|
on China |
| By: | Matthieu Crozet (RITM - Réseaux Innovation Territoires et Mondialisation - Université Paris-Saclay); Laura Hering (Erasmus University Rotterdam); Sandra Poncet (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Abstract Export growth affects individuals through numerous and contradictory channels. In China, the development of exports has promoted economic development and income growth, but it has also disrupted social structures and work environments. This paper explores the overall effect of exports on perceived well-being by combining responses from a large longitudinal survey covering over 45, 000 Chinese with a shift-share measure of local export opportunities. Results show that individuals' perceived life satisfaction increases significantly in prefectures that benefited from greater export opportunities, despite a negative effect on self-reported health. The positive well-being gains go beyond a simple income effect. These non-monetary gains are related to the individuals' professional life: export-related well-being gains are stronger for working-age individuals (especially men and low-skilled workers), are largest for workers in the manufacturing sector (which produces the vast majority of China's exports), and are found when the satisfaction indicator focuses on work but not on other aspects of daily life. |
| Keywords: | Happiness Export opportunities Globalization China. JEL codes: F61 F66 I31 J28, Happiness, Export opportunities, Globalization, China |
| Date: | 2024–02 |
| URL: | https://d.repec.org/n?u=RePEc:hal:pseptp:hal-04505684 |
| By: | Denninger, Jan; Kaplan, Lennart |
| Abstract: | This paper analyzes whether Chinese aid and other forms of official finance affect structural transformation in low- and-middle income countries. Specifically, we employ an instrumental variables (IV) approach to causally analyze the effect on the Economic Complexity Index of 98 recipient countries over the 2002-2016 period. Economic complexity is defined as the diversity and sophistication of the goods an economy produces. The results reveal that Chinese official financing (OF) does not have statistically significant effects at the aggregate level; however, its effectiveness varies across sectors and recipients. A sectoral perspective shows that Chinese OF to recipients' production sectors has a significantly negative effect on their economic complexity. These effects are most pronounced for high-complexity recipients, suggesting that China primarily targets industries below existing levels of complexity, thereby impeding potential structural transformation. In contrast, low-complexity recipients experience positive complexity effects from Chinese social sector projects, especially from those related to education. Given that China is known for its demand-driven approach of lending, recipients should push for an adjustment in the composition and allocation of Chinese OF to render structural transformation more likely. |
| Keywords: | Aid, China, Trade, Economic Complexity, Structural Change |
| JEL: | P45 F14 F35 O11 O35 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifwkwp:310328 |
| By: | Siewers, Samuel |
| Abstract: | Building upon the argument that factor endowments influence distributional outcomes, this paper examines the consequences of the China shock to global food markets for economic inequality in Brazilian municipalities from 1985 to 2020. I propose a new identification strategy that exploits plausibly exogenous variation in demand for soybeans based on fluctuations in the size of the pig stock in China and show that the proceeds of this China-driven agricultural bonanza have been rather unequally distributed. The soy boom has fueled land consolidation and economic inequality, especially in places dominated by large-scale mechanized agriculture. Income gains have been mostly limited to the top deciles of the distribution, while the poorest segments of the population have become worse off. Additionally, there is evidence that the more unequal a municipality, the more deforestation and rural conflict increase as soy expands. |
| Keywords: | inequality, soybeans, Brazil, China shock, deforestation, conflict, sustainability, supply chains |
| JEL: | D63 F63 O13 Q17 Q56 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:cegedp:310313 |
| By: | Haotian Zhang (China Agricultural University, Beijing, China); Sibo Lu (China Agricultural University, Beijing, China); Zhongkai Qian (China Agricultural University, Beijing, China) |
| Abstract: | The film “Breaking with Old Ideas†critically portrays the educational re-forms at Jiangxi Agricultural University, embodying Mao Zedong's vision for youth as successors of the revolutionary cause and his advocacy for educational equality. Released in the 1970s, the film initially received public acclaim but was later banned post-1978, after being labeled a "poisonous weed" during China's neoliberal shift. This reflected a significant transformation in the perception of revolutionary narratives. In contemporary China, the education system grapples with severe competition, pronounced inequalities, and authoritarian tendencies. The digital age and the resurgence of social media have facilitated the rediscovery of this film, highlighting its critical and reflective qualities that provoke discussions on educational ideologies. By juxtaposing traditional and revolutionary educational leaders, the film exposes the stark contrasts between Mao's reform-minded educational ideas and the so-called "modern education system." This study revisits these contrasting educational paradigms: the "old ideas" of monopolistic discourse knowledge and Mao's practical education model. Through an analysis of key scenes depicting these ideological and practical confrontations, the paper explores, through the prism of the Maoist critique, present-day aspects and challenges of Chinese education, and assesses the potential of Mao's educational philosophy to inform and transform contemporary education practices. |
| Keywords: | Educational Ideologies, Cultural Revolution, China |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:smo:raiswp:0450 |
| By: | Antoine Bouët; Leysa Maty Sall; Yu Zheng |
| Abstract: | This Policy Brief conducts an ex-ante evaluation of Donald Trump’s protectionist proposal, an increase by 10 percentage points of tariffs on all goods from all origins, except Canada and Mexico, combined with 60 percentage points of tariffs on all goods from China. US partners retaliate. World GDP declines by 0.5%, with sharp contraction in the US (-1.3%) and China (-1.3%), limited negative impact in France and Germany, and significantly positive effects on Canada and Mexico. Trade between the US and China becomes almost decoupled; US wages fall while Mexican wages rise. Trade retaliation not only punishes the US, but also allows some countries to reduce their losses in terms of trade and economic activity. Most US trading partners benefit from a more protectionist US trade policy against China. |
| Keywords: | Tariffs;Trump;Trade war;Trade |
| JEL: | F02 F17 F50 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:cii:cepipb:2024-49 |
| By: | Yiting Qiu; Adnan Khan; Danish |
| Abstract: | Nuclear energy is increasingly recognized as a critical component of circular economy frameworks due to its capacity to provide a stable, low-carbon energy source. Reducing dependency on fossil fuels promotes sustainable practices and aligns with circular economy goals such as resource efficiency, pollution reduction, and waste minimization. The existing literature has primarily focused on the contribution of nuclear energy to decarbonization, whereas the potential of nuclear energy in facilitating a circular economy has been largely neglected. In light of this context, this paper explores the impact of nuclear energy on the circular economy, thereby offering strong econometric evidence. The study used the advanced econometric tool Dynamic Auto-Regressive Distributive Lag (DYNARDL) method for empirical estimation to obtain long- and short-run estimates. The regression estimates, derived from a sample of China spanning 1990 to 2017, support the hypothesis that nuclear energy negatively impacts the circular economy in both the long- and short-run. Advanced econometric tests confirm the stability of the models, homoscedasticity, and the absence of serial correlation, ensuring the reliability of our findings. The study emphasizes the importance of policy strategies, including expanding nuclear energy adoption, advancing environmental technologies, and the effective use of nuclear energy by integrating comprehensive datasets and methodologies; this paper provides a foundation for scalable and equitable solutions as China moves toward a greener and more sustainable future. |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2501.17072 |
| By: | Hui Liu; Yao Luo |
| Abstract: | We observe nominal price rigidity in tobacco markets across China. The monopolistic seller responds by adjusting product assortments, which remain unobserved by the analyst. We develop and estimate a logit demand model that incorporates assortment discrimination and nominal price rigidity. We find that consumers are significantly more responsive to price changes than conventional models predict. Simulated tax increases reveal that neglecting the role of endogenous assortments results in underestimations of the decline in higher-tier product sales, incorrect directional predictions of lower-tier product sales, and overestimation of tax revenue by more than 50%. Finally, we extend our methodology to settings with competition and random coefficient models. |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2501.17251 |
| By: | RUEDA CANTUCHE Jose Manuel (European Commission - JRC); LOPEZ ALVAREZ Jorge (European Commission - JRC); PEDAUGA Luis (European Commission - JRC); CATALAN PIERA Alba (European Commission - JRC) |
| Abstract: | In her political guidelines, President Von der Leyen emphasised the significance of “Clean Trade and Investment Partnerships” to en-hance competitiveness and decrease reliance on other world economic regions, while rein-forcing trade defence mechanisms. Within this policy context, this policy brief aims to help prioritising trade policy actions by un-ravelling the EU vulnerabilities and dependen-cies at three levels: EU, national and territorial, with a high industry detail. This brief is focused on the possibility of a change in US trade defence policy towards China in light of the forthcoming US elections, which may affect EU exports to the US with high Chinese value added content. At EU level, China accounted for around 18-27% of the foreign value added incorporated in the EU exports to US of motor vehicles, ma-chinery and equipment and computer and electronics. At national level, Germany and France alone cumulated more than half of the total Chinese value added content in the EU exports to US whereas other smaller Eastern European countries, such as Estonia or Hungary, showed high relative dependence levels. At regional level, Stuttgart and Upper Bavaria (Germany), Ile-de-France (France), North Bra-bant (Netherlands) and the Southern, and Eastern and Midland regions (Ireland) ac-counted for half of the total Chinese value added content in EU exports to US. Our findings can help informing EU trade de-fensive measures and prepare upcoming pref-erential trade agreements and investment partnerships to be more effective in the re-gions and industries that would be more im-pacted by US trade policy shifts towards pe-nalising the entrance of goods and services with high Chinese value added content. |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc139823 |
| By: | Leslie Sheng Shen |
| Abstract: | Geopolitical risk has intensified in recent years, driven by events such as Russia’s invasion of Ukraine, escalating tensions between the United States and China, and conflicts in the Middle East. But how risky is the geopolitical landscape according to US firms? This brief presents a new index based on earnings call transcripts that reflects US firms’ perceptions of geopolitical risk and examines how those assessments affect their future investment, that is, their spending on long-term assets such as facilities, equipment, and technology. |
| Keywords: | geopolitical risk; firm investment; cash position |
| JEL: | D80 E22 G30 |
| Date: | 2025–02–13 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedbcq:99551 |
| By: | Valverde Carbonell, Jorge (RS: GSBE other - not theme-related research, Mt Economic Research Inst on Innov/Techn); Micco, Alejandro |
| Abstract: | Minerals are critical for the current energy transition since new clean technologies intensively use a large variety of them. But at the same time, mineral production contributes to a large extent to CO2 world emissions. This dilemma constitutes one of the main challenges for the current techno-economic paradigm shift and, opens green windows of opportunity (GWO) for developing countries. One option to tackle this dilemma is pricing CO2 emissions to induce a restructuring of the mineral global value chains (GVCs) towards minimizing CO2 emissions. The new trade–environmental regulations, such as the cross-border adjustment mechanism of the European Union, point in this direction. In this context, countries with cleaner energy matrixes and the ability to vertically integrate the production of minerals (avoiding emissions) present a competitive advantage. This paper empirically assesses whether pricing CO2 emissions along the GVCs could open a GWO in the copper and lithium processing industries for latecomers. The methodology consists of accounting for the CO2 emissions along the GVCs of the Leader (China) and First-Follower (Chile) countries, pricing the CO2 emissions and incorporating them into each production cost vector. The catching-up process is evaluated by the production cost convergence once CO2 emissions are considered. The results show that a carbon price of US$96.3/tCO2e reduces the cash cost gap of copper processing between Chile and China from 232% to 25%. In turn, this price enlarges the cost competitiveness advantage of Chile at producing lithium carbonate and allows the convergence of Chile in the lithium hydroxide production. Once the CO2 emission value are incorporated into the cash cost vector, producing lithium carbonate and hydroxide in China vis á vis Chile is 69.5% and 5.4% more expensive respectively. Therefore, the study shows that GWOs in the mineral processing industries can be opened for developing countries conditional to favorable technology and endowments. The catching up result is very sensible to the carbon price level and the scope of priced CO2 emissions. |
| JEL: | O31 Q55 F61 F64 F68 L72 Q37 Q56 Q58 |
| Date: | 2024–02–28 |
| URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2024005 |
| By: | Kate Jialin Mao (Hunter College High School, New York, NY, USA) |
| Abstract: | Over the course of the 19th Century, as China’s economic power faded, millions of Chinese sought economic opportunity abroad. However, they were not always met with a warm welcome. By the 1870s, instead of being viewed as a dependable source of labor, Chinese Americans were looked upon with suspicion. While Chinese men were frequently accused of undercutting ‘white wages’ and engaging in organized crime, the harshest accusations against the community were in the form of hypersexualization of Chinese women. An early result of these unjust accusations was the Page Act of 1875, the first of a series of federal laws aimed at diminishing and eventually obliterating the Chinese-American community. This paper will explore the causes of the Page Act and its modern implications, highlighting how its effects still echo in our society. |
| Keywords: | Xenophobia, Sinophobia, Chinese Exclusion Act, Page Act, Chinese Immigration, Ethnic Panic, California Legislature, California Senate, Immigration |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:smo:raiswp:0428 |
| By: | Vedanta Dhamija; Ricardo Nunes; Roshni Tara |
| Abstract: | Housing is a closely monitored and prominent sector for households. We find that households tend to overweight house price expectations when forming inflation expectations with a coefficient of 25–45 percent, significantly above the weight of house prices in the inflation index. We first use two datasets, a multitude of controls, and an instrumental variable approach to address endogeneity. We then use a second strategy based on household heterogeneity. As expected, we find a significant effect of cognitive abilities and whether households moved house recently. We model this household behavior in a two-sector New Keynesian model with an overweighted and a non-overweighted sector and show that overweighted sectors are disproportionately more important for monetary policy. |
| Date: | 2025–01–30 |
| URL: | https://d.repec.org/n?u=RePEc:oxf:wpaper:1069 |
| By: | Willem THORBECKE; CHEN Chen; Nimesh SALIKE |
| Abstract: | China’s exports increased from $62 billion in 1990 to $3.6 trillion in 2022. This surge has generated protectionism abroad. Researchers found that renminbi appreciations in earlier years decreased China’s exports. This paper presents time series and panel data evidence indicating that exchange rates after the 2008-2009 Global Financial Crisis no longer affect aggregate exports. It also finds that almost all individual export categories were sensitive to exchange rates before the GFC but that less than half are afterwards. These results imply that, if policymakers want to influence China’s trade, they need to use instruments other than exchange rates. |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:25010 |