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on China |
| By: | Beata Cichocka (Center for Global Development); Ian Mitchell (Center for Global Development) |
| Abstract: | This paper quantifies and evaluates China's bilateral, regional, and multilateral climate-related development finance from the Belt and Road Initiative's inception in 2013 until 2021, shedding light on its substantial but often opaque contributions. Our analysis suggests that China has provided an annual average of nearly $4 billion for climate to developing countries since 2013, totalling over $34 billion by 2021, primarily through bilateral channels through lending from its policy banks. Recently, China's climate finance through multilateral institutions has substantially increased. However, this increase has been coupled with declines in China’s bilateral climate-relevant finance, which fell from over $6 billion in 2017 to under $1 billion in 2021, outpacing the decline of China’s overall development finance. Separately, we find China has made significant ongoing fossil fuel investments in developing countries, amounting to over double its climate-relevant finance over the period. Since 2017, the Chinese government has made commitments to “green” its outward cooperation, and outbound fossil fuel finance fell below climate-related finance for the first time in 2021. Although China remains a “developing” country and recipient of climate finance, it is now a net provider of climate support, suggesting it is already positioned to contribute to a new UN climate finance goal to be agreed for beyond 2025. Overall, this paper seeks to contribute to debates on China’s role in the international climate finance architecture and emphasizes the potential for other development actors to further engage China in multilateral climate cooperation. |
| Date: | 2024–09–11 |
| URL: | https://d.repec.org/n?u=RePEc:cgd:ppaper:339 |
| By: | Jiao, Yang (Singapore Management University); Kwon, Ohyun (Drexel University); Lee, Saiah (Ulsan National Institute of Science & Technology) |
| Abstract: | We investigate the internationalization of Renminbi (IoR) since 2006 by examining its increased utilization among Korean exporters to China. Employing proprietary data fromKorean customs, which includes detailed invoicing information, our analysis reveals that products invoiced, either fully or partially, in RMB have experienced more rapid export growth. Furthermore, firms adopting RMB invoicing also exhibit faster export growth to China after controlling for relevant observables. Our findings remain robust when employing an instrumental variable approach to address potential endogeneity concerns. With the help of a currency invoicing model that demonstrates different impact channels, we show that the increased trade volume is due to Chinese importers facing lower currency costs when purchasing RMB-invoiced products compared to USD-invoiced products. |
| Keywords: | RMB internalization; invoicing currency; international trade |
| JEL: | D22 F14 F31 |
| Date: | 2024–09–06 |
| URL: | https://d.repec.org/n?u=RePEc:ris:drxlwp:2024_013 |
| By: | Zheyuan Zhang (Capital University of Economics and Business); Hui Xu (Beijing Normal University); Ruilin Liu (Capital University of Economics and Business); Zhong Zhao (Renmin University of China) |
| Abstract: | This paper estimates the impact of the Free Education Policy, a major education reform implemented in rural China in 2006, as a natural experiment on the intergenerational transmission of cognitive skills. The identification strategy relies on a difference-in-differences approach and exploits the fact that the reform was implemented gradually at different times across different provinces. By utilizing nationally representative data from the China Family Panel Studies, we find that an additional semester of exposure to the Free Education Policy reduces the intergenerational transmission of parent and child cognitive scores by an approximately 1% standard deviation in rural China, indicating a reduction of 3.5% in intergenerational cognitive persistence. The improvement in cognitive mobility across generations might be attributed to enhanced school attainment, the relaxation of budget constraints, and increased social contact for children whose parents are less advantaged in terms of cognitive skills. |
| Keywords: | Free Education policy, intergenerational transmission, cognitive skills |
| JEL: | H52 I24 J24 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:hka:wpaper:2024-017 |
| By: | Senlin Miao (NUAA - Nanjing University of Aeronautics and Astronautics [Nanjing]); Zhaobo Zhu (Audencia Business School); Xiaohua Deng (University of New South Wales [Kensington]); Fenghua Wen (Central South University [Changsha]) |
| Abstract: | This paper explores the interplay between politics and law enforcement in China and its effects on firm financing decisions. By examining a sample of corporate lawsuits involving listed firms in China, we find that politically connected firms are less likely to be defendants, have higher win rates, and experience shorter litigation durations than non-connected firms. Additionally, we observe that firms with higher legal risk extend more accounts receivable and receive less accounts payable, but this relationship holds only for non-connected firms. Our findings support the financing advantage theory for politically connected firms and the legal risk compensation view for non-connected firms. Moreover, reforms in China's judicial system do not appear to mitigate the disadvantages faced by non-connected firms in terms of lawsuit outcomes and trade credit provision. Our findings suggest that well-functioned judicial independence might be still lacking in China, and that political connections continue to negatively impact law enforcement and corporate policies. |
| Keywords: | Lawsuits, Judicial reforms, Political connections, Trade credit |
| Date: | 2024–10–01 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04670162 |
| By: | Megan Hogan (Peterson Institute for International Economics); Warwick J. McKibbin (Peterson Institute for International Economics; Australian National University); Marcus Noland (Peterson Institute for International Economics) |
| Abstract: | The United States' granting of permanent normal trade relations (PNTR) status, formerly known as most favored nation status, to China in 2000 resulted in a large expansion of bilateral trade. Concerns over Chinese trade practices and the impact of Chinese exports on US import-competing sectors have contributed to US political discontent and calls for the revocation of PNTR, including by former president Donald Trump in his reelection campaign and in the 2024 Republican Party Platform. The authors find that revoking China's PNTR status would cause higher inflation and a short-term decline in US gross domestic product relative to baseline from which the economy never fully recovers. The loss of output and employment would be felt unevenly across the economy, with agriculture, durable manufacturing, and mining taking the biggest hits. Stock market prices would fall, with agricultural, durable manufacturing, and mining firms absorbing the biggest declines. All of these impacts would be magnified if China retaliates. Ironically, the revocation would damage the US industrial sector and contribute to a wider US trade deficit. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iie:pbrief:pb24-9 |
| By: | Catherine Casanova; Eugenio Cerutti; Swapan-Kumar Pradhan |
| Abstract: | While Chinese banks have become the top cross-border lender to EMDEs, their expansion has slowed recently, both in terms of volume and market share. Also, the strong correlation of China’s bilateral trade and its banks’ cross-border lending has weakened, while during 2020-22 lending became more positively correlated with FDI. In our paper, we analyse these patterns and we explore the role of borrower risk variables and foreign policies. Our findings show that, although the shifting correlation from trade to FDI is a general EMDE phenomenon, China’s Belt and Road Initiative reinforces it. By contrast, borrowers that potentially benefit from geoeconomic fragmentation do not display stronger FDI-lending relationships. We also find that Chinese banks exhibit different levels of risk tolerance relative to other bank nationalities as borrower country risk variables are positively correlated with Chinese banks’ market shares, but not with their amounts of cross-border lending. |
| Keywords: | cross-border lending, chinese banks, trade, FDI, borrower indebtedness, pandemic, sanctions, geoeconomic fragmentation |
| JEL: | F34 F36 F65 G21 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:bis:biswps:1213 |
| By: | Gabriel Felbermayr (Austrian Institute of Economic Research (WIFO); Kiel Institute for the World Economy); Klaus Friesenbichler (Austrian Institute of Economic Research (WIFO); Supply Chain Intelligence Institute Austria (ASCII)); Julian Hinz (Kiel Institute for the World Economy); Hendrik Mahlkow (Austrian Institute of Economic Research (WIFO); Kiel Institute for the World Economy) |
| Abstract: | On 12 June, the European Commission announced provisional countervailing tariffs of 21% on battery electric vehicles (BEVs) imported from China. This paper uses a large-scale trade model (KITE) to assess the impact of the tariffs, showing that while short-term effects may be larger, long-term effects are likely to be moderate. BEV imports from China are projected to fall by 42%, with limited impacts on EU car exports. This policy brief also analyzes potential retaliatory measures from China, including tariffs on EU pork exports, and highlights the need for careful negotiation to avoid escalation. |
| Keywords: | BEVs, Trade Policy, Countervailing Tariffs, EU-China Relations, Retaliatory Measures, KITE Model |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:bdt:asciis:004 |
| By: | Sanglin Zhao; Hao Deng; Bingkun Yuan |
| Abstract: | China accounts for one-third of the world's total carbon emissions. How to reach the peak of carbon emissions by 2030 and achieve carbon neutrality by 2060 to ensure the effective realization of the "dual-carbon" target is an important policy orientation at present. Based on the provincial panel data of ARIMA-BP model, this paper shows that the effect of energy consumption intensity effect is the main factor driving the growth of carbon emissions, per capita GDP and energy consumption structure effect are the main factors to inhibit carbon emissions, and the effect of industrial structure and population size effect is relatively small. Based on the research conclusion, the policy suggestions are put forward from the aspects of energy structure, industrial structure, new quality productivity and digital economy. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2409.00039 |
| By: | Liu, Sheng (School of Economics and Trade, Guangdong University of Foreign Studies); Feng, Haibo (School of Economics, Jinan University); Xu, Yongyi (School of Economics, Jinan University); Xu, Fei (Department of Economics, Umeå University) |
| Abstract: | Tax incentive policies are an important means for governments to encourage corporate innovation. The issue of policy composite fallacy exists under certain conditions, which has been overlooked by existing studies. Based on China's tax survey data from 2008 to 2016 and employing the method of constructing the marginal effective tax rate for enterprises, this paper empirically tests the effects of tax rate-based incentives, tax base-based incentives, and their combined policy effects. The following findings are obtained: tax base-based incentives consistently promote corporate innovation through the innovation risk-sharing mechanism. Whether tax rate-based incentives promote innovation depends on the extent to which the expectation of compensating for innovation risk loss through tax rate incentives is met. The combined policy effect of tax base- and tax rate-based incentives also depends on the level of government risk-sharing and the expectation of compensation for corporate innovation risk loss, with empirical results showing that the combination of the two policies impedes corporate innovation; compared with tax rate-based incentives and their combination, tax base-based incentives have a greater and more lasting impact in terms of lagged effects. Finally, the paper conducts a heterogeneity analysis on enterprises with different levels of innovation and different property rights. The conclusions of the article provide theoretical and practical bases for optimizing the combination of tax incentive policies and improving the quality of innovation. |
| Keywords: | Tax incentives; Risk sharing; Innovation |
| JEL: | H20 O10 O31 |
| Date: | 2024–09–24 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:umnees:1027 |
| By: | Tao, Guannan; Zheng, Feifan; Li, Wei |
| Abstract: | In the digital age, users in China are increasingly inclined to adopt taskoriented chatbots for task-driven work. This study, based on the Task Technology Fit model combined with the UTAUT model, collected 700 valid questionnaires. It employed Amos 24.0 for descriptive statistical analysis, reliability and validity testing, and correlation analysis of the collected data. The Harman single-factor test method was used to examine common method bias, and the Bootstrap method and simple slope analysis method were applied to verify hypotheses. SPSS 28.0 was used for multiple linear regression analysis and mediation effect analysis to test hypotheses. The study empirically investigated the factors influencing users' behavior in using task-oriented chatbots in China, focusing on seven impact factors: two dependent variables of AI communication anthropomorphism and interactivity, one independent variable of behavior, two mediating variables of performance expectancy and usage intention, and three moderating variables of task characteristics, technology characteristics, and task-technology fit. The results indicate that the factors of AI anthropomorphism and interactivity have a significant impact on the residents of the Yangtze River Delta region using task-driven Chatbots for task-driven work. Moreover, through the mediating effects and moderating roles of other variables, a complex networked structure is formed. The adaptability of technology and the individual's willingness to use it in varying scenarios together constitute the influencing factors of behavior. |
| Keywords: | Task-Driven chatbots, User Behavior, Influencing Factors, TTF Model, UTAUT Model |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302512 |
| By: | Peter Klimek (Supply Chain Intelligence Institute Austria; Medical University of Vienna, Section for Science of Complex Systems, CeDAS; Complexity Science Hub Vienna); Elma Dervic (Supply Chain Intelligence Institute Austria; Complexity Science Hub Vienna); Klaus Friesenbichler (Supply Chain Intelligence Institute Austria; Austrian Institute of Economic Research); Markus Gerschberger (Supply Chain Intelligence Institute Austria; Josef Ressel Centre for Real-Time Value Network Visibility, Logistikum, FHOÖ); Liuhuaying Yang (Supply Chain Intelligence Institute Austria; Complexity Science Hub Vienna) |
| Abstract: | The world is currently facing an antibiotics shortage due to two main factors: the concentration of production in China and India, and the industry being caught off-guard by the rapid increase in demand following the Covid-19 pandemic. This study provides a detailed analysis of the situation and offers three policy recommendations. First, health policies should invest in improving demand tracking, planning, and forecasting infrastructure, particularly for drugs with no available substitutes. Second, health systems must ensure a sufficient provision of drugs at low prices. While the international division of labour has provided price efficiency, it has also exposed supply security risks. Finally, the market structure should internalize these supply security risks to avoid the need for ad-hoc policy interventions in the future. |
| Keywords: | Antibiotics Shortage, Global Supply Chain, Healthcare Policy, Drug Supply Security, Covid-19, China, India |
| Date: | 2023–03–27 |
| URL: | https://d.repec.org/n?u=RePEc:bdt:wpaper:001 |