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on China |
| By: | Xiaohuan Lan (Cheung Kong GSB); Ben Li (Boston College) |
| Abstract: | This paper provides an economic framework for examining how economic openness affects nationalism. Within a country, a region's level of nationalism varies according to its economic interests in its domestic market relative to its foreign market. A region's nationalism is strongest if the optimal size of its domestic market equals the size of its country. All else being equal, increasing a region's foreign trade reduces its economic interests in its domestic market and thus weakens its nationalism. This prediction holds both cross-sectionally and over time, as evidenced by our empirical study using the Chinese Political Compass data and the World Value Surveys. Our framework also applies to analysis of nationalism across countries and receives support from cross-country data. |
| Keywords: | Nationalism, Economic Openness, Country Size, Gains from Trade, China |
| JEL: | F52 P16 |
| Date: | 2014–05–04 |
| URL: | http://d.repec.org/n?u=RePEc:boc:bocoec:856&r=cna |
| By: | Bartolini, Stefano; Sarracino, Francesco |
| Abstract: | The formidable economic growth of China in the past few decades led to outstanding improvements in virtually all objective indicators of standards of life. However, these objective records are in striking contrast with subjective ones. Between 1990 and 2007, Chinese average subjective well-being substantially declined. Using data from the World Values Survey, this paper identifies the predictors of the trend of life satisfaction in China between 1990 and 2007. Our findings suggest that subjective data capture something that objective data miss and that can explain the decrease in well-being: the increase in the importance of social comparisons and the decline of social capital. Moreover, economic growth resulted in higher well-being inequality: those in the lowest three income deciles and the middle-class experienced a significant reduction in well-being, whereas the latter increased among richer people. Differences in the erosion of social capital and in the impact of social comparisons seem to be the key to well-being differences among classes. |
| Keywords: | China; Easterlin paradox; GDP; economic growth; subjective well-being; life satisfaction; social capital; Oaxaca-Blinder decomposition; WVS |
| JEL: | I31 O12 O15 |
| Date: | 2014–08–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:57765&r=cna |
| By: | Joakim Westerlund (Deakin University); Paresh Kumar Narayan (Deakin University) |
| Abstract: | The few panel data tests for predictability of returns that exist are based on the prerequisite that both the number of time series observations, T, and the number of crosssection units, N, are large. As a result, these tests are impossible for stock markets where lengthy time series data are scarce. In response to this, the current paper develops a new test for predictability in panels where T ≥ 2 but N is large, which seems like a much more realistic assumption when using firm-level data. As an illustration, we consider the Chinese stock market, for which data is only available for 17 years but where the number firms is relatively large, 160. |
| Keywords: | Panel data; Predictive regression; Stock return predictability; China. |
| JEL: | C22 C23 G1 G12 |
| URL: | http://d.repec.org/n?u=RePEc:dkn:ecomet:fe_2014_13&r=cna |
| By: | Matthew Dornan, Philippa Brant |
| Abstract: | Chinese development assistance in the Pacific has attracted increasing attention since the 1st China-Pacific Island Countries Economic Development and Cooperation Forum in 2006, at which China announced US$492 million in concessional loans to the region. Another US$1 billion in concessional loans was announced at the 2nd China-Pacific Forum in 2013. This article explores how Pacific island governments negotiate and oversee the implementation of Chinese official development assistance in four Pacific Island case study countries where assistance has been significant: Tonga, Vanuatu, Samoa and the Cook Islands. We argue that the way in which governments have pursued, overseen and implemented projects has differed considerably, and is an important determinant of the effectiveness and developmental impact of Chinese assistance. |
| Keywords: | Chinese aid; Pacific Island countries; China Eximbank; development assistance; Small Island Developing States (SIDS) |
| URL: | http://d.repec.org/n?u=RePEc:een:appswp:5.35&r=cna |
| By: | Chong, Terence Tai Leung; Ding, Haoyuan; Park, Sung Y |
| Abstract: | The causality between the real estate and stock markets of China remains a mystery in the literature. This paper investigates the non-linear causal relationship between real estate property and stock returns in China from the perspective of conditional quantiles. The results of the quantile causality test suggest a significant causal relationship between these two markets, especially in the tail quantile. |
| Keywords: | Property return; Stock return; Causality; Quantile regression. |
| JEL: | C22 O18 R31 |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:57774&r=cna |
| By: | Gourdon, Julien; Monjon, Stéphanie; Poncet, Sandra |
| Abstract: | During the last decade, the Chinese government has frequently changed the value added tax (VAT) refund levels offered to exporters. Indeed, China’s VAT system is not neutral, in particular because the exporters may not receive complete refund of the domestic VAT paid on their inputs. This paper investigates how changes in the VAT rebates affect export performance in China. Our empirical analysis relies on export volume data at the HS6 product level over the 2003-12 period. To address potential endogeneity, we exploit an eligibility rule that disqualifies processing trade with supplied materials from the rebates. We find that the adjustments to the VAT rebates have signifi cant repercussions on the exported volume: a one percentage point increase in the VAT rebate can lead to a 7% increase in export volumes. This magnitude allows to better understand the strong resistance of China’s exports amid the global recession. |
| Keywords: | VAT system; Export tax; Export performance; China; |
| JEL: | F10 F14 O14 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:dau:papers:123456789/13784&r=cna |
| By: | Francis Ng |
| Abstract: | In manufacturing, developing economies have gained significant market share in both industrial countries and in each other’s markets. This development have led many writers to argue that market share increases in industrial countries and expanding south-south trade could possibly drive future world trade. Analyzing the manufacturing import penetration in 5 industrial and 7 large developing countries, we show that during the 2000s, about three quarters of market share increases of all developing are due to China. The evidence also shows that market shares of all other developing countries in the Chinese market have decreased. |
| Date: | 2014–07–09 |
| URL: | http://d.repec.org/n?u=RePEc:erp:euirsc:p0397&r=cna |