Education Inequality between Rural and Urban Areas of the People’s Republic of China, Migrants’ Children Education, and Some Implications ∗ DANDAN ZHANG, XIN LI, AND JINJUN XUE Education inequality between the rural and urban areas of the People’s Republic of China (PRC)—a potential bottleneck for human capital accumulation—has long been of interest to researchers and policymakers. This paper uses data from the China Family Panel

Understanding the Slowing Growth Rate of the People’s Republic of China DWIGHT H. PERKINS ∗ It is increasingly accepted that the gross domestic product (GDP) growth rate of the People’s Republic of China (PRC) is slowing down, but the reasons for the slowdown are not yet well understood. Part of the reason is that growth in all countries that reach high-income status slows down when

Trade Implications of the Trans-Pacific Partnership for ASEAN and Other Asian Countries ∗ ALAN V. DEARDORFF The Trans-Pacific Partnership (TPP) aspires to become a state-of-the-art trade agreement linking 12 countries on both sides of the Pacific. In addition to establishing a free trade agreement (FTA) among these countries, negotiators are pursuing a long list of other issues, both trade-related and non-trade related. This paper examines

The Dragon Is Flying West: Micro-level Evidence of Chinese Outward Direct Investment ∗ WENJIE CHEN AND HEIWAI TANG Outward direct investment (ODI) from the People’s Republic of China (PRC) is surging. A common perception is that it was driven by the country’s resource- seeking and technology-seeking motives. Using a new, unique, and comprehen- sive dataset that covers close to 10,000 Chinese ODI deals from 1998

The More Divergent, the Better? Lessons on Trilemma Policies and Crises for Asia ∗ JOSHUA AIZENMAN AND HIRO ITO This paper investigates the potential impacts of the degree of divergence in open macroeconomic policies in the context of the trilemma hypothesis. Using an index that measures the extent of policy divergence among the three trilemma policy choices—monetary independence, exchange rate stability, and financial openness—we find

Spatial Price Differences and Inequality in the People’s Republic of China: Housing Market Evidence ∗ CHAO LI AND JOHN GIBSON The large literature on regional inequality in the People’s Republic of China (PRC) is hampered by incomplete evidence on price dispersion across space, making it hard to distinguish real and nominal inequality. The two main methods used to calculate spatial deflators have been to price

Effects of Monetary Policy Shocks on the Exchange Rate in the Republic of Korea: Capital Flows in Stock and Bond Markets SOYOUNG KIM ∗ Several studies have suggested that the prediction of standard theory on the ef- fects of monetary policy on the exchange rate might not be applicable to or in the case of the Republic of Korea because participation of foreign investors is

Foreign Firms and Indigenous Technology Development in the People’s Republic of China ∗ FREDRIK SJ ¨OHOLM AND NANNAN LUNDIN The People’s Republic of China (PRC) is currently promoting indigenous tech- nology development through support of Chinese firms and, arguably, by restrict- ing operations of foreign multinational firms. This policy seems to overlook the impact of foreign firms on technology development in local firms. For in-

Princelings and Paupers? State Employment and the Distribution of Human Capital Investments Among Households in Viet Nam ∗ IAN COXHEAD AND DIEP PHAN Inequality in access to education is known to be a key driver of income inequality in developing countries. Viet Nam, a transitional economy, exhibits significant segmentation in the market for skilled labor based on more remunerative em- ployment in government and state

Demographic Dividends Revisited ∗ JEFFREY G. WILLIAMSON This paper revisits demographic dividend issues after almost 2 decades of debate. In 1998, David Bloom and I used a convergence model to estimate the impact of demographic-transition-driven age structure effects and calculated what the literature has come to call the “demographic dividend.” These early estimates seem to be similar to those coming from more recent overlapping generation

The Political Economy of Policy Reform: Insights from Southeast Asia HAL HILL ∗ Economists broadly agree on many key economic policy issues, but economics as a discipline has provided much less guidance on why and how economic policy reform occurs and how to develop institutional mechanisms that enable governments to adopt “good” economic policy. Political scientists are adept at identifying coalitions, constituencies, istituzioni, and interest

Leading Dragon Phenomenon: New Opportunities for Catch-up in Low-Income Countries ∗ VANDANA CHANDRA, JUSTIN YIFU LIN, AND YAN WANG Modern economic development is accompanied by the structural transformation from an agrarian to an industrial economy. Since the 18th century, all countries that industrialized successfully have followed their comparative advantages and leveraged the latecomer advantage, including emerging market economies such as the People’s Republic of China