nep-cna New Economics Papers
on China
Issue of 2019‒06‒10
twenty-six papers chosen by
Zheng Fang
Ohio State University

  1. Market-based Financing Reforms and Shareholder Valuations: Event Study Evidence from the Chinese Science and Technology Innovation Board By Qin, Yaohua; Xiao, He; Zhang, Yifei
  2. Self-reported symptoms of depression among Chinese rural-to-urban migrants and left-behind family members By Nikoloski, Zlatko; Zhang, Anwen; Hopkin, Gareth; Mossialos, Elias
  3. The Community Origins of Private Enterprise in China By Ruochen Dai; Dilip Mookherjee; Kaivan Munshi; Xiaobo Zhang
  4. The effects of China’s growth slowdown on its provinces: Disentangling the sources By Anping Chen; Nicolaas Groenewold
  5. Understanding the spatial disparities and vulnerability of population aging in China By Yang Cheng, Siyao Gao, Shuai Li, Yuchao Zhang and Mark Rosenberg
  6. Free Education Helps Combat Child Labor? The Effect of a Free Compulsory Education Reform in Rural China By Can Tang; Liqiu Zhao; Zhong Zhao
  7. Collective Entry Deterrence and Free Riding: Airbus and Boeing in China By Patrice Cassagnard; Pierre Regibeau
  8. Inter-City Spillover and Intra-City Agglomeration Effects among Local Labour Markets in China By Gong, Xiaodong; Gao, Jiti; Liang, Xuan
  9. Gender Differences in Competitiveness: Experimental Evidence from China By Carlsson, Fredrik; Lampi, Elina; Martinsson, Peter; Yang, Xiaojun
  10. Migrants and Firms: Evidence from China By Clement Imbert; Marlon Seror; Yifan Zhang; Stephan Yanos Zylberberg
  11. China's hegemonic intentions and trajectory: Will it opt for benevolent, coercive, or Dutch-style hegemony? By Lukas K. Danner and Félix E. Martín
  12. Regional inequality in urban China, allowing for spatial cost of living differences: Evidence from a hedonic analysis of apartment prices By Chao Li, John Gibson and Geua Boe-Gibson
  13. The US-China Trade Dispute: A Macro Perspective By Rod Tyers; Yixiao Zhou
  14. Catching up with the West: Chinese Pathways to the Global Middle Class By Gustafsson, Björn Anders; Yang, Xiuna; Sicular, Terry
  15. Industrial clusters in the long run: Evidence from Million-Rouble plants in China By Stephan Heblich; Marlon Seror; Hao Xu; Stephan Yanos Zylberberg
  16. Financial Integration and the Global Effects of China's Growth Surge By Rod Tyers; Yixiao Zhou
  17. Industrial Land Policy and Economic Complexity of Chinese Cities By Zhaoyingzi Dong; Yingcheng Li; Pierre-Alexandre Balland; Siqi Zheng
  18. Three turns in the evolution of China–Russia presidential pseudo†alliance By Pavel K. Baev
  19. The persistent institutional effect of liberal colonialism: Evidence from China's financial policies By Fu, Tong; Wei, Zhongmei; Jian, Ze
  20. The Belt and Road Initiative: What is in it for China? By Lauren A. Johnston
  21. Echo over the Great Wall: Spillover Effects of QE Announcements on Chinese Yield Curve By Mucai Lin; Linlin Niu
  22. Social Ties and the Selection of China’s Political Elite By Raymond Fisman; Jing Shi; Yongxiang Wang; Weixing Wu
  23. Roads, railroads and decentralization of Chinese cities By Baum-Snow, Nathaniel; Brandt, Loren; Henderson, J. Vernon; Turner, Matthew A.; Zhang, Qinghua
  24. An open banking platform for Germany: A future-oriented alternative to a merger of Deutsche Bank/Commerzbank By Brühl, Volker; Krahnen, Jan Pieter
  25. Lessons from a Survey of China’s Economic Diplomacy By Simplice A. Asongu; Jacinta C. Nwachukwu; Gilbert A. A. Aminkeng
  26. The escalating China-US trade dispute: economic and geopolitical implications for Sub-Saharan Africa By Uri Dadush

  1. By: Qin, Yaohua; Xiao, He; Zhang, Yifei
    Abstract: This paper studies the impact of the newly introduced science and technology innovation board (STIB) on stock valuations in China. This Nasdaq-style board features a market-based IPO system that contrasts with the current approved-based arrangement. Event study approach shows that A-share firms pertaining to STIB related industries increased significantly after the reform announcement. The effect is stronger for Non-SOEs and firms with higher R&D capacity. Public shareholders of the firms filing STIB IPO applications experienced salient growth in their abnormal returns while their industry competitors suffered price drops. Financial analysts also broadened their company coverages in STIB related industries and revised their market valuation forecasts positively in line with the market investors.
    Keywords: China's financial reform, Registration-based IPO system, Science and technology innovation board in China, Chinese financial markets.
    JEL: G18 G38 N25 O16
    Date: 2019–05–19
  2. By: Nikoloski, Zlatko; Zhang, Anwen; Hopkin, Gareth; Mossialos, Elias
    Abstract: Importance: There were an estimated 247 million rural-to-urban migrant workers in China in 2016, yet at a national level, there is scant evidence on the association of migration with mental health among migrants and their left-behind family members. Objective: To examine the association of rural-to-urban migration with symptoms of depression among migrants and left-behind family members aged 45 years and older. Design, Setting, and Participants: Using representative cross-sectional data of 14 332 middle-aged and older adults from the 2015 China Health and Retirement Longitudinal Survey, regression analyses were conducted to examine the association of depressive symptoms with rural-to-urban migration status in urban areas and the association of depressive symptoms with left-behind status in rural areas. The statistical analysis was performed from January to August 2018. Exposures: Migration status (defined as having a rural hukou [household registration record]) in urban areas and left-behind status (defined as having a spouse or child living in another area) in rural areas. Main Outcomes and Measures: Depressive symptoms measured on the 10-item Center for Epidemiological Studies Depression (CES-D-10) scale. Results: A total of 14 332 middle-aged and elderly participants (mean [SD] age, 59.84 [9.51] years; 7394 [51.6%] women) were included, of whom 4404 (30.7%) lived in urban areas and 9928 (69.3%) lived in rural areas. In urban areas, 1607 participants (36.2%) were rural-to-urban migrants, and the remaining 2797 participants (72.8%) were local residents. In rural areas, 3405 participants (34.3%) were left-behind family members, and the remaining 6523 participants (65.7%) were not. Compared with urban residents, rural-to-urban migrants had higher CES-D-10 scores after adjustment for covariates (β = 0.74; 95% CI, 0.08-1.40; P = .03; standard errors clustered at the household level henceforth). Compared with intact-family rural residents, left-behind spouses had higher CES-D-10 scores after adjustment for covariates (β = 0.54; 95% CI, 0.05-1.03; P = .03). Conclusions and Relevance: Rural-to-urban migration in China was associated with poor mental health for migrants and their left-behind spouses. Short-term policies, such as building community social facilities, may prove effective, but long-term solutions should address issues related to economic and social exclusions and the lack of a social security system in rural China.
    JEL: R14 J01
    Date: 2019–05–03
  3. By: Ruochen Dai (Peking University); Dilip Mookherjee (Boston University); Kaivan Munshi (University of Cambridge); Xiaobo Zhang (Peking University)
    Abstract: This paper identifies and quantifies the role played by birth-county-based community networks in the growth of private enterprise in China. The starting point for the analysis is the observation that population density is positively associated with local social interactions, social homogeneity, and enforceable trust in counties (but not cities). This motivates a model of network-based spillovers that predicts how the dynamics of firm entry, concentration, and firm size vary with birth county population density. The predictions of the model are validated over the 1990-2009 period with administrative data covering the universe of registered firms. Competing non-network-based explanations can explain some, but not all of the results. We subsequently estimate the structural parameters of the model and conduct counter-factual simulations, which indicate that entry and capital stock over the 1995-2004 period would have been 40% lower without community networks. Additional counter-factual simulations shed light on misallocation and industrial policy.
    Keywords: Community Networks. Enforceable Trust. Entrepreneurship. Misallocation. Informal Institutions. Growth and Development.
    JEL: J12 J16 D31 I3
    Date: 2019–02
  4. By: Anping Chen (School of Economics, Jinan University); Nicolaas Groenewold (Economics Discipline, Business School, The University of Western Australia)
    Abstract: Since 2007 China’s growth has fallen from around 10% to about 6-7% per annum. This paper investigates the experience of this slowdown at the provincial level. We use a vector-autoregressive modelling approach and annual data from 1978 to decompose each province’s growth into various factors. We find that (1) all provinces experienced the slowdown; (2) there is considerable variation in this experience across provinces; (3) national factors dominate the provincial slowdown while province-specific factors explain most of the interprovincial variation; (4) when the national factor is separated into supply and demand components, the supply component dominates.
    Keywords: China, growth, slowdown, provincial effects
    JEL: E61 R50 O53
    Date: 2019
  5. By: Yang Cheng, Siyao Gao, Shuai Li, Yuchao Zhang and Mark Rosenberg
    Abstract: Understanding the regional pattern of population aging in China enables rational policy making to address the challenges of inequity in social welfare and care resources among the east–central–west regions and rural–urban areas of China. This study uses census data in 2000 and 2010, and aging population ratios, annual increase rates, and spatial autocorrelation analysis to examine spatial disparities in population aging in China. The results show that the population is more aged and aging more rapidly in rural areas than in urban areas. Spatial clusters of population aging expanded from the east coastal region in 2000, to inland provinces such as Sichuan and Chongqing in 2010. The vulnerable regions in terms of population aging, health status of the elderly population, and economic level at the prefectural level were also identified.
    Keywords: China, population aging, rural and urban areas, spatial disparities, vulnerable regions
    Date: 2019–01–22
  6. By: Can Tang (School of Business, Shanghai University of International Business and Economics); Liqiu Zhao (Renmin University of China); Zhong Zhao (Renmin University of China)
    Abstract: This paper evaluates the effect of a free compulsory education reform in rural China on the incidence of child labor. We exploit the cross-province variation in the roll-out of the reform and apply a difference-in-differences strategy to identify the causal effects of the reform. We find that the exposure to the free compulsory education significantly reduces the incidence of child labor for boys, but has no significant effect on the likelihood of child labor for girls. Specifically, one additional semester of free compulsory education decreases the incidence of child labor for boys by 8.3 percentage points. Moreover, the negative effect of the reform on the likelihood of child labor is stronger for boys from households with lower socioeconomic status. Finally, the free compulsory education reform may induce parents to reallocate resources towards boys within a household and thus may enlarge the gender gap in human capital investment.
    Keywords: free compulsory education reform, child labor, son preference, rural China
    JEL: I28 I38 O20
    Date: 2019–06
  7. By: Patrice Cassagnard (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour); Pierre Regibeau (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour)
    Abstract: We propose a simple two-stages duopoly game where two firms produce an homogeneous good to satisfy the demand in a foreign market. First they decide whether to serve this market with exports or with foreign direct investments and then they play a one-shot Cournot-Nash game. This game has been made even more complex by the fact that foreign direct investments induce technological spillovers which imply the possible entry of a third firm. From the complete characterization of the equilibria we show that a small disadvantage of one of the both firms can conduce this firm to invest alone in the foreign country rather than export. In this case, the investment is motivated by the fact that the dissipation risk of both firm-specific assets to a local potential entrant -triopoly payoffs- is beared by the two firms whereas the gain -increased market share in duopoly- is captured by the firm which chooses to invest abroad. We have in mind the competition between Airbus and Boeing in China.
    Keywords: Entry Deterrence,FDI,Export,Cournot duopoly,Spillovers,Airbus and Boeing
    Date: 2018–07
  8. By: Gong, Xiaodong (NATSEM, University of Canberra); Gao, Jiti (Monash University); Liang, Xuan (Australian National University)
    Abstract: We examine how city size affect wage levels of cities (agglomeration externality) and how it influence surrounding cities (spill-over effect) in China for the period between 1995 and 2009. Using spatial fixed-effect panel data models and allowing for endogenous and exogenous spatial dependence, we find strong positive city size effect on real wage levels, which confirms the existence of agglomeration economy within cities. We also find significant differences in both the direct and indirect effect of factors such as FDI between more and less population dense areas.
    Keywords: agglomeration economy, spill-over, spatial econometrics, fixed-effects
    JEL: C23 R12 R23
    Date: 2019–05
  9. By: Carlsson, Fredrik (Department of Economics, School of Business, Economics and Law, Göteborg University); Lampi, Elina (Department of Economics, School of Business, Economics and Law, Göteborg University); Martinsson, Peter (Department of Economics, School of Business, Economics and Law, Göteborg University); Yang, Xiaojun (School of Public Policy and Administration, Xi’an Jiaotong University, Xi’an, China)
    Abstract: Experimental evidence from both the lab and the field shows that women on average have a lower propensity to enter a competitive environment. In this paper, we investigate gender differences in competitiveness using a lab-in-the-field experiment and a subject pool consisting of Chinese adults. China provides an interesting environment to study in this regard since the country has promoted gender equality for a long time and the gender gap in earnings is small in a cross-country comparison. However, in many respects, China is still a patriarchal society. Our experimental results show that women perform equally well as men in a piece-rate task and significantly better in a competitive payment environment. Despite this, men are more than twice as likely to voluntarily choose a competitive environment. This gender difference cannot be explained by differences in risk preferences or overconfidence.
    Keywords: Competition; Gender Difference; Experiments; China
    JEL: C91 D03 D10 I31 P30
    Date: 2019–06
  10. By: Clement Imbert; Marlon Seror; Yifan Zhang; Stephan Yanos Zylberberg
    Abstract: This paper estimates the causal effect of rural-urban migration on urban production in China. We use longitudinal data on manufacturing firms between 2001 and 2006 and exploit exogenous variation in rural-urban migration due to agricultural price shocks. Following a migrant inflow, labor costs decline and employment expands. Labor productivity decreases sharply and remains low in the medium run. A quantitative framework suggests that destinations become too labor-abundant and migration mostly benefits low-productivity firms within locations. As migrants select into high-productivity destinations, migration however strongly contributes to the equalization of factor productivity across locations.
    Keywords: China, productivity.
    Date: 2018–12–01
  11. By: Lukas K. Danner and Félix E. Martín
    Abstract: China's unprecedented economic growth led some scholars to conclude that it will replace the United States as the future global hegemon. However, China's intentions in exercising future global leadership are yet unknown and difficult to extrapolate from its often contradictory behaviour. A preliminary overview of China's island building in the South China Sea reveals its potentially coercive intentions. This inference is consistent with the analysis of those who prognosticate China's violent rise. Conversely and simultaneously, China's participation in peacekeeping operations and its global investments evince its benevolent hegemonic intentions, which are congruent with the argument of those who predict China's peaceful hegemonic ascent. Confronted with these divergent tendencies in China's recent international relations, and assuming its continued rise, it is, thus, essential to examine China's strategic intentions and how these may ultimately project its violent or peaceful hegemonic rise. This article argues that the “Third Way†or “Dutch†style†hegemony is highly instructive in this context and, thus, should be examined and added to the existing debate on China's rise as either a benevolent or coercive hegemon. We argue that Dutch†style hegemony may be the most viable way for China to proceed in its global hegemonic ascendancy.
    Keywords: benevolent hegemon, China, coercive hegemon, Dutch-style hegemon, intentions
    Date: 2019–06–03
  12. By: Chao Li, John Gibson and Geua Boe-Gibson
    Abstract: Studies of inequality in China typically ignore cost of living differences between areas. Under the Balassa–Samuelson effect, nontradeables cost more in richer areas, so nominal inequality exceeds real inequality. This especially matters in China, where spatial cost of living differences should grow with recent development of urban housing markets. We use new data on apartment prices in 104 cities in China to develop housing†related spatial deflators. The level of spatial inequality in urban China is overstated by 27% if cost of living differences are ignored. Our hedonic analysis of 41,000 individual apartment sales shows that most price variation is between areas, rather than from features of individual apartments. The dominant trend in the reform era is for regional inequality in China to decline, contrary to the common perceptions. In nominal terms, the Theil index for interprovincial inequality in 2016 is just 46% of its 1978 level. The current results imply that the fall in inequality in real terms would be even greater.
    Keywords: China, housing, inequality, regional policy, spatial deflators
    Date: 2019–06–03
  13. By: Rod Tyers (Business School, University of Western Australia and Research School of Economics, Centre for Applied Macroeconomic Analysis (CAMA), Australian National University); Yixiao Zhou (School of Economics, Finance and Property, Curtin Business School, Curtin University)
    Abstract: With the recent rise of populism and authoritarian politics multilateral agreements have been resisted and there are increasing trade disputes, the US-China conflict being a case in point. This paper uses a calibrated global macro model to assess the potential economic consequences of this conflict under explicit assumptions about monetary and fiscal policy. US unilateral protection emerges as “beggar thy neighbor” policy, by most if new tariff revenue affords capital tax relief. China’s proportional losses are large, little mitigated by its retaliation, which nonetheless constrains US net gains. Avoiding leakage by protecting against all sources causes large losses in third regions trading with China and the US.
    Keywords: Trade disputes, China, macroeconomic policy, general equilibrium analysis, numerical theory
    JEL: F13 F41 F47
    Date: 2019
  14. By: Gustafsson, Björn Anders (University of Gothenburg); Yang, Xiuna (China Development Research Foundation); Sicular, Terry (University of Western Ontario)
    Abstract: We investigate whether Chinese household incomes have caught up to those of the middle class in the developed world. Using nationwide survey data for 2002 and 2013, we find considerable catch up. Defining the global middle class as being neither poor nor rich in the developed world, we estimate that China's global middle class grew rapidly after 2002, reaching 250 million in 2013. We describe the characteristics of this middle class, which is predominately urban, in the eastern region, and wage-earning. A distinct business middle class exists but is relatively small. Analysis of the chances of attaining the middle class reveals the importance of an individual's circumstances at birth. Parents' education and occupation matter. Being born with an urban hukou provides a large advantage. For those born with a rural hukou, the most effective pathways to the middle class are migration and, if possible, obtaining an urban hukou.
    Keywords: China, middle class, income distribution, economic mobility
    JEL: D31 P36
    Date: 2019–05
  15. By: Stephan Heblich; Marlon Seror; Hao Xu; Stephan Yanos Zylberberg
    Abstract: This paper exploits a short-lived cooperation program between the U.S.S.R. and China, which led to the construction of 156 "Million-Rouble plants" in the 1950s. We isolate exogenous variation in location decisions due to the relative position of allied and enemy airbases and study the long-run impact of these factories on local economic activity. While the "156" program accelerated industrialization in treated counties until the end of the command-economy era, this significant productivity advantage fully eroded in the subsequent period. We explore the nature of local spillovers responsible for this pattern, and provide evidence that treated counties are overspecialized and far less innovative. There is a large concentration of establishments along the production chain of the Million-Rouble plants, which limits technological spillovers across industries.
    Keywords: USSR, China, million-rouble plants.
    Date: 2019–05–21
  16. By: Rod Tyers (Economics Programme, University of Western Australia); Yixiao Zhou (Crawford School of Public Policy, Australian National University)
    Abstract: China's financial openness, as measured by cross border flows and asset ownership, peaked during its 2000s growth surge, as did downward pressure on global interest rates and price levels. This was despite China's restriction of financial inflows to approved FDI and tight controls on private outflows. We analyze the global effects of the growth surge and their dependence on these financial policies by employing a global macro model with national portfolio rebalancing, in which flexibility in asset differentiation is used to index financial integration. The results suggest that, globally, the growth surge raised asset prices, reduced yields and bolstered deflationary pressures, while improving aggregate economic welfare. It is shown that, without capital controls, most surge effects on China would have been moderated substantially while the global impacts would have been larger.
    Keywords: Financial integration, China, imbalances, saving, monetary policy, spill-overs
    JEL: F42 F43 F47
    Date: 2019
  17. By: Zhaoyingzi Dong; Yingcheng Li; Pierre-Alexandre Balland; Siqi Zheng
    Abstract: Economies producing more complex products tend to be wealthier and grow more quickly. Therefore, a key issue for cities around the world is to develop new specializations into more complex industries. In China, local governments tend to use industrial land subsidy as a policy tool to attract new firms in desired industries and promote industrial growth. However, relatively little is known about the impact of this policy tool on the economic complexity of Chinese cities. Drawing upon the recent literature on the principle of relatedness and economic complexity, this paper investigates the impact of this industrial land policy (ILP) on the diversification of Chinese cities into more complex industries. The empirical results support our hypothesis that those cities providing higher intensity of land subsidy are more likely to enter new industries, in particular the most complex ones.
    Keywords: : Economic Complexity, Industry Complexity, Industrial Land Policy, Industrial Diversification
    JEL: O25 O38 R11
    Date: 2019–05
  18. By: Pavel K. Baev
    Abstract: The unique quality of relations between Russia and China cannot be captured by the term “partnership,†but the development of high†level ties does not signify a process of alliance building. The two states stand, in geopolitical terms, back†to†back to each other, as Russia gives priority attention to the confrontation on its Western theatre and China focuses of security matters in East Asia and trade relations with the United States. The China–Russia presidential pseudo†alliance has experienced at least three major turns in its development since the middle of this decade. Presently, it has transformed into a one†sided Russian dependency upon indifferent China and is certain to experience further challenges, as the two parties proceed along clearly diverging courses.
    Keywords: China, crisis, partnership, Russia, security
    Date: 2019–01–22
  19. By: Fu, Tong; Wei, Zhongmei; Jian, Ze
    Abstract: The effect of liberal colonialism on the allocation of capital persists to this day. As Lange et al. (Colonialism and development: A comparative analysis of Spanish and British colonies. 2006) define and suggest, the authors exploit the colonial history of China during 1896-1911 with qualitative evidence to measure liberal colonialism. They document that liberal colonialism promotes the subsequent efficiency of financial policies on capital allocation in 2004 through the quality of economic institutions.
    Keywords: liberal colonialism,economic institutions,allocative efficiency
    JEL: P34 N45 P26
    Date: 2019
  20. By: Lauren A. Johnston
    Abstract: China's outbound investment exceeded inbound investment for the first time in 2015. In years leading up this transition, a maturing demographic transition alongside slowing internal migration and diminishing returns to physical capital investment, all had a role in China's diminished competitiveness in low†wage manufactured exports and the fading of the related growth model. In that context, the 2013 launch of the Belt and Road Initiative (BRI) took place in two stages in two developing countries, Kazakhstan and Indonesia. These launch choices, and the BRI in general are herein elaborated in terms of economic history, geography, and demography. The BRI in turn is considered to be aiming to foster the ongoing development of China, and in doing so also seeks to instigate new era development opportunity for other developing countries. One facilitation channel for the latter is China's concept of “patient capital,†essentially concessional capital, or foreign aid. For China that offers a means via which to internationalise the financial sector and also the Renminbi. Lessons from China's own use of foreign aid and economic development hence serve as an important reference for ongoing scoping of the shape and trajectory of the BRI. To that end, this article sheds light on what is in the BRI for China.
    Keywords: Belt and Road Initiative, China, development, economic demography, RMB internationalisation
    Date: 2019–01–22
  21. By: Mucai Lin; Linlin Niu
    Abstract: This paper examines the spillover effects of announcements of quantita- tive easing (QE) conducted by the central banks of U.S., U.K., Eurozone, and Japan on Chinese Treasury yield curve. Despite China’s firewall of cap- ital control and managed exchange rate regime, the QE announcements of U.S. move the Chinese yield curve immediately with significance, through the channels of signaling as well as portfolio balancing. The U.S. QE impact is particularly strong. The results are robust across a variety of event analy- sis methods. Using the heteroskedasticity assumption for identification and allowing for existence of alternative sources of shocks, we find the U.S. QE impact is sizable even compared to China’s own monetary policy shocks.
    Keywords: QE announcements, Spillover, Signaling Effects, Portfolio Balancing Effects, Yield Curve
    JEL: E43 E52
    Date: 2019–05–17
  22. By: Raymond Fisman (Boston University and NBER); Jing Shi (RMIT); Yongxiang Wang (University of Southern California); Weixing Wu (University of International Business and Economics)
    Abstract: We study how sharing a hometown or college connection with an incumbent member of China’s Politburo affects a candidate’s likelihood of selection as a new member. In specifications that include fixed effects to absorb quality differences across cities and colleges, we find that hometown and college connections are each associated with 5-9 percentage point reductions in selection probability. This “connections penalty†is equally strong for retiring Politburo members, arguing against quota-based explanations, and it is much stronger for junior Politburo members, consistent with a role for intra-factional competition. We show that our findings differ sharply from earlier work both because of our more rigorous empirical specification as well as our emphasis on shared hometown and college – rather than shared workplace – connections.
    Keywords: Social Ties, Political Connections, Political Elite, Politburo, China
    JEL: D72 P26
    Date: 2019–04
  23. By: Baum-Snow, Nathaniel; Brandt, Loren; Henderson, J. Vernon; Turner, Matthew A.; Zhang, Qinghua
    Abstract: We investigate how configurations of urban railroads and highways influenced urban form in Chinese cities since 1990. Each radial highway displaces about 4 percent of central city population to surrounding regions and ring roads displace about an additional 20 percent, with stronger effects in the richer coastal and central regions. Each radial railroad reduces central city industrial GDP by about 20 percent, with ring roads displacing an additional 50 percent. Similar estimates for the locations of manufacturing jobs and residential location of manufacturing workers is evidence that radial highways decentralize service sector activity, radial railroads decentralize industrial activity and ring roads decentralize both. Historical transportation infrastructure provides identifying variation in more recent measures of infrastructure.
    Keywords: China; roads; railroads; infrastructure
    JEL: O2 R4
    Date: 2017–07–17
  24. By: Brühl, Volker; Krahnen, Jan Pieter
    Abstract: In this exploratory article, we consider the future of Deutsche Bank and Commerzbank and develop a new approach to the topic: instead of a merger of DB and CB we propose to consider a partial merger of the IT and related back office functions in order to create the basis for an Open Banking platform in Germany. Such a platform would act as a cross-institutional infrastructure company in which the participating banks develop a common data and IT platform (while respecting the data protection regulations). Significant parts of the transaction processes would be pooled by the institutions and executed by the Open Banking platform. Moreover, the institutions remain legally independent and compete with each other at the level of products and services that are developed and produced using just this common data and IT platform - "national champions" would not be created. But such an "Open Banking Platform" could become even the nucleus of a European Banking platform that could be competitive with existing global data platforms from the USA and China which are already offering financial services and are likely to expand their offerings in the foreseeable future. The proposed model of an open data platform for banks prevents the emergence of national champions and supports the main goal of the banking union: creation of a financial system, in which single banks can be resolved without provoking a systemic crisis and forcing taxpayers to finance bailouts.
    Keywords: Open Banking Platform Germany,Banking Union,Merger,Deutsche Bank,Commerzbank
    Date: 2019
  25. By: Simplice A. Asongu (Yaoundé/Cameroon); Jacinta C. Nwachukwu (Coventry University, UK); Gilbert A. A. Aminkeng (Yaoundé, Cameroon)
    Abstract: Today, the West faces a considerable dilemma in their support for the Washington Consensus as a dominant approach for development because the Beijing model has grown to become an unavoidable process which can only be neglected at the cost of standing on the wrong side of economic history. The Washington Consensus, the hitherto dominant scheme, is being encroached on by the Beijing model. Many African nations are increasingly embracing this later method because the prevailing Western model has failed to deliver on a number of objectives. This is increasingly evident because China’s economic diplomacy has been politely and strategically coined to achieve it. A case study is used herein to articulate the different strands of the survey. The paper puts some structure on China’s economic diplomatic strategies and discusses lessons for Africa, China and the West. It contributes to existing literature by critically assessing why it is necessary for the West to modify the conception and definition of the Washington Consensus as a counterpart to the Beijing model. In order to remain relevant in the 21st century and beyond, the Washington Consensus should incorporate those ideas which are in conformity with Moyo’s (2013) conjecture. This postulates that, while the Beijing model is optimal in the short-run, the Washington Consensus remains the ideal long-term development model because it is more inclusive of the rights demanded by individuals at different income categories.
    Keywords: Economic relations; China; Africa
    JEL: F19 F21 O10 O19 O55
    Date: 2018–01
  26. By: Uri Dadush
    Abstract: The trade tensions between the United States and China will cause only minor immediate damage to their giant economies. However, tariffs have important and diverse effects on individual sectors and cause heightened uncertainty. The main adverse effects on Sub-Saharan Africa will therefore be through global investor confidence, economic growth and commodity prices, and these effects could be severe if the dispute escalates further and endangers the rules-based trading system. The trade tensions are also a symptom of the growing rivalry between China and the United States, raising challenging questions for African development strategy and diplomacy.
    Date: 2019–05

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