nep-cna New Economics Papers
on China
Issue of 2021‒05‒31
nine papers chosen by
Zheng Fang
Ohio State University

  1. The COVID-19 Pandemic and the Transformation of Health Policy: A Syndemic Perspective By Chen, Xi; Fan, Annie
  2. THE EFFECTS OF ASEAN-CHINA FREE TRADE AGREEMENT ON BILATERAL TRADES By Wong, Colin Koh-King; Liew, Venus Khim-Sen; Arip, Mohammad Affendy
  3. Trajectories to High Income: Growth Dynamics in Japan, the People’s Republic of China, and the Republic of Korea By Murach , Michael; Wagner , Helmut; Kim , Jungsuk; Park , Donghyun
  4. Daily New Covid-19 Cases, The Movement Control Order, and Malaysian Stock Market Returns By Chia, Ricky Chee-Jiun; Liew, Venus Khim-Sen; Rowland, Racquel
  5. Climate, diseases, and the origins of corruption By Vu, Trung V.
  6. How the COVID-19 Pandemic Affects Job Stress of Rural Teachers By Li, Haizheng; Liu, Qinyi; Ma, Mingyu
  7. Abnormal returns on tourism shares in the Chinese stock exchanges amid COVID-19 pandemic By Liew, Venus Khim-Sen
  8. Accounting for the Great Divergence: Recent findings from historical national accounting By Stephen Broadberry
  9. From Guangzhou to Naples: French exports of plastic waste By Julien Martin; Isabelle Mejean; Inés Picard; Benoît Schmutz

  1. By: Chen, Xi; Fan, Annie
    Abstract: The Coronavirus Disease 2019 (COVID-19) pandemic is bringing about once-in-a-century changes to human society. Three key properties escalate the COVID-19 pandemic into a syndemic. To address this triple crisis, we discuss the importance of integrating early, targeted and coordinated public health measures with more equitable social policy, and with health care policy that realigns incentives of the major players in the health care market. Drawing on evidence from past and present epidemics as well as comparing variations in response to the current health emergency between China, the U.S. and beyond, we navigate long-awaited health policy transformation in areas that help us better prepare for the next pandemic.
    Keywords: COVID-19,pandemic,syndemic,healthcare reform,global health policy
    JEL: I18 J24 H12 P41 H51
    Date: 2021
  2. By: Wong, Colin Koh-King; Liew, Venus Khim-Sen; Arip, Mohammad Affendy
    Abstract: This article adopts the augmented versions of Gravity Model to examine the effects of the signing of ASEAN-China Free Trade Agreement (ACFTA) on the bilateral aggregate trades. Specifically, ACFTA dummy variables are incorporated in the basic model is to estimate the direction and magnitude of the ACFTA effects. A total of 79 trading partners of ASEAN member countries plus China were examined in this article. The study finds that the Gross Domestic Product, population, natural endowment, distance and common language are the main determining factors of the bilateral trade for ASEAN member countries and its trading partners. Estimated results from this Augmented Gravity Model showed that ACFTA have increased the bilateral aggregate trades not only between intra-bloc member countries, but also between intra-bloc and extra-bloc countries. With this positive finding, ASEAN and China could consider to expand their free trade area to a broader regional perspective, to enhance economic growth and to reduce regional inequality.
    Keywords: ASEAN–China Free Trade Area (ACFTA), Gravity Model, Total aggregate trades
    JEL: F43 F62
    Date: 2021–01–01
  3. By: Murach , Michael (FernUniversität in Hagen); Wagner , Helmut (FernUniversität in Hagen); Kim , Jungsuk (Sejong University); Park , Donghyun (Asian Development Bank)
    Abstract: We analyze and compare the patterns of economic growth and development in the Japan, the People’s Republic of China, and the Republic of Korea in the postwar period. The geographical proximity and cultural affinity between the three countries, as well as the key role of the development state in the economies, suggest that an analytical comparison would be a meaningful and valuable exercise. Furthermore, Japan and the Republic of Korea are two of the few economies that have jumped from middle income to high income in a short period and thus offer potentially valuable lessons for the PRC. We use Cobb–Douglas production functions to assess the long-run equilibrium relationships between per capita gross domestic product, capital, and labor by means of cointegrated vector autoregressive models. We show that such equilibrium relationships cannot be rejected for all three countries, while the evidence is stronger for the PRC and the Republic of Korea than for Japan. Our hypothesis tests show that the estimated Cobb–Douglas production functions display coefficients of capital and employment that sum up to 1 and broken linear trends that can be attributed to structural breaks and (changes in) total factor productivity growth. We observe a striking similarity between the experience in the Republic of Korea and the PRC, which gives some optimism that the PRC may be capable of graduating to high income, like the Republic of Korea.
    Keywords: aggregate production function; comparative economic growth; economic development; Japan; People’s Republic of China; Republic of Korea
    JEL: E23 O47 O53 O57 P52
    Date: 2020–10–09
  4. By: Chia, Ricky Chee-Jiun; Liew, Venus Khim-Sen; Rowland, Racquel
    Abstract: ABSTRACT The Movement Control Order (MCO) not only restricts movement of human being, it also reduces firms’ financial profits and brings significant impact to stock returns. The objective of this study is to examine the relation between Malaysian stock market returns and variables related to the novel Coronavirus (COVID-19) pandemic outbreak. The FTSE Bursa Malaysia KLCI Index and eight selected main indices from 2 January 2020 to April 30, 2020, which includes the first three MCOs, are considered in this study. The results show that daily new confirmed COVID-19 cases and deaths had negative but insignificant impact on the returns on indices. Interestingly, MCO had significant and positive impact on all the indices’ returns while oversea financial risks had negative impact on these returns. Furthermore, it is found that the degree of impacts of MCO and oversea financial risks varied positively with the firm size of the indices’ constituent companies. China’s decision on unchanged loan prime rate on the 20 February 2020 was a favorable news to the Malaysia stock markets as indicated by the positive returns on all the indices. Similarly, the degree of impact of the China interest policy also varied positively with the firms’ characteristics. These findings are useful for investors in the Bursa Malaysia to manage their investment portfolios based on their appetites for risk.
    Keywords: COVID-19; Movement Control Order; Pandemic outbreak; Bursa Malaysia
    JEL: G10 G14 H0
    Date: 2020
  5. By: Vu, Trung V.
    Abstract: It has been commonly observed that tropical countries tend to suffer from intense corruption and underdevelopment. This study provides an explanation for this long-standing disparity across the world based on variation in the intensity of ultraviolet radiation (UV-R). The central hypothesis is that UV-R is positively associated with the (historical) prevalence of eye diseases, which significantly shortens work-life expectancy as a skilled worker. This helps shape the worldwide distribution of corruption by affecting the incumbents’ window of opportunity. Using data for up to 139 countries, I consistently find empirical support for the positive relationship between UV-R and corruption. The main findings withstand accounting for numerous alternative explanations for international differences in corruption levels. Employing individual-level data from the World Values Survey, I document suggestive evidence that exposure to UV-R is linked to surveyed respondents’ tolerance towards corrupt activities. Furthermore, a subnational analysis for China lends credence to the cross-country evidence.
    Keywords: corruption,climate,diseases,ultraviolet radiation,comparative prosperity
    JEL: O11 O43 O57 Q54
    Date: 2021
  6. By: Li, Haizheng (Georgia Tech); Liu, Qinyi (University of International Business and Economics Beijing); Ma, Mingyu (Central University of Finance and Economics Beijing)
    Abstract: This study investigates how the COVID-19 pandemic has affected teachers' job-specific stresses and their enthusiasm for the teaching occupation. We use unique data from China that cover the periods before and after the start of the pandemic and apply difference-in-differences type methods. We find that, among rural young teachers, the pandemic has caused higher teaching stress and career development stress and has reduced passion towards the teaching occupation. We investigate the working channels of the pandemic, including job-related activities and social network. After controlling for possible working channels, the COVID-19 pandemic still shows a strong direct impact on job sentiments.
    Keywords: enthusiasm for occupation, job stress, pandemic, COVID-19
    JEL: I18 J24 J28
    Date: 2021–05
  7. By: Liew, Venus Khim-Sen
    Abstract: This study finds significant immediate adverse impact of the novel coronavirus (COVID-19) pandemic on tourism shares listed in the Shanghai and Shenzhen stock exchanges, in terms of breadth and depth. Overall, prices of these shares plunged by 20% in three consecutive days in response to pandemic fears, before technical rebound set in. Significant negative cumulative abnormal returns after the Wuhan lockdown are identified in 18 out of 21 tourism shares traded in the Chinese stock exchanges. These findings could serve as references for the China Security Regulatory Commission to monitor the market in future pandemic management. Investors are advised to avoid tourism shares the moment there is any suspicious development of virus outbreak in the future. Instead, they could look for opportunity to buy dip after massive market decline at the appropriate timing.
    Keywords: Tourism; coronavirus pandemic; COVID-19; Chinese stock exchanges; event study; abnormal returns.
    JEL: G10 G14 G15
    Date: 2020
  8. By: Stephen Broadberry
    Abstract: As a result of recent work on historical national accounting, it is now possible to establish more firmly the timing of the Great Divergence of living standards between Europe and Asia in the eighteenth century. There was a European Little Divergence as Britain and the Netherlands overtook Italy and Spain, and an Asian Little Divergence as Japan overtook China and India. The Great Divergence occurred because Japan grew more slowly than Britain and the Netherlands starting from a lower level, and because of a strong negative growth trend in Qing dynasty China. A growth accounting framework is used to assess the contributions of labour, human and physical capital, land and total factor productivity. In addition to these proximate sources, the roles of institutions and geography are examined as the ultimate sources of the divergent growth patterns.
    Keywords: Great Divergence; living standards; measurement; explanation
    JEL: N10 N30 N35 O10 O57
    Date: 2021–03–17
  9. By: Julien Martin (CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - CNRS - Centre National de la Recherche Scientifique, UQAM - Université du Québec à Montréal = University of Québec in Montréal); Isabelle Mejean (CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - CNRS - Centre National de la Recherche Scientifique); Inés Picard (CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - CNRS - Centre National de la Recherche Scientifique); Benoît Schmutz (CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - CNRS - Centre National de la Recherche Scientifique)
    Abstract: In this note, we use China's ban of plastic waste imports in 2017 as a natural experiment of a sudden drop in the world demand for plastic waste. We study how French exporters have adjusted, both in terms of quantities exported, destinations, and prices. After the ban, exports to other Asian countries increased sharply, but this redirection appears to be short-lived, unlike redirection towards other EU countries. In addition, there is suggestive evidence of a polarization of the quality of plastic waste exports between destinations. In light of our findings, we discuss the possible impact of new European regulations that will drastically reduce European exports of plastic waste.
    Date: 2021–04

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