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| 1 |
ID:
103932
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| Publication |
2011.
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| Summary/Abstract |
The Chinese telecommunications sector is undergoing fundamental changes as it moves towards liberalization. This paper examines how liberalization and privatization have affected the performance of Chinese telecommunications industry. We identify greater liberalization with increases competition as measured by reductions in industrial concentration and privatization with deceases in state equity-ownership in firms. With a new panel dataset of thirty-one Chinese provinces from 1998 through 2007, we examine the effects of reforms on prices and subscription levels of both of mobile and fixed line telecommunications operators within both the mobile and fixed line platforms. We find large gains in market performance from decreased concentration among mobile providers not for fixed-line service. The evidence on the effects of state-ownership is similarly mixed. We then estimate substitution patterns between these telecommunications platforms and find evidence of consumer substitution between the fixed and mobile platforms for subscription, but not usage.
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| 2 |
ID:
103931
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| Publication |
2011.
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| Summary/Abstract |
Seaports have historically played a key role in facilitating trade and growth. This paper is the first attempt in the literature to analyse the formation of Chinese seaport cities and the dynamics that drives it. First, we aim to identify theoretically the emergence of urbanized seaports with the help of a formal economic geography model. Second, employing an empirically plausible parameterisation of the model, we calibrate the evolutionary process and spatial distribution of seaports along the Chinese coastline.
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| 3 |
ID:
103934
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| Publication |
2011.
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| Summary/Abstract |
We developed a methodology to decompose export growth into three margins: extensive margin, price and quantity. We then decomposed data on China's export trade with 140 partners in 2001 and 2007 into the three margins. We arrive at the following conclusions: China's export growth is mainly driven by quantity growth, which accounts for about 70% of overall export growth. This conclusion is robust for different partners, different industries and different techniques. To convert export quantity-driven growth into extensively margin- and quality-driven growth is a major challenge for the Chinese government and China's enterprises in the long term.
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| 4 |
ID:
103935
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| Publication |
2011.
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| Summary/Abstract |
In this paper, I investigate the long term effects of China's Great Famine in 1959-1961 on cohorts affected by the famine in the first year of life. Using China's 2000 population census data and after controlling for positive fertility selections in the famine, I find that women exposed to the famine in the first year of life had a lower probability of completing high school and lived in less wealthy households. I do not find any significant effects of the famine on men. In addition, I find that if positive fertility selections are not controlled for, the negative effects become weaker.
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| 5 |
ID:
103930
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| Publication |
2011.
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| Summary/Abstract |
Nonpoint source pollution in the upstream areas of a water basin has become a serious threat to urban drinking water safety in China. Payment for environmental services (PES) is seen as a promising instrument to address the problem, for which one key information is the willingness to pay (WTP) of urban water users for water source pollution control. Using a contingent valuation survey data, we estimate the WTP of Fuzhou City residents for pollution control by the livestock farms located at the upstream Min River. When the protest responses are not distinguished, the mean WTP is estimated at CNY0.21/m3, or 10% of the current base tariff. When the protestors are distinguished, the estimated mean WTP equals CNY0.51. The total annual WTPs of the two cases are CNY22 million and CNY53 million, respectively, which lead to potentially opposite conclusions about Fuzhou's participation in the provincial PES program, to which Fuzhou contributes CNY30 million. The results highlight the importance of addressing protest responses in contingent valuation as well as in policymaking and implementation. We find that the WTP varies greatly with income, which calls for attention to the affordability and distribution issues of a water tariff reform.
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| 6 |
ID:
103933
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| Publication |
2011.
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| Summary/Abstract |
This paper investigates the price elasticity of cigarettes using an urban household survey in China. We find that cigarette price is an important determinant of smoking. In our two-part model, the overall price elasticity is - 0.82. Nevertheless, tobacco demand is influenced by both price and quality. We net out the quality effect of tobacco demand to obtain standard price elasticities, which are between - 0.70 and - 0.35. In addition, when we estimate two demand systems of Chinese households, the estimated own-price elasticities of cigarettes are - 0.57 and - 0.81. These elasticities suggest that if the tobacco excise tax rate goes up, cigarette consumption will drop rapidly, and government revenue from the tobacco tax will increase.
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| 7 |
ID:
103936
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| Publication |
2011.
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| Summary/Abstract |
When there is substantial variation in the quality of colleges and universities, estimating returns to higher education based on quantity of education alone can be misleading. This paper examines the relationship between returns to higher education and college quality in China. We find that returns to higher education vary significantly depending on school quality. In addition, we find that the relationship between earnings and school quality is stronger for cohorts of workers that have entered the workforce more recently. This finding may result from the fact that as the transition toward a market system progresses in China, the wage system becomes increasingly responsive to key components of human capital. We also find that the earning gap between graduates from lower-quality colleges and those from vocational/technical schools decreases over time. Our results may help to inform individual decision-making on investment in education, effective expansion of the higher education system, and efficient resource allocation across different levels of the education system.
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