nep-cna New Economics Papers
on China
Issue of 2019‒11‒04
six papers chosen by
Zheng Fang
Ohio State University

  1. Income Stratification of Potential Care Workers among Internal Migrants in China By OKUBO Shoki; KAWATA Keisuke; YIN Ting; ZHONG Renyao
  2. Emerging Trade Battlefield with China: Export Competition and Firm’s Coping Strategies By Nilsson Hakkala, Katariina; Pan, Yao
  3. Time–Varying Coefficient Spatial Autoregressive Panel Data Model with Fixed Effects By Xuan Liang; Jiti Gao; Xiaodong Gong
  4. Going global: Chinese natural resource policies and their impacts on Latin America By Küblböck, Karin; Tröster, Bernhard; Ambach, Christoph
  5. CO2 Emissions and GDP: Evidence from China By Guglielmo Maria Caporale; Gloria Claudio-Quiroga; Luis A. Gil-Alana
  6. The China Shock and the Nationalist Backlash against Globalization: Attitudinal Evidence from the British Household Panel Survey By Harms, Philipp; Steiner, Nils

  1. By: OKUBO Shoki; KAWATA Keisuke; YIN Ting; ZHONG Renyao
    Abstract: In China, the demand for care work is increasing with the aging of the population. Care services are mainly provided by internal migrants and their wages are found to be particularly low among internal migrants. However, there are few articles that have examined disparities of potential care workers using nationally representative internal migrant data. In terms of the different types of disparities, there are two main forms: inequality and stratification. Inequality refers to variation in absolute levels, whereas stratification refers to segmentation of relative ranks. This paper measures how the stratification index of potential care workers among internal migrants has changed from 2011 to 2015. The results of a nonparametric stratification index (NSI) shows that income stratification between care/non-care work exhibits a declining trend. Decomposition analysis revealed that NSI in each year was apparent by between gender stratification rather than within gender stratification. Furthermore, counterfactual analysis shows that income stratification between care/non-care work would have risen even more than it actually did if care/non-care work differences in educational attainment had remained at their 2011 levels.
    Date: 2019–10
  2. By: Nilsson Hakkala, Katariina; Pan, Yao
    Abstract: Abstract This paper analyzes how intensified Chinese export competition affects the exports and product ranges of firms from Finland. Using a novel identification strategy that exploits changes in Chinese export policies, we find that Chinese export competition reduces aggregate product-level exports. Firm-level analysis further shows that Chinese competition leads to substantial price cuts to retain market shares, especially for homogeneous products. In addition, we also discover that firms respond to the increased level of Chinese export competition by dropping their marginal products. Taken together, these results highlight the importance of export competition with China for developed countries.
    Keywords: Trade flows, Export competition, Firm-level, Product mix, China
    JEL: F14 F15 F61 L25
    Date: 2019–10–30
  3. By: Xuan Liang; Jiti Gao; Xiaodong Gong
    Abstract: This paper develops a time-varying coefficient spatial autoregressive panel data model with the individual fixed effects to capture the nonlinear effects of the regressors, which vary over the time. To effectively estimate the model, we propose a method that incorporates the nonparametric local linear method and the concentrated quasi-maximum likelihood estimation method to obtain consistent estimators for the spatial coefficient and the time-varying coefficient function. The asymptotic properties of these estimators are derived as well, showing the regular sqrt(NT)-rate of convergence for the parametric parameters and the common sqrt(NTh)-rate of convergence for the nonparametric component, respectively. Monte Carlo simulations are conducted to illustrate the finite sample performance of our proposed method. Meanwhile, we apply our method to study the Chinese labor productivity to identify the spatial influences and the time-varying spillover effects among 185 Chinese cities with comparison to the results on a subregion East China.
    Keywords: concentrated quasi-maximum likelihood estimation, local linear estimation, time–varying coefficient.
    JEL: C21 C23
    Date: 2019
  4. By: Küblböck, Karin; Tröster, Bernhard; Ambach, Christoph
    Abstract: China is today the second-largest economy after the US and the world-leading export nation. The economic and political development of China in the past decades has had a big impact on other parts of the world. The Chinese demand for natural resources has dramatically changed trade volumes and structures in many resource-producing countries. Even though China has recently shifted its internal economic focus away from export manufacturing towards a more consumption and service-based economy, securing the supply of primary commodities remains one of China's main priorities. It is today the world's major consumer of iron ore, steel, coal, zinc, lead, tin, nickel, copper and aluminium. As part of this trend, the relationship between Latin America and the Caribbean (LAC) and China has also intensified over the last two decades. The value of total trade between China and all LAC countries has increased twentyfold since 2000. Taking out Mexico from the LAC dataset reveals that China has become the most important single export market for the remaining LAC countries. Chinese Foreign Direct Investment in LAC has grown significantly since 2000. It has been particularly dynamic from 2010 onwards and is directed primarily towards the raw materials sector. Chinese policy banks have become the largest lender in Latin America in the past two decades, providing more financing to the region than the World Bank and the Inter-American Development Bank (IDB) combined. This paper looks at the role of China in Latin America with a focus on natural resources, and, in particular, minerals. It first describes the evolving economic and diplomatic relations between China and LAC and depicts the main Chinese actors in this region, before giving an overview of developments in the areas of trade, finance and investments. It concludes that if the relationship with China is to contribute to inclusive development in LAC, the countries in the region have to coordinate their efforts in order to obtain greater benefits from the new economic relations.
    Keywords: China,Latin America,Trade,Finance,Foreign Direct Investment,Mining
    Date: 2019
  5. By: Guglielmo Maria Caporale; Gloria Claudio-Quiroga; Luis A. Gil-Alana
    Abstract: This paper examines the relationship between the logarithms of CO2 emissions and real GDP in China by applying fractional integration and cointegration methods. The univariate results indicate that the two series are highly persistent, their orders of integration being around 2, whilst the cointegration tests (using both standard and fractional techniques) imply that there exists a long-run equilibrium relationship between the two variables in first differences, i.e. their growth rates are linked together in the long run. This suggests the need for environmental policies aimed at reducing emissions during periods of economic growth.
    Keywords: CO2 emissions, GDP, China, persistence, fractional integration, fractional cointegration
    JEL: C22 C32 Q56
    Date: 2019
  6. By: Harms, Philipp; Steiner, Nils
    JEL: F16 F66 F68
    Date: 2019

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