nep-cna New Economics Papers
on China
Issue of 2017‒12‒03
eight papers chosen by
Zheng Fang
Ohio State University

  1. Product Sophistication and the Slowdown in Chinese Export Growth By Mark Kruger; Walter Steingress; Sri Thanabalasingam
  2. The geography of city liveliness and consumption: evidence from location-based big data By Wu, Wenjie; Wang, Jianghao; Li, Chengyu; Wang, Mark
  3. Education gradient in well-being late in life: the case of China By Agar Brugiavini; Danilo Cavapozzi; Yao Pan
  4. Determinants of Households’ Recycling Behaviour – Evidence from China By Zhujie Chu; Laura Meriluoto; Kuntal Das; Ying Li; Bolin Chen
  5. Airports, market access and local economic performance: Evidence from China By Gibbons, Stephen; Wu, Wenjie
  6. How Beliefs Influence Behavior: Confucianism and Innovation in China By Feng, Xunan; Jin, Zhi; Johansson, Anders C.
  7. Capital Accumulation, Private Property and Rising Inequality in China, 1978-2015 By Piketty, Thomas; Yang, Li; Zucman, Gabriel
  8. Top Executives on Social Media and Information in the Capital Market: Evidence from China By Feng, Xunan; Johansson, Anders C.

  1. By: Mark Kruger; Walter Steingress; Sri Thanabalasingam
    Abstract: Chinese real export growth decelerated considerably during the last decade. This paper argues that the slowdown largely resulted from China moving to a more sophisticated mix of exports: China produced more sophisticated goods over which it had pricing power instead of producing greater volumes of less sophisticated products. Indeed, we show that the share of highly sophisticated products in Chinese exports increased steadily over time and that Chinese exports became less price sensitive, suggesting increased pricing power. Further, a decomposition of China’s market share gains shows that China continues to gain market share despite exporting products with higher-than-average world prices. China’s continuous gain in global export market share suggests that its export machine is far from broken.
    Keywords: Development economics, Exchange rates, International topics
    JEL: F14 F17 O10
    Date: 2017
  2. By: Wu, Wenjie; Wang, Jianghao; Li, Chengyu; Wang, Mark
    Abstract: Understanding the complexity in the connection between city liveliness and spatial configurationsfor consumptive amenities has been an important but understudied research field in fast urbanising countries like China. This paper presents the first step towards filling this gap though location-based big data perspectives. City liveliness is measured by aggregated spacetime human activity intensities using mobile phone positioning data.Consumptive amenities are identified by point-of-interest data from Chinese Yelp website (dian ping). The results provide the insights into the geographic contextual uncertainties of consumptive amenities in shaping the rise and fall in the vibrancy of city liveliness.
    Keywords: big data; local linear estimator; city liveliness; consumption; China
    JEL: Q15
    Date: 2016–11
  3. By: Agar Brugiavini (Department of Economics, University Of Venice Cà Foscari); Danilo Cavapozzi (Department of Economics, University Of Venice Cà Foscari; Netspar); Yao Pan (Department of Economics, University Of Venice Cà Foscari)
    Abstract: We draw data from the China Health and Retirement Longitudinal Study(CHARLS)to investigate the education gradient in the current well-being of a representative sample of the Chinese population aged 45 or over. We analyse how the education gradient combines with the marked differences in the social policies implemented in rural and urban China.
    Keywords: Education, multidimensional well-being index, rural and urban China
    JEL: J14 I31 I24
    Date: 2017
  4. By: Zhujie Chu; Laura Meriluoto (University of Canterbury); Kuntal Das (University of Canterbury); Ying Li; Bolin Chen
    Abstract: China’s rapid rates of urbanization and income growth have led to a rapid escalation of domestic solid waste accumulated in landfills. Various policies have been adopted by the municipal governments to improve incentives for recycling in an attempt to reduce solid waste accumulation, but the effects of these efforts appear to have been mixed. The aim of this paper is to gain further understanding of the factors that influence households’ recycling behaviour. We administered a survey to residents of Harbin city in the north-eastern China to measure their recycling frequency as well as their understanding of and attitudes towards household solid waste management. We find that knowledge and attitude about household waste management explain recycling behaviour well but that attitudes about government involvement and feeling of peer pressure do not. We find strong evidence that higher education is linked to higher frequency of recycling, weak evidence that age has a positive but diminishing effect on recycling and that income has a negative effect on recycling, and no evidence that gender affects recycling.
    Keywords: Household solid waste; recycling; survey
    JEL: Q01 Q53
    Date: 2017–11–01
  5. By: Gibbons, Stephen; Wu, Wenjie
    Abstract: In this paper we study the effect of airports on local economic performance that arises from better access to domestic markets, using China’s recent rapid air network expansion. We estimate the effects of the implied changes in access to population on measures of economic performance using a panel of counties built from administrative records and micro data on industrial firms. To mitigate endogeneity concerns we focus on a subsample of ‘incidentally’ affected counties, whose location midway between existing and new airports implies they not were explicitly targeted for development nor directly affected by airport operations. We also decompose market access into land-side and air-side components. Our key finding is that improved population access due to land-side distance reductions to airports increased industrial output and GDP, with an elasticity of around 0.25. An instrumental variables strategy exploiting conversion of historical military airports to civil use yields higher elasticities.
    Keywords: airports; infrastructure; productivity; china
    JEL: R14 J01
    Date: 2017–02
  6. By: Feng, Xunan (Southwestern University of Finance and Economics); Jin, Zhi (Southwestern University of Finance and Economics); Johansson, Anders C. (Stockholm China Economic Research Institute)
    Abstract: Previous studies have studied how religious beliefs may affect economic activity. We extend this literature by examining how Confucianism is linked to innovative activities at the firm level in China. We analyze the relationship between Confucianism and several proxies for inputs and outputs of innovative activities. Our results show that Confucianism is significantly related to lower levels of innovative activities regardless of which measure for firm-level innovation we use. We also find that type of ultimate ownership influences this relationship, with innovation among state-controlled firms being significantly more affected by Confucianism. This study thus adds to the understanding of how traditional belief systems influence behavior at the firm level.
    Keywords: Confucianism; Beliefs; Religion; Innovation; R&D; Patents; China
    JEL: O30 Z10
    Date: 2017–11–16
  7. By: Piketty, Thomas; Yang, Li; Zucman, Gabriel
    Abstract: This paper combines national accounts, survey, wealth and fiscal data (including recently released tax data on high-income taxpayers) in order to provide consistent series on the accumulation and distribution of income and wealth in China over the 1978-2015 period. We find that the aggregate national wealth-income ratio has increased from 350% in 1978 to 700% in 2015. This can be accounted for by a combination of high saving and investment rates and a gradual rise in relative asset prices, reflecting changes in the legal system of property. The share of public property in national wealth has declined from about 70% in 1978 to 30% in 2015, which is still a lot higher than in rich countries (close to 0% or negative). Next, we provide sharp upward revision of official inequality estimates. The top 10% income share rose from 27% to 41% of national income between 1978 and 2015, while the bottom 50% share dropped from 27% to 15%. China's inequality levels used to be close to Nordic countries and are now approaching U.S. levels.
    Date: 2017–10
  8. By: Feng, Xunan (Southwestern University of Finance and Economics); Johansson, Anders C. (Stockholm China Economic Research Institute)
    Abstract: Social media platforms are becoming increasingly important channels for information dissemination. This study examines how microblogging by top executives affects the information environment for listed firms in an emerging market. Using manually collected set from Sina Weibo, one of China’s most popular and largest social media platforms, we find that a board chair having a Weibo account is associated with the dissemination of more firm-specific information to the capital market. This result holds up to a battery of robustness tests. We also show that the relationship between board chairs’ Weibo usage and information dissemination is stronger for smaller firms, firms that went public more recently, and firms characterized by less analyst coverage. Findings in this study have important implications for the understanding of the role of social media in the dissemination process of corporate information.
    Keywords: Social Media; Information dissemination; Capital market; Investors; China
    JEL: G12 G14 M41 N20
    Date: 2017–11–17

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