nep-cna New Economics Papers
on China
Issue of 2015‒08‒25
twelve papers chosen by
Zheng Fang
Ohio State University

  1. Preference for Redistribution and Inequality Perception in China: Evidence from the CGSS 2006 By Zhou Xun
  2. China's carbon flow: 2008-2012 By Huanan Li; Yi-Ming Wei; Zhi-Fu Mi
  3. Migration externalities in Chinese cities By Pierre-Philippe Combes; Sylvie Démurger; Shi Li
  4. The impact of Chinese competition on Africa’s manufacturing By Sylviane Guillaumont Jeanneney; Ping Hua
  5. Is it possible for China to reduce its total CO2 emissions? By Huanan Li; Yi-Ming Wei
  6. Impact of property rights reform to support China?s rural-urban integration : village-level evidence from the Chengdu national experiment By Deininger,Klaus W.; Jin,Songqing; Liu,Shouying; Shao,Ting; Xia,Fang
  7. Real Exchange Rate and Economic Growth in China: A Cointegrated VAR Approach By Tang, Bo
  8. The Financial and Economic Assessment of China's High Speed Rail Investments: A Preliminary Analysis By Jianhong WU
  9. Developmental States: How Algeria makes the best of China to promote its development By Thierry Pairault
  10. China's economic presence in Algeria By Thierry Pairault
  11. Management in China: Cultural, institutional roots and pragmatism. An inquiry in Shanghai By Gregory Wegmann; Ivan Ruviditch
  12. The Lions's Share, Act 2. What's Behind China's Anti-Corruption Campaign? By Guilhem Fabre

  1. By: Zhou Xun (AMSE - Aix-Marseille School of Economics - EHESS - École des hautes études en sciences sociales - Centre national de la recherche scientifique (CNRS) - Ecole Centrale Marseille (ECM) - AMU - Aix-Marseille Université)
    Abstract: In this paper I investigate the conditional correlation between preference for redistribution and the perceived role of "circumstances" and "effort" using the Chinese General Social Survey. I found very significant correlations, thus validating the hypothesis of "sense of justice" for China. The migrant worker group who has dual identity (living/working in an urban area while being registered as a rural individual) is analysed in order to identify a discrimination effect (induced by the Chinese rural-urban segmentation policy) upon attitudes. However, being migrant is an endogenous variable to the attitude variables and the consistent estimate of this effect is much more important than the effect produced by a naïve estimate. The econometric model is a multivariate triangular LDV system with a binary endogenous explanatory variable estimated via a GHK simulator method. To implement the GHK calculations, I propose a parametric constraint to impose the positivity of the 3 × 3 correlation matrix. A generalisation for higher dimension cases is provided.
    Date: 2015–04
  2. By: Huanan Li; Yi-Ming Wei (Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology); Zhi-Fu Mi
    Abstract: As the world's largest CO2 emitter, China's CO2 emissions have become one of the most popular issues concerned by domestic and foreign researchers. Therefore, analysis of the current status of China's carbon emissions is very important. After drawing a chart of China's carbon flow in 2012, based on the IPCC carbon emission inventory method and China's energy balance table, this paper gives a detailed description of the current status of China's carbon flow and compares the changing characteristics of China's carbon flow between 2008 and 2012. The results show that 75.12% of total CO2 emissions flow mainly into several sectors, such as ferrous sectors, and the chemical industry in the terminal sub-sectors. Although China's thermoelectric efficiency increased dramatically during past four years, emissions from the heat and power production sector are still increasing due to China's large demand for heat and power. In the ferrous metal and chemical industry sectors, CO2 emissions are mainly energy-related, while in the non-metallic mineral sector, CO2 emissions are mainly from process CO2 emissions. In different terminal sub-sectors, the main carriers of CO2 flow are different, thus, related CO2 reduction policies should also be targeted. In addition, some valuable suggestions are given in this paper.
    Keywords: CO2 flow chart, CO2 reductions, China
    JEL: Q54 Q40
    Date: 2014–10–01
  3. By: Pierre-Philippe Combes (AMSE - Aix-Marseille School of Economics - EHESS - École des hautes études en sciences sociales - Centre national de la recherche scientifique (CNRS) - Ecole Centrale Marseille (ECM) - AMU - Aix-Marseille Université); Sylvie Démurger (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université Jean Monnet - Saint-Etienne - PRES Université de Lyon - CNRS); Shi Li (Beijing Normal University / Beijing)
    Abstract: We analyse the impact of internal migration in China on natives' labour market outcomes. We find evidence of a large positive correlation of the city share of migrants with natives' wages. Using different sets of control variables and instruments suggests that the effect is causal. The large total migrant impact (+10% when one moves from the first to the third quartile of the migrant variable distribution) arises from gains due to complementarity with natives in the production function (+6.4%), and from gains due to agglomeration economies (+3.3%). Finally, we find some evidence of a stronger effect for skilled natives than for unskilled, as expected from theory. Overall, our findings support large nominal wage gains that can be expected from further migration and urbanisation in China.
    Date: 2015–03–10
  4. By: Sylviane Guillaumont Jeanneney (CERDI - Centre d'études et de recherches sur le developpement international - CNRS - Université d'Auvergne - Clermont-Ferrand I); Ping Hua (CERDI - Centre d'études et de recherches sur le developpement international - CNRS - Université d'Auvergne - Clermont-Ferrand I)
    Abstract: In this paper, the impact of Chinese competition on Africa’s manufacturing value added is analyzed through a model of manufacturing. Using panel data on 44 African countries covering the period 2000 to 2013, and controlling for the usual determinants of industrialization – such as the size of the domestic market, the quality of infrastructure and governance – we find that exports of manufactured goods by China and other countries to African countries mainly exert a negative effect on African manufacturing, while a moderate real appreciation of African currencies vis-à-vis the renminbi positively influences manufacturing value added, probably due to the reduced cost of imported machine and transport equipment from China (which accounted for 36% of total African imports from China in 2013) and to the reduced price of imported consumption goods increasing the remuneration of poor workers and therefore improving their productivity. However, a strong real appreciation (of more than 33%) instead exerts a negative effect on African’s manufacturing, as traditional theory predicts.
    Date: 2015–07–22
  5. By: Huanan Li; Yi-Ming Wei (Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology)
    Abstract: China's CO2 emissions have been the focus of attention for domestic and foreign scholars. However, very few articles have analysed whether and how a reduction of China's total CO2 emissions can be achieved. This is of great significance for meeting China's future CO2 emissions reduction targets. Based on input-output decomposition analysis model and dynamic programming approach, this paper analyses the factors affecting China's total carbon emissions and discuss whether and how it could be possible for China to reduce its total CO2 emissions. The results show that carbon intensity is a major driver for the reduction of China's CO2 emissions and that the impact of industry structure on the increment of China's CO2 emissions has changed from positive to negative in recent years. Under the premise of economic growth, carbon intensity decline and industrial structure adjustment should be coordinated. A reduction in the total amount of China's CO2 emissions is difficult to achieve in the short term, but an effective development mode can be selected with some policy implications suggested.
    Keywords: CO2 reduction, Input-Output model, SDA, dynamic programming approach, China
    JEL: Q54 Q40
    Date: 2014–10–02
  6. By: Deininger,Klaus W.; Jin,Songqing; Liu,Shouying; Shao,Ting; Xia,Fang
    Abstract: As part of a national experiment, in 2008 Chengdu prefecture implemented ambitious property rights reforms, including complete registration of all land together with measures to ease transferability and eliminate labor market restrictions. This study uses a discontinuity design with spatial fixed effects to compare 529 villages just inside and outside the prefecture?s border. The results suggest that the reforms increased tenure security, aligned land use closer to economic incentives, mainly through market transfers, and led to an increase in enterprise start-ups. These impacts, most of which are more pronounced for villages with lower travel time to Chengdu city, point toward high potential gains from factor market reform.
    Keywords: Municipal Housing and Land,National Urban Development Policies&Strategies,Urban Housing,Urban Housing and Land Settlements,Land and Real Estate Development
    Date: 2015–08–11
  7. By: Tang, Bo
    Abstract: This study investigates the relationship between the real exchange rate (RER) and economic growth in China applying a cointegrated VAR (CVAR) model. However, in contrast to the assumptions of trade partners, this paper finds that the Chinese economy has not benefited from the lower exchange rate of the RMB, and no direct linkages exist between the RER and growth in the long run. Interestingly, it appears that the Chinese economy is stimulated by the expansion of exports and inflow of foreign capital according to the empirical evidence, which also suggests that the long run equilibrium RER is jointly determined by the foreign trade, foreign reserves and the foreign direct investment. In addition, the 2005 RMB policy reform did not show any significant impact on the RER, but instead contributed to the steady economic growth. It is clear that, after the 2008 world crisis, the RMB exchange rates were largely dependent on the enhancing of the national strength and inflow of foreign capital, rather than the slow increase in foreign trade. As for policy implications, China may insist on the managed floating exchange rate policy making limited adjustments to the currency's daily floating range in response to the pressures from trade partners.
    Keywords: real exchange rate (RER), economic growth, CVAR, China
    JEL: C32 F31 F43 O24
    Date: 2014–11
  8. By: Jianhong WU
    Abstract: China has suffered railway capacity constraints for more than several decades and the need for a large increase in rail capacity has been viewed as the primary challenge. The former Chinese Ministry of Railways believed that building a national wide high speed railway (HSR) network was the most efficient solution to China’s rail capacity problems. By 2012, 9 000 km of HSR line has been completed which accounted more than half of the total in the World and the other 9 000 km HSR line is either under construction or in the planning stage. This paper attempts to discuss the initial operational, financial and economic result of such a large scale HSR investment in China where the establishment of an appraisal system for a HSR project is still underway and the public data in need are not available. Based on some trial studies carried out on several HSR projects, however, the paper shows that except for a limited amount of HSR projects in the most developed areas of the country, the initial financial and economic performance of most HSR lines are generally much poorer than expected. The scale of investment seems to be difficult to justify, given that investment in HSR lines is very expensive, especially for those with design speed of 350 km/h, and the high level of debt funding. Moreover the values of time of the ordinary Chinese are still low by European standards. For a developing country planning HSR projects, one lesson that can be learnt from China is that it would be ideal if a comprehensive appraisal can be taken into account before investing in HSR. Such appraisal includes examination of different options for technical and operational standards, timing of investment, construction scale and pace, train operational scheme and service level, pricing and regional development policy (political consideration). At the very least, a step by step development strategy should be adopted to cope with the huge uncertainties and risks.
    Date: 2013–12–19
  9. By: Thierry Pairault (CCJ - Chine, Corée, Japon - CNRS - UP7 - Université Paris Diderot - Paris 7 - EHESS - École des hautes études en sciences sociales)
    Abstract: Socialist Algeria had friendly relations with Maoist China; it is paradoxically during the 1990s and the 2000s, while Algeria abandoned the official reference to socialism, that the two countries began experiencing an unprecedented expansion of their economic, commercial and human relations in such a way one could feed fantasies about the Chinese presence and expectations in Algeria. This contribution will examine the sudden acceleration of the Sino-Algerian economic relations to show how Algeria's government has been making the best of the Chinese presence to lead its development drive and to pursue new industrial policies.
    Date: 2014–10–30
  10. By: Thierry Pairault (CCJ - Chine, Corée, Japon - CNRS - UP7 - Université Paris Diderot - Paris 7 - EHESS - École des hautes études en sciences sociales)
    Abstract: This paper examines the sudden acceleration of Sino-Algerian economic relations and the resulting changes in the relationship between Algeria and the world. China's presence in Algeria combines many interrelated features, which are not only distinctive, but contain their own logic and temporality: these encompass political, diplomatic, cultural, migratory, human and economic relations. This paper will mainly focus on the last category of relations; it will draw on statistical data, as recorded by international agencies, as well as data collected by national statistical agencies in Algeria and China. It will thus seek to improve our understanding of what is meant by "China's economic presence in Algeria".
    Date: 2015–01–01
  11. By: Gregory Wegmann (LEG - Laboratoire d'Economie et de Gestion - CNRS - UB - Université de Bourgogne); Ivan Ruviditch (Shanghai Normal University)
    Abstract: We base our work on interviews of Chinese managers living in and around Shanghai. We use the neo-institutional theoretical stream, which considers that a country’s economy is influenced by cultural and institutional phenomena. In a first part, we describe the theoretical background to the research and our method. Then, in a second part, we present the significant cultural and institutional features of China that enable us to justify several hypotheses about our topic. In a third part, we analyze eight in-depth interviews, trying to answer our research question. Our basic research question focuses on what “Performance” means for Chinese managers. Behind the word, we analyze the cultural and institutional backgrounds of their business activities, examining their behaviors and business relations. We end by drawing several conclusions, some of them quite non-intuitive.
    Date: 2015–01–17
  12. By: Guilhem Fabre (Séminaire BRICs - Fondation Maison des Sciences de l'Homme, Centre d'études sur la Chine moderne et contemporaine - CCJ - Chine, Corée, Japon - CNRS - UP7 - Université Paris Diderot - Paris 7 - EHESS - École des hautes études en sciences sociales - Séminaire BRICs - Fondation Maison des Sciences de l'Homme)
    Abstract: As we have seen in a previous working paper (« The lion's share : What's behind China's economic slowdown ? »), China's elite have largely benefited from control of state assets and manipulation of the factors market (land, labor and capital) during the first decade of this century. Along with strong growth and social mobility, the accumulation of wealth has created some of the most flagrant social polarization worldwide, much higher than the official statistics. Instead of taking concrete measures to correct these inequalities, according to the new blueprint of reforms launched by the 3rd Plenum in November 2013, the new direction has focused on a gigantic campaign against corruption. The choice of the « tigers » targeted at the highest level reflect an aspect of political infighting. The top-down method as well as the creation of numerous « Central Leading Groups », allows the new secretary general and chairman Xi Jinping to concentrate power on a scale unprecedented since Deng Xiaoping. Behind these political stakes, the real goal of the campaign seems to destabilise vested interest groups in favor of the statuquo, but the social coalition supporting the power is still fragile, with the passive resistance of the local bureaucraties, the alienation of intellectuals and the uncertainties concerning the gains of the private sector.
    Abstract: Comme nous l’avons vu dans un précédent document de travail (« La part du lion : les dessous du ralentissement économique chinois »), l’élite chinoise a largement bénéficié du contrôle des actifs publics et de la manipulation du marché des facteurs (terrain, travail et capital), durant les années 2000. L’accumulation de richesses qui a suivi la forte croissance et la mobilité sociale, a créé l’une des plus fortes polarisation sociale au monde, bien supérieure aux chiffres officiels. Au lieu de prendre des mesures concrètes pour corriger ces inégalités, selon le plan de réformes lancé par le 3ème Plenum de novembre 2013, la nouvelle direction s’est concentrée sur une gigantesque campagne contre la corruption. Le choix des « tigres » visés au plus haut niveau n’est pas étranger à des règlements de compte politique. La méthode très hiérarchique et la création de nombreux « Groupes de direction centraux », permettent au nouveau secrétaire général et président de concentrer le pouvoir sur une échelle sans précédent depuis Deng Xiaoping. Au delà des ces enjeux politiques, le vrai but de la campagne semble être de déstabiliser les groupes d’intérêts en faveur du statu quo, mais la coalition sociale soutenant le pouvoir reste encore fragile, avec la résistance passive des bureaucraties locales, l’aliénation des intellectuels et les incertitudes concernant les bénéfices des réformes pour le secteur privé.
    Date: 2015–04–20

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