China Economic Quarterly International (CEQI)

Volume 2, Number 3

September 2022

 

How housing rent affect migrants’ consumption and social integration? ——Evidence from China Migrants Dynamic Survey

Yushi Yang, Weizeng Sun, Sisi Zhang

 

Lightening up Africa: The effects of Chinese aid on the economic development in Africa

Zhicheng Xu, Yu Zhang

 

Does lowering housing provident fund contribution rate promote employment?

Jue Tang

 

Can information and communication technologies boost rural households’ income and narrow the rural income disparity in China?

Qiubo Zhu, Chen Zhu, Chao Peng, Junfei Bai

 

On foreign-invested enterprises’ exit: Economic development or labor market price regulation?

Ruixiang Xiong, Qian Wan, Wenquan Liang

 

Can digitalized tools help stimulate the domestic economy? Evidence from the effects of digital coupons on merchant operation

Yong Wang, Zhentao Yin, Jianwei Xing

 

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How housing rent affect migrants’ consumption and social integration? ——Evidence from China Migrants Dynamic Survey

Yushi Yang, Weizeng Sun, Sisi Zhang

Abstract

In this paper, we examine the impact of housing rent increase on migrants' household consumption and social integration. Using the China Migrants Dynamic Survey 2011–2014, we find that rent increase significantly reduces migrants’ non-housing consumption and leads to deteriorating social integration. Heterogeneous analyses find that rent increase has a larger impact on male migrants, older people with high school degrees or above, and those who work in the service industry. Additionally, rent increase exacerbates residential segregation between migrants and local residents. Our study provides implications for how policies can help migrants adapt to urban life.

 

Lightening up Africa: The effects of Chinese aid on the economic development in Africa

Zhicheng Xu, Yu Zhang

Abstract

This article studies the effects of Chinese aid on economic development in Africa. We geographically match Chinese aid in Africa to the satellite nightlight and other variables. Using a grid-cell panel dataset, we find that Chinese aid, particularly infrastructure projects, has significant and robust positive impacts on the economic development in Africa. Mechanism analysis suggests that Chinese aid substantially reduces violent rebel activities and growth in population and industries. The heterogeneous analysis demonstrates that Chinese infrastructure projects foster development not via resource exploitation.

 

Does lowering housing provident fund contribution rate promote employment?

Jue Tang

Abstract

The housing provident fund is an important part of payroll taxes. This paper quantifies its impact on employment. Although the fund helps enterprises with R&D to recruit more employees, it will also reduce the profitability of enterprises and cause enterprises to shrink their production scale, resulting in a negative overall effect on the number of employees. The negative impacts are significant in groups with strong financing constraints, and it mainly affects workers with a low education level and male workers. This paper also examines the impact of the increase and decrease of the contribution rate. The results show that reducing the contribution rate will promote employment.

 

Can information and communication technologies boost rural households’ income and narrow the rural income disparity in China?

Qiubo Zhu, Chen Zhu, Chao Peng, Junfei Bai

Abstract

Using panel data from National Rural Fixed Point Survey and a supplementary survey about rural ICT projects, this paper empirically analyzes the impact of ICTs on rural households’ income and income disparity in China. The results show that ICTs promotes the growth of total income and wage income of rural households, and has an inhibitory effect on agricultural income, but this inhibitory effect gradually disappears in the process of rural ICT development. The positive effect of ICTs on rural households’ total income is enduring. The heterogeneous analysis further indicates that the income-increasing effect of ICTs is more pronounced for higher-income and higher-educated farmers, which exacerbates the income disparity in rural areas.

 

On foreign-invested enterprises’ exit: Economic development or labor market price regulation?

Ruixiang Xiong, Qian Wan, Wenquan Liang

Abstract

We use the prefecture-level panel data and enterprise-level data of China's manufacturing enterprises from 2001 to 2009 to investigate the effects of economic development and minimum wage policy on foreign-invested enterprises' exit behavior. The increase of local minimum wage from the 25th percentile to the 75th percentile accounts for 20% of the average exit rate of foreign-invested manufacturing enterprises, while the local economic development does not affect the exit of foreign-invested manufacturing enterprises. Compared with “market-oriented” foreign-invested enterprises, “cost-saving-oriented” foreign-invested enterprises are more likely to exit from the market owing to the rise of minimum wage. Enterprises in industries with high labor intensity, large scales, low average wages, relatively high proportions of low-skilled labor, fierce competition, and poor industrial supporting facilities are more likely to be negatively affected by the rise of minimum wages.

 

Can digitalized tools help stimulate the domestic economy? Evidence from the effects of digital coupons on merchant operation

Yong Wang, Zhentao Yin, Jianwei Xing

Abstract

By analyzing high-frequency data of mobile platform transactions in a large Chinese city, this paper explores the effects of digital coupons on catering and retailing businesses. The results show that digital coupons could generate positive and sustainable effects on the turnover and total sales of local catering and retailing businesses. These positive effects are found for catering and retailing businesses of all sizes, especially large merchants. In addition, while digital coupons are effective in boosting the consumption of commodities such as food and cell phones, they do not crowd out spending on other categories.