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on China |
| By: | Hurskainen, Henna |
| Abstract: | This paper looks at the development of Chinese exports to Central Asian countries after Russia's invasion of Ukraine in February 2022. The analysis, which relies on export data from China to Asian countries at a general product level, shows that China's exports to Central Asia have significantly increased since the start of the war. In particular, exports to Kazakhstan, Uzbekistan, and Kyrgyzstan have increased significantly. The analysis focuses on exports in Harmonized System (HS) categories 84, 85, 87, and 90. Many of the products sanctioned by the West in trade with Russia belong to these categories, but the categories also include many non-sanctioned products. Although the value of China's exports to Central Asia is still smaller than direct trade with Russia, China's exports - especially to Kyrgyzstan - have seen dramatic increases in the HS 84, 85, 87, and 90 categories. Along with the export growth from China to Central Asia, exports in these categories from Central Asia to Russia have also increased significantly. |
| Keywords: | China, Central Asia, Russia, exports |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:bofitb:303041 |
| By: | David Y. Yang |
| Abstract: | Autocracy 2.0, exemplified by modern China, is economically robust, technologically advanced, globally engaged, and controlled through subtle and sophisticated methods. What defines China’s political economy, and what drives Autocracy 2.0? What is its future direction? I start by discussing two key challenges autocracies face: incentives and information. I then describe Autocracy 1.0’s reliance on fear and repression to address these issues. It makes no credible promises, using coercion for compliance, resulting in a low-information environment. Next, I introduce Autocracy 2.0, highlighting its significant shift in handling commitment and information challenges. China uses economic incentives to align interests with regime survival, fostering support. It employs advanced bureaucratic structures and technology to manage incentives and information, enabling success in a high-information environment. Finally, I explore Autocracy 3.0’s potential. In China, forces might revert to Autocracy 1.0, using technology for state control as growth slows but aspirations stay high. Globally, modern autocracies, led by China, are becoming major geopolitical forces, challenging the liberal democratic order. |
| JEL: | O1 P0 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32993 |
| By: | Zhang, Zheyuan; Xu, Hui; Liu, Ruilin; Zhao, Zhong |
| 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 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1494 |
| By: | Zhang, Xin (Beijing Normal University); Wang, Yixuan (Ohio State University); Hu, Xingyi (Ohio State University); Chen, Xi (Yale University) |
| Abstract: | This paper examines the impact of fetal exposure to air pollution on low-stakes test performance across a broad age range, with a focus on gender-specific parental responses to this negative shock. Using data from a nationally representative survey in China, we find that fetal PM2.5 exposure significantly reduce cognitive ability in women, particularly those with brothers. Gender-biased human capital investment by families tends to amplify the harmful effects for girls, while diminishing these effects for boys. Specifically, when exposed to the same level of fetal PM2.5, females receive less homework assistance from their families and attain lower levels of education. |
| Keywords: | air pollution, cognitive ability, fetal exposure, gender bias, parental investment |
| JEL: | Q53 I24 D13 J16 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17288 |
| By: | Jiang, Peter |
| Abstract: | This research examines the effects of Chinese Foreign Direct Investment (CFDI) on fixed broadband and mobile cellular penetration rates using panel data from the "China Global Investment Tracker, " a dataset of publicly available CFDI transactions from 2005 to 2023. As CFDI grows to pre-COVID-19 levels, its impact on penetration rates may be influenced by the Chinese government's preferential treatment for its state-owned enterprises (SOE) and telecommunications companies. Policy makers interested in FDI liberalization would benefit from understanding the distinct consequences of FDI from different sources. Through panel data analysis, this paper estimates that CFDI has a positive relationship with fixed broadband subscriptions and a negative relationship with mobile cellular subscriptions. This paper also explores potential explanations for these trends and their policy implications. |
| Keywords: | Foreign direct investment, China, Telecommunications, Broadband, Cellular, Panel data |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302525 |
| By: | Fang, Tony (Memorial University of Newfoundland); Hsu, Mei (National Taiwan University); Lin, Carl (Bucknell University) |
| Abstract: | Using data from 1980, 1990, and 2000 U.S. censuses, as well as the 2010 and 2019 American Community Surveys and the 1993–2019 National Survey of College Graduates, we investigate the performance of Chinese immigrants in the U.S. labor market over the past 40 years since China initiated its economic reforms and open-door policy in 1978. The results indicate that by 1990, Chinese immigrants' earnings surpassed those of immigrants from other countries, and by 2010, they exceeded the earnings of U.S.-born workers. Our Oaxaca-Blinder and Quantile decomposition analyses suggest that a significant portion of the earnings advantage held by Chinese immigrants, compared to other immigrant groups and U.S.-born workers over time, can be attributed to differences in observable characteristics, with education being the most crucial factor, both at the mean and across the earnings distribution. By employing national surveys that provide data on college graduates, we demonstrate that attaining the highest degree earned in the U.S. is associated with higher earnings for Chinese immigrants compared to all other immigrants. Furthermore, the difference in returns to U.S.-earned highest degrees can account for this earnings advantage. |
| Keywords: | immigration, China, the U.S., economic assimilation, Oaxaca-Blinder decomposition, quantile decomposition |
| JEL: | J31 J61 J24 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17251 |
| By: | Bajo-Rubio, Oscar; Zhou, Jing |
| Abstract: | We provide in this chapter a quantitative assessment of the global effects, i.e., the effects on the countries concerned, as well as on mainland China, the European Union, the United States and the rest of the world, following an increase of Chinese direct investment in the Indo-Pacific region. The empirical methodology makes use of a Computable General Equilibrium model, which allows obtaining the consequences of changes in a particular variable on the whole economy under analysis, together with the specific effects across the different productive sectors. The results show that an increase in Chinese direct investment would have a mostly positive and significant effect on the GDP levels of the Indo-Pacific countries, especially in Pakistan, Indonesia, Vietnam, Malaysia and India; and, to a lower extent, Australia, New Zealand, Singapore and Thailand. These results were mostly driven by increases in consumption, since investment fell in almost all cases. The effects on the other world regions proved to be very small. |
| Keywords: | Direct investment, China, Indo-Pacific, Computable General Equilibrium |
| JEL: | C68 F21 F23 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1498 |