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on China |
| By: | Ye-Feng Chen (Zhejiang University - Zhejiang University - ZJU (CHINA)); Shu-Guang Jiang (Shandong University - Shandong University); Marie Claire Villeval (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 - Centre National de la Recherche Scientifique) |
| Abstract: | We investigate corruption as a social dilemma by means of a bribery game in which a risk of collective failure is introduced when the number of public officials accepting a bribe from firms reaches a certain threshold. We show that, despite the social risk, the pursuit of individual interest prevails and leads to the elimination of honest officials over time. Reducing the size of the groups while increasing the probability of collective failure diminishes the public officials' corruptibility but is not sufficient to eliminate the tragedy of corruption altogether. |
| Keywords: | experiment,coordination,collective failure,social dilemma,bribing,Corruption |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01236660&r=cna |
| By: | Chensheng Xu (Guangdong University of Foreign Studies, School of Economics and Trade); Feng Yao (West Virginia University, Department of Economics); Fan Zhang (West Virginia University, Department of Economics) |
| Abstract: | This paper uses a panel data of China's outward foreign direct investment (OFDI) from 2004-2012 to investigate the influence of Confucius Institute on China's OFDI. We find that Confucius Institute, as a comprehensive platform for China's foreign cultural exchange, has a significant positive effect on China’s OFDI. Interestingly, the positive effect can be reduced with larger cultural difference and can be increased in host countries with lower institutional quality. Correspondingly, we find that Confucius Institute’s impact on China’s OFDI is more obvious in host countries with smaller cultural difference or lower institutional quality. |
| Keywords: | Confucius Institute, foreign cultural exchange, outward foreign direct investment (OFDI), heterogeneous effect |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:wvu:wpaper:15-45&r=cna |
| By: | Juan Carlos Cuestas (Department of Economics, University of Sheffield); Bo Tang (Department of Economics, University of Sheffield) |
| Abstract: | This study empirically investigates the spillover effects between exchange rate changes and stock returns in China. Evidenced by multivariate Granger causality tests, stock returns Granger-cause exchange rates changes, but exchange rate changes exhibit little effect on stock returns. As the conventional structural VAR (SVAR) approach fails to examine the contemporaneous effects, we apply the Markov switching SVAR model to allow the coefficients and variances of endogenous variables to be state-dependent. The regimeswitching estimates indicate that the fluctuation in Shanghai B-share returns has positive effects on the remaining stock markets, but a negative impact on foreign exchange markets. This also reveals that the spillovers have longer durations during two financial crisis periods. Finally, this paper suggests investors to pay attention to systematic risks from RMB policy changes, which might alter the current unidirectional causality in the Chinese financial market. |
| Keywords: | exchange rate changes, stock returns, Markov switching SVAR, Chinese financial market |
| JEL: | C32 C58 F31 |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:shf:wpaper:2015024&r=cna |
| By: | John Gibson (University of Waikato); Chao Li (University of Waikato) |
| Abstract: | Hundreds of studies in economics misinterpret China’s sub-national population and per capita data. The most widely used population counts are of hukou registrations from each province, prefecture, county, or city rather than of the people living in each place and generating local GDP. Over 220 million people have left their place of registration, while almost none had when reforms began, creating time-varying errors in estimates of per capita income of sub-national units. We survey empirical articles in blue ribbon journals, in development journals, and in regional and urban economics journals that use China’s sub-national data. Over 80 percent of articles use these data erroneously; most commonly the wrong population or employment counts are used to measure the size of sub-national units, and per capita data are calculated with the wrong denominator for the interpretation placed on variables. We provide examples of errors from each group of journals, and a critical test of one highly-cited study. Specifically, we show that if hukou registrations are erroneously used to measure the local population, following existing practice, conclusions about driving forces for urban area expansion are reversed. We give recommendations for more careful use of China’s sub-national population and per capita data. |
| Keywords: | Hukou; China; measurement error; population; sub-national growth; urban area |
| JEL: | O47 Q56 R11 |
| Date: | 2015–12–10 |
| URL: | http://d.repec.org/n?u=RePEc:wai:econwp:15/14&r=cna |
| By: | Luo,Xubei; Zhu,Nong |
| Abstract: | The hub-periphery development pattern of the Guangdong economy, to some extent, is a miniature of that of the Chinese economy. The Pearl River Delta, drawing from its first-nature comparative advantages in factor endowments and proximity to Hong Kong SAR, China, and Macau SAR, China, and the second-nature advantages as first-movers in the reforms in attracting and retaining domestic and foreign resources, has developed into a regional economic center. This paper examines the pattern of inter- and intra-provincial migration and that of the concentration of production, to explore the challenges and opportunities for the success of ?double transfer.? The paper suggests a four-prong approach, to improve the business environment, support the realization of latent comparative advantages, increase the skill level of the labor force to support the upgrade of the production structure, and protect the vulnerable, to support the inclusive growth of the economy in Guangdong in a sustainable manner. |
| Keywords: | Economic Theory&Research,Population Policies,Regional Economic Development,Labor Policies,Environmental Economics&Policies |
| Date: | 2015–12–09 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7509&r=cna |
| By: | Kai Du (Entrepreneurship, Commercialization & Innovation Centre, University of Adelaide); Andrew C. Worthington (Department of Accounting, Finance and Economics, Griffith University); Valentin Zelenyuk (School of Economics, The University of Queensland) |
| Abstract: | In this paper, we investigate the impact of earning asset diversification on Chinese bank efficiency from 2006 to 2011. To do so, we adapt the Simar and Wilson (2007) Journal of Econometrics approach to allow for technology change over time. Regression results reveal that increasing the asset share of other earning assets (including securities and derivatives) is positively associated with bank efficiency. Decreasing the share of nonearning assets in total assets or increasing total equity has a similar impact. Our results also suggest that financial reforms currently being undertaken in China, including removing the regulatory requirement concerning the ratio of loans to deposits (a new draft amendment to the existing commercial banking law) and interest rate liberalization (a proposed draft amendment), are likely to induce a significant positive effect on bank efficiency. |
| Keywords: | Asset diversification; Data envelopment analysis; Truncated regression; Bootstrapping; Chinese banks |
| JEL: | D21 C13 G21 C44 |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uqcepa:110&r=cna |
| By: | Hao Jin (Indiana University) |
| Abstract: | China has maintained a closed capital account to the private sector and channeled capital flows through the public sector by foreign exchange interventions. This paper presents an open economy model that incorporates this capital account policy configuration in order to study whether foreign exchange interventions can improve welfare in the presence of capital controls, compared to an open capital account. Furthermore, I analyze how these interventions affect the conduct of monetary policy. I find that optimal interventions improve welfare by strategically managing the terms of trade. In the presence of domestic nominal rigidity, interventions increase welfare even if monetary policy is set optimally. I find monetary policy effectively eliminates domestic price distortions, while foreign exchange interventions efficiently correct terms-of-trade externalities. |
| Keywords: | Foreign Exchange Interventions; Capital Controls; Monetary Policy; Chinese Economy; Welfare |
| Date: | 2015–10 |
| URL: | http://d.repec.org/n?u=RePEc:inu:caeprp:2015019&r=cna |
| By: | Ma, Chao; Song, Ze; Sun, Xuhui; Zhao, Guangchuan |
| Abstract: | Based on the Theory of Rational Addiction (TORA), this paper identifies the correlation between income and the preference for spicy foods by analysing the China Health and Nutrition Survey (CHNS) data. The results show that compare with high-income residents of same area, the low-income residents prefer to spicy foods in China. The regression results of IV and Lewbel IV all support it. According to the result, the channel of health behaviours and health awareness are possible causal channels for the negative correlation between income and the preference for spicy foods, rather than health capital stock and food selection. |
| Keywords: | Spicy taste; Income; Rational addiction |
| JEL: | D12 I10 I31 |
| Date: | 2015–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:68415&r=cna |
| By: | Yatang Lin; Yu Qin; Zhuan Zie |
| Abstract: | How does the transfer of advanced technology spur innovation in developing countries? This paper exploits the large-scale introduction of high-speed railway (HSR) technology into China in 2004 as a natural experiment to address this question. The experiment is unique in the sense that this wave of technology transfer is large, abrupt and arguably exogenous in timing, covering a variety of technology classes and a large number of geographically-dispersed railway-related firms. With detailed information on the types of technology transferred and the identities of the receiving firms, as well as their product market specializations, we are able to depict a clear picture of how foreign technology is digested and spurs follow-up innovation in and out of directly receiving firms. Our findings suggest that technology transfer leads to significant growth in HSR-related patents in cities with direct receivers of imported technology after 2004 in a triple-difference estimation. We also observe sizable spillovers to firms that are not directly related to the railway industry. Technology similarity plays an important role in technology diffusion, but we do not observe any significant impacts of geographic proximity. Previous university research strength in relevant fields is also conducive to stronger technology spillovers. |
| Keywords: | innovation, foreign technology transfer, knowledge spillover, China |
| JEL: | O25 O33 O38 |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1393&r=cna |
| By: | Ke Wang; Yi-Ming Wei (Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology) |
| Abstract: | Given that different energy inputs play different roles in production and that energy policy decision making requires an evaluation of productivity change in individual energy input to provide insight into the scope for improvement of the utilization of specific energy input, this study develops, based on the Luenberger productivity indicator and data envelopment analysis models, an aggregated specific energy productivity indicator combining the individual energy input productivity indicators that account for the contributions of each specific energy input towards energy productivity change. In addition, these indicators can be further decomposed into four factors: pure efficiency change, scale efficiency change, pure technology change, and scale of technology change. These decompositions enable a determination of which specific energy input is the driving force of energy productivity change and which of the four factors is the primary contributor of energy productivity change. An empirical analysis of China¡¯s energy productivity change over the period 1997-2012 indicates that (i) China¡¯s energy productivity growth may be overestimated if energy consumption structure is omitted; (ii) in regard to the contribution of specific energy input towards energy productivity growth, oil and electricity show positive contributions, but coal and natural gas show negative contributions; (iii) energy-specific productivity changes are mainly caused by technical changes rather than efficiency changes; (iv) the Porter Hypothesis is partially supported in China that carbon emissions control regulations may lead to energy productivity growth. |
| Keywords: | Carbon emissions, Data envelopment analysis, Driving force, Input specific productivity indicator |
| JEL: | Q54 Q40 |
| Date: | 2015–10–02 |
| URL: | http://d.repec.org/n?u=RePEc:biw:wpaper:86&r=cna |
| By: | Huijie Yan (Aix-Marseille University (Aix-Marseille School of Economics), CNRS & EHESS) |
| Abstract: | The goal of sustainable development is far from being achieved in China. In this context, this paper aims to provide an overview of China’s energy, environment and health policies over the past 30 years and discuss whether the previous policies have fully integrated the energy, environment and health issues in its sustainable development agenda. From the overview, we observe that the energy policies accelerating energy industrial upgrading, stimulating development of new energy sources, deregulating energy pricing mechanism, promoting energy saving and seizing the opportunity of green growth are conducive to an improvement of environmental conditions and public health in China. However, the environmental policies are not effectively implemented and subsequently they could not succeed in reducing environmental risks on public health and putting pressure on enterprises to efficiently use energy. The health policies have not taken real actions to focus with any specificity on energy-induced or pollution-induced health problems. |
| Keywords: | Energy, Environment, Health, China |
| JEL: | Q48 Q53 Q58 I18 |
| Date: | 2015–11–10 |
| URL: | http://d.repec.org/n?u=RePEc:aim:wpaimx:1548&r=cna |