nep-cna New Economics Papers
on China
Issue of 2014‒08‒16
six papers chosen by
Zheng Fang
Ohio State University

  1. A Field Study of Chinese Migrant Workers’ Attitudes toward Risks, Strategic Uncertainty, and Competitiveness By Li Hao; Daniel Houser; Lei Mao; Marie Claire Villeval
  2. Decoding the Growth-Nutrition Nexus in China: Inequality, Uncertainty and Food Insecurity By Jing You; Katsushi S. Imai; Raghav Gaiha
  3. Aging and Migration in a Transition Economy: The Case of China By Bodvarsson, Örn B.; Hou, Jack W.; Shen, Kailing
  4. Exports and Employment in China, Indonesia, Japan and Korea By Kozo Kiyota
  5. Divorce, Abortion and Children's Sex Ratio: The Impact of Divorce Reform in China By Sun, Ang; Zhao, Yaohui
  6. The Renminbi and Exchange Rate Regimes in East Asia By Masahiro Kawai; Victor Pontines

  1. By: Li Hao (Sam M. Walton College of Business, University of Arkansas, Fayetteville, AR 72701, USA); Daniel Houser (George Mason University, 4400 University Drive, MSN 1B2, Fairfax, VA 22030 USA); Lei Mao (Université de Lyon, Lyon, F-69007, France ; CNRS, GATE Lyon St Etienne,F-69130 Ecully, France); Marie Claire Villeval (Université de Lyon, Lyon, F-69007, France ; CNRS, GATE Lyon St Etienne,F-69130 Ecully, France)
    Abstract: Using a field experiment in China, we study whether migration status is correlated with attitudes toward risk, ambiguity, and competitiveness. Our subjects include migrants and non-migrants. We find that, migrants exhibit no differences from non-migrants in risk and ambiguity preferences elicited using pairs of lotteries ; however, migrants are significantly more likely to enter competition in the presence of strategic uncertainty when they expect competitive entries from others. Our results suggest that migration may be driven more by a stronger belief in one’s ability to succeed in an uncertain and competitive environment than by risk attitudes under state uncertainty.
    Keywords: Migration, risk preferences, strategic uncertainty, ambiguity, field experiment
    JEL: C93 D03 D63 J61
    Date: 2014
  2. By: Jing You; Katsushi S. Imai; Raghav Gaiha
    Date: 2014
  3. By: Bodvarsson, Örn B. (California State University, Sacramento); Hou, Jack W. (California State University, Long Beach); Shen, Kailing (Xiamen University)
    Abstract: Post-reform China has been experiencing two major demographic changes, an extraordinary amount of internal migration and an aging population. We present a general migration model which captures the idea that older migrants have shorter durations in the destination but possibly larger general human capital to transfer. Therefore, the incentive to migrate is ambiguously related to age. We test the theoretical implication using an extended modified gravity model, nuanced to fit the case of a transition economy. We find that shifts in China's age distribution have generated significant changes in the country's migration patterns.
    Keywords: internal migration, age distribution, reforms
    JEL: J61 J11
    Date: 2014–07
  4. By: Kozo Kiyota
    Abstract: This paper examines the effects of exports on employment in China, Indonesia, Japan and Korea. It draws on input-output data for the period from 1995 to 2009 to estimate the effects on each industry's employment (i.e. direct effects) and on other industries' employment through intra-industry linkages (i.e. indirect effects). There are four major findings. First, at the aggregate level, the implied employment from exports increased in China, Japan and Korea. Second, at the industry level, exports and the shares of implied employment from exports increased in machinery-related industries such as Machinery (NEC), Electrical and Optical Equipment, and Transport Equipment in China, Indonesia and Korea. Third, although more than 80% of exports in the four study countries are from manufacturing industries, the employment effects are not limited to manufacturing industries. A significant number of workers in non-manufacturing industries depend upon manufacturing exports through vertical inter-industry linkages. Non-manufacturing industries account for between 40% and 60% of the implied employment from exports. Finally, in 2009, the share of implied employment from Chinese final demand exceeded that from the US final demand in both Japan and Korea. An implication of the overall results is that even in cases where an industry is not particularly directly export-oriented, the industry may still be subject to potential effects – positive or negative – of changes in export demand.
    Keywords: trade, employment, intra-industry linkages, exports
    JEL: F16
    Date: 2014–08–01
  5. By: Sun, Ang (Renmin University of China); Zhao, Yaohui (Peking University)
    Abstract: This paper explores how the relative circumstances of men and women following marital dissolution affect sex-selection behavior within marriages. China's 2001 divorce reform liberalized divorce in favor of women and secured women's property rights after separation. We use this improvement in women's bargaining power in marriage for a regression discontinuity analysis of the demand for sex-selective abortions. We show that the increase in women's bargaining power reduces the propensity to have a son after a firstborn daughter by 8.9 percentage points. We also find that the effect is larger for women with higher health risks.
    Keywords: gender inequality, intra-household allocation, divorce law
    JEL: D13 J12 J13 J16
    Date: 2014–05
  6. By: Masahiro Kawai (Asian Development Bank Institute (ADBI)); Victor Pontines
    Abstract: With the rise of the People’s Republic of China (PRC) as the world’s largest trading nation (measured by trade value) and second largest economic power (measured by GDP), its economic influence over the neighboring emerging economies in East Asia has also risen. The PRC introduced some exchange rate flexibility in July 2005, and in the wake of the global financial crisis has been pursuing a policy to internationalize its currency, the renminbi (RMB). Clearly the exchange rate policy of the PRC has significant implications for exchange rate regimes in emerging East Asia. This paper examines the behavior of the RMB exchange rate and the impact of RMB movements on those of other currencies in emerging East Asia during the period 2000–2014. We apply the Frankel–Wei regression model to identify changes in the RMB exchange rate regime over time and a modified version of the model, developed by the authors in their earlier paper, to estimate the RMB weight in an emerging East Asian economy’s currency basket. We find that the US dollar continues to be the dominant anchor currency in the region, while the RMB has taken on increasing importance in the currency baskets of many East Asian economies in recent years. The paper also explores how monetary and currency cooperation—led by the PRC and Japan—can promote intra-East Asian exchange rate stability under the pressure of rising financial market openness in the PRC.
    Keywords: Remminbi, China, PRC, exchange rate regime, East Asia, exchange rate policy, the Frankel–Wei model, Japan, financial market openness
    JEL: F15 F31 F36 F41 O24
    Date: 2014–05

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