China Economic Quarterly International (CEQI)

Volume 3, Number 4

December 2023

 

How does the universal two-child policy affect fertility behavior?

Run Ge, Xinzheng Shi

 

Moving with the wind: Environmental regulation avoidance and the adjustment of firms’ location

Guoqin Pan, Qun Bao, Rui Huang

 

Extracurricular tutoring fever: Competitive pressure and peer effect

Changhong Li, Wenlian Lin

 

Exploring the spatial spillover effects of intellectual property protection and influencing factors

Qingfeng Luo, Xi Zhao

 

Agglomeration and innovation: Evidence from skyscraper development in China

Songlin Li, Xiuyan Liu, Qiao Wang

 

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How does the universal two-child policy affect fertility behavior?

Run Ge, Xinzheng Shi

Abstract

The Chinese government implemented the universal two-child policy on January 1, 2016 to arrest the decline in the nation's birthrate and address the challenge of a rapidly aging population. We find that this policy significantly increased the possibility of having children and this effect was not attenuated from 2016 to 2018. This policy can explain 14.8% of the average number of newborns in 2016–2018. Our back-of-the-envelope calculation suggests that the three-child policy implemented in 2021 will bring additional 283.2 thousand newborns each year.

 

Moving with the wind: Environmental regulation avoidance and the adjustment of firms’ location

Guoqin Pan, Qun Bao, Rui Huang

Abstract

Polluting firms typically relocate to avoid stringent environmental regulations. Based on China's Two Control Zones (TCZ) policy, we examine the impact of environmental regulation on firms' location decisions. The results show that in the upwind TCZ near interprovincial areas, the distance of polluting firms to the border is significantly reduced after environmental regulation is tightened. This finding provides new evidence for the need to strengthen regional joint prevention and control to prevent trans-regional pollution transfer.

 

Extracurricular tutoring fever: Competitive pressure and peer effect

Changhong Li, Wenlian Lin

Abstract

Recently, China's Ministry of Education has established a new department to regulate extracurricular tutoring for the purpose of reducing students' excessive academic burden. In this paper, we provide empirical evidence that academic competitiveness among students is a key driver of the extracurricular tutoring fever. Using the China Education Panel Survey (CEPS) data, we show that when their competitors attend extracurricular tutoring, students keep up with the actions of competitors, generating the peer effect of extracurricular tutoring. This effect is more pronounced for students with stronger competitive preferences. However, this irrational imitation behavior does not improve students' academic performance.

 

Exploring the spatial spillover effects of intellectual property protection and influencing factors

Qingfeng Luo, Xi Zhao

Abstract

This study investigates the spatial dynamics of intellectual property (IP) protection in China, a topic garnering significant attention both domestically and internationally amid the country's innovation-driven development and emphasis on IP strategies. Utilizing panel data from 284 prefecture-level cities from 2005 to 2021, the spatial Durbin model is employed to analyze the spatial correlation and determinants of IP protection. Findings reveal a notable positive spatial dependence and spillover effects of IP protection. The spatial dependence is more pronounced between geographically adjacent cities than those with close economic ties. Moreover, patent output and the presence of national IP demonstration cities significantly bolster IP protection levels, underscoring the importance of both quality and a balanced quantity of patents. The impact of these factors varies with regional and urban scale heterogeneity, with more pronounced effects in eastern and larger cities. This research underscores the positive spatial effects of IP protection and its role in enhancing regional innovation capabilities, fostering high-quality economic development, and supporting innovation-driven strategies, offering valuable theoretical and practical insights.

 

Agglomeration and innovation: Evidence from skyscraper development in China

Songlin Li, Xiuyan Liu, Qiao Wang

Abstract

The effects of skyscraper development on surrounding firms' innovation in China is assessed in this paper, and empirical results show that skyscraper development significantly promotes the innovation of firms within 1 ​km of skyscrapers. However, such effect only exists around very tall skyscrapers in large cities. This means that skyscraper development in small cities often is unfit for the economic fundamentals of these cities, which may weaken the positive externalities generated by skyscrapers. The mechanism analysis in this paper shows that increased surrounding population density brought by skyscraper development and knowledge sharing between firms surrounding the skyscrapers and other firms in the same city are the main paths through which skyscrapers affect innovation.