nep-cna New Economics Papers
on China
Issue of 2016‒04‒16
four papers chosen by
Zheng Fang
Ohio State University

  1. The Unintended Long-term Consequences of Mao’s Mass Send-Down Movement: Marriage, Social Network, and Happiness By Shun Wang; Weina Zhou
  2. Preferential trading agreements and the gravity model in presence of zero and missing trade flows: Early results for China and India By Rahul Sen; Sadhana Srivastava; Don Webber
  3. Impacts of Trade Liberalization on Dairy Industry in China By Ahmed, Wasim; Hussain, Safdar; Jafar, Rana Muhammad Sohail; Guang-Ju, Wang; Rabnawaz, Ambar; Saqib, Zulkaif Ahmed; JianZhou, Yang
  4. Openness and Urbanization: The Case of the People’s Republic of China By Lo, Chu-Ping

  1. By: Shun Wang (Korea Development Institute (KDI) School of Public Policy and Management, 263 Nansojeong-ro, Sejong, Korea); Weina Zhou (Department of Economics, Dalhousie University, 6214 University Avenue, Halifax, NS, Canada)
    Abstract: This paper uses the China General Social Survey (CGSS) 2003 to evaluate the long-term consequences of a forced migration, the state’s “send-down” movement (shang shan xia xiang, or up to the mountains, down to the villages) during the Chinese Cultural Revolution, on individuals’ nonmaterial well-being. The send-down program resettled over 16 million urban youths to the countryside to carry out hard manual labor over the years 1968-1978. Most of them were allowed to return to urban areas when the Cultural Revolution ended. We find that those who had the send-down experience have worse marriage outcome, lower-quality social network, and lower level of happiness than their non-send-down counterparts. The negative effects of the forced migration are robust against a detailed set of family backgrounds and personal characteristics.
    Keywords: Send-down movement, Forced migration, Marriage, Social network, Happiness
    JEL: I31 J12 J18 J61
    Date: 2016–04
  2. By: Rahul Sen (Department of Economics, Faculty of Business and Law, Auckland University of Technology); Sadhana Srivastava (Department of Economics, Faculty of Business and Law, Auckland University of Technology); Don Webber (Department of Accountancy, Economics and Finance, University of the West of England, Bristol, UK)
    Abstract: The two most populous countries of the world have embarked upon an extensive array of preferential trading agreements in recent decades. This paper specifically investigates the impacts on trade creation and trade diversion of China’s and India’s 11 major preferential trade agreements using an augmented gravity model that takes into account zero and missing trade flows in the data, employing a Zero Inflated Negative Binomial (ZINB) regression model as suggested in the recent literature by Burger (2009) and Kohl (2012). The early results for the ZINB model, provided only for India and China as the home country, confirms that Chinese exports and imports were more likely to be net trade creating in presence of PTAs while India’s exports were more likely to be net trade diverting in the presence of the same PTAs, with imports having an insignificant effect. For India and China so far, most ASEAN+6 PTAs seems to have created both intra-bloc and extra-bloc trade. APTA is observed to be the only significant export creating PTA for India, while APTA and ACFTA are both found to be export creating for China.
    Keywords: Trade creation; Trade diversion; Distance; Trade agreements
    JEL: F14
    Date: 2015–02
  3. By: Ahmed, Wasim; Hussain, Safdar; Jafar, Rana Muhammad Sohail; Guang-Ju, Wang; Rabnawaz, Ambar; Saqib, Zulkaif Ahmed; JianZhou, Yang
    Abstract: The aim of this review to call attention towards the impacts of exchange liberalization on the dairy industry, and these impacts are vital concerning the monetary development of a country. The focus of this literature is on certain issues of proficiency and worldwide competitiveness of the dairy segment in an open economy environment. It identifies the sensational competition raise in the dairy sector affected by China's liberalization programs, via signing trade agreements with several countries across the globe, and the execution of the World Trade Organization (WTO) agreements. It gives an outline of the WTO Agreement on Agriculture and its impacts on the dairy part. So we have concentrated on specific parts of dairy, particularly production, demand and trade policies to empower dairy holders under the worldwide competitiveness and indicators like the local asset cost proportion. China dairy production was 36 million tons during 2010, however alarmingly declined up to 26.52 million tons in 2014. The production declined had driven towards import from out of the country, in this manner strategies and agreements require certain facilitations to meet local dairy items demands in China. The impacts of duties by developed nations to lessen taxes, local support and export subsidies have been insignificant and unless these nations fundamentally diminish the exchange distorting endorsements to their dairy segment it will be troublesome for China to contend with the global market.
    Keywords: Dairy production, Dairy trade
    JEL: F1 Q18
    Date: 2016
  4. By: Lo, Chu-Ping (Asian Development Bank Institute)
    Abstract: Urbanization usually occurs with structural transformation driven by a “push” from agricultural productivity growth and a “pull” from industrial productivity growth, and usually the former exceeds the latter. This paper presents a simple model to illustrate how the open policy in the People’s Republic of China (PRC) since 1979 reversed the pattern such that the “pull” effect dominated the “push” effect during the PRC’s structural transformation and urbanization. This model helps explain why the PRC, whose industrial productivity growth exceeds its agricultural productivity growth, has experienced a standard pattern of structural transformation. The paper also demonstrates how a developing country’s business services intensity increases with its urbanization.
    Keywords: urbanization; structural transformation; industrial productivity growth; People’s Republic of China
    JEL: L16 O14 O40
    Date: 2016–03–27

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