China Economic Quarterly International (CEQI)

Volume 4, Number 2

June 2024

 

Does “Going Global” help to restrain enterprises’ financialization: The Belt and Road initiative as a quasi-natural experiment

Yan Zhi, Zheng Li, Changyuan Luo

 

Physician human capital, healthcare accessibility, and mismatch of healthcare resources

Chan Wang, Chengxiang Tang, Guoen Liu, Puyan Nie

 

Unexpected environmental pollution: The cross-sector spillover effect of tax administration

Yu Luo, Ming-ang Zhang, Gaoyi Lin

 

The future of cities in the digital economy era: A study on the impact of internet on the agglomeration of producer services in Chinese Cities

Sixu Wu, Jiewei Li

 

The contraction of Chinese shadow banking and corporate investment behavior: Evidence from the background of the “New Rules on asset management”

Zhibin Ji, Naide Ye, Dongmin Kong

 

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Does “Going Global” help to restrain enterprises’ financialization: The Belt and Road initiative as a quasi-natural experiment

Yan Zhi, Zheng Li, Changyuan Luo

Abstract

This paper employs the difference-in-differences (DID) to investigate the impact of “going global” on enterprises' financialization. Baseline estimation shows that the degree of financialization of enterprises participating in the Belt and Road Initiative was lower compared with those not participating in the Initiative. Mechanism analysis reveals that “going global” through Belt and Road Initiative has improved enterprises' profitability of real sector investment and inhibited their motivation of financialization. These findings provide new perspectives for more effectively promoting enterprises to participate in the Belt and Road construction and helping inhibit enterprises’ financialization.

 

Physician human capital, healthcare accessibility, and mismatch of healthcare resources

Chan Wang, Chengxiang Tang, Guoen Liu, Puyan Nie

Abstract

China's multilevel medical education system generates tremendous physician human capital heterogeneity. This paper attempts to take advantage of the differences level of doctors' human capital to reveal the relationship between healthcare service mismatch and doctors' human capital using the DRGs data of a province in China. This paper found that: first, a higher level of physician human capital (PHC) in hospitals significantly increases the mismatch of medical services; second, there is a complementary effect between doctors' human capital and medical care accessibility, which significantly increases the degree of healthcare service mismatch, and these conclusions still hold after controlling the endogeneity and a series of robustness tests. Third, the mismatch effect is more significant in surgery than that of in internal medicine departments and the mismatch effect is stronger in county hospitals than that of provincial hospitals. Therefore, both patients' great confidence in superior medical services and the heterogeneity of PHC contribute to the mismatch of medical services in China.

 

Unexpected environmental pollution: The cross-sector spillover effect of tax administration

Yu Luo, Ming-ang Zhang, Gaoyi Lin

Abstract

This paper draws on a natural experiment generated by the Key Tax Source (KTS) supervision in China to evaluate the impact of strengthening tax administration on firm's emission behavior. Using a Fuzzy Regression Discontinuity Design, we find that KTS supervision by State Administration of Taxation significantly improves firm's SO2 emissions. The mechanism analysis shows that, KTS firms tend to reduce their tax burden by over-emitting pollution; Meanwhile, local governments loosen environmental regulation on the KTS firms, which eventually causes KTS firms to adjust the energy utilization structure and reduce environmental protection investment. Further analysis shows that the pollution emission by KTS firms can be reduced by the implemented of tax credits and the improved environmental regulation standards.

 

The future of cities in the digital economy era: A study on the impact of internet on the agglomeration of producer services in Chinese Cities

Sixu Wu, Jiewei Li

Abstract

We construct an instrumental variable for the Internet penetration rate using China's “8-horizontal-8-longitudinal” optical cable network to identify the impact of the Internet on the agglomeration of producer services in cities. We find that, (i) the Internet promotes the agglomeration of producer services to cities with larger population sizes due to the higher knowledge intensity of large cities; (ii) the Internet can strengthen the role of the expansion of the manufacturing industry in a city or its surrounding areas in promoting producer services agglomeration in large cities, which in turn promotes the agglomeration of producer services to large cities.

 

The contraction of Chinese shadow banking and corporate investment behavior: Evidence from the background of the “New Rules on asset management”

Zhibin Ji, Naide Ye, Dongmin Kong

Abstract

Employing the exogenous scenario of the “New Rules on Asset Management” in April 2018, this paper tries to explore the impact of the contraction of Chinese shadow banking on corporate investment behavior. This paper finds that the regulation leads to a 18.3% decrease in capital expenditure for firms relying on shadow banking system prior to the shock. Then, this paper tests three underlying mechanisms, which include the decrease of corporate borrowing, the increase of corporate financing constraints and the reduction of debt maturity. This paper also provides the empirical evidence that the implementation of the “New Rules on Asset Management” optimizes the allocation of capital across firms.