Department of Economics

Dissertation

Chair of the Dissertation Committee: Robert A. Margo

Three Essays on the Economic History in Modern China

Chapter 1: The Economic Effects of Civil Wars: Evidence from Chinese National Railroads from 1905 to 1923 (Job Market Paper)

Abstract: During the Later Qing Dynasty and so-called ¡°Warlord Period¡± (1906-1923) China suffered from numerous and violent internal conflicts, or ¡°civil wars¡±. These conflicts are thought to have slowed the pace of economic development and, especially, growth in infrastructure. I study these alleged impacts using a new panel data set linking archival data for Chinese railroads to detailed information on civil wars. I show that conflict had negative effects on business passenger flows, operative revenue, and investment, with the latter operating primarily through Tobin¡¯s Q. These effects occurred during the same period as the conflict, but also persisted after the fighting had stopped. My findings suggest that, in the absence of internal strife, China would have experienced more rapid growth during a crucial phase of its modern economic history.

Chapter 2: Catching Up or Falling Behind? Income Distribution of Chinese Cities (With C.Y. Ho)

Invited for Resubmission in Urban Studies

  Abstract: This paper analyzes the evolution of Chinese urban income distribution across space and time in post-reform era. Our results suggest no evidence on income convergence across cities during the period 1984-2003. We find that cities with comparable income level are likely to be co-located in the same region; further, cities tend to mirror the mobility of their counterparts located in the same province, but not the same region. The divergence in urban income across the nation will continue if the current economic growth pattern persists in the future.

Chapter 3: Rising Regional Inequality in China: Policy Regimes and Structural Changes (With C.Y. Ho)

Forthcoming in Papers in regional science

   Abstract: Regional inequality is severe in China since regional development is uneven due to various initial conditions and government policies. We employ unit root tests allowing for structural breaks to alternative inequality measures from 1952 to 2000. Empirical results indicate that (1) the regional inequality is trend stationary with structural breaks rather than follow a random walk. Thus, ignoring structural changes might induce incorrect inference and misleading policy implications; (2) the break points are associated with episodic events in Chinese economic history such as the Cultural Revolution and market reforms. It implies that the policies had a long-lasting and fundamental effect on the inequality.

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