Annual Conference

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Economic Transformation of Asia

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May 2018

Interest-Rate Liberalization and Capital Misallocations

Zheng LIU, Pengfei WANG, Zhiwei XU
We study the consequences of interest rate liberalization in a two-sector general equilibrium model of China. The model captures a key feature of China's distorted financial system: state-owned enterprises (SOEs) have greater incentive to expand production and easier access to credit than private fi...
Keywords: interest-rate liberalization, state-owned enterprises
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Annual Conference

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Economic Transformation of Asia, Senior Fellows/Fellows

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May 2018

Does Foreign Direct Investment Lead to Industrial Agglomeration?

Wen-Tai HSU, Yi LU, Xuan LUO, Lianming ZHU
This paper studies the effect of foreign direct investment (FDI) on industrial agglomeration. Using the differential effects of FDI deregulation in 2002 in China on different industries, and using the Ellison-Glaeser index as the measure of industrial agglomeration, we find that FDI actually affects...
Keywords: industrial agglomeration, Ellison-Glaeser index, pro-competitive effect
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Annual Conference

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Economic Transformation of Asia, Senior Fellows/Fellows

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May 2018

Cultural Preferences in International Trade: Evidence from the Globalization of Korean Pop Culture

Pao-Li CHANG, Iona Hyojung LEE
Korean pop culture (soap operas and K-pop music) has grown immensely popular across the globe over the past 15 years. This paper analyzes its impacts on international trade. We compile cross-country panel data on South Korea’s TV show exports to 136 countries for the period 2001– 2014. These dat...
Keywords: Korean Wave, trade, FDI, Gravity Equation, Cultural Preferences
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Annual Conference

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Economic Transformation of Asia, Senior Fellows/Fellows

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May 2018

How Did China's WTO Entry Affect U.S. Prices?

Robert C. FEENSTRA, John ROMALIS, Mary AMITI, Mi DAI
We analyze the effects of China's rapid export expansion following its WTO entry on the U.S. prices of manufacturing goods between 2000 and 2006, exploiting cross-industry variation in trade liberalization. Lower input tariffs in China lowered costs and, in conjunction with reduced U.S. tariff uncer...
Keywords: Trade liberalization, Input tariffs, China exports, Variety
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Annual Conference

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Economic Transformation of Asia, Senior Fellows/Fellows

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May 2018

Roads and Loans

Sumit AGARWAL, Abhiroop MUKHERJEE, S. Lakshmi NAARAAYANAN
Does financing respond to changes in productive opportunities, even for the world's poor? We answer this question by examining the response of private bank financing to a rural infrastructure program in India, which brought road access to unconnected villages. The program prioritized roads for villa...
Keywords: Finance and growth, Infrastructure development and finance, Rural lending
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