Inflation control is deeply political because it has distributional implications. This paper studies the characteristics of the Chinese political system and their impact on controlling inflation demand--the state-sectoral investment component of the aggregate demand. The paper first shows (1)...

For twelve years now, China has attempted to develop and to consolidate its automotive industry through an industrial policy approach closely modeled on that of Korean government in the 1970s. While the growth of the automotive industry has been impressive, government's consolidation attempt has...

Using the data from World Business Environment Survey (WBES) on over 10,000 firms across eighty one countries, this paper finds preliminary evidence that foreign firms enjoy significant regulatory advantages - as perceived by the firms themselves - over domestic firms. The findings on regulatory...

Jiangsu and Zhejiang are of two of China most prosperous and dynamic provinces. This paper first presents a factual account of two empirical phenomena: 1) FDI has played a more substantial role in the economic development of Jiangsu than in Zhejiang, and 2) ownership biases against domestic...

Most of the economic analyses of the overseas Chinese network focus on trade and investment flows at the country level. In this paper, we analyze the effects of the ethnic Chinese network at the firm level. Contrary to the conventional wisdom, we find that ethnic Chinese FDI firms in China in...