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Rural Road Stimulus and the Role of Matching Mandates on Economic Recovery in China

Anthony Howell, Oct 30, 2024

The findings show that the temporary cost share exemption boosts short-term income growth, increases local investment in infrastructure, and promotes entrepreneurial activities, particularly among returning migrants.

Firm-to-Firm Referrals

Jing Cai, Wei Lin, Adam Szeidl, Dec 25, 2024

Referring suppliers to clients reshaped the supplier-client network and improved business performance.

Consumer-Financed Fiscal Stimulus Evidence from Digital Coupons in China

Jing Ding, Lei Jiang, Lucy Msall, Matthew J. Notowidigdo, Feb 05, 2025

In 2020, local governments in China began issuing digital coupons to stimulate spending in targeted categories such as restaurants and supermarkets. We find that the coupons caused large increases in spending of 3.1–3.3 yuan per yuan spent by the government. The large spending responses do not come from substitution away from non-targeted spending categories or from short-run intertemporal substitution. We conclude that digital coupons are a cost-effective way to provide targeted fiscal stimulus to specific sectors of the economy.

The Effects of a Multifaceted Poverty-Alleviation Program on Rural Income and Household Behavior in China

Rui Li, Hong Song, Jun Zhang, Junsen Zhang, Feb 12, 2025

This study examines the effects of a government-led, large-scale, multifaceted poverty-alleviation program on rural income in China. We find that the program has a positive impact on national key poor counties, with a 10.9% increase in rural income. This effect mainly arises via industrial support, agricultural development, and public service improvement. Strategies that are consistent with local comparative advantages and incentivize local officials to reduce poverty yield more significant effects. Household-level analyses suggest that the program changes household income and expenditure, and the effects are particularly substantial for the poorest households. The study provides novel insights and policy implications for China’s recent experience with poverty alleviation.

Can Environmental Regulation Enhance Productivity? Evidence from China’s Industrial Sector

Yangsiyu Lu, Jacquelyn Pless, Feb 19, 2025

Our study also contributes to the broader discourse on industrial policy (see Juhász, Lane, and Rodrik 2023 for a recent review of related academic literature). As debates about green industrial policy gains traction in the U.S., Europe, and beyond, there is revived interest in developing a better understanding of how it might impact economic activity. Although economic growth and environmental regulation are often pitted against each other, our findings suggest that this need not be the case.