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on China |
| By: | Muhammad, Shahbaz; Avik, Sinha; Muhammad Ibrahim, Shah |
| Abstract: | Purpose: Over the last couple of years, Chinese manufacturing sector was affected by the onset of US-China trade war and the outbreak of COVID-19. In such a scenario, air quality in China has encountered a shock, and the impacts of these two incidents are unknown. In this study, we analyze the convergence of air quality in China in presence of multiple structural breaks, and how the impacts of these two events are different from each other. Design/methodology/approach: In order to assess the nature of shocks in the presence of multiple structural breaks, Clemente-Montañés-Reyes (1998) with two structural breaks and Bai and Carrion-i-Silvestre (2009) with five structural breaks are employed. Findings: Our results reveal that air quality in China is showing the sign of convergence, and it is consistent across 18 provinces, which are worst hit by the outbreak of COVID-19. In presence of transitory shocks, the impact of COVID-19 outbreak is found to be higher, whereas the impact of US-China trade war is found to be more persistent. Lastly, outbreak of COVID-19 has been found to have more impact on pollutants with higher severity of health hazard. Originality: To the best of our knowledge, this is the first study that contributes to the empirical literatures in terms of investigating the convergence of overall air pollution and individual air pollutants taking COVID-19 and trade war into account. |
| Keywords: | China; Trade War; COVID-19; AQI; Convergence |
| JEL: | Q3 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:110040&r= |
| By: | Khalil, Makram; Weber, Marc-Daniel |
| Abstract: | In structural vector autoregressive models of US and euro area manufacturing, we use sign restrictions to identify shocks that alter the frictions to Chinese supply chain trade. We find a quantitatively significant role of such shocks for the decline of US manufacturing output at the height of the Sino-American trade tensions in 2019. At the beginning of the Covid-19 pandemic in early 2020, the results point towards large spillovers from the shutdown in China to manufacturing in the US and the euro area. Moreover, during the recovery in 2020 and 2021, positive Chinese supply chain shocks related to the shift of preferences towards goods with a large China valued-added content played a role. Interestingly, the impact of China-specific trade shocks is not limited to manufacturing sectors that are highly exposed to China. Furthermore, negative Chinese supply chain shocks cause upward price pressure across the whole manufacturing industry. |
| Keywords: | Cross-border supply-chain disruptions, China, trade tensions, Covid-19 recession, US and euro area manufacturing. |
| JEL: | E32 F41 F62 |
| Date: | 2021–10–25 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:110356&r= |
| By: | Xi He (Center for Agricultural and Rural Development (CARD) at Iowa State University); Dermot J. Hayes (Center for Agricultural and Rural Development (CARD) at Iowa State University); Wendong Zhang (Center for Agricultural and Rural Development (CARD) at Iowa State University) |
| Abstract: | The African swine fever outbreak that started in August 2018 wiped out 40% of China's sow inventory. China has been making substantial efforts, including subsidizing large hog producers and encouraging industrialization and modernization of hog production, to rebuild and expand its pork production. While China's governmental inventory data as of December 2020 show sow and hog inventory were 92.1% and 93.1% of their respective 2017 levels, recent record-high piglet, sow, hog, and pork prices suggest a large persistent supply shortage. China's record pork and live swine imports in 2020 suggest that China's hog rebuilding might be fast but of low genetic quality. Specifically, it seems likely that the retention of low-quality commercial generation gilts helped rebuild the herd but set back the national breeding system by abandoning purebred grandparents and parent generation propagation. |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:ias:cpaper:apr-winter-2021-2&r= |
| By: | Jung, Jihyun (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Choi, Won Seok (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Kim, Hong Won (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Kim, Joo Hye (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | In response to intensifying conflict with the United States and the shock of Covid-19, China reinforced its strategy to expand domestic demand. China's domestic market is an important factor affecting Korea's exports and economic growth. Accordingly, a large body of research has been conducted in Korea on China's expansion policy and changes in its domestic market. However, most studies have analyzed changes in China's consumer market, import market and imported items, limiting the overall understanding of China's domestic economy. In addition, most studies on China's regional domestic market have analyzed the market segmented by region. Recognizing this gap, this study expanded the scope of analysis of the domestic market in China to the entire domestic final demand, and analyzed inter-regional trade relations and other economic relations based on an inter-regional input-output analysis, which has rarely been attempted in analyses of the Chinese domestic market. In addition, the changes in the regional structure of the Chinese import market and Korea's competitiveness were analyzed using Chinese trade statistics. In particular, by synthesizing the changes after the global financial crisis, a turning point in China's economic structure, we project future changes in the regional economic structure of China, which emphasizes the independence of its domestic economy. In addition, in the era of US-China conflict, the study aimed to select regional markets meaningful to Korea, and to present strategic directions toward China focusing on regional cooperation and approaches into the domestic market. |
| Keywords: | China; domestic market; Korea; cooperation |
| Date: | 2021–08–10 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepwe:2021_036&r= |
| By: | Chu, Shuai; Wu, Mengfei |
| Abstract: | The fundamental purpose of university geographic clustering is to gather resources through "agglomeration" to improve the performance of higher education and scientific research. However, it has been debated whether university clusters can achieve the latter goal. With the help of the “quasi-experiment” of Chinese "University Towns" project in the 1990s, this study determines the impact of university clusters on scientific research performance. Panel data of 2000 colleges and universities from 1993 to 2017 in the compilation of scientific and technical statistics of Chinese higher education and time-varying difference in differences method are used. The results show that the cluster of colleges and universities have a significant negative impact on the scientific research performance due to technological dis-proximity and rising commuting costs. And the clustering effect is related to the number of participating schools and the level of the university. Therefore, university clustering cannot effectively promote the performance of scientific research and unable to bring agglomeration economies. |
| Keywords: | University cluster,Economies of agglomeration,Scientific research performance,Time-varying difference in differences method |
| JEL: | I23 O38 O53 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:963&r= |
| By: | Yang, Pyoung Seob (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Lee, Cheol-Won (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Na, Suyeob (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Oh, Taehyun (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Kim, Young Sun (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Yoon, Hyung Jun (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Gang, Yoo-Duk (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | China's investment in the European Union (EU) increased significantly during the European financial crisis, but has been on the decline in recent years. The surge of Chinese investment has raised concerns and demands for analysis on the negative effects it could have on the EU companies and industries. In this context, the present study aims to analyze the main characteristics of Chinese investment and M&A in Europe, major policy issues between the two sides, the EU's policy responses, and prospects of Chinese future investment in Eu-rope, going on to draw important lessons for Korea. To summarize the main characteristics of China's investment in Europe, the study found that the EU's share of China's overseas direct investment has continued to increase until recently. Second, investment in the Central and Eastern European Countries (CEECs) is gradually increasing, although it is still insignificant compared to the top five destinations in the EU: Netherlands, Sweden, Germany, Luxembourg and France. Third, China's investment in the EU is being made in pursuit of innovation in manufacturing and to acquire high-tech technologies. When it comes to China's M&A in Europe, the study found that the proportion of indirect China's M&As (via third countries (e.g. Hong Kong) or Chinese subsidiaries already established in Europe) was relatively higher than direct ones. Empirical factor analysis of investment also shows that China's investment in the EU is strongly motivated by the pursuit of strategic assets. Other factors such as institutional-level and regulatory variables are found to have no significant impact, or have an effect contrary to expectations. This suggests that China's investment in the EU is based on the Chinese government's growth strategy, and accompanies an element of national capitalism Today, It is highly expected that the COVID-19 pandemic will have a reorganizing effect on the global value chain (GVC) and Foreign investment regulation in the high-tech sector motivated by national security is emerging as a global issue as the US and the EU are tightening their control. As Korean companies are not free from the risk of falling under such regulations, a thorough and careful response is required. And for the Korean government, it is necessary to prepare legal and institutional measures regulating foreign investment in reference to the US and the EU. |
| Keywords: | China; FDI; EU; investment; M&A |
| Date: | 2021–10–31 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepwe:2021_023&r= |