nep-cna New Economics Papers
on China
Issue of 2021‒05‒10
four papers chosen by
Zheng Fang
Ohio State University

  1. Does Higher Education Make You More Entrepreneurial? Causal Evidence from China By Huang, Bin; Tani, Massimiliano; Zhu, Yu
  2. Can Technological Innovation Bring an Economic and Environmental Benefit to Energy Firms: An Evidence from China? By Yue-Jun; Ting Liang; Zongwu Cai
  3. The Impact of the African Swine Fever outbreak in China on global agricultural markets By Clara Frezal; Stephan Hubertus Gay; Claude Nenert
  4. Designing Heaven's Will: The job assignment in the Chinese imperial civil service By In\'acio B\'o; Li Chen

  1. By: Huang, Bin (Nanjing University of Finance and Economics); Tani, Massimiliano (University of New South Wales); Zhu, Yu (University of Dundee)
    Abstract: Using the 2017 China Household Finance Survey (CHFS), we estimate the effect of higher education on entrepreneurship for prime-aged males. We distinguish between own-account workers and employers of small and large businesses, respectively, and use the higher education expansion in China starting in 1999 and instruments of pre-school hukou status to help identify causal effects. While our Inverse Probability Weighted Regression Adjustment estimates show that people with more education are less likely to enter entrepreneurship in general, obtaining any qualification beyond the baseline of compulsory schooling significant increases large business ownership later in life, with the maximum effect corresponding to a 3-fold increase found for university graduates. We attribute this effect to graduates taking full advantage of the opportunities presented by access to education earlier on in their lives.
    Keywords: higher education, entrepreneurship, higher education expansion, China, Inverse Probability Weighted Regression Adjustment (IPWRA)
    JEL: I25 J24 L26
    Date: 2021–04
  2. By: Yue-Jun (School of Business, Hunan University, Changsha, Hunan 410082, China); Ting Liang (School of Business, Hunan University, Changsha, Hunan 410082, ChinaAuthor-Name: Weijie Zhai); Zongwu Cai (Department of Economics, The University of Kansas, Lawrence, KS 66045, USA)
    Abstract: This paper investigates whether technological innovation can bring some economic and environmental benefits to energy firms. By analyzing data for energy firms in China from 2009 to 2017, this paper finds that technological innovation is not always beneficial to the multi-interests of energy firms. First, technological innovation does not necessarily fully promote the benefit-based performance of energy firms in China. Actually, technological innovation increases the excess returns but inhibits the operational efficiency of energy firms, and has no a significant impact on the firm value of energy firms. Moreover, technological innovation exacerbates the crash risks of energy firms, which is not conductive to the stability of energy financial market. Second, technological innovation may significantly reduce carbon emissions intensity and play an important role in improving the environmental performance of energy firms in China. Finally, a sharp rise in energy prices may inhibit technological innovation activities, and thus influencing the performance of energy firms.
    Keywords: Technological innovation; Energy firms; Firm performance; Truncated regression model; Treatment effect model
    JEL: Q55 M14 O13 L25
    Date: 2021–05
  3. By: Clara Frezal; Stephan Hubertus Gay; Claude Nenert
    Abstract: In China, the outbreak of the African Swine Fever is expected to result in a 27% drop in the production of pigmeat, the country’s most consumed meat product. Using the OECD-FAO Aglink-Cosimo model, this paper examines the impact of this production shortfall on global markets for livestock products and animal feed over the short and the medium term. In particular, it compares outcomes if the changes induced by the ASF outbreak in China are temporary with outcomes that could result if current changes lead to a restructuring of Chinese protein demand.
    Keywords: Agricultural trade, Feed market, Pandemic, Pigmeat
    JEL: C61 F17 Q11 Q17
    Date: 2021–05–10
  4. By: In\'acio B\'o; Li Chen
    Abstract: We use an original analysis of historical documents to explore the evolution of the assignment procedures that were used to allocate entry-level civil service jobs in China from the tenth to the early twentieth century. Three objectives emerged over time, which the assignment procedures tried to take into account through trial and error: eligibility (which defines what jobs are suitable for candidates according to their competence as measured by academic degrees), rule of avoidance (which restricts candidates from being assigned to their home regions), and randomness (which limits personal interference). By constructing a formal model that combines all the different procedures into a common framework, we theoretically compare the effectiveness of these procedures in terms of efficiency (whether the least number of workers are left without a job) and assortativeness (whether as many candidates as possible are matched to jobs fitting their competence). We show that the inherent complexity of the problem was such that changes made to improve the assortativeness of outcomes, which at first sight would have achieved that result could have had the opposite effect.
    Date: 2021–05

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