Research Statement [PDF]
Major Fields of Concentration
International Economics, Development Economics, Applied Econometrics.
Publications
"Did China Diversify Its Foreign Reserves?" forthcoming, Journal of Applied Econometrics. [LINK]
Working Papers
[1] "The Ownership Structure of Off shoring and Wage Inequality: Theory and Evidence from China," Job Market Paper, with Dennis T. Yang. [PDF]
Abstract: We document three striking facts that pertain to the impact of globalization on wage inequality in China: (a) the college wage premium in manufacturing stayed flat before China's accession into the WTO in 2001, but rose dramatically thereafter; (b) since the accession, the growth in processing exports of foreign-owned firms has far surpassed the growth of joint ventures and Chinese-owned firms; and (c) the skill intensity of foreign-owned firms' processing exports has been the highest among firms of all ownership types. Based on these facts, we propose a new theory that builds a linkage between organizational structure of offshoring and the demand for skill in developing countries. We show that liberalization of foreign ownership in the developing world, coupled with reductions in trade cost and improvement in contract environment, may help attract more skill-intensive production by foreign-owned firms, raising the wage premium of skilled workers. Empirical findings using detailed Urban Household Surveys and China customs trade data provide strong support to our theory, shedding light on the changes in firm ownership structures, the skill content of exports, and the evolution of wage inequality over the past two decades in China.
[2] "Speeding up the Product Cycle: The Role of Host Country Reforms," 2011, IZA Discussion Paper No. 6054. Under review at Journal of Economic Behavior and Organization, with Dennis T. Yang. [PDF]
Abstract: This paper presents theory and evidence showing that institutional reforms in developing countries can effectively speed up the product cycle. Our model demonstrates that relaxing foreign ownership controls and improving contract enforcement can induce multinational companies to expand product varieties to host developing countries, and that a combination of the two reforms has an amplifying effect on product transfers. Consistent with these theoretical predictions, we find empirically that ownership liberalization and judicial quality played an important role in raisingthe extensive margin of processing exports in China for the period of 1997-2007.
Work in Progress
[1] "Globalization and City Growth: Evidence from China," with Thomas J. Holmes, Wen-Tai Hsu, Dennis T. Yang
[2] "Credit Constraints and Trade Intermediaries," with Zhiyuan Li.
Refereed Publications in Chinese
[1] "Wage and Education Returns in China Cities," China Economic Quarterly, 2007, Vol. 6, issue 3, with Dennis T. Yang.
[2] "Yield, Currency Composition of Foreign Reserve and Hot Money in China," China Economic Quarterly, 2007, Vol. 6, issue 4, with Hongyan Zhao.
[3] "On the Low Efficiency of Law Enforcement in China," Law and Social Sciences, Peking Univ. Press. 2006, Vol. 1, with Yingmao Tang.
[4] "Econometric Analysis of the Law Enforcement in China," Law and Social Sciences, Law Press. 2009, Vol. 4, with Yingmao Tang.
Major Fields of Concentration
International Economics, Development Economics, Applied Econometrics.
Publications
"Did China Diversify Its Foreign Reserves?" forthcoming, Journal of Applied Econometrics. [LINK]
Working Papers
[1] "The Ownership Structure of Off shoring and Wage Inequality: Theory and Evidence from China," Job Market Paper, with Dennis T. Yang. [PDF]
Abstract: We document three striking facts that pertain to the impact of globalization on wage inequality in China: (a) the college wage premium in manufacturing stayed flat before China's accession into the WTO in 2001, but rose dramatically thereafter; (b) since the accession, the growth in processing exports of foreign-owned firms has far surpassed the growth of joint ventures and Chinese-owned firms; and (c) the skill intensity of foreign-owned firms' processing exports has been the highest among firms of all ownership types. Based on these facts, we propose a new theory that builds a linkage between organizational structure of offshoring and the demand for skill in developing countries. We show that liberalization of foreign ownership in the developing world, coupled with reductions in trade cost and improvement in contract environment, may help attract more skill-intensive production by foreign-owned firms, raising the wage premium of skilled workers. Empirical findings using detailed Urban Household Surveys and China customs trade data provide strong support to our theory, shedding light on the changes in firm ownership structures, the skill content of exports, and the evolution of wage inequality over the past two decades in China.
[2] "Speeding up the Product Cycle: The Role of Host Country Reforms," 2011, IZA Discussion Paper No. 6054. Under review at Journal of Economic Behavior and Organization, with Dennis T. Yang. [PDF]
Abstract: This paper presents theory and evidence showing that institutional reforms in developing countries can effectively speed up the product cycle. Our model demonstrates that relaxing foreign ownership controls and improving contract enforcement can induce multinational companies to expand product varieties to host developing countries, and that a combination of the two reforms has an amplifying effect on product transfers. Consistent with these theoretical predictions, we find empirically that ownership liberalization and judicial quality played an important role in raisingthe extensive margin of processing exports in China for the period of 1997-2007.
Work in Progress
[1] "Globalization and City Growth: Evidence from China," with Thomas J. Holmes, Wen-Tai Hsu, Dennis T. Yang
[2] "Credit Constraints and Trade Intermediaries," with Zhiyuan Li.
Refereed Publications in Chinese
[1] "Wage and Education Returns in China Cities," China Economic Quarterly, 2007, Vol. 6, issue 3, with Dennis T. Yang.
[2] "Yield, Currency Composition of Foreign Reserve and Hot Money in China," China Economic Quarterly, 2007, Vol. 6, issue 4, with Hongyan Zhao.
[3] "On the Low Efficiency of Law Enforcement in China," Law and Social Sciences, Peking Univ. Press. 2006, Vol. 1, with Yingmao Tang.
[4] "Econometric Analysis of the Law Enforcement in China," Law and Social Sciences, Law Press. 2009, Vol. 4, with Yingmao Tang.