nep-cna New Economics Papers
on China
Issue of 2023‒07‒10
ten papers chosen by
Zheng Fang
Ohio State University

  1. Measurements, Determinants and Causes of Corruption: Lessons from China's Anti-Corruption Campaign By Hanming Fang
  2. Husbands' Wages and Married Women's Labor Supply in Urban China By Zhu, Mengbing; Li, Yi; Xing, Chunbing
  3. Higher Education Opportunity and the Choice of Vocational vs. Academic High School By Xing, Chunbing; Sun, Yan; Luo, Chuliang
  4. Chinese Insurance Markets: Developments and Prospects By Hanming Fang; Xian Xu
  5. How Does the Beauty of Wives Affect Post-Marriage Family Outcomes? Helen's Face in Chinese Households By Zhang, Junsen; Fei, Shulan; Wen, Yanbing
  6. Anti-social behaviour and economic decision-making: panel experimental evidence in the wake of COVID-19 By Lohmann, Paul M.; Gsottbauer, Elisabeth; You, Jing; Kontoleon, Andreas
  7. Responsibility-Shifting through Delegation: Evidence from China’s One-Child Policy By Yiming Liu; Yi Han
  8. Geopolitical competition in the Indo-Pacific: Managing development cooperation By Nath, Ela; Klingebiel, Stephan
  9. Estimating and Testing for Functional Coefficient Quantile Cointegrating Regression By Haiqi Li Author-Name-First: Haiqi; Jing Zhang; Chaowen Zheng
  10. An Exploratory Study on the Grieving of the Bereaved Father in Hong Kong – from Grief Support Workers’ Perspective By Chi Lok Jerry Wong; Kar Choi Chan

  1. By: Hanming Fang
    Abstract: Corruption is a widespread phenomenon in many developing and transitional economies. China is a country in profile both in the prevalence of corruption, and in its attempts to root out corruption. The recent anti-corruption campaign in China, which started in December of 2012 when President Xi Jinping took power, is unprecedented in its magnitude and time length. It has had lasting impact on the functioning of the Chinese bureaucracy, and on the behavior of firms and consumers. It also provides unusual amount of data to study the causes and consequences of corruption, which will have implications for other countries and economies. In this review I discuss the definition and measurement of corruption with a particular focus on the measurements that highlight the city-level heterogeneity of corruption in China, and present simple frameworks to understand the determinants of corruption by government officials and the causes and consequences of corruption and anti-corruption. I summarize the key findings regarding how the anti-corruption campaign affects the behavior of a host of decisions makers in the economy, including firms and bureaucrats, and on the resource allocation in general, and argue that the lessons from China's anti-corruption campaign are useful to other developing countries.
    JEL: D73 G38 P37
    Date: 2023–05
  2. By: Zhu, Mengbing (Beijing Normal University); Li, Yi (Beijing Normal University); Xing, Chunbing (Renmin University of China)
    Abstract: This study examines the impact of husbands' wages on their wives' labor force participation rates and hours worked in urban China from 1995 to 2018. We find that an increase in husbands' wages reduces the labor force participation rate of married women with similar education levels. Controlling for gender identity—in particular, an aversion to the wife earning more than her husband—strengthens the income effect of husbands' wages. The labor supply effect of husbands' wages is more significant for younger and less-educated women and those with more children. The employed women's hours worked are negatively correlated with their husbands' wages, which is more significant for married women of older cohorts and with more children. This study helps us better understand the trend of the female labor supply in urban China. It sheds light on the impact of gender identity, welfare inequalities across families, and the well-being of households facing economic shocks.
    Keywords: husbands' wages, female labor force participation, hours worked, gender identity
    JEL: D13 D31 J16 J21
    Date: 2023–05
  3. By: Xing, Chunbing (Renmin University of China); Sun, Yan (World Bank); Luo, Chuliang (Renmin University of China)
    Abstract: This research uses CHIP data of 2018 to examine the impact of higher education opportunities on the middle school graduates' choice between academic and vocational high schools. The findings indicate that a higher university quota at the provincial level increases the likelihood of middle school graduates choosing an academic high school, and the probability of choosing a vocational high school is negatively correlated with elite university opportunities in urban China. These results suggest that spatial differences in higher education opportunities significantly influence the type of human capital investment at the high school stage in China.
    Keywords: human capital investment, higher education opportunity, the choice of vocational vs. academic high school
    JEL: I24 I25 I26 H75
    Date: 2023–05
  4. By: Hanming Fang; Xian Xu
    Abstract: In this chapter, we review the development of the insurance industry in China. We provide a comprehensive discussion of its regulatory framework, major insurance segments, market structure, InsurTech, social insurance and the prospects for the future development.
    JEL: G22 G28 H55 L11 O16
    Date: 2023–05
  5. By: Zhang, Junsen (Zhejiang University); Fei, Shulan (Zhejiang University of Finance and Economics); Wen, Yanbing (Jiaxing University)
    Abstract: Research on the economics of beauty has persistently emphasized beauty premiums in the labor market but ignored its influence within existing marriages. We examine the physical appearance of the wives and its influence on several post-marriage family outcomes using a conceptual framework that is widely applicable. Based on two data sets from China, we find beautiful women have at least 0.43 fewer children than average- or plain-looking women when controlling for other factors. The negative effect remains robust controlling for wages and the possible endogeneity of beauty. In terms of mechanisms, the negative impact seems to operate by altering bargaining power within the family and the opportunity cost of having children, but not through the quantity-quality interaction of children. For other outcomes, wives' good looks reduce the probability of their taking care of or tutoring their children and increase the probability of parents or in-laws caring for children or performing household chores in urban areas.
    Keywords: beauty, household bargaining power, number of children, intergenerational care, opportunity cost
    JEL: J10 J13
    Date: 2023–05
  6. By: Lohmann, Paul M.; Gsottbauer, Elisabeth; You, Jing; Kontoleon, Andreas
    Abstract: We systematically examine the acute impact of exposure to a public health crisis on anti-social behaviour and economic decision-making using unique experimental panel data from China, collected just before the outbreak of COVID-19 and immediately after the first wave was overcome. Exploiting plausibly exogenous geographical variation in virus exposure coupled with a dataset of longitudinal experiments, we show that participants who were more intensely exposed to the virus outbreak became more anti-social than those with lower exposure, while other aspects of economic and social preferences remain largely stable. The finding is robust to multiple hypothesis testing and a similar, yet less pronounced pattern emerges when using alternative measures of virus exposure, reflecting societal concern and sentiment, constructed using social media data. The anti-social response is particularly pronounced for individuals who experienced an increase in depression or negative affect, which highlights the important role of psychological health as a potential mechanism through which the virus outbreak affected behaviour.
    Keywords: anti-social behaviour; coronavirus; natural experiment; panel data; risk preferences; social media data; time preferences; Covid-19
    JEL: C93 D64 D81 D91 I18
    Date: 2023–02–01
  7. By: Yiming Liu (HU Berlin); Yi Han (Renmin University of China)
    Abstract: We provide evidence on how responsibility-shifting through delegation occurred in China’s implementation of the one-child policy. We show that trust in local governments was reduced when they were the primary enforcer of the policy (1979–1990), while trust in neighbors was reduced when civilians were incentivized to report neighbors’ violations of the policy to the authorities (1991–2015). This effect was more pronounced among parents of a firstborn daughter, who were more likely to violate the policy due to the deep-rooted son preference. This study provides the first set of field evidence on the responsibility-shifting effect of delegation.
    Keywords: delegation; responsibility-shifting; One-Child policy;
    JEL: D02 D04 D90 J18
    Date: 2023–06–01
  8. By: Nath, Ela; Klingebiel, Stephan
    Abstract: This Policy Brief examines the geopoliticisation of development cooperation within the Indo-Pacific region. First, we discuss the emergence of Indo-Pacific strategies and how these intersect with geopolitics and development cooperation amongst traditional develop-ment actors such as the United States and the Euro-pean Union. Second, we examine how these narratives have shaped the development cooperation approaches of China and India, both significant geopolitical actors. Third, we look at how these dynamics have played out in key regions of the Indo-Pacific, especially Southeast Asia, South Asia, and the Pacific Islands. We argue that while geopolitical competition brings opportunity to these regions, this opportunity needs to be strategically managed to deliver positive development outcomes. Geopolitics has always been a factor in development debates and development cooperation historically, and we should not expect this to change (Power, 2019; Liao & Lee, 2022). In the last decade, this competition has heightened with China's global rise - economically, strategically, and geopolitically. As China became perceived as a potential competitor to traditional global and regional powers such as the United States, the European Union, Japan, or Australia, we saw a rise in strategies to manage, balance, or counter this rise. Consequently, emerging Indo-Pacific frameworks and strategies are shaping and dominating the discourse on global geopolitics, including development cooperation. As a result of sharp geopolitical competition, develop-ment cooperation has become a contested space. China's powerful rise and the subsequent proliferation of Indo-Pacific strategies to counter this rise are key drivers of this dynamic. While this competition can breed division, between and within countries and regions, it can also give rise to increased multipolarity, partner country agency, and positive competition towards development outcomes. Competition and the numerous new strategies, resources, and initiatives that come with it, can offer opportunity for partner countries to secure resources and commitment toward their own development agenda. Rather than being "forced" to choose sides, countries and regions can and are using geostrategic competition to their advantage. Competition provides choice, a seat at the table, and opportunities for decision-making. However, taking ownership and direction over these strategies and resources can challenge partner countries and regions. Hedging is one option but carries risks, especially when politics get in the way, and development gains may be subsequently compromised. While there is a plethora of Indo-Pacific strategies that articulate visions for the region and ways powers should strengthen economic, diplomatic, security, and development ties with the Indo-Pacific countries, Indo-Pacific countries themselves should also have their own strategies, which outline their vision and objectives for engagement with great powers and other actors who seek and vie for their partnership.
    Keywords: Indo-Pacific region, China, India, development policy, development cooperation, foreign aid, geopolitics, USA, EU, Germany
    Date: 2023
  9. By: Haiqi Li Author-Name-First: Haiqi (College of Finance and Statistics, Hunan University, Changsha, China); Jing Zhang (College of Finance and Statistics, Hunan University, Changsha, China); Chaowen Zheng (Department of Economics, University of Reading)
    Abstract: This paper proposes a generalized quantile cointegrating regressive model for nonstationary time series, allowing coefficients to be unknown functions of informative covariates at each quantile level. Using a local polynomial quantile regressive method, we obtain the estimator for the functional coefficients at each quantile level, which is shown to be nonparametrically super-consistent. To alleviate the endogeneity of the model, this paper proposes a fully modified local polynomial quantile cointegrating regressive estimator which is shown to follow a mixed normal distribution asymptotically. We then propose two types of test statistics related to functional coefficient quantile cointegrating model. The first is to test the stability of the cointegrating vector to determine whether the conventional fixed-coefficient cointegration model is appropriate or not. The second is to test the presence of the varying coefficient cointegrating relationship among the economic variables based on a modified quantile residual cumulative sum (MQCS) statistic. Monte Carlo simulation results show that the two tests perform quite well in finite samples. Finally, by using the proposed functional coefficient quantile cointegrating model, this paper examines the validity of the purchasing power parity (PPP) theory between China, Japan, South Korea and the United States, respectively.
    Keywords: bootstrap method, functional coefficient quantile cointegrating model, local polynomial approach, PPP theory
    JEL: C12 C13
    Date: 2023–06–12
  10. By: Chi Lok Jerry Wong (The Chinese University of Hong Kong, Hong Kong, China); Kar Choi Chan (The Chinese University of Hong Kong, Hong Kong, China)
    Abstract: Chinese culture expects men to be strong and capable of emotional restraint, and therefore, the grief of bereaved fathers is often being overlooked in Chinese society. However, there has been little research done to understand the emotions and needs of these grief-stricken men, especially from the observations and perspectives of support professionals. This exploratory study attempted to address the knowledge gap concerning the bereaved fathers in Hong Kong through interviews of grief support workers. The study aimed at studying the needs and the pattern of grief of these fathers, plus the effects of gender and cultural expectations on their grief expression. Appropriate support and interventions were also explored. In-depth qualitative interviews were conducted with five grief support workers who had substantial experience in providing support and counseling to bereaved fathers, and reflexive thematic analysis was used in the data analysis. Results of the study showed that the bereaved fathers in Hong Kong tend to maintain their toughness and invulnerability as circumscribed by society and cultural norms amid the loss. Also, behaviors associated with the instrumental pattern of grief are more commonly observed among bereaved fathers. With respect to professional interventions, grief support workers recognized the importance of both instrumental and intuitive pattern of grief when working with the bereaved fathers and indicated that they had greater success in engaging these fathers through culturally-sensitive practice by paying attention to the societal and cultural expectations on men and respecting the fathers’ preferred choice and priority in the grief process.
    Keywords: fathers’ grief, Chinese men, pattern of grief, Hong Kong, grief counseling, grief support workers, bereavement
    Date: 2022–10

This nep-cna issue is ©2023 by Zheng Fang. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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