nep-cna New Economics Papers
on China
Issue of 2015‒03‒05
five papers chosen by
Zheng Fang
Ohio State University

  1. Impacts of the World Trade Organization on Chinese Exports By WAKASUGI Ryuhei; ZHANG Hongyong
  2. The Global Labor Market Impact of Emerging Giants: a Quantitative Assessment By Andrei A. Levchenko; Jing Zhang
  3. China : PIM under Reform and Decentralization By Christine Wong
  4. China’s Growing Demand for Agricultural Imports By Gale, Fred; Hansen, James; Jewison, Michael
  5. Income-Related Children's Health Inequality and Health Achievement in China By Lu Chen; Ya Wu; Peter Coyte

  1. By: WAKASUGI Ryuhei; ZHANG Hongyong
    Abstract: Chinese exports dramatically increased in the early 2000s as China reformed its economy to become more free and open via its entry into the World Trade Organization (WTO), which clearly affected the productivity and exports of Chinese firms. This paper, using firm-level panel data from the Chinese electric machinery, electronics equipment, and telecommunications equipment industries, confirms that after the entry into the WTO, the export decision of Chinese firms was accelerated by a rise in productivity that was not uniform among the ownership structures. By disaggregating the firms into three groups—private domestic firms (PDFs), state-owned enterprises (SOEs), and foreign invested enterprises (FIEs)—our empirical estimation reveals that the economic reform via the entry into the WTO had a "productivity effect" on Chinese exports which commonly enhanced firms' exports according to their productivity levels, but had an asymmetric "ownership effect" on their exports among the three groups, which was less favorable for exports of SOEs in comparison with that of FIEs and PDFs.
    Date: 2015–02
  2. By: Andrei A. Levchenko (University of Michigan and NBER); Jing Zhang (Federal Reserve Bank of Chicago)
    Abstract: This paper investigates both aggregate and distributional impacts of the trade integration of China, India, and Central and Eastern Europe in a quantitative multi-country multi-sector model, comparing outcomes with and without factor market frictions. Under perfect within-country factor mobility, the gains to the rest of the world from trade integration of emerging giants are 0.37%, ranging from -0.37% for Honduras to 2.28% for Sri Lanka. Reallocation of factors across sectors contributes relatively little to the aggregate gains, but has large distributional effects. The aggregate gains to the rest of the world are only 0.065 percentage points lower when neither capital nor labor can move across sectors within a country. On the other hand, the distributional effects of the emerging giants' trade integration are an order of magnitude larger, with changes in real factor returns ranging from -5% to 5% across sectors in most countries. The workers and capital owners in emerging giants' comparative advantage sectors such as Textiles and Wearing Apparel experience greatest losses, while factor owners in Printing and Medical, Precision and Optical Instruments normally gain the most.
    Keywords: factor markets, Ricardian models of trade, welfare, distributional impact
    JEL: F11 F15 F16
  3. By: Christine Wong
    Keywords: Finance and Financial Sector Development - Access to Finance Macroeconomics and Economic Growth - Investment and Investment Climate Finance and Financial Sector Development - Debt Markets Finance and Financial Sector Development - Non Bank Financial Institutions Banks and Banking Reform
    Date: 2014
  4. By: Gale, Fred; Hansen, James; Jewison, Michael
    Abstract: This report examines China’s recent emergence as a major agricultural importer and its implications for global markets. It analyzes trade patterns employing U.S. and Chinese trade statistics, summarizes alternative projections of future imports, and discusses how Chinese officials are adjusting their strategic approach to agricultural trade as imports grow. A strong agricultural trading partnership has developed between China and the United States that is likely to persist into the future. However, Chinese interventions to preserve self-reliance create volatility and uncertainty that can disrupt markets.
    Keywords: China, agricultural imports, soybeans, grain, meat, dairy, projections, policy, Agricultural and Food Policy, International Relations/Trade,
    Date: 2015–02
  5. By: Lu Chen; Ya Wu; Peter Coyte
    Abstract: This study assessed income-related health inequality and health achievement in children in China, and additionally, examined province-level variations in health achievement. Longitudinal data on 19,801 children under 18 years of age were derived from the China Health and Nutrition Survey. Income-related health inequality and health achievement were measured by the Health Concentration and Health Achievement Indices, respectively. Panel data with a fixed effect multiple regression model was employed to examine province-level variations in health achievement. A growing trend was towards greater health inequality among Chinese children over the last two decades. Although health achievement was getting better over time, the pro-rich inequality component has lessened the associated gain in achievement. Health achievement was positively impacted by middle school enrollments, the urbanization rate, inflation-adjusted per capita gross domestic product, and per capita public health spending. This study has provided evidence that average health status of Chinese children has improved, but inequality has widened. Widening inequality slowed the growth in health achievement for children over time. There were wide variations in health achievement throughout China.
    Keywords: child health inequality, concentration index, health achievement
    JEL: D63 I14 J13
    Date: 2015–02

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.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.