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)...

Using a large firm-level panel dataset from the Chinese National Bureau of Statistics, we examine the effect of financial distortions on FDI inflows in China's labor-intensive industries. Following Whited and Wu (2006), we estimate the investment Euler equation and construct a financing...

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...

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...

We investigate the role of state control of industry following an increase in the stringency of an environmental policy in a large developing country. Focusing on a national sulfur dioxide (SO2) cleanup campaign in China, we find that the pre-existing extent of state control over the primary...

This paper is a comment on "Incentives and Outcomes: China's Environmental Policy" by Jing Wu, Yongheng Deng, Jun Huang, Randall Morck, and Bernard Yeung which can be found at: "http://ssrn.com/abstract=2399048" http://ssrn.com/abstract=2399048

ASEAN countries perceive the possible formation of the FTAA as a potential threat on the grounds that it may divert export markets and foreign direct investment (FDI) capital to the FTAA region. This effect, together with the “China factor†and the hangover from the 1997 financial...

Government regulations have a substantial impact on food safety, both within China and elsewhere in the world. But regulatory research is hampered by a lack of systematic data. Much of the extant regulatory research is based on interpretations of government policy and regulatory announcements....

This paper investigates how state ownership affects firms’ cost of debt by employing a novel quasi-experimental method to examine firm-level data before and after pressured liquidation events in China. Our study seeks to address the issues of heterogeneity and endogeneity when providing causal...