nep-cna New Economics Papers
on China
Issue of 2014‒12‒13
seven papers chosen by
Zheng Fang
Ohio State University

  1. A Biological Basis for the Gender Wage Gap: Fecundity and Age and Educational Hypogamy By Polachek, Solomon; Zhang, Xu; Zhou, Xing
  2. Numerical General Equilibrium Analysis of China's Impacts from Possible Mega Trade Deals By Chunding Li; Jing Wang; John Whalley
  3. Is Maternal Employment Related to Childhood Obesity in China?: Evidence from the China Health and Nutrition Survey By Xie, Ruizhi; Awokuse, Titus
  4. Commercial Plasma Donation and Individual Health in Impoverished Rural China By Chen, Xi
  5. Poverty Exit and Entry in Poor Villages in China By Zhang, Yumei; Filipski, Mateusz; Chen, Kevin; Diao, Xinshen
  6. The Value of “Made in USA”: Impact of Chinese acquisition of a US Company on Consumer Willingness to Pay By JIN, SHAOSHENG; ZHANG, YU
  7. Home Owners’ Willingness to Buy Flood Insurance in Rural China By Jinzheng, Ren Jr; Longling, Li Jr; H. Holly, Wang Jr

  1. By: Polachek, Solomon (Binghamton University, New York); Zhang, Xu (State University of New York, Farmingdale); Zhou, Xing (Nankai University)
    Abstract: This paper shows how a shorter fecundity horizon for females (a biological constraint) leads to age and educational disparities between husbands and wives. Empirical support is based on data from a natural experiment commencing before and ending after China's 1980 one-child law. The results indicate that fertility in China declined by about 1.2-1.4 births per woman as a result of China's anti-natalist policies. Concomitantly spousal age and educational differences narrowed by approximately 0.5-1.0 and 1.0-1.6 years respectively. These decreases in the typical husband's age and educational advantages are important in explaining the division of labor in the home, often given as a cause for the gender wage gap. Indeed, as fertility declined, which has been the historical trend in most developed countries, husband-wife age and educational differences diminished leading to less division of labor in the home and a smaller gender wage disparity. Unlike other models of division of labor in the home which rely on innately endogenous factors, this paper's theory is based on an exogenous biological constraint.
    Keywords: gender wage gap, marital patterns, age at marriage, husband-wife age gap, husband-wife educational gap, homogamy, division of labor in the home, household economics
    JEL: J1 J2 J3 J43 J7 J8 N3 N9 O5 Y8 Z13
    Date: 2014–10
  2. By: Chunding Li; Jing Wang; John Whalley
    Abstract: This paper explores the potential impacts on both China and other major countries of possible mega trade deals. These include the Trans-Pacific Partnership (TPP), the Regional Comprehensive Economic Partnership (RCEP), and various blocked deals. We use a numerical 13-country global general equilibrium model with trade costs to investigate both tariff and non-tariff effects, and include inside money to endogenously determine imports on the trade imbalance. Trade costs are calculated using a method based on gravity equations. Simulation results reveal that all FTA participation countries will gain but all FTA non-participation countries will lose. If non-tariff barriers are reduced more, the impacts will be larger. All effects to China on welfare, trade, export and import are positive. Comparatively China-TPP and RCEP will yield the highest welfare outcomes for the US in our model, China-Japan-Korea FTA will generate the second highest welfare outcome, and China-US FTA will generate the third highest welfare outcome. For the US, China-TPP FTA will generate the highest welfare outcome. For the EU, all China involved mega deals have negative impacts except China-US FTA. For Japan, RCEP will generate the highest welfare outcome. For both Korea and India, RCEP will generate the highest welfare outcome.
    JEL: C68 F47 F53
    Date: 2014–08
  3. By: Xie, Ruizhi; Awokuse, Titus
    Keywords: Health Economics and Policy,
    Date: 2014
  4. By: Chen, Xi (Yale University)
    Abstract: Blood collection following nonstandard operations largely increases the risks of infectious diseases through cross-contamination. Commercial plasma donation and the resulting HIV/AIDS and hepatitis C epidemics in central China in the 1990s killed more than one million people. Many blood banks have since moved to more remote southwest provinces, which have become new suppliers of blood plasma. Utilizing a primary longitudinal survey, this paper documents commercial plasma donation and estimates its negative health impacts in impoverished rural China using individual fixed effect models. Both the linear regression model and generalized linear models are utilized. Attracted by the financial compensation, a majority of plasma donors are poor, and bear grave consequences of malnutrition and worse health status as a result of unhygienic and frequent donations. Donating plasma is associated with a .83 standard deviation (SD) decline in self-rated health, a .54 SD lower self-rated health relative to peers in their age group, a .74 SD higher chance of being infected with hepatitis, lacking of strength to conduct farm work, and experiencing appetite loss, fatigue, nausea, and vomiting. Results indicate an urgent need of more comprehensive and effective interventions on hepatitis screening, diagnosis, and treatment among plasma donors in less developed contexts to eliminate cross-infection of infectious diseases and possible widespread epidemic in the future. Besides, we should encourage voluntary plasma donation to gradually crowd out paid donation.
    Keywords: paid plasma donation, poverty, panel data, HIV/AIDS, hepatitis, health status
    JEL: D1 I14 I18 J22 J24 J4
    Date: 2014–10
  5. By: Zhang, Yumei; Filipski, Mateusz; Chen, Kevin; Diao, Xinshen
    Abstract: Rapid economic growth in China’s booming regions has left other areas of the country lagging behind. We shed light on the poverty dynamics of one such region by analyzing a census-like survey of three administrative villages of Guizhou province in 2004, 2006, 2009, and 2011. While the absolute poverty rate is decreasing sharply in the sample, households are highly vulnerable to shocks, and rates of entry or re-entry into poverty are high. Using logistic regression and multivariate a hazard model, we look for the determinants of both poverty exit and entry. We find that poverty entry and exit are both related to household characteristics, assets, and social capital. Rural-urban migration strongly increases the probability of poverty exit, while poverty entry is associated with disease and some major life events. Our results also point to informal networks and government transfers as means of poverty alleviation, and highlight the importance of smart targeting.
    Keywords: poverty dynamics, hazard model, China, lagging region, Food Security and Poverty, International Development, I32,
    Date: 2014–06
    Abstract: In this study, we explore how the acquisition of Smithfield, the world’s larger pork producer, by a Chinese firm Shuanghui, on Chinese consumers’ WTP to meat product using experimental auctions. We conducted two sets of experiments, one when the acquisition was still pending approval and the other after its approval. Our results indicate that the acquisition benefits Shuanghui in particular and other Chinese firms in general in terms of consumer’s willingness to pay. On the other firms, the general impacts on US firms might be negative, probably due to expected lower price or reduced perceived difference between domestic and imported meat products.
    Keywords: Cross-border Merger and Acquisition, Consumer Willingness to Pay, Auctions, Meat Product, Agribusiness, Agricultural and Food Policy, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Industrial Organization, Institutional and Behavioral Economics, Marketing, D03, D8, F2,
    Date: 2014
  7. By: Jinzheng, Ren Jr; Longling, Li Jr; H. Holly, Wang Jr
    Abstract: In Recent years, flood damage in rural China dramatically increased as a result of more frequent and severe floods. Although the policy-oriented agriculture insurance for natural disasters has been available in China, its coverage only applies to crops and livestock, not residents’ real estate and household property. In this paper, we investigate whether residents in rural China are willing to insure their property against flood damage and what kind of factors influence their willingness to seek insurance protection. Based on the national survey we conducted over 15 provinces in the summer of 2012, with 1322 valid observations, socio-economic, flood risks, insurance experience and region variable are analyzed using different models. The results show that there exists a strong need for flood insurance in rural China, and factors including flood experience in past 30 years, the elapsed time since the latest serious flood, income, and insurance experience influence rural residents’ willingness to participate in flood insurance. Policy suggestions for flood insurance are provided to the insurance industry and Chinese government at the end.
    Keywords: Agricultural Finance, Risk and Uncertainty, Flood insurance, Willingness to pay, rural property,

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