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on China |
| By: | Wang, Danli; Chong, Terence Tai Leung |
| Abstract: | This paper analyses the reasons behind the long-term underperformance of China's stock market. We argue that the price growth of local state-owned enterprises (SOEs) is hindered by the control of state shares by local cadres, who often sell the shares below market prices during their time in office. Our empirical analysis reveals that political turnover of prefectural Party Secretary has a significantly negative impact on the selling of state-owned shares and the price growth of local state-owned enterprises, while there is no such impact on private enterprises and state-owned enterprises controlled by the central government. |
| Keywords: | Political turnover; State-owned enterprises; Local cadres. |
| JEL: | G1 O1 P2 |
| Date: | 2015–11–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:68459&r=cna |
| By: | Qin, Cong; Chong, Terence Tai Leung |
| Abstract: | The 2000s witnessed the third poverty alleviation wave of China. Compared with its predecessors, the third wave distinguished itself by new interventions and redefined standards for the National Poor Counties. This paper evaluates the effectiveness of the new program using a data set consisting of 1,411 of China’s western and central counties from 2000 to 2010. We combine the propensity score matching method with the difference-in-differences approach, which enables us to avoid selection bias and track the policy impact on variables of interest at each time point. It is found that the non-west local governments were inclined to restrict their economic growth to maintain the special transfer payments disbursed exclusively to the National Poor Counties. It is also shown that the program failed to improve the infrastructure and sanitary conditions in general. |
| Keywords: | Average treatment effect on treated, Poverty alleviation, Propensity score matching, Receiver operating characteristic curve, The National Poor Counties Average treatment effect on treated, Poverty alleviation, Propensity score matching, Receiver operating characteristic curve, The National Poor Counties |
| JEL: | H23 H71 |
| Date: | 2015–12–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:68458&r=cna |
| By: | LIU Yang; KAWATA Keisuke |
| Abstract: | By developing a model based on recent wage theories, we examine workers' wage determination, considering not only human-capital related factors but also the labor market. We also consider the price level using a city-specific consumer price index. Data come from a national survey in China, while unlike previous studies that examine temporary rural-urban migrants in China, we concentrate on permanent rural migrants who have obtained an urban household registration. We find that considering the effects of the labor market is important in examining workers' wage determination. The decomposition result shows that different effects of market tightness and unemployment benefits are the two primary reasons for the wage differential between the two groups, whereas education does not contribute to the wage gap. As a policy implication, our results indicate that supporting the workers' ability to adapt to the labor markets could reduce wage inequality. |
| Date: | 2015–12 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:15142&r=cna |
| By: | Yin-Wong Cheung (City University of Hong Kong); Frank Westermann (Universitaet Osnabrueck); Sven Steinkamp (Universitaet Osnabrueck) |
| Abstract: | Abstract: We study China’s illicit capital flow and document a change in its pattern. Specifically, we observe that China’s capital flight, especially the one measured by trade misinvoicing, exhibits a weakened response in the post-2007 period to the covered interest disparity, which is a theoretical determinant of capital flight. Further analyses indicate that the post-2007 behavior is influenced by quantitative easing and other factors including exchange rate variability, capital control policy and trade frictions. Our study confirms that China’s capital flight pattern and its determinants are affected by the crisis event. Further, both the canonical and additional explanatory variables have different effects on different measures of capital flight. These results highlight the challenges of managing China’s capital flight, which requires information on the period and the type of capital flight that the policy authorities would like to target. |
| Keywords: | World Bank Residual Method; Trade Misinvoicing; Quantitative Easing; Capital Controls; Covered Interest Disparity |
| JEL: | F3 F32 G15 |
| Date: | 2015–12–16 |
| URL: | http://d.repec.org/n?u=RePEc:iee:wpaper:wp0103&r=cna |