nep-cna New Economics Papers
on China
Issue of 2015‒01‒14
eleven papers chosen by
Zheng Fang
Ohio State University

  1. Greenhouse gas intensity of three main crops and implications for low-carbon agriculture in China By Wang, Wen; Guo, Liping; Li, Yingchun; Su, Man; Lin, Yuebin; De Perthuis, Christian; Ju, Xiaotang; Lin, Erda; Moran, Dominic
  2. Multi-dimensional Intertemporal Poverty in Rural China By Jing You; Sangui Wang; Laurence Roope
  3. Opportunities for US-China Investments in Agricultural Innovation and New Technologies By Kimle, Kevin
  4. Housing Property Rights and Subjective Wellbeing in Urban China By Zhiming Cheng; Stephen P. King; Russell Smyth; Haining Wang
  5. The structural behavior of China–US trade flows By Cheung, Yin-Wong; Chinn , Menzie D.; Qian, Xingwang
  6. Expropriation with Hukou Change: Evidence from a Quasi-Natural Experiment By Akgüc, Mehtap; Liu, Xingfei; Tani, Massimiliano
  7. Aligning public expenditure for agricultural development priorities under rapid transformation: The case of China: By Yu, Bingxin; Chen, Kevin Z.; Zhang, Haisen
  8. Export management and incomplete VAT rebates to exporters: the case of China By Sandra PONCET; Julien GOURDON; Laura HERING; Stéphanie MONJON
  9. Are Prices Sticky in Large Developing Economies? An Empirical Comparison of China and India By Chong, Terence Tai Leung; Zhu, Tingting; Rafiq, M.S.
  10. Returns to Education in China: A Meta-analysis By Sefa Awaworyi; Vinod Mishra
  11. Define green sector: a pre-requisite to analyze China-Europe cooperation in the green industries By Federico Salvatelli

  1. By: Wang, Wen; Guo, Liping; Li, Yingchun; Su, Man; Lin, Yuebin; De Perthuis, Christian; Ju, Xiaotang; Lin, Erda; Moran, Dominic
    Abstract: China faces significant challenges in reconciling food security goals with the objective of becoming a low-carbon economy. Agriculture accounts for approximately 11 % of China’s national greenhouse gas (GHG) emissions with cereal production representing a large proportion (about 32 %) of agricultural emissions. Minimizing emissions per unit of product is a policy objective and we estimated the GHG intensities (GHGI) of rice, wheat and maize production in China from 1985 to 2010. Results show significant variations of GHGIs among Chinese provinces and regions. Relative to wheat and maize, GHGI of rice production is much higher owing to CH4 emissions, and is more closely related to yield levels. In general, the south and central has been the most carbon intensive region in rice production while the GHGI of wheat production is highest in north and northwest provinces. The southwest has been characterized by the highest maize GHGI but the lowest rice GHGI. Compared to the baseline scenario, a 2 % annual reduction in N inputs, combined with improved water management in rice paddies, would mitigate 17 % of total GHG emissions from cereal production in 2020 while sustaining the required yield increase to ensure food security. Better management practices will entail additional gains in soil organic carbon further decreasing GHGI. To realize the full mitigation potential while maximizing agriculture development, the design of appropriate policies should accommodate local conditions.
    Keywords: food security; low-carbon agriculture; greenhouse gas intensity; China;
    JEL: Q15 Q24 Q54 Q18
    Date: 2015
  2. By: Jing You; Sangui Wang; Laurence Roope
    Abstract: We analyse intertemporal poverty in two important dimensions income and nutrition in less developed northwest China during 2000-2004. A generalised recursive selection model is proposed which enables simultaneous estimation of the causes of intertemporal poverty within and between dimensions. Improvement in agricultural production is crucial for reducing both dimensions of intertemporal poverty. We find evidence suggestive of intertemporal income-nutrition poverty traps.Higher labour productivity, especially in agriculture rather than local off-farm activities or out-migration, holds much potential for breaking the vicious circle. Agricultural innovation and mechanisation, regarded by the government as indispensable, yield mixed outcomes for intertemporal multi-dimensional poverty reduction.
    Keywords: intertemporal poverty, multi-dimensional poverty, rural China
    JEL: D63 I3 O52
    Date: 2014
  3. By: Kimle, Kevin
    Abstract: This paper suggests four models that could link US and Chinese investment and yield productive new avenues for commercial collaboration. All four models focus on animal protein supply chain technologies. That is because agricultural innovation in this realm is of particular importance to demandside developments and to rapidly changing consumption patterns in China.  These four models focus on early-stage agricultural innovation and business development. 
    Keywords: China; innovation; agricultural technologies; Investment; Business startups
    JEL: M13 M16 O32 Q13 Q16
    Date: 2014–09–21
  4. By: Zhiming Cheng; Stephen P. King; Russell Smyth; Haining Wang
    Abstract: This study explores the relationship between home ownership and subjective wellbeing in urban China. We first present a theoretical model examining the relationship between housing property rights and subjective wellbeing in China. We then test the predictions of the theoretical model using a nationally representative dataset. We find that not only home ownership, but the property rights one acquires and the source of those property rights matters for subjective wellbeing. Moreover, not only whether one has a home loan, but the type of home loan one has matters for subjective wellbeing.
    Keywords: Subjective wellbeing, housing property rights, China
    Date: 2014–09
  5. By: Cheung, Yin-Wong (BOFIT); Chinn , Menzie D. (BOFIT); Qian, Xingwang (BOFIT)
    Abstract: We examine Chinese-US trade flows over the 1994-2012 period, and find that, in line with the conventional wisdom, the value of China’s exports to the US responds negatively to real renminbi (RMB) appreciation, while import responds positively. Further, the combined empirical price effects on exports and imports imply an increase in the real value of the RMB will reduce China’s trade balance. The use of alternative exchange rate measures and data on different trade classifications yields additional insights. Firms more subject to market forces exhibit greater price sensitivity. The price elasticity is larger for ordinary exports than for processing exports. Finally, accounting for endogeneity and measurement error matters. Hence, the purging the real exchange rate of the portion responding to policy, or using the deviation of the real exchange rate from the equilibrium level yields a stronger measured effect than when using the unadjusted bilateral exchange rate.
    Keywords: import; export; elasticity; real exchange rate; processing trade
    JEL: F12 F41
    Date: 2014–12–03
  6. By: Akgüc, Mehtap (Center for European Policy Studies (CEPS)); Liu, Xingfei (IZA); Tani, Massimiliano (IZA)
    Abstract: We study the labor market outcomes of males aged 18-60 obtaining an urban hukou as a result of land expropriation across a number of provinces in China. Using 2008 and 2009 RUMiC data pooling urban, rural and migrant samples, we find that those obtaining an urban hukou have better labour market outcomes than rural stayers and migrants, and close the gap vis-à-vis native urbanites. We also find that children of families experiencing a hukou change due to expropriation have similar investment in human capital as the children of native urban hukou holders. The results confirm the hukou status as a strong economic determinant of labor market outcomes and as a source of inequality. Differences in educational investment, regardless of the differences in parental background, appear however to disappear for the children of families experiencing expropriation, suggesting that leveling the hukou status amongst children in an urban area may be a first step towards reducing intergenerational inequality.
    Keywords: expropriation, China, labour markets, economic reform, quasi-experiment
    JEL: D19 J18 O12 O43 R20
    Date: 2014–12
  7. By: Yu, Bingxin; Chen, Kevin Z.; Zhang, Haisen
    Abstract: This paper provides a comprehensive review of agricultural policy and public agricultural expenditure (PAE) in China. China shifted away from taxing agriculture to supporting agriculture in the mid-2000s, but the sector faces mounting demographic, biophysical, and trade challenges. PAE in China is outpacing that of other developing economies in Asia, but its composition does not align perfectly with the development challenges and priorities the sector faces.
    Keywords: Agricultural research, Agriculture, public expenditure, Food safety, Environment, Poverty, Agricultural policies, Economic development, agricultural sector, composition, inequality,
    Date: 2014
  8. By: Sandra PONCET (Université de Paris I); Julien GOURDON (FERDI); Laura HERING (FERDI); Stéphanie MONJON (FERDI)
    Abstract: Compared to most countries, China’s value-added tax (VAT) system is not neutral and makes it less advantageous to export a product than to sell it domestically, as exporters may not receive a complete refund on the domestic VAT they have paid on their inputs. However, the large and frequent changes to the VAT refunds which are offered to exporters have been led China to be accused of providing its firms with an unfair advantage in global trade. We use city-specific export-quantity data at the HS6-product level over the 2003-12 period to assess how changes in these VAT rebates have affected Chinese export performance. Our identification strategy relies on triple difference estimates that exploit an eligibility rule which disqualifies processing trade with supplied materials from these rebates. We find that changes in VAT rebates have significant export repercussions: eligible export quantity for a given city-HS6 pair rises by 6.5% following a one percentage-point increase in the VAT rebate. This magnitude yields a better understanding of the strong resistance of Chinese exports during the global recession, in which export rebates increased substantially.
    JEL: F10 F14 O14
    Date: 2014–12
  9. By: Chong, Terence Tai Leung; Zhu, Tingting; Rafiq, M.S.
    Abstract: This paper compares the role of macroeconomic and sector-specific factors in price movements for China and India, taking into account the features unique to developing economies. We find that fluctuations in the aggregated prices in China are more persistent than the underlying disaggregated prices. Compared to China, prices in India respond more promptly to macroeconomic and monetary policy shocks. We also show that the urban CPI in China responds more sharply than rural CPI when facing sector-specific shocks, while the opposite is true for India.
    Keywords: Disaggregated Prices; Persistence; Common Factors.
    JEL: E31 E32 E52
    Date: 2013–12–31
  10. By: Sefa Awaworyi; Vinod Mishra
    Abstract: Within labour economics, returns to education is an area of focused research. Moreover, amongst the studies looking at the emerging economies, China is the most widely studied economy. While there is general consensus that returns to education are positive, studies use various datasets and methodologies, and consequently present varying estimates of the returns to education. We perform a meta-analysis of the estimates of the returns to education in China, which addresses issues of heterogeneity in the existing literature and examines if variations in reported estimates could be explained by study characteristics such as dataset and estimation methods amongst others. After controlling for publication selection bias, precision effect and funnel asymmetry test (PET/FAT) results indicate that an additional year of schooling is associated with 17.26% increase in income. Meta-regression analysis (MRA) results show that moderating variables and study characteristics account for 53.92% of variations in reported estimates. After controlling for moderating variables, MRA results suggest that the association between education and income in China is 10.25%.
    Keywords: Schooling, Earnings, China, Meta-analysis
    Date: 2014–09
  11. By: Federico Salvatelli (University of Macerata)
    Abstract: This work-in-progress paper suggests a classification of environmental codes. It is one of the first output of a wider research project analyzing Chinese inward and outward FDI in the green industries. This study compares already existing methodological resources and proposes an original taxonomy of green sectors. The literature confirms the absence of a clear classification on different environmental activities (products and services). In many cases goods and services can only be partly categorized as environmental. The study shows a first categorization of economic activities through a codes list where it is possible understand which types of goods and services are considered green. As we review, there are some goods and services that are considered as partly green and it will be necessary to analyze in depth each code. Not all environmental activities could be classified with the highest precision, as there are some activities that do not fully qualify as green activities. In order to have a more reliable assessment, it is necessary to test all items of the taxonomy using the macro or industry/firm level quantitative data. This is a work-in-progress study and it represents a first step to a wider research agenda funded by the European Union. Scholars, practitioners and policy makers can have a clearer definition on environmental products/services.
    Keywords: China, environmental activities, foreign direct investment (FDI), green sector, taxonomy of Green industries
    Date: 2014–12

This nep-cna issue is ©2015 by Zheng Fang. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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