nep-cna New Economics Papers
on China
Issue of 2010‒05‒22
three papers chosen by
Zheng Fang
Ohio State University

  1. Knowledge Spillovers from FDI in the People's Republic of China: The Role of Educated Labor in Multinational Enterprises By Todo, Yasuyuki; Zhang, Weiying; Zhou, Li-An
  2. Economic Reform, Education Expansion, and Earnings Inequality for Urban Males in China, 1988-2007 By Meng, Xin; Shen, Kailing; Xue, Sen
  3. China's export growth and the China safeguard : threats to the world trading system ? By Bown, Chad P.; Crowley, Meredith A.

  1. By: Todo, Yasuyuki (Asian Development Bank Institute); Zhang, Weiying (Asian Development Bank Institute); Zhou, Li-An (Asian Development Bank Institute)
    Abstract: This paper employs a firm-level panel data set for a high-tech cluster in the People's Republic of China to examine knowledge spillovers from multinational enterprises (MNEs) to domestic firms, focusing on the role of MNEs' employment of educated workers. We find that knowledge within MNEs spills over to domestic firms in the same industry through MNEs' employment of workers with graduate-level or overseas education. We also find that Japanese MNEs contribute less to knowledge spillovers than United States MNEs. This is most likely due to the fact that Japanese MNEs in the People's Republic of China do not employ as much educated labor.
    Keywords: knowledge spillovers; foreign direct investment; educated labor; the peoples republic of china
    JEL: F23 O12 O30
    Date: 2009–12–09
  2. By: Meng, Xin (Australian National University); Shen, Kailing (Xiamen University); Xue, Sen (Xiamen University)
    Abstract: In the past 20 years the average real earnings of Chinese urban male workers have increased by 350 per cent. Accompanying this unprecedented growth is a considerable increase in earnings inequality. Between 1988 and 2007 the variance of log earnings increased from 0.27 to 0.48, a 78 per cent increase. Using a unique set of repeated cross-sectional data this paper examines the causes of this increase in earnings inequality. We find that the major changes occurred in the 1990s when the labour market moved from a centrally planned system to a market oriented system. The decomposition exercise conducted in the paper identifies the factor that drives the significant increase in the earnings variance in the 1990s to be an increase in the within-education-experience cell residual variances. Such an increase may be explained mainly by the increase in the price of unobserved skills. When an economy shifts from an administratively determined wage system to a market-oriented one, rewards to both observed and unobserved skills increase. The turn of the century saw a slowing down of the reward to both the observed and unobserved skills, due largely to the college expansion program that occurred at the end of the 1990s.
    Keywords: earnings inequality, China
    JEL: J31 P2 P3
    Date: 2010–04
  3. By: Bown, Chad P.; Crowley, Meredith A.
    Abstract: Is there evidence from China's pre-WTO accession period that newly imposed U.S. or EU import restrictions deflect Chinese exports to third markets? The authors examine this question by drawing on a newly constructed data set of U.S. and EU product-level import restrictions on Chinese trade imposed between 1992 and 2001 and estimate their impact on Chinese exports to 38 alternative markets. There is no systematic evidence that the import restrictions imposed during this period resulted in Chinese exports surging to such alternate destinations. To the contrary, there is weak evidence of a chilling effect on China's exports to third markets.
    Keywords: Free Trade,Economic Theory&Research,Trade Policy,Trade Law,Markets and Market Access
    Date: 2010–05–01

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