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on China |
| By: | Wang, Jian (Federal Reserve Bank of Dallas); Wang, Xiao (University of North Dakota) |
| Abstract: | To examine the effect of foreign direct investment, this paper compares the post-acquisition performance changes of foreign- and domestic-acquired firms in China. Unlike previous studies, we investigate the purified effect of foreign ownership by using domestic-acquired firms as the control group. After controlling for the acquisition effect that also exists in domestic acquisitions, we find no evidence in the data that foreign ownership can bring productivity gains to target firms. In contrast, a strong and robust finding is that foreign ownership significantly improves target firms' financial conditions and exports relative to domestic-acquired firms. Foreign acquisition is also found to improve output, employment and wage for target firms. These findings highlight the financial channel through which FDI benefits income and economic growth of host countries. |
| JEL: | F15 F21 F23 F36 |
| Date: | 2014–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:feddgw:191&r=cna |
| By: | Yannis Ioannides; Junfu Zhang |
| Abstract: | For thousands of years, the Chinese and many other nations around the workd built defensive walls around their cities. This phenomenon is not well understood from an economic perspective. To rationalize the existence of city walls, we propose a simple model that relates the deimesions of city walls to a set of economic variables. Guided by this model, we conduct an empirical alyalysis using hand-collected and previously unused data on city walls in the Ming (1368-1644) and Qing (1644-1911) Dynasties. Consistent with the model, we find that the circumference of a city wall is positively correlated with population size in the jurisdiction and that frontier cities subject to a higher probability of attack tended to have stronger city walls. Since a city wall imposes a physical boundary around a city, the land area inside the city wall provides a natural proxy of city size. We examine the physical size distribution of walled cities in late imperial Chian. We find that city sizes above a certain cutoff follow Zipf's law, although the Zipf coefficient is sensitive to the choice of the cutoff point. This result complements findigs in the existing literature that focuses almost exclusively on the population size distribution of cities. |
| Keywords: | City walls, Pareto distribution, Zipf's law, power law, China |
| JEL: | R12 |
| URL: | http://d.repec.org/n?u=RePEc:tuf:tuftec:0785&r=cna |
| By: | Yifan ZHANG (Lingan University, Hong Kong) |
| Abstract: | Using a large firm-level dataset from the Chinese manufacturing industry, this paper studies the productivity gap and productivity convergence between large and small firms in China. We find that small firms are less productive relative to large firms, but the productivity gap became smaller over the sample period 1999–2007. Based on static and dynamic Blinder-Oaxaca decompositions, we distinguish the endowment effect from the return effect, and quantify the impacts of exports and FDI on the productivity gap and productivity convergence. |
| Keywords: | China, Small firms, Productivity, Globalisation |
| JEL: | F11 L22 O53 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2014-13&r=cna |
| By: | Martin T. Bohl; Jeanne Diesteldorf; Pierre L. Siklos |
| Abstract: | This paper examines whether the introduction of Chinese stock index futures had an impact on the volatility of the underlying spot market. To this end, we estimate several Generalized Auto-Regressive Conditional Heteroscedasticity (GARCH) models and compare our findings for mainland China with Chinese index futures traded in Singapore and Hong Kong. Our results indicate that Chinese index futures decrease spot market volatility all three spot markets considered. In contrast, we do not obtain the same results for the companion index futures markets in Hong Kong and Singapore. China’s stock market is relatively young and largely dominated by private retail investors. Nevertheless, our evidence is favorable to the stabilization hypothesis usually confirmed in mature markets. |
| Keywords: | Chinese Stock Markets, Index Futures, Volatility Spillovers |
| JEL: | G10 G14 G15 G18 |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:cqe:wpaper:3614&r=cna |
| By: | Elizondo Azuela, Gabriela; Barroso, Luiz; Khanna, Ashish; Wang, Xiaodong; Wu, Yun; Cunha, Gabriel |
| Abstract: | This paper considers the design and performance of auction mechanisms used to deploy renewable energy in three emerging economies: Brazil, China, and India. The analysis focuses on the countries'experience in various dimensions, including price reductions, bidding dynamics, coordination with transmission planning, risk allocation strategies, and the issue of domestic content. Several countries have turned to public competitive bidding as a mechanism for developing the renewable generation sector in recent years, with the number of countries implementing some sort of auction procedure rising from nine in 2009 to 36 by the end of 2011 and about 43 in 2013. In general, the use of auctions makes sense when the contracting authority expects a large volume of potentially suitable bids, so that the gains from competition can offset the costs of implementation. A study of the successes and failures of the particular auction design schemes described in this paper can be instrumental in informing future policy making. |
| Keywords: | Energy Production and Transportation,Markets and Market Access,Climate Change Mitigation and Green House Gases,Debt Markets,Emerging Markets |
| Date: | 2014–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7062&r=cna |
| By: | Suzi Kerr (Motu Economic and Public Policy Research); Vicki Duscha (Fraunhofer Institute for Systems and Innovation Research) |
| Abstract: | There are many choices within the design of an emissions trading system. In this paper we focus on one specific aspect – the point of regulation for the energy sector. This choice affects transaction costs; comprehensiveness, and hence the amount of emissions covered and the extent to which the potential cost-effectiveness gains are realised; and credibility of the system. We discuss how an “upstream” energy sector emissions trading system works and present arguments for going upstream (in particular, simplicity of administration) while also discussing arguments for other points of regulation in light of the Chinese circumstances. We present experiences with the New Zealand system, the only system that is entirely upstream for energy, showing ways to address issues that may arise with an upstream system. Ultimately the success of emissions trading depends on markets that operate in a relatively free and competitive way. Simply copying others’ systems to the context of a largely controlled economy such as the Chinese one is likely to be ineffective; each system must be uniquely tailored to local circumstances, possibly in China more than ever before. |
| Keywords: | Emissions trading scheme, point of regulation, upstream, energy sector, China, New Zealand |
| JEL: | Q54 Q56 Q58 Q48 H23 |
| Date: | 2014–09 |
| URL: | http://d.repec.org/n?u=RePEc:mtu:wpaper:14_09&r=cna |
| By: | World Bank |
| Keywords: | Health Monitoring and Evaluation Information Security and Privacy Technology Industry Health, Nutrition and Population - Population Policies Private Sector Development - E-Business Information and Communication Technologies Industry |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:19979&r=cna |
| By: | Leo F. Goodstadt (Hong Kong Institute for Monetary Research and Hong Kong Institute for the Humanities and Social Sciences and University of Dublin) |
| Abstract: | This paper investigates China's pattern of decade-plus delays in implementing banking reforms. It identifies the ideological factors involved, particularly the persistent suspicion of 'market forces' as the economy's driving force. The dependence on the banks to finance the economic and social costs of the retreat from state planning is traced, together with the costs to the banks of funding such urgent national programmes as the 2008 economic stimulus package and the current affordable housing drive. The paper argues that liberalisation of the banking industry will continue to be limited because of the banks' role as the national leadership's last surviving lever of control over policy implementation after the demise of the command economy. |
| Keywords: | China, Banking, Reforms, Ideology, Market Forces, State Intervention |
| Date: | 2014–10 |
| URL: | http://d.repec.org/n?u=RePEc:hkm:wpaper:262014&r=cna |