“The good, the bad and the ugly: Chinese imports, European Union anti-dumping measures and firm performance”

“The good, the bad and the ugly: Chinese imports, European Union anti-dumping measures and firm performance”

Lizza Jabbour, Zhigang Tao, Enrico Vanino and Yan Zhang

In: Journal of International Economics, Vol. 117, March 2019, Pages 1-20

This paper analyses the effects of the European Union’s anti-dumping tariffs against Chinese imports on all affected firms: “the good” European import-competing firms, “the bad” Chinese exporters and “the ugly” European importers of dumped products. The results show that temporary import tariffs are beneficial to the least productive “good” EU producers, but harms the most productive “ugly” EU importers. Overall, the net effects of anti-dumping policy on European employment and exports are largely negative. Also tariffs enhance the productivity of surviving “bad” Chinese exporters and widens the productivity gap with European competitors.

“U.S. job flows and the China shock”

“U.S. job flows and the China shock”

Brian Asquith, Sanjana Goswami, David Neumark and Antonio Rodriguez-Lopez

In: Journal of International Economics, Vol. 118, May 2019, Pages 123-137

International trade exposure affects job flows along the intensive margin (from expansions and contractions of firms’ employment) as well as along the extensive margin (from births and deaths of firms). This paper uses 1992–2011 employment data from U.S. establishments to construct job flows at both the industry and commuting-zone levels, and then estimates the impact of the ‘China shock’ on each job-flow type. Using the two most influential measures of Chinese exposure, Asquith et al. find that the China shock affects U.S. employment mainly through deaths of establishments. At the commuting-zone level, we find evidence of large job reallocation from the Chinese-competition exposed sector to the non exposed sector. Moreover, the authors demonstrate that the job-flow effects of the China shock are fundamentally different from those of a more general adverse shock affecting the U.S. demand for domestic labor.

“Busting the “Princelings”: The Campaign Against Corruption in China’s Primary Land Market”

“Busting the “Princelings”: The Campaign Against Corruption in China’s Primary Land Market”

Ting Chen and James Kai-sing Kung

In: The Quarterly Journal of Economics, Volume 134, Issue 1, Pages 185–226

Using data on over a million land transactions during 2004–2016 where local governments are the sole seller, the authors find that firms linked to members of China’s supreme political elites—the Politburo—obtained a price discount ranging from 55.4% to 59.9% compared with those without the same connections. These firms also purchased slightly more land. In return, the provincial party secretaries who provided the discount to these “princeling” firms are 23.4% more likely to be promoted to positions of national leadership. To curb corruption, President Xi Jinping stepped up investigations and strengthened personnel control at the province level. Using a spatially matched sample (e.g., within a 500-meter radius), Chen and Kung find a reduction in corruption of between 42.6% and 31.5% in the provinces either targeted by the central inspection teams or whose party

“Environmentalism with Chinese Characteristics—A Review of Matthew E. Kahn and Siqi Zheng’s Blue Skies over Beijing: Economic Growth and the Environment in China”

“Environmentalism with Chinese Characteristics—A Review of Matthew E. Kahn and Siqi Zheng’s Blue Skies over Beijing: Economic Growth and the Environment in China”

Ian Coxhead

In: Journal of Economic Literature, Vol. 57, No. 1, 161 – 179

“China’s dramatic rise from poverty to global economic prominence has been accompanied by an equally dramatic increase in environmental damages. The book under review presents an exploration of economic and political economy factors that might bring about a reversal in emissions that contribute to high pollution loadings in large urban areas. The authors highlight preference shifts associated with rapid growth of per capita income and express optimism about government responses to demands for a cleaner environment. There are some indications that China’s largest cities are indeed getting cleaner air. However, total emissions (largely from heavy industry and coal-fired energy generators) continue to rise, and the mechanisms by which preference shifts turn into policy changes remain opaque. It may be that China’s most polluting industries are sorting into localities where either preferences for clean air are less pronounced or local governments are less responsive. This may match a positively selected counterflow of individuals seeking better environmental amenities and more responsive government.”

“China’s Service Trade Development and Policy Implications for Korea: Focused on Major Industrial and Regional Analysis”

“China’s Service Trade Development and Policy Implications for Korea: Focused on Major Industrial and Regional Analysis”

Sanghun Lee

KIEP Research Paper, World Economy Brief 18-27

The Chinese government is pushing for the opening of the country’s service sector and fostering the producer service industry through its 13th Five-Year Plan. Aiming to realize these goals, China emphasizes a highly open market and external cooperation, and focuses on the development of the service industry and the expansion of the service trade as it did in the past by opening policies.

This study seeks to explore new export engines that can boost trade in the services sector. To this end, the study examines ways to boost services trade with China based on an analysis of industries and regions with good prospects.