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on China |
| By: | Yang, Li; Milanovic, Branko; Lin, Yaoqi |
| Abstract: | We create a database of officials who have been found guilty of corruption in China in the period 2012-21 with their personal characteristics and the amount of embezzled funds. We use it to investigate the correlates of corruption, estimate the effects of corruption on inequality, and find the expected increase in officials' income due to corruption and the gain in income distribution ranking. We find that the amount of corruption is positively associated with education, administrative (hierarchical) level of the official, and years of membership in the Communist Party. The sample of corrupt officials belongs to the upper income ranges of Chinese income distribution even without corruption. But corruption allows them to accede to an even higher position in income distribution. While only one-half of the corrupt officials would be in the top 5 percent of China's urban distribution without illegal incomes, practically all are in the top 5 percent when corrupt income is included. |
| Keywords: | China; corruption; income distribution |
| JEL: | J1 |
| Date: | 2024–12–01 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:124073 |
| By: | Nahm, Jonas |
| Abstract: | There is probably no other advanced industrial sector in which China plays a greater role in global supply chains than in the solar industry. From the production of basic material inputs to the assembly of solar modules, Chinese firms dominate virtually every segment of global solar photovoltaic (PV) supply chains. This paper reviews the role of industrial policy in shaping China’s current position in current solar supply chains. The author argues that China’s solar industry started as an export-oriented sector driven primarily by subnational government investments in manufacturing capacity. While the Chinese central government enabled the role of subnational actors to some degree, the center responded to subnational government actions more than it guided them. While the central government has taken a more active role in shaping domestic markets since its first intervention in the solar industry in 2009, it has continued to primarily address unintended consequences caused by misaligned incentives for subnational actors. |
| Keywords: | Social and Behavioral Sciences, China, industrial policy, solar, renewable energy, supply chains |
| Date: | 2023–01–04 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:globco:qt0f34s7b6 |
| By: | Kazakis, Pantelis |
| Abstract: | This study investigates the unexplored nexus between rhetorical nationalism and corporate tax avoidance. Analyzing Chinese firms from 2010 to 2022, it shows that companies with pronounced nationalistic rhetoric are significantly more prone to engage in tax avoidance. This finding highlights the profound impact of nationalistic sentiments on corporate financial strategies. The result holds through an instrumental variables approach, with an even stronger effect observed among state-owned enterprises. This research offers insights for policymakers and scholars interested in the intersection of nationalism and corporate behavior, paving the way for those looking to understand the drivers of tax avoidance. |
| Keywords: | rhetorical nationalism, tax avoidance, China |
| JEL: | G38 H26 M14 |
| Date: | 2024–07–31 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121633 |
| By: | Luo, Yinghao |
| Abstract: | Over the past 40 years of reform and opening up, China has undergone drastic changes and social classes have been sharply divided. It is also an indisputable fact that China's income distribution gap is getting wider and wider. Who is behind China's widening income distribution gap? After our logical reasoning and analysis of statistical data, we find that it is difficult for the Chinese government and its related institutions to have nothing to do with the widening income distribution gap in China! |
| Keywords: | income distribution, Gini coefficient, monetary neutrality |
| JEL: | D3 E4 E5 H1 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121303 |
| By: | Xu, Diheng (Tilburg University, School of Economics and Management) |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:tiu:tiutis:84d5de65-30a0-4767-ad89-0d29c23d2c52 |
| By: | Taguchi, Hiroyuki |
| Abstract: | China’s rapid industrialization and urbanization in recent decades have deteriorated its air environmental quality. This study focuses on air pollutions in terms of CO, NO2, O3, PM2.5, PM10, and SO2 in Chinese provinces. Although the heterogeneity of environmental Kuznets curves (EKCs) from Chinese provinces has been studied, the positions of provincial EKCs (which reflect the province-specific pollution effects not affected by the provincial income levels) have not been investigated to date. Therefore, through a factor analysis of the heterogeneity of provincial pollutions under the EKC framework, we investigate how the governance shortage for pollution control contributes to the provincial pollution levels. We found that the governance shortage for pollution control accounted for about 50-70% of the province-specific air pollution levels. Our results indicate that China still has a much policy space to mitigate air pollutions. Particularly, in the Post-COVID-19 Era when industrial activities are recovered, pollution-control governance would be vital to make China’s economic growth sustainable. |
| Keywords: | air pollutions, pollution-control governance, Chinese provinces, environmental Kuznets curve |
| JEL: | O53 Q53 Q58 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121488 |
| By: | Behera, Laxman K |
| Abstract: | This article examines the relationship between national security, India-China strategic rivalry, geoeconomics, and innovation. It first looks at India’s immediate and long-term security threats and the nature and intensity of strategic competition with China. It then examines the influence of national security threats from and strategic rivalry with Beijing on India’s economic statecraft and innovation strategies. The article argues that India’s actual and perceived security threats from China and its strategic competition with Beijing is increasingly shaping its geoeconomic and innovation strategies. It also argues that India’s inadequate geoeconomic endowments and innovation setup in comparison to China are a major obstacle to providing an effective response to Chinese belligerence. |
| Keywords: | Social and Behavioral Sciences, India, China, economic statecraft, innovation, national security |
| Date: | 2023–04–19 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:globco:qt58v7f1bg |
| By: | Jones, Melanie K. (Cardiff University); Kaya, Ezgi (Cardiff University); Nan, Jiarui (University of Sheffield) |
| Abstract: | Exploiting rich nationally representative longitudinal data from the China Family Panel Studies this paper explores the relationship between overeducation, earnings and job satisfaction among graduates in China. We find consistent evidence, across multiple measures of overeducation, of wage and job satisfaction penalties that are not explained by personal and work-related characteristics. Despite attention within the literature, we find a modest role for differences in academic subject and, cognitive and non-cognitive skills as drivers of these penalties. In contrast, controlling for time-invariant unobserved heterogeneity reduces the size and, in many cases, removes the statistical significance of overeducation penalties, aligned to the importance of other unobserved individual heterogeneity. |
| Keywords: | overeducation, China, earnings, job satisfaction, cognitive and non-cognitive skills, unobserved heterogeneity |
| JEL: | J24 J28 J31 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17161 |
| By: | Xu, Lei (Loughborough University); Tani, Massimiliano (University of New South Wales); Zhu, Yu (University of Dundee) |
| Abstract: | We investigate the effects of 'lecture-based' (LBT) – i.e. individual work and rote learning - versus 'discussion-based' (DBT) – i.e. participative and focused on student-centred learning - teaching styles on the test scores and socio-economic inequality of middle-school students randomly assigned to classes using data from the China Education Panel Survey (CEPS) - a large-scale nationally representative survey. Estimates from Unconditional Quantile Regressions and decompositions based on the Recentered Influence Function suggest that LBT raises scores in mathematics, but the effect is non-linear, as students in the bottom and top quintiles are more likely to benefit from it. In contrast, LBT lowers scores in Chinese and English. LBT also has greater influence on socio-economically advantaged students, resulting in larger inequality within classrooms, especially between top and median students. These effects arise under various robustness checks, implying that: (i) teaching styles affect scores and classroom inequality, and (ii) they appear to be subject-specific. These results suggest that teaching styles can be used as a tool to influence students' academic performance as well as the socio-economic heterogeneity that they bring to their classrooms. |
| Keywords: | teaching style, achievement inequality, random class assignment, China |
| JEL: | I21 I24 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17135 |
| By: | Naughton, Barry; Xiao, Siwen; Xu, Yaosheng |
| Abstract: | China’s industrial policy does not fit well into traditional concepts of industrial policy, and even clear definitions of China’s industrial policy are rare. Everybody seems to agree that China has an aggressive industrial policy, but there is surprisingly little discussion about what that industrial policy is. To some extent, this is because China’s industrial and technology policies have been in a constant state of flux since the mid-2000s. In this short piece, we situate Chinese industrial policy and then argue that most of the process of restless change can be incorporated into a trajectory of two dimensions: first, the build out of a policy/planning mechanism; and second a shift in the ultimate objective of technology and industry polices from economics to security. We argue that these two simple features are robust enough to bear the weight of most characteristics of Chinese industrial policy. We then discuss the most recent phase of China’s industrial policy, characterized by a focus on security and new implementing instruments such as the “new-style national team” and the strengthening of the “national strategic science and technology force” (NSS&TF). These are clearly the culmination of the trends described earlier. Since there is still much we do not know about these very recent innovations, longer-run trends are invaluable in suggesting a hypothetical framework for current institutions. |
| Keywords: | Social and Behavioral Sciences, industrial policy, China, science, technology, and innovation, national security |
| Date: | 2023–06–02 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:globco:qt28f568zv |
| By: | Shi, Xiangyu; Liu, Yu |
| Abstract: | This paper establishes a novel argument that social networks among local politicians reduce spatial frictions of corporate investment. We leverage the replacement of city officials and the resulting exogenous variations of hometown ties among city party secretaries to examine their impact on intercity capital flows in China. The results provide strong evidence that such connections significantly enhance capital flows between cities. These social bonds appear to effectively lower entry barriers for businesses and offer sustained support to connected firms without negatively impacting unconnected ones. Our research indicates that the increase in hometown-related investments does not displace non-hometown-related investments. |
| Keywords: | hometown ties, capital flow, transaction costs, rent seeking, economic growth |
| JEL: | D2 D7 G1 O1 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121412 |
| By: | Zhang, Yumei; Wang, Jingjing; Fan, Shenggen |
| Abstract: | Transforming diets is critical for sustainable food systems. While there have been increasing global discourses on healthy and sustainable diets, national and local actions often remain limited. This paper addresses this gap by focusing on China, the world’s largest developing country. We examine the specific challenges of defining healthy and sustainable diets for the Chinese population by considering regional dietary cultures, affordability, and environmental impact. We analyze how policy interventions, including both supply and consumer-side strategies, can promote the transition towards such diets. The findings can offer valuable lessons for other developing countries facing similar challenges. |
| Keywords: | Food Consumption/Nutrition/Food Safety, Sustainability |
| Date: | 2024–07–26 |
| URL: | https://d.repec.org/n?u=RePEc:ags:cfcp15:344342 |
| By: | Xie, Han |
| Abstract: | As Beijing became the first city in history to successfully host both Summer and Winter Olympic Games, this paper looks into the different visualizations of the two Olympics opening ceremonies in 2008 and 2022. By incorporating the concept of Nation Branding, it features a comparative case study to discuss how China has understood and branded the country through detailed and well-rehearsed artistic presentations in these events. The case study mainly focuses on three layers: role conception, role perception / the formation of brands, and finally the presentation of strategically designed brands. Each layer of comparison answers a specific question, and their combination in turn answers how the difference in artistic presentation may connect with the shifting Chinese nation branding strategies. The result of this paper suggests that the presentations in 2008 and 2022 Olympics opening ceremonies, as the focus shifted from "country and heroism" to "people and togetherness, " generally stood in line with the nation branding strategies performed by the Chinese government throughout this 14-year span. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:udedao:300699 |
| By: | Lu, Kelin |
| Abstract: | Intergenerational transfers are widespread and significantly unequal. This study explores people’s fairness preferences regarding inequality caused by wealth transfers from economically advantaged parents through a large-scale experiment. In the experiment, workers and their parents completed assignments. Workers’ earnings were derived either from their own merit or luck, or from wealth transferred by their parents, also earned via merit or luck. Impartial spectators from the U.S. and China then made real distributive decisions. Our results indicate a pronounced aversion among Americans to inequalities stemming from intergenerational transfers compared with those from self-earned wealth. In contrast, the Chinese exhibited only a mild aversion. Moreover, Americans showed a preference for intergenerational meritocracy, more accepting inequalities in transferred wealth when it resulted from parental merit rather than parental luck—a preference not shared by the Chinese. Further experiments suggest that attitudes toward unequal intergenerational wealth transfers are primarily driven by whether parents possess wealth to transfer rather than the choice to transfer it |
| Keywords: | Fairness, wealth inequality, social preference, intergenerational transfer |
| JEL: | D3 D6 D9 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121451 |
| By: | LEE, Seungshin (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Choi, Wonseok (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Moon, Ji Young (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); NA, Su Yeob (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Oh, Jonghyuk (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | This paper reviews China's policy of nurturing small and medium sized enterprises. The Chinese government is expanding its establishment of national manufacturing innovation centers necessary to promote national strategies. It plays a very important role in the financial support process for these hidden champions. This is because the government certification process to identify hidden champions is linked to direct and indirect financial support using government and private capital. This paper attempted to analyze the management situation and export competitiveness of listed hidden champions. As a result of analyzing the trade statistics of materials, parts, and equipment from 2012 to 2022, when China's policy of cultivating foster hidden champions was fully implemented, the global trade balance of the China's materials, parts, and equipment industry increased significantly from a deficit of $55.6 billion in 2012 to a surplus of $264.1 billion in 2022. The improvement of China's competitiveness in the fields of materials, parts, and equipment can also be seen as a change in the trade specialization index (TSI) of these industries. Looking at China's global trade specialization index for materials, parts, and equipment, it was import-specialized at -0.033 in 2012, but rose to 0.100 in 2022, improving export competitiveness. Korea should recognize the changes in the trade and industrial structure between Korea and China and form a new paradigm of economic cooperation to overcome the limitations of economic exchanges between the two countries. China, which used to be seen as a manufacturing base for other countries, must now be seen as an advanced country in new industries with which the current structure of economic cooperation structure must be modified accordingly. |
| Keywords: | nurturing enterprises; china economy; hidden champions |
| Date: | 2024–08–05 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kiepwe:2024_024 |
| By: | Popov, Vladimir |
| Abstract: | China was extremely successful in recent decades in managing external equilibrium in the short and medium term using three mechanisms to cushion the balance of payments shocks. First, it maintained a flexible rate, so could adjust to the fluctuations in trade balance and capital flows via devaluation/appreciation of national currency. Second, it exercised a capital account control that prevented the sudden and sizeable outflow of capital. And third, its foreign exchange reserves were the largest in the world and large even as compared to its GDP and foreign trade and capital flows, so they could have been used to absorb negative trade and capital account shocks with full sterilization (without a fear of continuous outflow of capital due to capital control). In particular, China survived the Asian currency crisis of 1997 better than the other countries – its reserves even did not decrease in 1997 and its GDP growth rates virtually did not decline. However, in the long term the abandonment of the policy of foreign exchange reserves accumulation (since the Great Recession of 2008-09) led to the considerable appreciation of the real exchange rate of yuan, the decline in the ratio of export to GDP and the share of investment in GDP. The result was the slowdown of growth: GDP growth rates fell from 14% in 2007 to 5% in 2024. |
| Keywords: | balance of payments, foreign exchange reserves, external and internal equilibrium, exchange rate, slowdown of growth in China |
| JEL: | F31 F32 F41 N15 O24 O40 |
| Date: | 2024–08–02 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121627 |
| By: | Naughton, Barry; Cheung, Tai Ming; Xiao, Siwen; Xu, Yaosheng; Yang, Yujing |
| Abstract: | China continues to dramatically increase the priority it gives to science and technology (S&T). This paper reviews China’s reorganization of its S&T system, which is part of a broader Party and government restructuring plan. The most important elements of the bureaucratic reform were the establishment of a Central Science and Technology Commission (CSTC) and the reorganization of the existing Ministry of Science and Technology (MOST). These reorganizations have been carefully thought out and in gestation for the past several years. If the subordination of research and innovation to immediate policy goals is taken as a given, most of the reorganization measures are reasonable attempts to moderate the costs that would be expected with a campaign-style approach to S&T. At the same time, the measures are no panacea. Bureaucratic conflicts will persist, though shifted to different arenas, and the biggest challenges will persist: the subordination of research to security imperatives; divorce from international collaborative research; and narrower use of market incentives will all be very costly to China’s science efforts and aspirations. |
| Keywords: | Social and Behavioral Sciences, industrial policy, China, science, technology, and innovation, national security |
| Date: | 2023–08–22 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:globco:qt8503h22s |
| By: | Liu, Xiaolu; Zhang, Yumei; Lan, Xiangmin; Si, Wei |
| Abstract: | This study employs national Computable General Equilibrium (CGE) model to simulate the impacts of reducing domestic agricultural trade costs on agricultural production, household income, food prices, macroeconomic conditions, as well as food consumption and dietary quality of urban and rural residents. We find that in comparison to trade costs associated with agricultural imports and exports, the reduction of domestic agricultural trade costs is more conducive to expanding food production and cultivation areas, reducing food prices, and improving the dietary conditions of both urban and rural residents in China. Moreover, it stimulates the growth of agricultural, agro-processing, and agrifood system GDP. In terms of specific foods, the reduction in domestic agricultural product trade costs will lower the prices of various food items, decrease the consumption of rice and wheat, and increase the consumption of other types of food. This study provides theoretical and empirical foundations for achieving the dual objectives of revitalizing the national unified market and promoting the transformation of the agrifood system to enhance nutritional welfare within the framework of the new development paradigm, thereby Copyright 2024 by Xiaolu Liu, Yumei Zhang, Xiangmin Lan, and Wei Si. All rights reserved. Readers may make verbatim copies of this document for non-commercial purposes by any means, provided that this copyright notice appears on all such copies. offering valuable insights for informing governmental trade policy decisions. In the future, efforts should focus on intensifying the construction of infrastructure for perishable fresh agricultural products, reducing transportation distances, lowering transport costs, and establishing a "unified national market" in the agricultural sector to enhance the sustainability and resilience of China's agrifood system. |
| Keywords: | Agricultural and Food Policy, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety |
| Date: | 2024–08–07 |
| URL: | https://d.repec.org/n?u=RePEc:ags:cfcp15:344315 |