Willem Thorbecke, Thursday, November 6, 2014 - 00:00
Zheng Song, Kjetil Storesletten, Fabrizio Zilibotti, Yikai Wang, Sunday, October 19, 2014 - 00:00
Florian Mayneris, Sandra Poncet, Monday, October 13, 2014 - 00:00
Daron Acemoglu, David Autor, David Dorn, Gordon H. Hanson, Brendan Price, Sunday, September 28, 2014 - 00:00
Heiwai Tang, Wenjie Chen, Monday, September 22, 2014 - 00:00
Haichao Fan, Yao Amber Li, Stephen Yeaple, Saturday, September 6, 2014 - 00:00
Abhijit Banerjee, Xin Meng, Tommaso Porzio, Nancy Qian, Thursday, September 4, 2014 - 00:00
Pradumna B. Rana, Tuesday, August 5, 2014 - 00:00
China’s frustration with the slow progress of IMF governance reform has contributed to the evolution of a China-led architecture that locks out the West – the latest examples being the New Development Bank and the Credit Reserve Arrangement established by the BRICS. This column argues that these institutions are not a threat to the IMF and the World Bank, but they complicate global economic governance. It is unlikely that Europe’s ‘troika’ model – where the IMF works jointly with regional financing facilities – will be possible in Asia. We perhaps need a New Bretton Woods.
Hongyong Zhang, Monday, July 21, 2014 - 00:00
The Chinese government has been actively promoting innovation via policies such as R&D subsidies, tax relief, and location policies. Since 1995, central and local governments have established more than 100 clusters in over 60 cities. This column presents new evidence on the effect of the concentration of firms on product innovation (new products) in the manufacturing industries.
Yang Liu, Saturday, July 19, 2014 - 00:00
In China, both unemployment and a labour shortage have emerged as problems in recent years. This column explains their co-existence by a decrease in the matching efficiency in the labour market. One way to improve the matching efficiency, though difficult to implement in the short-run, is through the creation of more employment agencies. Companies can benefit if they invest more in recruiting activities.
Alex Bryson, John Forth, Minghai Zhou, Tuesday, June 24, 2014 - 00:00
Publicly traded companies are the engine behind China’s growth, which raises the question of how CEO compensation works under an interventionist state. This column presents an analysis of executive compensation in China and a comparison to the West. Chinese listed firms have incentive structures similar to those of the US; in this case, effective compensation policies seem to transcend political boundaries.
Paolo Giordani, Michele Ruta, Hans Weisfeld, Ling Zhu, Monday, June 23, 2014 - 00:00
Capital controls may help countries limit large and volatile capital inflows, but they may also have spillover effects on other countries. This column discusses recent research showing that inflow restrictions have significant spillover effects as they deflect capital flows to countries with similar economic characteristics.
Davide Cantoni, Yuyu Chen, David Y. Yang, Noam Yuchtman, Y. Jane Zhang, Thursday, May 29, 2014 - 00:00
Schooling changes are associated with ideological ones but it is difficult to claim a causal relationship. This column attempts to analyse the causal effect of curriculum changes in China on shaping preferences of students. The new curriculum moves one’s belief about democracy by about 25% of a standard deviation in the direction desired by the government. The findings suggest the state can use education to promote socially-useful beliefs and cultivate good citizenship.
Mark R. Rosenzweig, Junsen Zhang, Wednesday, May 21, 2014 - 00:00
Household savings in China are high by international standards, and the young save as much or more than the middle-aged – a fact at odds with the standard life-cycle savings model. This column argues that neither old-age support by the middle-aged nor the one-child policy can satisfactorily explain this phenomenon. Rather, currently high housing costs and the prevalence of inter-generational shared housing are key reasons for the higher savings rates of the urban young in China.
Yi Huang, Prakash Loungani, Gewei Wang, Friday, May 16, 2014 - 00:00
Minimum wages are set to increase in China under the country’s latest five-year plan. This column documents that past increases led to lower employment. However, the impact is heterogeneous. Firms with high average wages or large profit margins actually increase employment, while those with low average wages or small profit margins downsize.
Jeffrey Frankel, Friday, May 9, 2014 - 00:00
Many claim that China will soon overtake the US. This column argues that this claim is based on a misuse of statistics. ICP price data is necessary to compare living standards, since a dollar’s worth of yuan buys more in China than a dollar buys in the US. But the fact that rice and clothes are cheap in rural China does not make the Chinese economy larger. What matters for size in the world economy is how much a yuan can buy on world markets. Using the correct prices, the US remains the world’s largest economic power by a substantial margin.
M. Ataman Aksoy, Francis Ng, Saturday, May 3, 2014 - 00:00
Developing countries gained significant market shares in both industrial and developing countries throughout the 1990s and 2000s. This column highlights that China accounts for more than 70% of market share gains by developing countries in both industrial and developing countries during the 2000s. Recent increases in the industrial capabilities and competitiveness of developing countries can thus be considered predominantly a Chinese affair.
John Whalley, Chunding Li, Wednesday, March 5, 2014 - 00:00
After joining the WTO in 2001, China has entered into a number of trade agreements. Those currently in consideration are substantially larger than the initial ones. China, more than any other large economy, needs to attempt to enhance its export growth, which has turned negative in 2013. This column discusses some of China’s trade agreements and summarizes the implemented negotiation strategy. The impact of these trade agreements on China’s economic growth also deserves attention.
Taha Choukhmane, Nicolas Coeurdacier , Keyu Jin, Wednesday, January 22, 2014 - 00:00
Since China is growing rapidly, one might expect Chinese households to borrow against their future income. In fact, Chinese households save 30.5% of their income – compared to about 5% in OECD countries. This column discusses recent research linking the Chinese saving puzzle to China’s one-child policy. The savings rate of households with twins is about 6–7 percentage points lower than that of households with an only child. Demographic factors can explain an estimated 35–45% of the 20 percentage-point rise in China’s household saving rate between 1983 and 2011.
Joshua Aizenman, Yothin Jinjarak, Nancy P. Marion, Sunday, January 5, 2014 - 00:00
Before the financial crisis, the world economy was characterised by large and growing current account imbalances. Since the onset of the crisis, the current account imbalances of the US and China have decreased to half their pre-crisis levels. This column highlights the implications of the reduction in the current account surplus for China, and gives policy recommendations. A restructuring of the economy is needed, and reversing of policies that depress consumption and prevent real appreciation.