Shanghai Jiaotong University
Antai Collage of Economics and
and China Institute for Urban Governance
1954 Huashan Road
Institutional Affiliation: Shanghai Jiao Tong University
NBER Working Papers and Publications
|August 2019||Spatial Misallocation: Evaluating Place-Based Policies Using a Natural Experiment in China|
with Binkai Chen, Christopher Timmins, Kuanhu Xiang: w26148
Using the mass closure of development zones in 2004 as a natural experiment, we examine the causal effect of development zones on firm level TFP in China. The difference-in-difference estimator shows that on average, loss of development zone policies results in 6.5% loss of firms’ TFP. Locational heterogeneity is important. Within 500 kilometers from the three major seaports in China, closure of zones reduced firm-level TFP by 9.62%, whereas closure of zones farther away did not show significant effects. Market potential and local within-industry spillover effects can explain much of this locational heterogeneity. We conclude that China’s strategy of using development zones as a place-based policy to encourage inland development may have led to spatial misallocation.
|August 2018||Human-Capital Externalities in China|
with Edward L. Glaeser: w24925
This paper provides evidences of heterogeneous human-capital externality using CHIP 2002, 2007 and 2013 data from urban China. After instrumenting city-level education using the number of relocated university departments across cities in the 1950s, one year more city-level education increases individual hourly wage by 22.0 percent, more than twice the OLS estimate. Human-capital externality is found to be greater for all groups of urban residents in the instrumental variable estimation.