nep-cna New Economics Papers
on China
Issue of 2014‒09‒05
two papers chosen by
Zheng Fang
Ohio State University

  1. The Domestic Segment of Global Supply Chains in China under State Capitalism By Tang, Heiwai; Wang, Fei; Wang, Zhi
  2. Minorities in Rural China: Poorer but Inherently Happier? By John Knight; Li Shi; Yuan Chang

  1. By: Tang, Heiwai (Johns Hopkins University and CESIfo); Wang, Fei (University of International Business and Economics); Wang, Zhi (United States International Trade Commission)
    Abstract: This paper proposes methods to incorporate firm heterogeneity in the standard IO-table based approach to portray the domestic segment of global value chains in a country. Using Chinese firm census data for both manufacturing and service sectors, along with constrained optimization techniques, we split the conventional IO table into sub-accounts, which are used to estimate direct and indirect domestic value added in exports of different types of firm. We find that in China, both state-owned enterprises (SOEs) and small and medium domestic private enterprises (SMEs) have much higher shares of indirect exports and ratios of value-added exports to gross exports (VAX), compared to foreign-invested and large domestic private firms. Based on IO tables for both 2007 and 2010, we find increasing VAX ratios for all firm types, particularly for SOEs. By extending the method proposed by Antràs et al. (2012), we find that SOEs are consistently more upstream while SMEs are consistently more downstream within industries. These findings suggest that SOEs still play an important role in shaping China’s exports.
    Keywords: China; input-output; trade
    JEL: C67 C82 F1
    Date: 2014–06–01
  2. By: John Knight; Li Shi; Yuan Chang
    Abstract: This is a pioneering study of the determinants of the subjective well-being of ethnic minority people in rural China, using a specially designed sample survey relating to 2011. The underlying hypothesis is that the lifestyle and attitudes of ethnic minorities contribute to their happiness. Five related hypotheses are tested. The minority group is equally happy as the Han group. However, whereas minorities’ much lower income reduces their happiness, this disadvantage is neutralised by their greater inherent capacity for happiness - much of it derived from personal relationships but not, it seems, from lesser materialism or concentrated living together. There is evidence of considerable heterogeneity in happiness across various ethnic minorities. Suggestions are made for further research, including analysis of the (positive) effects of lifestyle against the (negative) effects of perceived discrimination. There is a deeper question with which the paper connects: if subjective well-being is accepted as a criterion for social evaluation, does economic development produce cultural change for the better or for the worse?
    Keywords: China; Culture; Ethnic minorities; Happiness function; Lifestyle; Subjective well-being
    JEL: I31 J15 Z10
    Date: 2014

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