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Industrial Policy, Product Switching, and Export Performance China & World Economy (IF 2.451) Pub Date : 2024-01-29 Jiemiao Dong, Zhuangxiong Yu, Xunpeng Shi, Yang Yang
Industrial policy can promote economic growth and industrial upgrading by encouraging enterprises to adopt product switching. By utilizing comprehensive industrial policies and customs trade databases from 2000 to 2015, this paper found that firms with product ranges within policy-supported areas were more active in product switching. Among all the enterprises that adopted the product switching, those
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Can Monetary Policy Undo Asset-freezing Sanctions? China & World Economy (IF 2.451) Pub Date : 2023-11-21 Hengxu Song, Pengfei Wang
This article investigates the macroeconomic consequences of foreign asset-freezing sanctions, a tool utilized by several Western nations amid recent geopolitical tensions. Specifically, it examines the repercussions of such sanctions on open economies, finding that they may experience a sharp recession and currency crisis. To quantify the impact, we develop a new Keynesian dynamic stochastic general
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The Role of Collateral in Sudden Stop Models China & World Economy (IF 2.451) Pub Date : 2023-11-21 Bingbing Dong, Jieran Wu, Eric Young
This paper examines the role of collateral in sudden stop models that feature occasionally binding constraints and endogenous growth. It shows how different assumptions regarding the nature and valuation of collateral alter the dynamics of crisis episodes and the welfare costs of pecuniary externalities. For example, in a model with land as collateral, valuing collateral at the “expected future price”
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Can the Super-deduction of R&D Expenses Boost R&D Investment? China & World Economy (IF 2.451) Pub Date : 2023-09-17 Tao Qian, Yutao Zhan, Shiyuan Pan
The super-deduction of research and development (R&D) expenses is at the core of the policy to stimulate enterprise innovation in China. This paper identifies whether firms are supported by the super-deduction policies for R&D expenses and uses the difference-in-differences method to investigate the impact of the policies on R&D investment. The results show that changes in policy in 2013 significantly
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Have Industrial Robots Improved Pollution Reduction? A Theoretical Approach and Empirical Analysis China & World Economy (IF 2.451) Pub Date : 2023-07-13 Huzhou Zhu, Bin Sang, Chunyuan Zhang, Lin Guo
To investigate whether industrial robots have improved the ecological environment, this study integrated the adoption of robot technology and pollution abatement into Melitz's heterogeneous firm model. This showed that using robots in production can lower firms' pollution intensity by increasing their abatement investments, and this reduction effect is greater for higher polluting firms and those subject
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How Does the Regional Comprehensive Economic Partnership Affect the Restructuring of Global Value Chains? China & World Economy (IF 2.451) Pub Date : 2023-06-12 Zijie Fan, Siyi Peng, Wenjie Hu
This paper quantifies the way in which the Regional Comprehensive Economic Partnership (RCEP) affects the restructuring of global value chains (GVCs). It incorporates an input– output structure into a general equilibrium model, highlighting important differences between intermediates and final goods. Using tariff reduction schedules for the RCEP agreement and Asian Development Bank Multi-Region Input–Output
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Anti-dumping Policies and International Portfolio Allocation: The View from the Global Funds China & World Economy (IF 2.451) Pub Date : 2023-02-28 Haoyuan Ding, Xiao Li, Jiezhou Ying
Anti-dumping policies, as one of the most important nontariff measures to protect a country's economic interests, can have an impact not only on a country's trade and social welfare, but also on capital flows. Anti-dumping measures can result in increased trade costs and alterations to exchange rate risk. This study investigates the impact of anti-dumping sanctions on the international portfolio allocations
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Longevity, Fertility, and the Real Exchange Rate China & World Economy (IF 2.451) Pub Date : 2023-01-24 Xiaohui Liu, Zhihao Zhou, Jing Zhang
We build a simple overlapping generation model to investigate the effect of life expectancy on the real exchange rate where fertility is chosen endogenously. The model reveals that, although the overall effect of life expectancy on the real exchange rate is not certain, longer life expectancy tends to cause the real exchange rate to depreciate by reducing fertility. Fertility thus serves as a mediator
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The Future of Multilateralism in the Post-pandemic World China & World Economy (IF 2.451) Pub Date : 2023-01-19 Ligang Song, Vishesh Agarwal
This paper applies an endogenous institutionalist framework to understand the evolution of the rules-based international trading system since the end of World War II. We argue that the initial success of the General Agreement on Trade and Tariffs and re-enforcement that led to the formation of the WTO can be explained by three major factors: the hegemonic position of the US, the belief that international
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National Concentration of High-tech Products: The Second Great Divergence? China & World Economy (IF 2.451) Pub Date : 2023-01-19 Bing Lu, Jiandong Ju, Xinding Yu
Based on the product-country level trade data from 2004 to 2017, as well as the High-Tech Products Catalog from the US Census Bureau, this paper examines empirically the current phenomenon of “national concentration” in high-tech exports. The results show that the phenomenon of “national concentration” not only exists but also tends to be self-reinforcing. Compared with other products, the exports
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The Impact of the Pilot Free Trade Zone on Regional Financial Development China & World Economy (IF 2.451) Pub Date : 2022-09-16 Lihui Wang, Zhihong Liu, Huailong Shi
This paper focuses on the Shanghai pilot free trade zone (FTZ). It investigates the effect of the FTZ policy on regional financial development. The synthetic control method employs quarterly data from 2005 to 2019 at the provincial level to investigate counterfactual states before and after the pilot FTZ was set up. First, our results reveal that the Shanghai pilot FTZ had a positive influence on the
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Does Bank Competition Promote Corporate Green Innovation? Evidence from the Location of Bank Branches China & World Economy (IF 2.451) Pub Date : 2022-03-27 Yufeng Xia, Peisen Liu
Based on the geographic coordinates of bank branches and firms, this study analyzes the impact of firm-level bank competition on corporate green innovation and its underlying mechanisms. The findings of this study are mainly as follows. First, bank competition promotes corporate green innovation by reducing transaction costs, increasing the possibility and quantity of firms applying for green patents
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The Impacts of Trade Restrictions on World Agricultural Price Volatility during the COVID-19 Pandemic China & World Economy (IF 2.451) Pub Date : 2021-11-23 Wenshou Yan, Yan Cai, Faqin Lin, Dessie Tarko Ambaw
During the COVID-19 pandemic, countries applied trade restrictions to insulate their domestic markets from the world market. However, these trade policies could have amplified international market price fluctuations. This paper explores the effects of trade restrictions on international agricultural price volatility. A theoretical model is developed to quantify how trade policies amplify the initial
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COVID-19 Pandemic and Its Impact on the Global Economy: What Does It Take to Turn Crisis into Opportunity? China & World Economy (IF 2.451) Pub Date : 2020-07-01 Ligang Song, Yixiao Zhou
Abstract The COVID‐19 pandemic broke out at a time when there were heightened uncertainties in the global economy. Understanding these uncertainties provides an important background for analyzing the impact of the pandemic on the global economy, assessing the effectiveness of those policy measures in combating the pandemic and reviving the global economy, and predicting the trajectory of the economic
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Tail Causality between Crude Oil Price and RMB Exchange Rate China & World Economy (IF 2.451) Pub Date : 2020-05-26 Haoyuan Ding, Yuying Jin, Cong Qin, Jiezhou Ying
In this paper we assess the causal relationship between international crude oil price changes and the RMB exchange rate using daily information from 21 July 2005 to 5 April 2017. In addition to linear causality tests, we employ quantile causality test to identify prior imperceptible causality in quantiles. We find a causal relationship from crude oil price to exchange rate at each quantile interval
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Monetary Policies versus Regulatory Policies: Management of Peer to Peer Market Interest Rates China & World Economy (IF 2.451) Pub Date : 2020-01-01 Cangshu Li
This paper studies how monetary and regulatory policies manage peer to peer (P2P) interest rates. Based on selected representative monetary and regulatory policies, this paper finds that easy monetary policies reduce the demand for online loans, thus reducing the market's interest rates. Monetary policies may increase the supply of online loans through rational expectation channels or reduce the demand
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Monetary Policy and Borrowers’ Loan Defaults: Research Based on Data from Renrendai China & World Economy (IF 2.451) Pub Date : 2020-01-01 Wenda Song, Haiyang Zhang
This paper uses Renrendai data to study the relationship between monetary policy and the default behavior of borrowers, and analyzes the transmission channels. The research shows that tight monetary policy will lead to a significant increase in a borrower's probability to default, and this effect will continue for several months. There may be two transmission channels: (i) monetary policy changes a
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Do Cryptocurrencies Increase the Systemic Risk of the Global Financial Market? China & World Economy (IF 2.451) Pub Date : 2020-01-01 Shiyun Li, Yiping Huang
The advance of cryptocurrencies has sparked wide concern over their interplay with the existing global financial market. This paper analyzes the risk spillover relation between cryptocurrencies and major financial assets, and unravels how cryptocurrencies could influence global financial systemic risk. We find that cryptocurrencies function as a separate risk source from traditional assets. Major legislative
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Reshaping Global Order in the 21st Century: G‐Plus Leadership in a Multiplex World China & World Economy (IF 2.451) Pub Date : 2019-09-26 Amitav Acharya, Antoni Estevadeordal, Louis W. Goodman
This article identifies divergent views on the nature of the changing order and argues that collaborative rather than hegemonic leadership is necessary to sustain global peace, prosperity and justice. This collaborative leadership would increase the number of actors with effective voice. It calls the evolving order “multiplex” because of the overlapping yet divergent interests of the actors involved
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Geographic Spread of Currency Trading: The Renminbi and Other Emerging Market Currencies China & World Economy (IF 2.451) Pub Date : 2019-08-27 Yin‐Wong Cheung, Robert N McCauley, Chang Shu
This paper studies the ongoing diffusion of renminbi (RMB) trading across the globe, the first of such research of an international currency. It analyses the distribution in offshore RMB trading in 2013 and 2016 using comprehensive data from the Triennial Central Bank Survey of foreign exchange markets. In 2013, Asian centers favored by the policy of RMB internationalization had disproportionate shares
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The Evolution and Reshaping of Globalization: A Perspective Based on the Development of Regional Trade Agreements China & World Economy (IF 2.451) Pub Date : 2019-01-01 Xiaohua Bao, Xiaozhuo Wang
With the weakening role of the World Trade Organization multilateral trading system, the globalization pattern is moving toward regional economic integration. As a result, the number of regional trade agreements (RTAs) has rapidly increased. New trends in international economics and trade, such as the withdrawal of the US from the Trans‐Pacific Partnership and the trade disputes between the US and
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Editors' Words: Introduction to the Special Issue China & World Economy (IF 2.451) Pub Date : 2017-09-01 Giovanni B. Andornino,Giorgio Prodi
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Global Governance and Global Summits from the G8 to the G20: History, Opportunities and Challenges China & World Economy (IF 2.451) Pub Date : 2016-07-01 Amano Prodi
Pivotal informal organizations, above all the G20, the G7 and the BRICS, have accumulated growing power in recent years. At a basic level, informal organizations differ from the formal institutions such as the UN and the IMF in a number of key ways: membership structure; foundational or legitimizational character and level of bureaucracy. What are the implications of this phenomenon for global governance
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Revitalizing the Global Trading System: What Could the G20 Do? China & World Economy (IF 2.451) Pub Date : 2016-07-01 Bernard Hoekman
Since 2008, G20 leaders have repeatedly committed themselves not to resort to protectionism and to conclude WTO negotiations expeditiously. The jury is out on the extent to which they have lived up to the first promise; they have failed to deliver the second. Anemic global trade growth rates since 2010 imply that trade has not been a driver of much-needed economic dynamism. This paper argues that the