nep-cna New Economics Papers
on China
Issue of 2024‒01‒01
eleven papers chosen by
Zheng Fang, Ohio State University


  1. Chinese Aid in Africa: Attitudes and Conflict By Sulin Sardoschau; Alexandra Jarotschkin
  2. Fight, flight or friction? The effect of population density on general trust in China By Chen, Yunsong; Ju, Guodong
  3. The Long-Term Impact of Parental Migration on the Health of Young Left-behind Children By Li, Jinkai; Luo, Erga; Cockx, Bart
  4. The Long-Term Impact of Parental Migration on the Health of Young Left-Behind Children By Jinkai Li; Erga Luo; Bart Cockx
  5. Green total factor productivity mismeasurement without considering intangibles: Evidence from China By Qing Li; Kexing Yu; Yanrui Wu
  6. The Gap between Expectations and Reality: Assessing the Water Rebound Effect in Chinese Agriculture By Qian Chen; Jaume Freire González; Donglan Zha
  7. Digital labour platforms and national employment policies in China studying the case of food delivery platforms By Yujie Chen, Julie,; Sun, Ping,
  8. Learning by Investing: Entrepreneurial Spillovers from Venture Capital By Josh Lerner; Jinlin Li; Tong Liu
  9. The Effects of the United States-China Trade War During the COVID-19 Pandemic on Global Supply Chains: Evidence from Viet Nam By Duc Anh Dang; Ngoc Anh Tran
  10. U.S. Arctic security policy: North American Arctic strategies, Russian hubris and Chinese ambitions By Paul, Michael
  11. Where has all the dynamism gone? Productivity growth in China's manufacturing sector, 1998-2013 By Brandt, Loren; Van Biesebroeck, Johannes; Wang, Luhang; Zhang, Yifan

  1. By: Sulin Sardoschau (HU Berlin); Alexandra Jarotschkin (World Bank)
    Abstract: This study examines Chinese aid projects’ impact on conflict and perceptions of China in 820 African districts from 2000 to 2012. We show that a 10% increase in Chinese aid projects results in a 6% increase in conflict incidents. This rise is mainly due to confrontations involving non-state actors, such as militias and rebel groups, and clashes between these groups and government forces. Civilian attitudes toward China’s presence do not drive this increase, as evidenced by both revealed and stated preferences. We find that Chinese aid does not provoke protests, riots, or strikes, nor does it amplify critical views among Africans regarding Chinese culture, resource extraction, or land acquisitions. Our evidence suggests that Africans attribute the rise in conflict to the interaction of resource influx and local politics, rather than to China itself, reflecting a discerning perspective on China’s influence on the continent.
    Date: 2023–11–13
    URL: http://d.repec.org/n?u=RePEc:rco:dpaper:451&r=cna
  2. By: Chen, Yunsong; Ju, Guodong
    Abstract: Population density affects human behavior. A dense population has been shown to exacerbate impulses such as, “fight” (aggression stimulated by crowding) or “flight” (withdrawal from social life for escape). This paper explores the impact of population density on the level of generalized trust that lies in China, a topic understated by extant empirical studies so far. Drawing data from Chinese General Social Survey (2010–2013), we attempt to examine the density-trust link. China provides a context-specific case because: (1) the narrow “radius” of generalized trust (people’s notion of “most people” is more in-group connoted than out-group connoted) derived from Confucian tradition decreases the probability of interacting with out-group members, suggesting that both “fight” and “flight” that rely on out-group interactions have little effect in this context, and (2) hukou (household registration) restrictions force rural-to-urban migrants into the secondary labor market, leading to social segregation producing distrust in cities. The results of hierarchical models on data from 17, 331 individuals and panel models on data from four waves of 114 counties both revealed that (1) population density negatively predicts the level of generalized trust among urban residents and (2) it is “friction, ” or occupational segregation by hukou restrictions, that mediates the density-trust relation, neither “fight” nor “flight” does.
    Keywords: Taylor & Francis deal
    JEL: J1
    Date: 2023–05–24
    URL: http://d.repec.org/n?u=RePEc:ehl:lserod:118836&r=cna
  3. By: Li, Jinkai (Ghent University); Luo, Erga (Zhejiang University); Cockx, Bart (Ghent University)
    Abstract: In 2015, 15% of all children in China were left behind in the countryside because at least one of their parents migrated to a city. We implement an event study analysis between 2010 and 2018 on five waves of the China Family Panel Studies (CFPS) to investigate the dynamic effects of parental migration on the health of left behind young children (LBC). While we find a gradual increase in medical expenditures, we do not detect any significant impact on the incidence of sickness. Furthermore, the analysis shows that the incidence of overweight declines gradually since their parents' first migration and reports suggestive evidence for mental health improvement. We argue that these long-term positive effects on health and health consumption can be explained by the transitory nature of migration, the high-quality substitution of the caregiver role by grandparents, and by a reorientation in family expenditures, partly induced by government policy.
    Keywords: young left-behind children, parental migration, Hukou system, long-term impact on health, event study analysis, mechanisms analysis
    JEL: I15 J10 J61
    Date: 2023–11
    URL: http://d.repec.org/n?u=RePEc:iza:izadps:dp16596&r=cna
  4. By: Jinkai Li; Erga Luo; Bart Cockx
    Abstract: In 2015, 15% of all children in China were left behind in the countryside because at least one of their parents migrated to a city. We implement an event study analysis between 2010 and 2018 on five waves of the China Family Panel Studies (CFPS) to investigate the dynamic effects of parental migration on the health of left behind young children (LBC). While we find a gradual increase in medical expenditures, we do not detect any significant impact on the incidence of sickness. Furthermore, the analysis shows that the incidence of overweight declines gradually since their parents’ first migration and reports suggestive evidence for mental health improvement. We argue that these long-term positive effects on health and health consumption can be explained by the transitory nature of migration, the high-quality substitution of the caregiver role by grandparents, and by a reorientation in family expenditures, partly induced by government policy.
    Keywords: young left-behind children, parental migration, Hukou system, long-term impact on health, event study analysis, mechanisms analysis
    JEL: I15 J10 J61
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:ces:ceswps:_10780&r=cna
  5. By: Qing Li (Department of Economics and Finance, SILC Business School, Shanghai University); Kexing Yu (Department of Economics and Finance, SILC Business School, Shanghai University); Yanrui Wu (Business School, The University of Western Australia)
    Abstract: This paper aims to re-estimate green total factor productivity (GTFP) with the consideration of intangible capital in Chinese provinces during 2003 and 2017. Intangible capital is broadly defined and categorised into computerised information, innovative property and economic competency property. The finding suggests that the conventional GTFP is underestimated especially during the post-financial crisis period in China. It is also found that technical efficiency, which shows the trend of deterioration without capitalising intangibles, improves steadily and jointly with technological progress contributes to the improvement of productivity. The mismeasurement of GTFP is more severe in developed regions in China where intangible investment is more emphasised. Furthermore, regional GTFP shows the trend of convergence after intangible capital is incorporated and the rate of convergence turns to be faster in coastal regions than that in the interior.
    Keywords: Green total factor productivity, intangible capital, data envelopment analysis, China
    JEL: O47 O34 R11
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:uwa:wpaper:23-13&r=cna
  6. By: Qian Chen; Jaume Freire González; Donglan Zha
    Abstract: Agriculture is a water-intensive industry; therefore, for policymakers trying to achieve a reduction in water use, the development of agricultural water-saving irrigation technologies to improve water utilization efficiency is of considerable interest. However, the real effect of technological progress on water savings falls short of expectations because of the existence of the rebound effect. This paper estimates the agricultural water rebound effect (AWRE) in China using a sequential Malmquist index and data of 31 provinces from 2002 to 2020. Furthermore, a Logit model is used to analyze the factors influencing the water rebound effect. The results suggest that the average AWRE ranges from -0.43 to 2.41 in Chinese provinces. Twenty-two provinces exhibit a partial rebound effect, while seven and two provinces exhibit a backfire and super conservation effect, respectively. Moreover, AWRE fluctuated around 0.5 from 2003 to 2013 and increased over time from 2015 to 2020. Additionally, water resource endowment has a negative effect on AWRE, while grain-crop ratio, the income of rural residents, and the irrigation infrastructure level have a positive effect on AWRE. Based on these results, policy implications are derived to mitigate AWRE in China.
    Keywords: agricultural water use, Rebound effect, technological progress, sequential Malmquist index, logit model
    JEL: E23 Q16 Q25
    Date: 2023–12
    URL: http://d.repec.org/n?u=RePEc:bge:wpaper:1415&r=cna
  7. By: Yujie Chen, Julie,; Sun, Ping,
    Abstract: Abstract.
    Keywords: digital labour platforms, employment policy
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:ilo:ilowps:995278893002676&r=cna
  8. By: Josh Lerner; Jinlin Li; Tong Liu
    Abstract: This paper studies how investing in venture capital (VC) affects the entrepreneurial outcomes of individual limited partners (LPs). Using comprehensive administrative data on entrepreneurial activities and VC fundraising and investments in China, we first document that individual LPs, on average, contribute about 50% of the capital of each fund in which they participate, and over 50% of them are entrepreneurs. We then exploit an identification strategy by comparing the entrepreneurial outcomes of individual LPs in funds that eventually launched with those in funds that failed to launch. The fraction of committed capital from corporate LPs in industries that subsequently encounter poor returns is used as an instrument for funds’ launch failures. We find that after investing in a successfully launched VC fund, individual LPs create significantly more ventures than do LPs in funds which failed to launch. These new ventures tend to be high-tech firms and file more patents than do the LPs’ prior ventures. We find evidence consistent with venture investments being a channel through which individual LPs learn.
    JEL: D83 G23 G24 L25 L26
    Date: 2023–11
    URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:31897&r=cna
  9. By: Duc Anh Dang (Central Institute for Economic Management, Viet Nam); Ngoc Anh Tran (Indiana University Bloomington)
    Abstract: The trade war between the United States (US) and China has affected their bilateral trade as well as that with other countries. This study investigates how Vietnamese firms performed during the COVID-19 pandemic under the shadow of this trade war. The change in the log of Vietnamese exports to the US from 2017 to 2020 is used to measure the impact of the trade war, and the change in the log of Chinese exports to the US is then used as an instrument for the Vietnamese export change during the same period. It is found that firms that faced more trade war exposure increased their investment, profit, and value added, which may be due to the market exit of unproductive firms. Moreover, the trade war impact is more pronounced for large firms. Foreign-invested firms gained less from trade war exposure. The pandemic weakened the trade war effect on firm performances; however, it exacerbated the trade tension effect on foreign-trade firms.
    Keywords: Trade diversion; Trade war; Pandemic
    JEL: F14 F16 R23
    Date: 2023–08–29
    URL: http://d.repec.org/n?u=RePEc:era:wpaper:dp-2023-11&r=cna
  10. By: Paul, Michael
    Abstract: Unlike his predecessors, US President Joe Biden made important decisions early in his term to enable better coordination of US Arctic policy. This includes foremost the National Strategy for the Arctic Region that was published later than planned as a result of Russia's war of aggression, which destroyed the few remaining hopes for cooperation and made the Arctic a security policy issue. Alaska, as the northernmost American state, is naturally at the centre of US Arctic policy, which increasingly also must take Chinese activities into consideration. Most recently, in September 2022, the U.S. Coast Guard (USCG) detected Chinese and Russian warships off Alaska. Currently, only one US icebreaker is continuously available in the Arctic theatre with the mis­sion to protect sovereignty in the Arctic Ocean and monitor ice-covered areas. Alaska is also the very same US state that the recent Chinese spy balloon flew over, which was eventually shot down in February 2023. After decades of scant attention, is the Arctic now finally becoming the object of a more engaged US security policy?
    Keywords: Joe Biden, US Arctic policy, National Strategy for the Arctic Region, China, Russia, U.S. Coast Guard (USCG), Alaska
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:zbw:swpcom:279928&r=cna
  11. By: Brandt, Loren; Van Biesebroeck, Johannes; Wang, Luhang; Zhang, Yifan
    Abstract: China's manufacturing sector has been a key source of the economy's dynamism. Analysis after 2007 however is hampered by problems in the key data source for empirical analysis, the National Bureau of Statistics' (NBS) annual survey of industrial firms. Issues include missing information on value added and intermediate inputs, and concerns of over-reporting. The annual survey of firms conducted by China's State Taxation Administration (STA) provides a reliable, alternative source of firm-level data for years from 2007 to 2013. Since the sample is not representative and the precise sampling scheme is not known, the data cannot be used directly to draw inferences on China's manufacturing sector. By comparing the joint distribution of key variables for which both surveys provide reasonably reliable information, we recover the sampling scheme of the STA survey and use it to simulate samples for 2007 to 2013 that are comparable to the NBS sample in earlier years. Our estimates reveal a marked slowdown in revenue-based total factor productivity growth that cuts across all industries, ownership types, and regions. The loss of dynamism in the private sector, and the reduced contribution of firm entry to aggregate productivity growth are especially prominent.
    Keywords: TFP, Industrial development, Economic growth
    JEL: D24 O14
    Date: 2023
    URL: http://d.repec.org/n?u=RePEc:zbw:bofitp:280407&r=cna

This nep-cna issue is ©2024 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.
General information on the NEP project can be found at https://nep.repec.org. For comments please write to the director of NEP, Marco Novarese at <director@nep.repec.org>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.