nep-cna New Economics Papers
on China
Issue of 2021‒09‒20
three papers chosen by
Zheng Fang
Ohio State University

  1. Act Early to Prevent Infections and Save Lives: Causal Impact of Diagnostic Efficiency on the COVID-19 Pandemic By Chen, Simiao; Jin, Zhangfeng; Vollmer, Sebastian; Bärnighausen, Till; David E. Bloom
  2. The Legacies of the Soviet Influence in the 1950s: China's 156 Major Industrial Projects By Jin, Zhangfeng
  3. Assessing the supply chain effect of natural disasters: Evidence from Chinese manufacturers By Längle, Katharina; Xu, Ankai; Tian, Ruijie

  1. By: Chen, Simiao; Jin, Zhangfeng; Vollmer, Sebastian; Bärnighausen, Till; David E. Bloom
    Abstract: This paper examines the causal impact of diagnostic efficiency on the COVID-19 pandemic in China. Using an instrumental variable approach, we show that a 1-day decrease in the time taken to confirm the first case in a city publicly led to 9.4% and 12.7% reductions in COVID-19 prevalence and mortality over the subsequent six months, respectively. The impact was larger for cities that are farther from the COVID-19 epicenter, are exposed to less migration, have more responsive public health systems, and have higher-capacity utilization of health systems. Social distancing and a less burdened health system are likely underlying mechanisms.
    Keywords: Diagnostic Efficiency,Information Disclosure,Social Distancing,COVID-19,China
    JEL: I18 D83 H75 I12 J61
    Date: 2021
  2. By: Jin, Zhangfeng
    Abstract: This paper investigates whether and how China's adoption of Soviet-aided industrialization programs in the 1950s has affected its long-run innovation. Focusing on 156 major industrial projects aided by the Soviet Union, combined with an instrumental variable approach, I find that the adoption of these programs substantially discourages local firms to innovate in the long run. A causal mediation analysis of instrumental variable settings shows that the negative effect is entirely driven by local firms' lower intensity of incentive pay. This evidence suggests disadvantages of Soviet-aided industrialization programs for long-run innovation due to firms adopting incentive-incompatible management technology.
    Keywords: Soviet Aid,Technology Transfers,Incentive Pay,Innovation,China
    JEL: O10 O30 L20 M52
    Date: 2021
  3. By: Längle, Katharina; Xu, Ankai; Tian, Ruijie
    Abstract: This paper uses Chinese firm level data to detect the international propagation of adverse shocks triggered by the US hurricane season in 2005. We provide evidence that Chinese processing manufacturers with tight trade linkages to the United States reduced their intermediate imports from the United States between July and October 2005. We further show that the direct exposure to US supply shocks led to a temporary decline of firm exports between September and November 2005, although we do not find consistent evidence of international propagation of supply shocks along global value chains. Moreover, the paper finds that firms with more diversified suppliers tend to be less affected by the US hurricane disaster, pointing to firm sourcing diversification as a way to increase resilience to adverse shocks.
    Keywords: production networks,resilience,diversification,shock transmission,supply chains,natural disasters
    JEL: F12 F14 F15 F61 L14 E23
    Date: 2021

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