nep-cna New Economics Papers
on China
Issue of 2020‒12‒07
seven papers chosen by
Zheng Fang
Ohio State University

  1. How do Firms Respond to Political Tensions? Evidence from Chinese Food Importers By Li, Haoran; Wan, Xibo; Zhang, Wendong
  2. Social assimilation and labour market outcomes of migrants in China By Cai, Shu; Zimmermann, Klaus F.
  3. Parental gender stereotypes and student wellbeing in China By Chu, Shuai; Zeng, Xiangquan; Zimmermann, Klaus F.
  4. Productivity Loss amid Invisible Pollution By Wang, Chunchao; Lin, Qianqian; Qiu, Yun
  5. Overeducation, Major Mismatch, and Return to Higher Education Tiers: Evidence from Novel Data Source of a Major Online Recruitment Platform in China By Zheng, Yanqiao; Zhang, Xiaoqi; Zhu, Yu
  6. China Economic Update, July 2020 By World Bank
  7. The Case for Healthy U.S.†China Agricultural Trade Relations despite Deglobalization Pressures By Zhang, Wendong

  1. By: Li, Haoran; Wan, Xibo; Zhang, Wendong
    Abstract: Political and economic tensions, which often jeopardize trade, are rising among the world’s major powers. Previous literature largely focuses on how brief, short-lived political tensions affect bilateral trade; however, little is known about firm-level trade responses to long-term political tensions. This paper investigates how firms respond to long-term political tensions by examining the Norway-China political tensions that lasted for six years. In particular, we use an event study approach to examine China's seafood importers' response to China's 2010 sanction on Norwegian fresh salmon after Norway awarded Liu Xiaobo, a Chinese political dissident, a Nobel Peace Prize. Our results reveal firm-level responses at both the extensive and intensive margins. At the intensive margin, firms that imported Norwegian fresh salmon before the sanction saw a dramatic and persistent decline in their imports of fresh salmon products from Norway ranging from 89% to 96%. At the extensive margin, we not only find a trade diversion effects of firms importing from other countries and less firms importing fresh salmon from Norway, but also a permanent "political hedging" effect with a decline in the maximum import share from any particular country, even if not Norway.
    Date: 2020–11–25
  2. By: Cai, Shu (Jinan University and Global Labor Organization.); Zimmermann, Klaus F. (UNU-MERIT, Maastricht University, CEPR and Global Labor Organization)
    Abstract: Previous research has found identity to be relevant for international migration, but has neglected internal mobility as in the case of the Great Chinese Migration. However, the context of the identities of migrants and their adaption in the migration process is likely to be quite different. The gap is closed by examining social assimilation and the effect on the labourmarket outcomes of migrants in China, the country with the largest record of internal mobility. Using instrumental variable estimation, the study finds that identifying as local residents significantly increase migrants’ hourly wages and reduce hours worked, although their monthly earnings remained barely changed. Further findings suggest that migrants with strong local identity are more likely to use local networks in job search, and to obtain jobs with higher average wages and lower average hours worked per day.
    Keywords: Social assimilation, identity, labour market, migration
    JEL: J22 J31 J61 O15 Z13
    Date: 2020–11–18
  3. By: Chu, Shuai (Renmin University of China and Global Labor Organization.); Zeng, Xiangquan (Renmin University of China and Global Labor Organization.); Zimmermann, Klaus F. (UNU-MERIT, Maastricht University, CEPR and Global Labor Organization)
    Abstract: Non-cognitive abilities are supposed to affect students' educational performance, who are challenged by parental expectations and norms. Parental gender stereotypes are shown to strongly decrease student wellbeing in China. Students are strongly more depressed, feeling blue, unhappy, not enjoying life and sad with no male-female differences while parental education does not matter.
    Keywords: Gender identity, gender stereotypes, student wellbeing, non-cognitive abilities, mental health, subjective wellbeing
    JEL: I12 I26 I31 J16 O15
    Date: 2020–11–18
  4. By: Wang, Chunchao; Lin, Qianqian; Qiu, Yun
    Abstract: Ground-level ozone is a continuing problem worldwide, but research on the influences of ozone pollution on labour productivity in developing countries is insufficient. We investigate the effect of ozone pollution on outdoor worker productivity in the service sector using a unique panel dataset of courier productivities from a top five express company in China. Using an instrumental variable constructed from ozone pollution of upwind nearby cities, we find that a one-standard-deviation increase in daily ozone pollution decreases courier productivity by 8.91%. The same increase in ozone in the previous 30 days decreases worker productivity by 37.9%.
    Keywords: ozone pollution,air pollution,labour productivity,outdoor workers,contemporaneous effect,cumulative effect,express delivery industry
    JEL: J24 O13 P23 P28 Q51 Q53
    Date: 2020
  5. By: Zheng, Yanqiao (Zhejiang University); Zhang, Xiaoqi (Southeast University); Zhu, Yu (University of Dundee)
    Abstract: We develop a novel approach to study overeducation by extracting pre-match information from online recruitment platforms using word segmentation and dictionary building techniques, which can offer significant advantages over traditional survey-based approaches in objectiveness, timeliness, sample sizes, area coverage and richness of controls. We apply this method to China, which has experienced a 10-fold expansion of its higher education sector over the last two decades. We find that about half of online job-seekers in China are two or more years overeducated, resulting in 5.1% pay penalty. However, the effect of overeducation on pay varies significantly by college quality, city type, and the match of college major with industry. Graduates in STEM (Science, Technology, Engineering and Mathematics) or LEM (Law, Economics and Management) from Key Universities are much less likely to be overeducated in the first place, and actually enjoy a significant pay premium even when they are in the situation.
    Keywords: overeducation, online recruitment data, major-industry mismatch, China
    JEL: I23 I26
    Date: 2020–11
  6. By: World Bank
    Keywords: Health, Nutrition and Population - Disease Control & Prevention Macroeconomics and Economic Growth - Business Cycles and Stabilization Policies Macroeconomics and Economic Growth - Economic Growth Macroeconomics and Economic Growth - Fiscal & Monetary Policy Macroeconomics and Economic Growth - Macroeconomic Management Poverty Reduction - Employment and Shared Growth Poverty Reduction - Inequality
    Date: 2020–07
  7. By: Zhang, Wendong
    Abstract: The COVID†19 pandemic is crippling the global economy and heightening distrust and political disagreements among major countries. Furthermore, ongoing deglobalization efforts taken by firms and countries are fueling the rise of economic nationalism. A prime example is the possible decoupling of US–China economic and trade relations, which the ongoing trade war has already significantly disrupted. This paper analyzes the impacts of COVID†19 on US agricultural exports to China, especially the added delays and uncertainty regarding China's food imports meeting the US–China phase one trade deal target. I present the views of US farmers and the general public toward China and argue that healthy US–China agricultural trade relations are not only critical for both countries but welcomed by US farmers. I also discuss the possible rise in nontariff barriers following the pandemic as well as trade policies that are increasingly intertwined with political tensions. Finally, I discuss how the US–China phase one trade deal could possibly lead to a more balanced bilateral agricultural trade portfolio with greater share of protein and retail food products.
    Date: 2020–10–13

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