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on China |
| By: | Boeing, Philipp; Brandt, Loren; Dai, Ruochen; Lim, Kevin; Peters, Bettina |
| Abstract: | We study the evolution of patenting in China from 1985-2019. We use a Large Language Model to measure patent importance based on patent abstracts and classify patent ownership using a comprehensive business registry. We highlight four insights. First, average patent importance declined from 2000-2010 but has increased more recently. Second, private Chinese firms account for most of patenting growth whereas overseas patentees have played a diminishing role. Third, patentees have greatly reduced their dependence on foreign knowledge. Finally, Chinese and foreign patenting have become more similar in technological composition, but differences persist within technology classes as revealed by abstract similarities. |
| Keywords: | China, innovation, patents, large language model |
| JEL: | O30 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:289451&r=cna |
| By: | Boeing, Philipp (Goethe University Frankfurt); Brandt, Loren (University of Toronto); Dai, Ruochen (Central University of Finance and Economics); Lim, Kevin (University of Toronto); Peters, Bettina (ZEW Mannheim) |
| Abstract: | We study the evolution of patenting in China from 1985-2019. We use a Large Language Model to measure patent importance based on patent abstracts and classify patent ownership using a comprehensive business registry. We highlight four insights. First, average patent importance declined from 2000-2010 but has increased more recently. Second, private Chinese firms account for most of patenting growth whereas overseas patentees have played a diminishing role. Third, patentees have greatly reduced their dependence on foreign knowledge. Finally, Chinese and foreign patenting have become more similar in technological composition, but differences persist within technology classes as revealed by abstract similarities. |
| Keywords: | China, innovation, patents, Large Language Model |
| JEL: | O30 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16869&r=cna |
| By: | Thomas Vendryes (Université Paris-Saclay, ENS Paris-Saclay, Centre for Economics at Paris-Saclay (CEPS)); Jiaqi Zhan (Université Paris 1 Panthéon-Sorbonne, Sorbonne School of Economics) |
| Abstract: | The hukou system is one of the most specific as well as consequential institutional features of contemporary China. Linking Chinese citizens'rights with official - and hard to change - status and place of residence, it has far-reaching social and economic implications, especially on internal migration. The consequences of the hukou have been a subject of unabated debate, especially as for the discrimination rural migrant workers might face in cities. In this paper, we rely on a series of CHIP (China Household Income Project) surveys from 2007 to 2018, to contribute to this debate by investigating the roles of two sets of factors that have been generally disregarded by the literature so far: at the individual level, the role of the dialect distance, between a migrant's origin and destination areas, and, at the macro level, the influence of destination city's characteristics, such as population, GDP and FDI. Results show that a sizeable part of the hukou-related wage gap can be explained by our dialect distance variable, and that the hukou-related wage gap also highly depends on destination cities' characteristics. |
| Keywords: | Labor Markets, Wage Discrimination, Rural-Urban Migrants, Hukou, China |
| JEL: | J31 J61 J71 O15 P23 R23 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:eve:wpaper:23-04&r=cna |
| By: | Herrala, Risto |
| Abstract: | We compare the economic and environmental performances of India and China over the past decade against the Euro Area, Japan, and the USA. India has emerged as the world's fastest growing large economy, but closer scrutiny suggests this impressive economic performance derives largely from structural factors such as labor force growth and the Balassa-Samuelson effect. Indeed, notwithstanding its superior level of economic development relative to India, China still posts stronger economic gains from investment and total factor productivity growth. While the two economies have grown markedly faster than the three developed economies against which we compare them, both Indian and Chinese growth has come with huge increases in greenhouse gas emissions. Our findings underscore the importance of Chinese and Indian participation in efforts to avoid the more dire impacts of climate change. |
| Keywords: | India, China, economic growth, CO2 emissions |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bofitb:289621&r=cna |
| By: | Cavalcanti, T.; Mohaddes, K.; Nian, H.; Yin, H. |
| Abstract: | This paper investigates the long-run effects of prolonged air pollution on firmlevel human capital, knowledge and innovation composition. Using a novel firm-level dataset covering almost all industrial firms engaged in science and technology activities in China, and employing a regression discontinuity design, we show that prolonged pollution significantly diminishes both the quantity and the quality of human capital at the firm level. More specifically, we show that air pollution affects firm-level human capital composition by reducing the share of employees with a PhD degree and master’s degree, but instead increasing the share of employees with bachelor’s degree. Moreover, the difference in the composition of human capital materially change the knowledge and innovation structure of the firms, with our estimates showing that pollution decreases innovations that demand a high level of creativity, such as publications and inventions, while increasing innovations with a relatively low level of creativity, such as design patents. Quantitatively, on the intensive margin, one μg/m 3 increase in the annual average PM 2.5 concentration leads to a 0.188 loss in the number of innovations per R&D employee. Overall, we show that air pollution has created a gap in human capital, knowledge, and innovation between firms in the north and south of China, highlighting the importance of environmental quality as a significant factor for productivity and welfare. |
| Keywords: | Pollution, human capital, knowledge, innovation, China |
| JEL: | O15 O30 O44 Q51 Q56 |
| Date: | 2023–01–03 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camjip:2301&r=cna |
| By: | Andy Hou; Béatrice Parguel (DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique); Julia Pueschel (Neoma Business School) |
| Abstract: | In this research, we investigate the influence of Chinese consumers' generation on the perception of "Made in China" luxury. This issue is of utmost importance for the Chinese government as Chinese consumers have now become the first luxury consumers in the world while China remains a non-legitimate dwarf in luxury manufacturing. To bridge this gap, we carried a quantitative survey involving 300 Chinese luxury consumers and tested the effect of consumers' age on Chinese luxury products perceived luxury. Potential mediators are considered in our analyses, including consumers' ethnocentrism and innovativeness, materialism, and cultural orientations (i.e., preference for individualism and tradition). The data are currently being collected. Our results will be discussed at the 2023 Global Marketing Conference in Seoul if this research is selected for presentation. They should help position current and future "Made in China" luxury brands and target Chinese luxury consumers. |
| Keywords: | COO effect, Made in China, Generation cohort:Luxury, Consumer behaviour |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04505159&r=cna |
| By: | Hongyong Zhang; Wenyin Cheng; Tao Liang; Bo Meng |
| Abstract: | Industrial subsidies are at the center of the recent political and economic debate. This paper examines the impacts of subsidies along domestic value chains on the export performance of Chinese firms. Using firm-level subsidy data and inter-provincial input-output tables, we measure direct subsidies and indirect subsidies in upstream industries. Our findings reveal several vital points: (1) Direct subsidies significantly enhance Chinese firms' export participation and volume. These subsidies are positively associated with firm investment and R&D expenditure. (2) Surprisingly, upstream indirect subsidies-particularly those from 1st tier upstream industries-have even larger effects on Chinese exports than direct subsidies. These upstream subsidies contribute significantly to export growth. (3) Both domestic firms and foreign-invested enterprises benefit from direct subsidies, but the effect of upstream subsidies varies by ownership. (4) Both direct and indirect subsidies are associated with higher export prices and product quality, leading to a lower quality-adjusted price. These export growth and quality upgrading are driven by direct subsidies through increased investment and R&D, and indirect subsidies through intermediate inputs. These results suggest that government support may promote quality upgrading and enhance the global competitiveness of Chinese exports. This paper contributes to the ongoing debate on government subsidy and industrial policy by shedding light on the intricate relationship between subsidies and exports. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:tcr:wpaper:e205&r=cna |
| By: | Hussinger, Katrin; Palladini, Lorenzo |
| Abstract: | How important is Google for scientific research? This paper exploits the exogenous shock represented by Google's sudden withdrawal of its services from mainland China to assess the importance of access to information for the knowledge production function of scientific scholars in the field of economics. For economists, a type of scholar with a simple knowledge production function, results from difference-in-difference analyses, which compare their scientific output to scholars located in the neighboring regions, show that the scientific productivity declines by about 28% in volume and 30% in terms of citations. These results are consistent with the view that information accessibility is an important driver of scientific progress. Considering that the negative effect of the shock is stronger for top scholars located in China, Google's sudden exit bears the risk that researchers lose touch with the research frontier and persistently lag behind their foreign peers. |
| Keywords: | information accessibility, academic publications, knowledge production, Google, China |
| JEL: | D83 L86 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:289446&r=cna |
| By: | Shanyu Han; Jian Lei; Yang Liu |
| Abstract: | The consumer store is ubiquitous and plays an important role in our everyday lives. It is an open question why stores usually have such short life cycles (typically around 3 years in China). This paper proposes a theoretical framework based on an equilibrium in style supply of stores and style demand of consumers to characterize store cash flow (revenue), leading to a strong explanation of this puzzle. In our model, we derive that the preference shifting of consumers is the main reason for the cash flow decreasing to its break-even line over time, while the visibility broadening leads to initial growth, resulting in rainbow-shaped cash flow and its life cycle. Moreover, the intensified spatial competition will lead to an unexpected decrease in the store's cash flow, or even closure. We calibrate our model with proprietary data of three Chinese stores from three representative industries and study the relationship between customers' preference shifting and cash flow. To our knowledge, there have been no prior attempts to quantitatively model the life cycle of the store. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2404.02426&r=cna |
| By: | Otaviano Canuto; Xiaofeng Wang |
| Abstract: | The surprising victory of Javier Milei, the unconventional ‘anarcho-capitalist’ candidate, in the August primaries ahead of Argentina’s October 2023 general election, can be largely credited to his commitment to dollarize the Argentine economy, a move perceived as the ultimate solution to bring an end to the nation's economic turmoil. The potential shift from the local currency to the dollar has sparked concerns about Argentina's bilateral currency swap line with China. This swap line plays a crucial role in their bilateral relations and has also served as a means for Argentina to fulfill its debt obligations to the International Monetary Fund. The swap line is seen as a key element in preventing Argentina from defaulting on its IMF obligations, which is vital for both its economic and international financial stability. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:ocp:ppaper:pb39-23&r=cna |
| By: | Otaviano Canuto |
| Abstract: | The global economic environment has changed as the U.S.—and to a less confrontational degree, the European Union—have clearly established a context of technological rivalry with China. Hindering China’s progress in the sophistication of semiconductor production has become a centerpiece of current U.S. foreign policy. While the U.S. is clearly winning the semiconductor war, the picture is different when it comes to clean-energy technology. Both technology wars overlap with access to and refinement of critical raw materials (CRM), which are key upstream components of the corresponding value chains, encompassing mineral-rich emerging markets and developing economies. The way in which the U.S. and the European Union approach the goal of self-sufficiency, as well as access to and refinement of CRMs, will make a big difference to their stakes in the technology wars. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:ocp:ppaper:pb41-23&r=cna |
| By: | Christine Arriola; Mattia Cai; Przemyslaw Kowalski; Sébastien Miroudot; Frank van Tongeren |
| Abstract: | Supply chain disruptions, related to natural events or geopolitical tensions, have in recent years prompted policy makers to identify potential vulnerabilities related to critical trade dependencies. These are commercial links that could potentially impose significant economic or societal harm, be a source of coercion, a risk to national security, or disrupt strategic activities. Using three complementary methodologies — detailed trade data analysis, input-output data techniques, and computable general equilibrium (CGE) modelling — this paper examines the nature and evolution of trade dependencies between the OECD countries and major non-OECD economies (MNOE). It shows that global production has become increasingly concentrated at the product level, with China representing 15% of import dependencies in strategic products for OECD countries in 2020-21 compared to 4% in 1997-99. The methodologies used in this paper unanimously demonstrate a high degree of trade interdependency between OECD and MNOE countries. The current debate on “de-risking” international trade, therefore, needs to carefully consider the possible costs and benefits of different policy choices. |
| Keywords: | Computable equilibrium analysis, Global supply chains, Global value chains, Input-output analysis, International trade, Market concentration, Supply concentration |
| JEL: | C67 F14 F15 F6 C68 |
| Date: | 2024–04–17 |
| URL: | http://d.repec.org/n?u=RePEc:oec:traaab:280-en&r=cna |