nep-cna New Economics Papers
on China
Issue of 2019‒02‒11
five papers chosen by
Zheng Fang
Ohio State University

  1. Unequal Migration and Urbanisation Gains in China By Pierre-Philippe Combes; Sylvie Démurger; Shi Li; Jianguo Wang
  2. Competition, Markups, and Gains from Trade: A Quantitative Analysis of China Between 1995 and 2004 By Hsu, Wen-Tai; Lu, Yi; Wu, Guiying Laura
  3. China’s Digital Economy: Opportunities and Risks By Longmei Zhang; Sally Chen
  4. Patriarchal capitalism with Chinese characteristics: gendered discourse of ‘Double Eleven’ shopping festival By Meng, Bingchun; Huang, Yanning
  5. The only child, birth order and educational outcomes By Lao, Yehui; Dong, Zhiqiang

  1. By: Pierre-Philippe Combes (Institut d'Études Politiques [IEP] - Paris); 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 de Lyon - UJM - Université Jean Monnet [Saint-Étienne] - Université de Lyon - CNRS - Centre National de la Recherche Scientifique); Shi Li (Beijing Normal University); Jianguo Wang (Beijing Information Science and Technology University)
    Abstract: We assess the role of internal migration and urbanisation in China on the nominal earnings of three groups of workers (rural migrants, low-skilled natives, and high-skilled natives). We estimate the impact of many city and city-industry characteristics that shape agglomeration economies, as well as migrant and human capital externalities and substitution effects. We also account for spatial sorting and reverse causality. Location matters for individual earnings, but urban gains are unequally distributed. High-skilled natives enjoy large gains from agglomeration and migrants at the city level. Both conclusions also hold, to a lesser extent, for low-skilled natives, who are only marginally negatively affected by migrants within their industry. By contrast, rural migrants slightly lose from migrants within their industry while otherwise gaining from migration and agglomeration, although less than natives. The different returns from migration and urbanisation are responsible for a large share of wage disparities in China.
    Keywords: urban development,agglomeration economies,wage disparities,migrants,human capital externalities,China
    Date: 2019
  2. By: Hsu, Wen-Tai (School of Economics, Singapore Management University); Lu, Yi (School of Economics and Management, Tsinghua University); Wu, Guiying Laura (Division of Economics, Nanyang Technological Univeristy)
    Abstract: This paper provides a quantitative analysis of gains from trade in a model with head-to-head competition using Chinese firm-level data from Economic Censuses in 1995 and 2004. We find a significant reduction in trade cost during this period, and total gains from such improved openness during this period is 7.1%. The gains are decomposed into a Ricardian component and two pro-competitive ones. The procompetitive effects account for 20% of the total gains. Moreover, the total gains from trade are 13 - 31% larger than what would result from the formula provided by ACR (Arkolakis, Costinot, and Rodríguez-Clare 2012), which nests a class of important trade models, but without pro-competitive effects. We find that head-to-head competition is the key reason behind the larger gains, as trade flows do not reflect all of the effects via markups in an event of trade liberalization. One methodological advantage of this paper’s quantitative framework is that its application is not constrained by industrial or product classifications; thus it can be applied to countries of any size.
    Keywords: Gains from trade; Markups; Pro-competitive effects; ACR formula; Head-to-head competition; Chinese economy
    Date: 2019–01–11
  3. By: Longmei Zhang; Sally Chen
    Abstract: China’s digital economy has expanded rapidly in recent years. While average digitalization of the economy remains lower than in advanced economies, digitalization is already high in certain regions and sectors, in particular e-commerce and fintech, and costal regions. Such transformation has boosted productivity growth, with varying impact on employment across sectors. Going forward, digitalization will continue to reshape the Chinese economy by improving efficiency, softening though not reversing, the downward trend of potential growth as the economy matures. The government should play a vital role in maximizing the benefits of digitalization while minimizing related risks, such as potential labor disruption, privacy infringement, emerging oligopolies, and financial risks.
    Date: 2019–01–17
  4. By: Meng, Bingchun; Huang, Yanning
    Abstract: In this article we consider the Double Eleven shopping festival as a major discursive site where the hegemony of what we call patriarchal capitalism with Chinese characteristics is articulated. The state, the market, the corporations, and the media, both mainstream and social media, all played an important role in building up a national spending spree that is deeply embedded in the current class and gender structure of China. The phenomenon of Double Eleven emerged at a time when state capitalism has been overwriting socialist institutions, while patriarchal ideology being further intensified through consumerism. As a consequence, the intersectionality of class and gender become increasingly manifest in the Chinese society. We start with a brief overview of the trajectory of gender politics in China since 1949, with specific focus on how the socialist project of seeking gender equality was gradually replaced by the quest for ‘womanhood’ and ‘femininity’. We then discuss, using both secondary sources and our own analysis of news coverage of Double Eleven, why maintaining a high level of consumer demand is of crucial importance for the Chinese state and what the state’s role has been in configuring the hegemonic gender order. A brief section on ideology and discourse lays out the conceptual framework of our analysis. It is at the intersection of a dissipating socialist ethos, emerging economic stagnation and ascending consumerism that the sexist discourse in relation to Double Eleven proliferates, and this is the analytical focus of our empirical section. We elaborate on the theoretical implications of the empirical analysis before concluding.
    JEL: N0
    Date: 2017–07–19
  5. By: Lao, Yehui; Dong, Zhiqiang
    Abstract: The one-child policy was implemented in September 1980 and abolished in late 2015. With this change in the demographic policy, the fertility decision of families also changed. Such decisions can result in an increase in the number of siblings in a family. Individuals' educational outcomes may be affected by a change in their parents' fertility decision. The objective of this paper is to provide evidence of the difference of educational outcomes between the only child and the first born. The authors try to estimate the change of educational outcomes when the only child of a family turns to the first born of a family. Moreover, they estimate different channels to interpret these effects. They employ the dataset of China Education Panel data in this paper. In the part of mechanism check, the Sobel-Good test is used for checking the mediation effects of different channels. They found the only child has significant higher educational outcomes comparing to a child who has siblings. Furthermore, the middle child has the lowest educational outcomes of a family. The last born has higher educational outcomes than his or her siblings. To explain these effects, the authors use three channels to interpret: (1) money resource, (2) parenting time, and (3) closeness of parent-child relationships. The policy implication is to help the policymaker estimate and predict the impact of the new demographic policy.
    Keywords: only child,birth orders,educational outcomes
    JEL: I20 J13
    Date: 2019

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