nep-cna New Economics Papers
on China
Issue of 2015‒05‒16
seven papers chosen by
Zheng Fang
Ohio State University

  1. Are China's Ethnic Minorities Less Likely to Move? By Gustafsson, Björn Anders; Yang, Xiuna
  2. Anti-Western conspiracy thinking and expectations of collusion: Evidence from Russia and China By Libman , Alexander; Vollan , Björn
  3. Economic Rebalancing and Growth: the Japanese experience and China’s prospects By Andrea Fracasso
  4. Does Governance Cause Growth? Evidence from China By Wilson, Ross
  5. What drives China’s outward FDI? A regional analysis By You , Kefei
  6. Relationship between Rural-Urban Land Conservation and Economic Development of Metropolitans in China By Huang, Ke; Zhang, An-lu
  7. Supermarket literacy and use of branding in China: The case of fresh meat By Grunert, Klaus G.; Loebnitz, Natascha; Zhou, Yanfeng

  1. By: Gustafsson, Björn Anders (University of Gothenburg); Yang, Xiuna (Beijing Normal University)
    Abstract: This study uses China's Inter-Census Survey 2005 to analyse the extent migration behaviour among 14 large ethnic minority groups and the Han majority. Results show that the probability to migrate to all types of destinations varies by province of origin, decreases by age, and in most cases, by expected income at the origin. Furthermore the probability to migrate is found to typically increase by length of education and decrease for females by the number of children. In most cases investigated, a minority ethnicity reduces migration probabilities for people registered in rural China. This is particularly the case for persons belonging to the Uyghur and Tibetan ethnic groups, but also for the Mongolian, Bai, Yao and Tujia groups. In contrast, Korean and Hui have a higher probability of migration than the majority. For people with an urban hukou there are fewer examples that minority ethnicity affects probability to migrate.
    Keywords: China, ethnic minorities, Uighur, Tibetan, Korean, Hui
    JEL: J15 J61 J7 P23
    Date: 2015–04
  2. By: Libman , Alexander (BOFIT); Vollan , Björn (BOFIT)
    Abstract: Anti-Western conspiracies are frequently used by Governments to strengthen their power. We investigate the impact of conspiracy thinking on expectations of collusion among individuals in Russia and China. For this purpose, we conduct a novel laboratory experiment to measure expectations of collusion and several survey items related to conspiracy thinking. Our survey results indicate that anti-Western conspiracy thinking is widespread in both countries and correlates with distrust. We find a significant effect of anti-Western conspiracy thinking in China: Anti-Western conspiracy thinking correlates with lower expectations of collusion. We explain this result by stronger ingroup feeling emanating from the anti-Western sentiment. Our paper provides a first step in analyzing the economic implications of conspiracy thinking for society.
    Keywords: conspiracy thinking; Russia; China; trust; collusion experiments
    JEL: C91 D83 O17
    Date: 2015–04–29
  3. By: Andrea Fracasso
    Abstract: The Chinese growth model has generated domestic imbalances and social problems. The Chinese leadership is aware of the urgency to address these problems and improve the quality of the growth process. Engineering a successful change (ensuring more even distribution of national income, as well as a rebalancing of the economy away from exports and investment and towards domestic consumption), however, is politically and economically difficult as it may be associated with a slow-down in the rate of growth and the Communist Party's prerogatives. The Japanese experience can help to interpret the current state of China and several insights can be drawn. Japan had to change its growth strategy while preserving high GDP growth at least three times in the past: at the end of the 1960s, when the mobilization of surplus labour was completed; in the mid-1980s, when Japan faced a dramatic appreciation of the yen and liberalized financial flows, moving the economy away from exports; in the 1990s, after the burst of the real estate and stock exchange bubbles. This work addresses whether a parallel between present-China and Japan in the past can be meaningfully made. It considers a long time span for Japan to show that interesting insights can be drawn from various periods of its experience. Short of claiming that China and Japan can be juxtaposed, this contribution takes stock of the Japanese experience to inform the Chinese authorities and those interested in the Chinese economic development. A comparative approach may serve to identify the successful actions and reforms which contributed to make Japan an advanced country after only a few decades from the end of the Second World War and may help to avoid those mistakes that contributed to turn Japan into a stagnating economy.
    Keywords: Chinese economy, Economic rebalancing, Growth
    Date: 2015
  4. By: Wilson, Ross (Department of Economics, Lund University)
    Abstract: This study uses heterogeneous panel Granger causality tests to investigate the causal relationships between quality of governance and economic growth at the provincial level in China during the reform era. I find a significant and positive effect of economic growth on subsequent quality of governance, largely driven by growth in the secondary sector, but no significant effect of quality of governance on economic growth. These findings suggest that improvements in formal governance have not been a key factor in China’s rapid growth, and support the proposition that governance reforms are often a consequence, rather than a cause, of economic growth.
    Keywords: Asia; China; Quality of Governance; Economic Growth
    JEL: O11 O17 O43 O53 R11
    Date: 2015–04–30
  5. By: You , Kefei (BOFIT)
    Abstract: Our study examines home drivers of China’s regional outward FDI. We propose a theoretical framework that incorporates an extended Investment Development Path (IDP) theory, home locational constraints, policy incentives and geographic factors. Empirically, we employ the Bayesian Averaging Maximum Likelihood Estimates method to address model uncertainty. All proposed theories (except for geographic aspects) are found to provide important perspectives explaining China’s regional outward FDI. Our results highlight the importance of government policies but do not support the original IDP hypothesis that outward investment is automatically generated as income grows. Our findings have implications for both regional and central-government policy.
    Keywords: China; regional outward FDI; home determinants; extended IDP theory; home locational constraints; government policies; Bayesian
    JEL: C11 C23 F21 R11
    Date: 2015–05–05
  6. By: Huang, Ke; Zhang, An-lu
    Keywords: Community/Rural/Urban Development, Land Economics/Use,
    Date: 2015–02
  7. By: Grunert, Klaus G.; Loebnitz, Natascha; Zhou, Yanfeng
    Keywords: International Development, Livestock Production/Industries,
    Date: 2015–03

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