nep-cna New Economics Papers
on China
Issue of 2023‒12‒18
four papers chosen by
Zheng Fang, Ohio State University

  1. Projections of socioeconomic costs of dementia in China 2020-2050: modelling study By Wu, Y.; Liu, Y.; Chen, Y.; Liu, Y.; Lobanov-Rostovsky, S.; Zhang, Y.; Liu, Y.; Brunner, E.; Liu, Y.; Liu, Y.
  2. Research on the Dynamic Evolution and Influencing Factors of Energy Resilience in China By Tie Wei; Youqi Chen; Zhicheng Duan
  3. Internal finance, financial constraint and pollution emissions: evidence from China By Thomas Pernet; Mathilde Maurel; Zhao Ruili
  4. Tickets to the global market: First US patent awards and Chinese firm exports By Robin Kaiji Gong; Yao Amber Li; Kalina Manova; Stephen Teng Sun

  1. By: Wu, Y.; Liu, Y.; Chen, Y.; Liu, Y.; Lobanov-Rostovsky, S.; Zhang, Y.; Liu, Y.; Brunner, E.; Liu, Y.; Liu, Y.
    Abstract: This study measured current and projected future socioeconomic costs (healthcare, formal care, and informal care costs) and quality adjusted life years (QALYs) lost to dementia in China, and assesses drivers of these costs. We synthesized health and demographic trends by a Markov model, using data from China Health and Retirement Longitudinal Study and Chinese Longitudinal Healthy Longevity Survey. We decomposed socioeconomic costs changes (2018 US$) into population growth, population ageing, dementia prevalence and average socioeconomic costs per case. Socioeconomic costs and the value of QALYs lost to dementia will reach $1, 233 and $702 billion by 2050, rising by 563% and 457% over 2020-2050. Informal care is currently, and projected to remain, the largest share of socioeconomic costs. Population ageing (43%) and rising dementia prevalence (54%) drive this growth through 2050. Dementia will become an increasingly large economic burden on Chinese society.
    Keywords: Dementia, Socioeconomic Costs, Costs of Quality of Life Lost, Modelling Studies, China
    Date: 2023–12–04
  2. By: Tie Wei; Youqi Chen; Zhicheng Duan
    Abstract: Energy security is the guarantee for achieving the goal of carbon peaking and carbon neutrality, and exploring energy resilience is one of the important ways to promote energy security transition and adapt to changes in international and domestic energy markets. This paper applies the combined dynamic evaluation method to measure China's energy resilience level from 2004-2021, analyses the spatio-temporal dynamic evolution of China's energy resilience through the center of gravity-standard deviation ellipse and kernel density estimation, and employs geo-detectors to detect the main influencing factors and interactions of China's energy resilience. The study finds that:(1)China's energy resilience level generally shows a zigzagging forward development trend, and the spatial imbalance characteristic of China's energy resilience is more obvious.(2)The spatial dynamics of China's energy resilience level evolves in a northeast-southwest direction, and the whole moves towards the southwest, with an overall counterclockwise trend of constant offset.(3)When the energy resilience level of neighboring provinces is too low or too high, it has little effect on the improvement of the energy resilience level of the province; when the energy resilience level of neighboring provinces is 1-1.4, it has a positive spatial correlation with the energy resilience level of the province, and the synergistic development of the provinces can improve the energy resilience level together.(4)GDP, the number of employees, the number of employees enrolled in basic pension and medical insurance, and the number of patent applications in high-tech industries have a more significant impact on China's energy resilience, while China's energy resilience is affected by the interaction of multiple factors.
    Date: 2023–11
  3. By: Thomas Pernet (Centre d'Economie de la Sorbonne, Université Paris 1 Panthéon-Sorbonne); Mathilde Maurel (CNRS, Centre d'Economie de la Sorbonne); Zhao Ruili (Shangaï University of International Business and Economics, China)
    Abstract: This study explores the role of internal finance on firms' environmental behavior, focusing specifically on sulfur dioxide (SO2) emissions in China's rapidly growing industrial sector. Using a rich and unique dataset provided by the Ministry of Environmental Protection (MEP), our baseline results find a statistically significant positive relationship between asset tangibility and SO2 emissions intensity, revealing that credit-constrained firms with higher tangible assets contribute to elevated pollution levels. Additionally, we observe that firms with stronger internal finances experience a significant reduction in SO2 emissions. Our empirical analysis uncovers two key mechanisms through which internal finance influences firm behavior. First, firms with stronger internal financial health, as measured by metrics like cash flow, current ratio, and coverage ratio, are more inclined to invest in Research & Development and Total Factor Productivity, especially in credit-constrained sectors. Second, these financially robust firms are more proactive in adopting SO2 abatement technologies, an effect that becomes more pronounced in the context of credit-constrained firms. Our findings offer a nuanced understanding of how internal financial resources can serve as a dual lever for both innovation and sustainability, particularly in settings where external financing is limited
    Keywords: China; Pollution emissions; Financial constraints; Internal financing; TFP
    JEL: G2 G32 L25 L6 Q53
    Date: 2023–10
  4. By: Robin Kaiji Gong; Yao Amber Li; Kalina Manova; Stephen Teng Sun
    Abstract: We investigate how international patent activity enables firms from emerging economies to thrive in the global marketplace. We match Chinese customs data to US patent records and leverage the quasi-random assignment of USPTO patent examiners to identify the causal effect of a US patent grant on the subsequent export performance of Chinese firms. Successful first-time patent applicants achieve significantly higher export growth, compared to otherwise similar first-time applicants that failed. This effect operates only in small part through market protection for technologically patent-related products in the US and is largely driven by expansion in other markets. The response across destinations and products reveals that a US patent award signals the Chinese firm's capacity to produce high-quality products and credibility to honor contracts, mitigating information frictions in international trade. There is little evidence for the relaxation of financial constraints or the promotion of follow-on innovation.
    Keywords: patent rights, innovation, export performance, trade, market protection, asymmetric information, signalling
    Date: 2023–11–21

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