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on China |
| By: | Matthew Higgins |
| Abstract: | Rapid GDP growth, due in part to high rates of investment and capital accumulation, has raised China out of poverty and into middle-income status. But progress in raising living standards has lagged, as a side-effect of policies favoring investment over consumption. At present, consumption per capita stands some 40 percent below what might be expected given China’s income level. We quantify China’s consumption prospects via the lens of the neoclassical growth model. We find that shifting the country’s production mix toward consumption would raise both current and future living standards, with the latter result owing to diminishing returns to capital accumulation. Chinese policy, however, appears to be moving in the opposite direction, to reemphasize investment-led growth. |
| Keywords: | China; consumption; investment |
| JEL: | E13 E20 E27 I31 O40 |
| Date: | 2024–11–14 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fednls:99098 |
| By: | Guo, Jingyuan; Deng, Kent |
| Abstract: | This paper explores how changes in state capacity facilitates economic growth in an authoritarian system. This is the case of Deng Xiaoping’s systematic replacement of government officials with a new army of better-educated technocrats which uprooted Maoist revolutionary cadres. Our assumption is that post-Mao economic growth can be taken as a proxy for state capacity improvement. With a continuous treatment difference-in-differences strategy, this paper reveals that one percent increase in officials’ replacement intensity results in 1.3 percent increase in GDP in post-Mao China. Moreover, effects are robust across various technical concerns and maintain stable over a period of four decades. Furthermore, our results explain 18.05 percent of the contemporary economic disparity between China’s provinces (with intensity above and below the median). These effects can be associated with improvements in officials’ human capital which in turn rebuilt China’s fiscal capability, re-started a market-friendly industrialization, and resumed grassroots self-governing institutions. All these have been achieved without a regime change in the People’s Republic of China, hence, a ‘bloodless coup d’état’. |
| Keywords: | officials' replacement; state capacity; economic reforms; economic growth |
| JEL: | H11 O11 N45 |
| Date: | 2024–11–14 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:wpaper:126083 |
| By: | John Knight; Li Shi; Wan Haiyuan |
| Abstract: | With incomes rising rapidly in China, measures of numbers in absolute poverty are no longer helpful for policy. A case is made for introducing a new concept and measure of relative poverty in China. Support is found from estimates of happiness functions using the 2013 national surveys of the China Household Income Project (CHIP). The Chinese government has recently introduced a new policy of promoting ‘common prosperity’. The criteria for measuring progress towards the achievement of common prosperity are analysed. A case is made for integrating the concepts of relative poverty and of common prosperity, so that households can be classified as poor, commonly prosperous, or rich. That classification is made for the 2002, 2013, and 2018 CHIP surveys. |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:csa:wpaper:2023-14 |
| By: | Wenxiao WANG (Zhongnan University of Economics and Law, China); Shandre Mugan THANGAVELU (Sunway University, Malaysia and the University of Adelaide, Australia) |
| Abstract: | : This paper uses detailed firm-level and transactional-level trade data to examine the causal relationship between digitalisation and servicification in Chinese manufacturing firms. Using the novel approach of text mining and analysis, this paper constructs two firmlevel measurements of digitalisation and servicification. Further, it explores the impact of digitalisation on services integration within manufacturing activities. We find digitalisation plays a crucial role in enhancing manufacturing servicification, enabling firms to produce and sell more service products. We also highlight that the two mechanisms through which digitalisation promotes servicification are digital technology and profitability. This paper contributes to the existing literature by developing the micro-level evidence of the digital transformation occurring within Chinese manufacturing firms and sheds light on the emerging services-led global value chain upgrading pattern. |
| Keywords: | digitalisation, servicification, manufacturing firms, text mining, text analysis |
| JEL: | F14 F23 |
| Date: | 2024–05–07 |
| URL: | https://d.repec.org/n?u=RePEc:era:wpaper:dp-2024-04 |
| By: | Wenxiao WANG (Zhongnan University of Economics and Law); Shandre THANGAVELU (Sunway University, The University of Adelaide) |
| Abstract: | This study examines the relationship between city agglomeration and firm-level performance of global value chains (GVCs) in China. Using a novel dataset of night-time light data and survey data from Chinese manufacturing firms, the dynamic changes of urban agglomeration in China are studied, analysing their impact on firm-level productivity, GVC participation, and GVC upstreamness. The results highlight that the concentration of economic activity in urban areas can lead to productivity gains for firms, especially in the upstream stages of GVCs, which is characterised by higher value-added activities and better access to knowledge and technology. The study also finds that urban agglomeration promotes industrial specialisation and human capital spillovers, further improving the upstreamness of firms in GVCs. Firms in larger cities also tend to be more productive, participate more in GVCs, and are closer to the final demand of GVCs. |
| Keywords: | city agglomeration, global value chains, productivity, upstreamness, GVC participation |
| JEL: | F14 F23 |
| Date: | 2024–06–18 |
| URL: | https://d.repec.org/n?u=RePEc:era:wpaper:dp-2024-14 |
| By: | Ooi Boon Keat (School of Education and Social Sciences, Management and Science University, Malaysia Author-2-Name: Lu Jing Yi Author-2-Workplace-Name: School of Education and Social Sciences, Management and Science University, Malaysia Author-3-Name: Yue Peng Fei Author-3-Workplace-Name: Institute of Education Sciences, Hubei Normal University, China Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | " Objective - This study aimed to investigate the variables affecting the mental health of Ping Mei High School students in Chifeng, Inner Mongolia Autonomous Region, China. Methodology/Technique - 147 secondary school students from classes that will take national examinations participated in this survey. The DASS-21 scale and self-reported variables were used to evaluate the students' mental health. Findings - The study's findings indicated that relationships between teachers and students, families, and academics are all significant factors that influence mental health status. The survey also determined how well students coped with mental health issues. Junior high school students at Ping Coal Middle School in Chifeng City, Inner Mongolia Autonomous Region, China, were concerned with mental health conditions more related to anxiety and depression, but as students, they did not show substantial symptoms of stress; male students were better than female students in terms of academics and teacher-student relationship factors, and female students were higher than male students in terms of anxiety levels; academics, family, teacher-student relationships, and coping strategies were significantly negatively correlated with depression; academics and teacher-student relationships were, respectively, significantly and mildly negatively correlated with anxiety; on the other hand, academics were significantly and mildly negatively correlated with anxiety. significantly and mildly negatively correlated with anxiety; on the other hand, academics were significantly negatively correlated with stress. Novelty - This may be related to the profile of the participants, who were high school students taking the national examination. In addition, the teacher-student relationship was also associated with depression and anxiety levels. The final finding of this study was that family factors negatively predicted depression levels among secondary school students; teacher-student relationships negatively predicted anxiety and depression levels among secondary school students. Type of Paper - Empirical" |
| Keywords: | Depressionï¼›Anxietyï¼›Stressï¼›Mental health status |
| JEL: | I10 I11 I19 |
| Date: | 2024–09–30 |
| URL: | https://d.repec.org/n?u=RePEc:gtr:gatrjs:jmmr336 |
| By: | Pau S. Pujolas; Jack Rossbach |
| Abstract: | This paper examines optimal tariff-setting in the context of bilateral and aggregate trade imbalances. Using an illustrative model, we show that larger trade deficits behave similarly to more inelastic foreign demand, enhancing a country’s ability to alter its terms of trade and benefit from a trade war. Consequently, trade imbalances can increase optimal tariff rates. We quantitatively evaluate a hypothetical trade war between United States and China — the countries with the greatest bilateral trade imbalance — using a multi-region, multi-sector applied general equilibrium model in which we compute optimal tariffs, a first due to computational complexity. We find the United States gains from a trade war with China, albeit minimally, equal to 0.016 percent of real income. Nevertheless, we find both countries sustained minor welfare losses from their recent trade dispute, in which tariff increases were negatively correlated with optimal tariffs changes. We show after service sectors and input-output linkages are accounted for, both countries are better off in a world with free trade. |
| Keywords: | Trade War; Tariffs; Applied General Equilibrium; International Trade |
| JEL: | F11 F13 F14 F17 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:mcm:deptwp:2024-09 |
| By: | Bach, Amadeus (U of Mannheim); Onori, Simona (Stanford U); Reichelstein, Stefan J. (U of Mannheim and Stanford U); Zhuang, Jihan (Stanford U) |
| Abstract: | The rapidly growing number of lithium-ion battery packs deployed in electric vehicles (EVs) entails enormous economic potential for used EV batteries to be redeployed in a second life application, e.g., for behind-the-meter stationary energy storage. To examine this potential, we develop a generic economic valuation model for used capacity assets in which second life usage requires repurposing costs and delays the receipt of recycling payoffs. Our model estimates point to a robust economic case for repurposing battery packs with iron-based cathodes (LFP batteries). Specifically, we project that the fair market value of LFP batteries exiting from electric vehicles generally exceeds 40% of the market value of a new battery. The value retention shares of used LFP packs are substantially higher in the U.S. market than in China, owing to the fact that new batteries are traded at higher market prices in the U.S. In contrast, our findings point only to a marginal economic case for repurposing batteries with nickel-cobalt-based cathodes (NCX batteries) in the context of the U.S. market. This finding reflects the relatively large recycling payoffs available from nickel and cobalt as well as the relatively short life cycle of NCX cathodes. For the Chinese market, we obtain the unambiguous conclusion that owners of NCX batteries are better off not incurring the requisite repurposing costs but instead immediately collecting the available recycling payoff. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:ecl:stabus:4203 |
| By: | Yansong David Wang; Tao Louie Xu; Cheng Yuan |
| Abstract: | This research employs the Alkire-Foster approach to measure multidimensional poverty between 2012 and 2020 in China, followed by examining the role of the three-pillar pension system in mitigating household multidimensional poverty. With the China Family Panel Studies data, our measurement uncovers the sustainable effects and mechanisms of household participation in the multi-pillar pension system on poverty mitigation. The results indicate that more participation in the pension system mitigates the probability of being trapped in multidimensional poverty. The findings reveal the significance of state social insurance, enterprise annuity, and individual commercial insurance. The mitigation effect of market-oriented pillars is achieved through more investment in and consumption for livelihood assets. Based upon the sustainable livelihoods framework, livelihood assets ameliorate household capabilities in human, natural, financial, and psychological capital against risks, shocks, and uncertainties. Our research contributes to the knowledge of how household participation in pension pillars sustainably mitigates multidimensional poverty through micro-level mechanisms and to the policy praxis of why a facilitating state is called for poverty mitigation from the perspective of new structural economics. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2411.02807 |
| By: | Jia, Qifan; Zhou, Sizhe; Liu, Run; Zuo, Yihan; Pan, Cuiyu; Chen, Yu |
| Abstract: | Buying domestic products has become increasingly important in many countries. As a form of social influence, social norms affect people’s domestic purchasing intentions and behavior. The current study aims to examine the mechanisms by which social norms influence domestic purchasing intentions through the lens of consumer ethnocentrism and domestic product judgments. The data were collected through an online survey in China, and a total of 346 valid responses were obtained. The results indicate that social norms influence domestic purchasing intention through four paths, namely, direct path, motivational path, cognitive path, and motivational–cognitive path. Consumer ethnocentrism and domestic product judgments, serving as the motivational and cognitive factors, respectively, play mediating and serial mediating roles in the relationship between social norms and domestic purchasing intention. In addition, consumer ethnocentrism has two dimensions, namely, pro-domestic and anti-foreign consumer ethnocentrism, and only the former plays a significant role in the model. The current study has theoretical contributions to research on domestic purchasing intention and practical implications for interventions in domestic purchasing behavior. Future studies are encouraged to conduct experiments, distinguish between different types of social norms, measure purchasing behavior, and verify the relationships in other countries. |
| Keywords: | China; consumer ethnocentrism; domestic product judgments; domestic purchasing intention; social norms |
| JEL: | D12 Z13 |
| Date: | 2023–05–31 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:125881 |
| By: | Huang, Kaixing; Liu, Pengfei; Liao, Yuxi; Wang, Zhengcong |
| Abstract: | Vegetable pesticide residues are a pervasive food safety concern. Utilizing over half a million records of vegetable tests from 287 cities, we find that COVID-19 increases the national average pesticide residue by 11% during the peak months of the pandemic in China. The pandemic nearly doubled the pesticide testing failure rate in cities with the highest infection rates. Empirical evidence suggests that the estimated effect stems from pandemic-induced disruptions in vegetable production and transportation, which result in untimely pest control and subsequent overuse of pesticides. Pandemic-related vegetable pesticide residue changes increase health risks by up to 10% in cities with the highest COVID-19 infection rates. Our findings underscore the significant impact of social disruptions on food safety through a channel largely overlooked in the literature. |
| Keywords: | social disruptions, food safety, COVID-19, vegetable pesticide residue, health |
| JEL: | Q18 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122599 |
| By: | Xu, Tao; Hu, Yabei |
| Abstract: | The government of China, to hone manufacturing’s competitive edge, has adopted a series of regional industrial policies to stimulate advanced manufacturing clusters as facilitators of agglomeration effects, utilisers of factor endowments, and implementers of innovation solutions, by playing the role of facilitating state. Focusing on advanced manufacturing cluster policies in East China’s Jiangsu Province, the research employs a mixed data analysis methodology on a sample of 52 documents collected from the Jiangsu government and affiliated units. The policy orientations and priorities are examined under the triple analytical framework in terms of themes, instruments, and controls, applying textual mining and the PMC index model. The results reveal the alignment of policy themes with high-quality development strategy, the government preferences for the supply dimension in policy instruments, the emphasis on planning directive in policy controls, together with the relatively high internal consistency of the AMC policy toolkit by Jiangsu. Therefore, the research spotlights the importance of leveraging comparative strengths based upon the facilitating state institution, and of deploying internally coherent, scientific, and efficient initiatives that exploit more potential of advanced manufacturing clusters to foster sustainable prosperity from the perspective of new structural economics. |
| Keywords: | Advanced Manufacturing Cluster; Regional Industrial Policy; Mixed Text Analysis; Facilitating State; East China’s Jiangsu Province |
| JEL: | L5 L6 O1 O14 O19 O2 O24 O25 O3 O4 R5 |
| Date: | 2023–02–26 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:120904 |