in the observed participation outcome. Secondly, we use a novel latent class approach to account for heterogeneity in the determinants of the household decision over whether to sign up to a PES programme. Thirdly, the empirical analysis focuses on the impact of market imperfections that are prevalent in developing countries. We find significant differences between households with good access to markets and those facing market imperfections.
    Keywords: Payments for Ecosystem Services; programme participation; latent class model; China ; Sloping Land Conversion Programme, separability.
    Date: 2009

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