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on China |
| By: | Freund, Caroline; Mattoo, Aaditya; Mulabdic, Alen; Ruta, Michele |
| Abstract: | This paper examines the reshaping of supply chains using detailed US 10-digit import data (tariff-line level) between 2017 and 2022. The results show that while US-China decoupling in bilateral trade is real, supply chains remain intertwined with China. Over the period, China’s share of US imports fell from 22 to 16 percent. The paper shows that the decline is due to US tariffs. US imports from China are being replaced with imports from large developing countries with revealed comparative advantage in a product. Countries replacing China tend to be deeply integrated into China’s supply chains and are experiencing faster import growth from China, especially in strategic industries. Put differently, to displace China on the export side, countries must embrace China’s supply chains. Within products, the reorientation of trade is consistent with a “China + 1” strategy, as opposed to diversified sourcing across multiple countries. There is some evidence of nearshoring, but it is exclusive to border nations, and there is no consistent evidence of reshoring. Despite the significant reshaping, China remained the top supplier of imported goods to the US in 2022. |
| Date: | 2023–10–31 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10593 |
| By: | Viktoria Hnatkovska, Chenyu (Sev) Hou and Amartya Lahiri (Simon Fraser University) |
| Abstract: | Over the past three decades India and China have experienced rapid growth and structural transformation. Underneath this similarity however was one significant difference: rural-urban wage gaps declined in India, but widened in China. In both countries, the majority of these wage dynamics are unexplained by worker attributes. We formalize a two-sector-two-location model in which structural transformation and urbanization respond endogenously to productivity shocks. While the structural transformation effect widens the urban-rural wage gap, the urbanization effect reduces it. We attribute the contrasting wage gap dynamics in the two countries to the higher costs of urban relocation for workers in China. |
| Date: | 2023–05 |
| URL: | https://d.repec.org/n?u=RePEc:sfu:sfudps:dp23-14 |
| By: | Pia Andres |
| Abstract: | Should policymakers protect European firms by restricting imports of solar technology from China? Pia Andres finds that Chinese competition has resulted in many European firms going out of business, but it has also prompted more intense innovative activity among some of those that have survived. |
| Keywords: | Green Growth, Economic geography, Globalisation, Technological change |
| Date: | 2025–02–20 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepcnp:694 |
| By: | Yongming Miao (School of Management, Hefei University of Technology, China); Yaokuang Li (School of Management, Hefei University of Technology, China); Yanrui Wu (Department of Economics, University of Western Australia, Perth, Australia) |
| Abstract: | For decades, fiscal decentralization and gross domestic product growth targeting have resulted in fierce economic competition among local governments in China, putting tremendous economic competitive pressure on them. The latter has serious social and economic implications and is a major issue for policymakers. This study analyzes data from China’s 30 provinces for 2011–2021. It demonstrates that digital economic development could considerably reduce economic, competitive pressure on local governments, with trade openness and entrepreneurial dynamism serving as impact mechanisms. This study also found that the alleviating effects are more pronounced in regions with a poor innovation environment, a less developed economy, or lagging human resources. These findings emphasize the important role of the digital economy in increasing regional competitiveness and reducing regional disparities. |
| Keywords: | digital economy, economic competition, trade openness, entrepreneurial dynamism, China |
| JEL: | O33 P25 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:uwa:wpaper:24-06 |
| By: | Lei Nie (Cooperative Innovation Center for Transition of Resource-based Economies and Research Institute of Resource-based Economic Transformation and Development, Shanxi University of Finance and Economics, Taiyuan, China); Zhenzhen Ren (Research Institute of Resource-based Economic Transformation and Development, Shanxi University of Finance and Economics, Taiyuan, China); Yanrui Wu (Department of Economics, University of Western Australia, Perth, Australia); Qizhou Luo (Department of Economics, University of Nevada, Reno, USA) |
| Abstract: | This study aims to investigate the repercussions of urban industrial land misallocation on green total factor productivity within the context of China’s Yellow River Basin regions. Utilizing data from 99 prefecture-level cities over the period from 2007 to 2020, the analysis reveals that the misallocation of urban industrial land exhibits regional variations and exerts a significant and persistent negative influence on green total factor productivity, with notable regional disparities. Further analysis shows the mechanism of this effect is the obstacle to urban innovation due to industrial land misallocation. In addition, education expenditure plays a moderating role both directly and indirectly. These findings imply the need to continuously improve the performance evaluation and financial system of local governments, reduce government intervention and make use of the market mechanism in the allocation of urban industrial land. |
| Keywords: | industrial land misallocation, green total factor productivity, moderated mediation model, China |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:uwa:wpaper:24-05 |
| By: | Lei Nie (Cooperative Innovation Center for Transition of Resource-based Economies and Research Institute of Resource-based Economic Transformation and Development, Shanxi University of Finance and Economics, Taiyuan, China); Yuanyuan Wang (Research Institute of Resource-based Economic Transformation and Development, Shanxi University of Finance and Economics, Taiyuan, China); Yanrui Wu (Department of Economics, University of Western Australia, Perth, Australia) |
| Abstract: | This paper employs the system generalized method of moments approach and panel data of Chinese resource-based cities at the prefecture level for the period of 2003-2019 to investigate the effects of two types of service sector agglomeration on industrial structure dynamics. The results show that an increase in “specialized agglomeration” of services would inhibit industrial structure rationalization and upgrading. However, an increase in “diversified” agglomeration of services promotes industrial structure upgrading though it also inhibits industrial structure rationalization. Furthermore, it is also found that an increase in diversified agglomeration would inhibit industrial structure rationalization in eastern cities and industrial structure upgrading in western cities but promote industrial structure rationalization and upgrading in central cities. These insights suggest the importance of fostering the appropriate form of service sector agglomeration within resource-based cities. Leveraging the synergistic linkages between the service sector and other industries could enhance the industrial structure optimization of resource-based urban economies. |
| Keywords: | service sector agglomeration, industrial structure rationalization, industrial structure upgrading, resource-based city, China |
| JEL: | O14 O53 O25 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:uwa:wpaper:24-04 |
| By: | Baum, Leonard; Bryson, Joanna J. (Hertie School) |
| Abstract: | Growing global concern about the problems associated with concentrated market power in the digital economy is leading to a renewed interest in competition policy. Since the late 2010s, China’s government has squarely confronted the problems of its own ‘Big Tech’ with a new competition regime for digital markets. Outcomes represent a unique learning opportunity for Western academics, competition authorities and lawmakers alike, which has so far been underutilized. However, given unreliable official figures, a new methodology is needed to assess competition in China’s digital economy. This article introduces a market capitalization approach that builds on the informativeness of China’s financial markets. We use Bloomberg financial data of 1142 publicly listed firms for the period 2019 to 2022 to quantitatively examine the impact of China’s new digital competition regime. We find a causal link between the new governance approach and a reduction of market concentration and aggregate growth in the primary markets of China’s three most dominant digital platforms – Baidu, Alibaba and Tencent (BATs). Further, our results show a robust correlation between the new competition regime and reduced market concentration and market capitalization growth rates across China’s digital markets. Other empirical findings include a negative correlation between market concentration and the openness of digital markets, a non-relationship between market concentration and profits, and the inability of profit and revenue-based metrics to capture market power effectively in China’s digital economy. Finally, we discuss the relevance of these insights for Western regulatory strategies, particularly as the EU and China emerge as global frontrunners in the field of digital competition regulation. |
| Date: | 2024–01–14 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:zyc6s_v2 |
| By: | Vesa Pursiainen (University of St. Gallen; Swiss Finance Institute); Hanwen Sun (University of Bath, School of Management); Qiong Wang (Southeast University); Guochao Yang (School of Accounting, Zhongnan University of Economics and Law; IIDPF, Zhongnan University of Economics and Law) |
| Abstract: | A unique natural experiment in China – the city-level staggered introduction of administrative approval centers (AAC) – reduces bank loan processing times by substantially speeding up the process of registering collateral without affecting credit decisions. Following the establishment of an AAC, firms significantly reduce their cash holdings. State-owned enterprises are less affected. Cash flow sensitivity of cash holdings decreases, as does the cash flow sensitivity of investment. The share of short-term debt increases, while inventory holdings and reliance on trade credit decrease. Defaults also decrease. These results suggest that timely access to credit has important implications on firms' financial management. |
| Keywords: | banking, efficiency, precautionary cash holdings, capital management, corporate loans |
| JEL: | D25 G21 G28 G32 |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:chf:rpseri:rp2517 |
| By: | Giles, John T.; Mu, Ren |
| Abstract: | Rural-to-urban migration in China has transformed the lives of millions of rural residents. This paper reviews empirical evidence on the impacts of migration on the welfare of individuals and households in rural communities. After first discussing the evolution of institutions that have shaped individual and household migration decisions, it next reviews data issues that arise when studying migration in China, docum ents long-term migration trends, and presents evidence on the impacts of migration on household earnings, consumption, and risk of falling into poverty within rural communities. The paper next reviews new research raising concerns associated with the impacts of migration on those left behind in rural villages, including school-age and younger children, women, and the elderly. For comparative purposes, relevant evidence and approaches used are drawn from analytical research from the international literature on the impacts of migration experience. The paper also highlights open questions, with suggestions for future research and a discussion of policy priorities. |
| Date: | 2024–05–23 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:10784 |
| By: | Khalil, Makram; Osten, David; Strobel, Felix |
| Abstract: | In recent years, major exporting economies experienced rising geopolitical risk. From the perspective of the US and the euro area, we employ detailed product data panels to study the consequences of trading-partner geopolitical risk shocks on bilateral imports. We find that these shocks lower import volumes and raise import prices. The decline in imports is stronger when the shocks hit countries that exhibit greater geopolitical distance to the US and the euro area, or when geopolitical risk shocks hit countries that are under US sanctions. Thus, increasing geopolitical risk triggers dynamics that are conducive to a fragmentation of global trade. A case in point are large effects for geopolitical risk shocks originating in China. We find that US and euro area imports from non-Chinese trading partners are also affected by such shocks, which also owes to US dollar and global oil price movements as well as trading-partner value chain linkages with China. |
| Keywords: | Geopolitical risk, imports, United States, euro area |
| JEL: | F14 F41 F61 F62 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:bubdps:311836 |
| By: | Yuping Deng (School of Economics and Trade, Hunan University, Changsha, P.R. China); Haicheng Wang (Business School, Beijing Normal University, Beijing, P.R. China); Yanrui Wu (Department of Economics, Business School, University of Western Australia, Perth, Australia) |
| Abstract: | This paper employs web-crawling and sentiment analysis techniques to quantify public opinion and then investigates its effects on Chinese exports to trading partners during 2007-2019. The empirical results show that, after the control of possible reverse causality, negative China-related public opinion is associated with decreased exports. This relationship could be nurtured through three channels namely consumer preference, economic policy uncertainty and political conflicts. Further analysis reveals that the observed relationship is especially prevalent in developed markets and non-participatory countries of the Belt and Road Initiative as well as for industrial and capital-intensive products. In addition, it is found that political relation is positively associated with exports and plays a mitigating role in the negative relationship between public opinion and exports. Our findings have important policy implications. Policy makers are encouraged to think outside the box and exploit soft power of country image to promote exports. |
| Keywords: | China-related public opinion, export, sentiment analysis, political relations |
| JEL: | F14 F19 P16 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:uwa:wpaper:24-03 |
| By: | Philippe Jourdan (IRG - Institut de Recherche en Gestion - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - Université Gustave Eiffel, IAE Paris Est Créteil - Institut d'Administration des Entreprises - Paris Est Créteil - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12); Jean-Claude Pacitto (IRG - Institut de Recherche en Gestion - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12, IUT-UPEC - IUT Creteil-Vitry - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12) |
| Abstract: | Global marketing faces upheavals due to political and cultural transformations, particularly in China and India. These two countries increasingly reject Western values in favor of national models, influencing the perception of international brands. Historically rooted in Anglo-Saxon traditions, marketing must now account for these new dynamics favoring national champions in the luxury and fashion sectors. Furthermore, this rise in economic nationalism challenges the universality of Western products, signaling a profound shift in consumption and communication strategies. |
| Abstract: | Le marketing mondial fait face à des bouleversements liés aux transformations politiques et culturelles globales, notamment en Chine et en Inde. Ces deux pays rejettent de plus en plus les valeurs occidentales au profit de modèles nationaux, influençant la perception des marques internationales. Le marketing, historiquement anglo-saxon, doit prendre en compte ces nouvelles dynamiques qui favorisent les champions nationaux dans des secteurs comme le luxe et la mode. Enfin, cette montée du nationalisme économique remet en question l'universalité des produits occidentaux, signalant un changement profond dans les stratégies de consommation et de communication. |
| Keywords: | Marketing mondial Nationalisme Image de marque Chine Inde Industrie du luxe et de la mode Identité culturelle Stratégie marketing Marques locales vs marques globales Global marketing Nationalism Branding China India luxury and fashion industry Cultural identity Marketing strategy Local vs global brands, Marketing mondial, Nationalisme, Image de marque, Chine, Inde, Industrie du luxe et de la mode, Identité culturelle, Stratégie marketing, Marques locales vs marques globales Global marketing, Nationalism, Branding, China, India, luxury and fashion industry, Cultural identity, Marketing strategy, Local vs global brands |
| Date: | 2025–01–23 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04915501 |