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on China |
| By: | Yang, Zheyu |
| Abstract: | I study the effects of monetary policy shocks on corporate bond prices in China. Using high-frequency comovement of interest rates and stock prices surprises around People’s Bank of China’s (PBoC) policy announcements on Reserve Requirements and a Bayesian structural vector autoregression, I disentangle the true monetary policy shocks from the central bank’s informational surprises. This paper documents a strong positive effect of monetary easings shocks on secondary market bond prices. More importantly, it shows that the effect is increasing with the credit risks of the bonds, i.e., risky bonds outperform safer bonds following monetary easings while underperform following monetary tightening, which is consistent with search for yield. The findings raise implications for financial stability and macroprudential policy. |
| Keywords: | risk-taking,monetary policy,asset price,China |
| JEL: | C11 E43 E52 G12 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:263253&r= |
| By: | Banh, Thi Hang; Caselli, Mauro |
| Abstract: | This paper analyses the effect of rising competition from Chinese exports on the skill premium of Mexican plants. Using detailed product-plant-level production data from Mexico and bilateral product-level trade data for 1994-2007, we provide evidence that Mexican plants reduce their skill premium in response to increasing competition from Chinese exports, and the effect is more pronounced among non-exporting plants. Thus, we develop a model linking competition and wage inequality between skilled and unskilled workers by introducing these two types of labour to a model with heterogeneous firms and quality differentiation. Our model predicts that tougher competition leads plants to downgrade quality, which induces a decline in the wage difference between skilled and unskilled workers. We investigate this hypothesis empirically by analysing the effect of Chinese competition on the product quality of Mexican plants. Consistent with the fall in the skill premium, we document a downgrading impact of China's rise on Mexican plants' product quality and this quality downgrading is less intense for products sold in the foreign market. These findings provide empirical support for the predictions of our model. |
| Keywords: | product quality,Chinese competition,skill premium,Mexico,heterogeneous firms |
| JEL: | D21 D22 F12 F14 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1162&r= |
| By: | Chen, Shuai; Ge, Erqi |
| Abstract: | There is a clear and persistent inequality of bureaucratic employment between individuals with a bureaucrat parent and those without. Using the recent anti-corruption campaign in China as a quasi-experiment, we investigate how endeavors for counter-corruption affect inequality and potential cronyism in bureaucratic employment through inter-generational transmission. First, we conduct a difference-in-differences analysis to compare changes in the probability of working in bureaucracy after the campaign came into effect in different provincial administrative divisions of mainland China, between individuals with a bureaucrat parent and those without. We find that before the campaign, bureaucrats' children were over 13 percentage points more likely to work in bureaucracy, and that the positive selection on human capital can explain only 12-25 percent of this advantage of bureaucrats' children. However, after the campaign took effect, this premium significantly reduced by more than 5 percentage points. Moreover, we explore potential mechanisms through which anti-corruption efforts have diminished the inter-generational transmission of bureaucratic employment. We provide evidence that the campaign decreased the economic attractiveness of bureaucratic jobs, and that better outside options are more likely to explain the reduced inter-generational transmission. We do not find evidence supporting other two alternative channels: the insider information of bureaucrat parents on the campaign, or changes in perceptions of bureaucracy. |
| Keywords: | Anti-corruption,Bureaucracy,Inter-generational transmission,Inequality |
| JEL: | D73 H83 O12 P35 D63 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1159&r= |
| By: | Christian Bellak (Department of Economics, Vienna University of Economics and Business); Markus Leibrecht (Shanghai Ocean University); Julien Chaisse (City University of Hong Kong) |
| Abstract: | The paper contributes to the debate on the effects of reforms of bilateral investment treaties on Foreign Direct Investment. So far studies show mixed empirical evidence as to the existence of positive effects on Foreign Direct Investment, pointing to rather small impacts. However, isolating the impact of a reform of bilateral investment treaties on Foreign Direct Investment is plagued by methodological issues as well as data restrictions. This paper adds to the literature as it mitigates some of these limitations by focusing on a particular reform-step in China’s international treaty policy, namely the substitution of a first-generation bilateral investment treaty with a much more “investor-friendly” third-generation bilateral investment treaty. Our basic findings, derived from a two-way fixed-effects framework, suggest that the more investor-friendly third-generation bilateral investment treaties indeed increase Foreign Direct Investment stocks in China. These findings are of policy relevance not only for capital importing countries, but also from the viewpoint of China’s increasing relevance as an outward investor in countries included in the Belt and Road initiative. |
| Keywords: | China, Foreign Direct Investment, Bilateral Investment Treaties, Reform |
| JEL: | D22 E52 D31 E23 E32 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp328&r= |
| By: | Chen, Xi |
| Abstract: | This paper reviews the latest evidence of the effects of early life circumstances on old-age health, distinguishing in utero exposures from childhood exposures to a wide range of environments. We then leverage the growing number of studies of the impact of the Great Chinese Famine (1959-1961) on the health of older adults to perform a meta-analysis and discuss potential mechanisms. Recent studies assembling multiple domains of early life circumstances are evaluated to better understand how various circumstances may coalesce and manifest in shaping long-term health. |
| Keywords: | Early life Circumstances,Old-age Health,Famine,Long-term Health,Meta-Analysis,China |
| JEL: | I14 J14 J13 I18 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1158&r= |
| By: | Yifei Cai; Valérie Mignon; Jamel Saadaoui |
| Abstract: | This paper assesses the effects of US-China political tensions on the oil market. Relying on a quantitative measure of these relationships, we investigate how their dynamics impact oil demand, supply, and prices over various periods, starting from 1971 to 2019. To this end, we estimate a structural vector autoregressive model as well as local projections and show that political tensions between the two countries pull down oil demand and raise supply at medium- and long-run horizons. Overall, our findings show that conflicting relationships between these two major players in the oil market may have crucial impacts, such as the development of new strategic partnerships. |
| Keywords: | China;Oil market;Political relations |
| JEL: | Q4 F51 C32 |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2022-07&r= |
| By: | Boyang You; Kerry Papps |
| Abstract: | Social employment, which is mostly carried by firms of different types, determines the prosperity and stability of a country. As time passing, the fluctuations of firm employment can reflect the process of creating or destroying jobs. Therefore, it is instructive to investigate the firm employment (size) dynamics. Drawing on the firm-level panel data extracted from the Chinese Industrial Enterprises Database 1998-2013, this paper proposes a Markov-chain-based descriptive approach to clearly demonstrate the firm size transfer dynamics between different size categories. With this method, any firm size transition path in a short time period can be intuitively demonstrated. Furthermore, by utilizing the properties of Markov transfer matrices, the definition of transition trend and the transition entropy are introduced and estimated. As a result, the tendency of firm size transfer between small, medium and large can be exactly revealed, and the uncertainty of size change can be quantified. Generally from the evidence of this paper, it can be inferred that small and medium manufacturing firms in China have greater job creation potentials compared to large firms over this time period. |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2208.13012&r= |
| By: | Feng, Haibo (Jinan University, College of Economics); Liu, Sheng (Guangdong University of Foreign Studies, School of Economics and Trade); Xu, Fei (Department of Economics, Umeå University) |
| Abstract: | The impact of China’s VAT reform on enterprise innovation is the result of the combination of tax cuts and endogenous incentives. We find evidence that China’ VAT reform generally reduced the tax burden of firms but had a different impact on the manufacturing and the service industry. The tax burden of the manufacturing dropped significantly, but that of the service industry did not change markedly. Furthermore, we show that China’s VAT reform had also a significant positive impact on corporate innovation for both the service industry and the manufacturing. However, these effects were significantly greater in the manufacturing. Meanwhile, China’s VAT reform did not alleviate the tax burden of all the enterprises. For the enterprises facing the increased burden of tax, the reform can still stimulate the enterprise innovation if it has sufficient own capital, whereas the impact coefficient and significant level reduced significantly compared with the enterprises that the burden of tax reduced. If the enterprise’s own capital is insufficient, VAT reform has little effect on enterprise innovation. Finally, we show that China’s VAT reform exerted different influences on the innovative behavior of heterogeneous enterprises. |
| Keywords: | China’s VAT reform; Tax Burden; Innovation |
| JEL: | H25 H32 O31 |
| Date: | 2022–09–06 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:umnees:1008&r= |
| By: | Zhang, Mingxue; Hou, Lingling; Wang, Yue |
| Abstract: | Using a comprehensive individual panel dataset in China and an event study method, we examined the effects of having a child on gender inequality from the perspectives of labor market outcomes and its mechanisms. Results show that becoming a mother implies a sharp decline in labor earnings, labor market participation, working hours and wage rate, while fathers' outcomes remain unaffected. These outcomes are driven by two potential channels: career choices and social norms. After having a child, mothers have a higher likelihood for engaging in informal jobs and less possibility of being promoted if they work in the formal sector. Moreover, social norms towards gender roles lead mothers to devote more time to housework and babysit, which generate motherhood earnings penalty in labor market. Finally, well-being analysis shows that subjective happiness and life satisfaction of both males and females are barely not changed after childbirth, and females experience an increase in social status after child arrival. |
| Keywords: | motherhood penalty,gender inequality,gender gap,individual earnings |
| JEL: | J13 J16 J22 J31 D13 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1152&r= |
| By: | Lin, Zhuoer; Chen, Xi |
| Abstract: | Rapid population aging elevates burden of chronic and non-communicable diseases among older adults. Despite the critical role of self-management in disease prevention and control, effective management of diseases can be cognitively demanding and may require additional supports from family and social services. Using nationally representative data from China, this paper reveals great challenges in disease management and characterizes the differential effects of long-term care services and supports (LTSS) on disease management among older adults in different stages of cognitive impairment (CI). In specific, we use preventive care utilization and hypertension management as key indicators to assess the performance of disease management. We show that while access to LTSS from spouse or home-based services significantly facilitate active disease management behaviors, the effects are only evident among older adults with no CI. By contrast, access to LTSS has very modest effect for cognitively impaired individuals. In addition, older adults in more severe stages of CI perform worse in disease prevention, hypertension awareness and management. These findings reveal the vulnerability of older adults with CI in disease management and point to the importance of promoting targeted interventions to reduce barriers of accessing LTSS, especially among cognitively impaired population. |
| Keywords: | Long-term Services and Supports,Chronic Disease Management,Cognitive Impairment,Preventive Care Utilization,Disease Awareness,Hypertension |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1148&r= |
| By: | Wang, Feiyang; Shreedhar, Ganga; Galizzi, Matteo M; Mourato, Susana |
| Abstract: | Previous research on food waste interventions has mostly focused on micro-level factors related to the individuals, and largely neglected macro-level contextual factors such as work-to-home spillovers. Inspired by the multi-level framework, we present a case study of how macro-level workplace campaigns could decrease food waste in staff cafeterias, compete with micro-level factors like environmental identity, and further stimulate some employees’ food saving efforts at home. The workplace interventions combined smart bins with fortnightly informational feedback trialed in three staff cafeterias of a large hotel chain in Macau, China. Actual food waste data and self-reported behavior consistently show that the staff cafeteria receiving environmental framing with anthropomorphic cues had more reductions in food waste behaviors. A key determinant of self-reported food saving efforts at home was efforts to reduce food waste at work, which predicted beyond and above environmental identity and provided evidence for positive contextual spillover effects. |
| Keywords: | food waste; behavioral intervention; multi-level framework; environmental framing; anthropomorphism; contextual spillover |
| JEL: | R14 J01 |
| Date: | 2022–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:115762&r= |