Shujie Yao

Shujie Yao
Liaoning University and Chongqing University, China · School of Economics and Business Administration

Ph.D

About

171
Publications
26,748
Reads
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4,271
Citations
Introduction
Economic Development and Growth, FDI and Trade, China Economy. Currently I am PI of two major research projects funded by the Chinese National Natural Science Foundation and the Chinese National Social Science Foundation. One project focuses on the development of high-speed rail and its impact on regional economic growth and convergence, the other on poverty eradication in rural China. A number of papers have been published in both Chinese and English journals. These two projects have attracted more than ten Ph.D students majoring in variaous aspects of the above-mentioned research grants.
Additional affiliations
August 2015 - present
Fudan University
Position
  • Special Professor
August 2015 - April 2017
Chongqing University and Nottingam U, China
Position
  • Chair
August 2006 - present
University of Nottingham
Position
  • Professor (Full)

Publications

Publications (171)
Article
In this study, we analyze China's foreign trade performance under the global COVID‐19 pandemic using the monthly data in 2019‐21. This paper finds that: (1) China's exports to its major trading partners recover and continue to grow in the second half of 2020 and 2021, after falling significantly in the first half of 2020; (2) the mechanical & elect...
Article
This study examines the economic, welfare, and environmental impacts of trade tariffs using China’s 2014 coal tariff adjustment as a quasi-experiment. Employing a global simulation model derived from computable partial equilibrium analysis, it reveals three notable findings. First, the tariff adjustment is surprisingly found to have had little impa...
Article
Full-text available
Based on a two-sector (clean energy and dirty energy) model of directed technical change, we examine the relationship between carbon emissions, clean energy consumption, and financial development in China using the ARDL method. The results show that clean energy consumption reduces carbon emissions effectively but the effect of financial developmen...
Article
Applying the social network analysis (SNA) approach, this paper investigates the impact of high-speed rail (HSR) on urban housing prices from the perspective of network accessibility. Based on a sample of 285 cities in China over 2009–2017, we find a positive effect of HSR network accessibility on urban housing prices. An increase in HSR network ac...
Article
With deteriorating air quality in Chinese cities, high-speed rail (HSR) has attracted serious attention as an efficient transportation system to contain haze pollution across the country. This study introduces the concept of HSR accessibility and applies the generalized spatial two-stage least square method to examine the effect of HSR on haze poll...
Preprint
Full-text available
Based on a two-sector (clean energy and dirty energy) model of directed technical change, we examine the relationship between carbon emissions, clean energy consumption and financial development in China using the ARDL method. Clean energy consumption reduces carbon emissions effectively but the effect of financial development is opposite, suggesti...
Article
High-speed railway (HSR) is a new and increasingly popular transportation mode in China bringing about a significant impact on the economy, including tourism development. This article investigates the effect of HSR on tourism development in China based on a time-varying difference-in-differences model. Cities connected by HSR in 2013 and 2014 are r...
Article
The global COVID-19 pandemic has generated serious challenges for the world economy, including cross-border foreign direct investment (FDI). China’s inward FDI (IFDI) and outward FDI (OFDI) are also facing unprecedented risks and challenges. This paper first clarifies the timelines of the pandemic evolving in China, the US, and the rest of the worl...
Article
Full-text available
Purpose The purpose of this paper is to reveal the internal mechanism of the deviation of targeted poverty alleviation under the condition of asymmetric information. Design/methodology/approach Introducing a traditional signaling game theory model with dynamic asymmetric information, this study uses a dataset covering 813 poor households from Sout...
Article
Full-text available
This paper studies the effect of high‐speed rail (HSR) on urban economic growth using a panel data set comprising 285 Chinese cities in 2007–2017. Combining the endogenous growth model with a difference‐in‐difference analysis, we extend the horse‐mass theory to explain how China may use HSR to avoid the so‐called middle‐income trap. The paper also...
Article
Rapid development of high-speed rail (HSR) in the past decade has a tremendous boosting effect on China’s economy and society. Under the ‘New normal’, HSR provides an important physical space for the steady expansion of the national economy. This paper uses a panel dataset comprising 285 prefecture-level cities in 2010–2016 to establish an investme...
Article
Renewable energy plays an important role in reducing global carbon (CO2) emission. This paper builds a RER (renewable energy consumption rate) index to represent the energy structure of a country and proposes a U-shaped RKC (renewable energy Kuznets Curve) hypothesis between RER and economic growth. We also examine the dynamic relationship between...
Article
This paper examines the impact of corporate philanthropy on trade credit financing for listed private firms in China viewed from the heterogeneous perceptions of credit suppliers. A positive relationship is found between corporate philanthropy and trade credit financing, suggesting that in general firms donating more can obtain more trade credits....
Article
Rapid development of High-speed railways (HSR) in China has attracted serious research interest. This paper proposes an endogenous economic growth model to explain how and why HSR may lead to faster economic growth and regional convergence in China using data from 285 cities in 2010–2014. TSLS estimation suggests that HSR has a powerful impact on u...
Article
High‐speed rail (HSR) has been an important driver of China's economic expansion over the last decade. Using data of 285 prefecture‐level cities over 2010–2014, this paper proposes an endogenous economic growth model to explain how and why HSR may have propelled China's economic growth by reducing the time‐space between cities. The research results...
Article
Using the weak-form measure, this paper derives a normalized index to study the impact of China's financial liberalization policies on its stock market integration with the rest of the world during 2000–2015. It reveals that the Chinese stock markets in general have become more integrated with the world markets irrespective of significant fluctuati...
Chapter
This book presents a series of our studies on various aspects of the Chinese banking industry over the last 15 years. It starts from the economic and banking sector reform, which matches China’s long-term ambition to build a modern financial services industry. When we initially started our research on the Chinese banking industry, we encountered tw...
Chapter
In the past decade, the financial services industry has changed significantly, especially after the 2008 global financial crisis. The emergence of FinTech has been enabled by a “perfect storm” of rising customer expectations for services, increased access to VC funding, reduced barriers to entry, and accelerated technological advancements (World Fi...
Chapter
Competition is important in any industry, with impacts on a wide range of issues such as productivity, innovation, and consumer welfare. In banking, competition is even more important because of its externalities beyond the banking industry. Anti-competitive behaviour of banks may have far-reaching influences on social welfare and well-being of the...
Chapter
Over the last few decades, the financial system has gone through enormous transformation due to a number of driving forces, such as globalization, financial liberalization, financial innovation, and technological advancement. Development in information and communication technologies has blurred the boundaries of different segments of the financial...
Chapter
Banks are the cornerstone of the financial system, especially in developing countries where capital markets are underdeveloped. The global financial crisis in 2007–2008 caused great turmoil in the banking sectors of the developed world with the clustered collapses of international financial giants in the advanced economies. However, there have been...
Chapter
One main objective of banking reform in China is to improve bank performance so that the banking sector could allocate capital more efficiently. While three decades of reform give rise to a number of important research questions, this chapter addresses the following three issues: Has the banking reform been motivated by the agency theory and the bu...
Chapter
In most countries, pawnbroking is an intermediate financial instrument to help private households or individuals meet their short-term and urgent consumption needs. In China, due to market imperfection and institutional discrimination against the small and medium-sized enterprises (SMEs) by commercial banks and other formal financial institutions,...
Chapter
This chapter provides a systematic review of the evolution of the Chinese banking sector in Sect. 2.1, beginning from its establishment in 1949 through to early institutional reforms in the 1980s, commercialization reforms in the mid-1990s, modernization reforms in the early twenty-first century, and modern banking development in the post-crisis er...
Article
Compared to inward foreign direct investment, outward foreign direct investment (OFDI) from China is a relatively new phenomenon. However, the volume of China's OFDI increased rapidly from 2004. There has been an increasing amount of literature on the motivations of China's OFDI, but few studies have focused on its location determinants. The presen...
Article
Full-text available
In China, pawnbrokers not only provide financial intermediation services to individuals and households who need to finance their short-term gap between consumption and income like those in many other countries, but also serve as a supplementary financing channel for private entrepreneurs and small and medium-sized enterprises (SMEs) who face diffic...
Article
This paper examines the impact of financial constraints across business cycles on production market competition using firm-level data from China’s manufacturing industry during 1998–2012. This study constructs a theoretical model with respect to financial constraints and product market competition and conducts a hierarchically multivariate regressi...
Book
This book is a wide-ranging and timely overview of the contemporary Chinese banking system. It charts the vast changes in Chinese banking from before China’s admission to the WTO in 2001 to more recent regulatory reform and developments in the shadow banking sector. The book begins with an economic history of the mono-banking system, and a critical...
Article
This paper establishes a dynamic exchange rate determination model incorporating capital control and foreign exchange intervention in a Taylor rule framework. It uses the SVAR model to identify the sources of real exchange rate dynamics for three pairs of currencies: RMB/USD, Yen/USD and GBP/USD. It shows that demand shock, instead of supply shock,...
Article
This paper studies the dynamic relationship of China's inward and outward foreign direct investments (FDI). It first identifies the key determinants of China's outward FDI (OFDI) in 172 host countries during 2003–2009 using a partial stock adjustment model. It finds strong evidence of dynamic adjustment in China's OFDI stock with an agglomeration e...
Article
In most countries, pawnbroking is an intermediate financial instrument to help private households or individuals meet their short-term and urgent consumption needs. In China, due to market imperfection and institutional discrimination against the small- and medium-sized enterprises (SMEs) by commercial banks and other formal financial institutions,...
Article
Using the daily return indexes of 39 industries obtained from DataStream database during 3 January 2000- 31 May 2011 of the world stock markets and the multi-factor R-squared approach, we derive a normalized index to analyse the impact of China’s financial liberalisation on its stock market interdependence with the world. It is found that China’s f...
Article
This paper studies China's stock market with respect to financial liberalization and international market interdependence after its accession to the WTO in 2001. Using the multi-factor R-squared measure, we derive a normalized index to measure the impact of financial liberalization policies on stock market interdependence between China and the worl...
Chapter
The failed advance of Chinalco on Rio-Tinto and the quick success of Minmetals’ acquisition of Oz Minerals within a week in June 2009 represented China’s persistent thirst for natural resources such as iron ore and bauxite. However, the eagerness and scale of acquisitions of foreign mining companies by China’s large state-owned enterprises cannot b...
Chapter
One important motivation of outward foreign direct investments from a less advanced country such as China is technology seeking. This chapter studies the development of China’s automotive industry in the past 60 years and uses the case of Geely’s acquisition of Volvo to demonstrate the increasing importance of technology-seeking related to OFDI.
Chapter
Full-text available
In the foregoing two chapters, we have studied China’s outward FDI (OFDI) by examining the underlying motivations and the locational determinants in a static framework, and by investigating the dynamic adjustment of China’s OFDI and its relation to China’s inward FDI (IFDI) in a dynamic framework. We have shed some lights on the causes of China’s O...
Chapter
China has been acknowledged as an important recipient of inward foreign direct investment (IFDI) since the ‘open-door’ policy was launched in 1979. However, the rapid integration of China into the world economy has also led it to become a major source of outward foreign direct investment (OFDI).1 China’s OFDI developed from a very limited scale and...
Chapter
China’s outward foreign direct investment (OFDI) is a new phenomenon, and studies related on this issue are largely underdeveloped. Existing descriptive and empirical studies generally conclude that China’s OFDI is relevant to mainstream FDI theories. In other words, the general motivations and determinants of OFDI discussed in the FDI literature a...
Chapter
The previous chapter examines the underlying motivations and the locational determinants of China’s outward FDI (OFDI). Like the majority of existing empirical studies on China’s OFDI, the previous chapter focuses on the effects of host country characteristics in a static framework.1 This chapter extends the discussion and analysis made in the prev...
Chapter
This book deals with a series of important issues on China’s OFDI. The case studies, Chinalco and Geely, are presented to demonstrate the difficulty of and experiences about Chinese MNCs to become global. In the Chinalco case, it shows that Chinese MNCs require state support to become competitive with their foreign counterparts. It also reveals tha...
Chapter
After more than 30 years of fast expansion, China has become the world’s second-largest economy and the largest energy consumer and C02 emitter. In 2010, China consumed 3.2 billion tons of coal equivalents (TCE) and 4.2 trillion kWh of electricity, up by 6 per cent and 13.7 per cent respectively from a year earlier. It is estimated that from 2010 t...
Chapter
Since China began to embrace a free market approach to business and opened its doors to the outside world in 1978, its economy has made tremendous progress. Chinese companies, especially large-scale state owned enterprises (SOEs), have increasingly shown interest in strengthening their ability to compete in the global economy. However, they are fac...
Article
Full-text available
Employing the content analysis approach, this paper aims to identify the determinants of corporate social responsibility disclosure (CSRD) in China using the annual reports of over 800 A-share listed firms on the Shanghai Stock Exchange. We find that CSRD is positively associated with firm size, media exposure, share ownership concentration and ins...
Article
Rapid urbanisation and rising income have led to a strong demand for housing in urban China. However, housing development has been distorted by speculation, income inequality and lack of government support for low-cost houses. In recent years, house prices become so high, making the vast majority of urban residents unable to afford, whereas rich fa...
Article
This paper combines the static effect of ownership and the dynamic effect of privatization on bank performance in China over 1995–2010, reporting a significantly higher performance by private intermediaries – joint stock commercial banks and city commercial banks – relative to state-owned commercial banks. However, publicly traded banks, subject to...
Book
The concept of ‘harmonization’ has become very popular in China, with the Chinese government increasingly applying the term ‘harmonious society’ to internal affairs and the term ‘harmonious world’ to international relationships. Harmonization as both an end and a means of China’s development is deeply rooted in China’s cultural tradition, which emp...
Article
As China has rapidly emerged as one of the world’s largest investors abroad, there has been a hectic debate in the literature on whether its emergence as a major foreign investor may have undermined the importance of western industrialised economies, including those in the Organisation for Economic Cooperation and Development (OECD). This paper aim...
Article
A decline in the relative price of imported goods compared to that of domestically produced goods may have different effects on domestic consumption. Such effects may not be accurately detected and measured in a classical permanent-income model without considering consumption habit formation as pointed out by Nishiyama (2005). To resolve this probl...
Article
Air transport increased exponentially in China over the last 30 years, but studies on this issue are few. This paper aims to fill in this literature gap. It identifies the key determinants of air transport in the Chinese regions for the period 1995–2006. The empirical results based on an augmented production function indicate that air transport is...
Article
The 2008 world financial crisis had led many industrialised countries to endure a significant decline in their GDPs. Though the Chinese government arranged a 4 trillion RMB stimulus package coupled with 30 trillion RMB of new bank credits in 2008–2010 to mitigate the impact of the world financial crisis, the growth of China’s international trade de...
Article
Full-text available
China and India are the two largest and fastest growing developing economies. But rapid growth has been accompanied by rising income inequality and social discontent, especially among different religious and ethnic groups. Few comparative studies exist on the issue. The paper shows that poverty and inequality are closely related to issues such as e...
Article
Full-text available
China is now the world's second largest economy, and it is expected to overtake the United States to become the largest by 2020. What are the implications for the global environment and climate change if China surpasses the United States? There are major concerns with China's rapid rise because its economic and industrial structure is increasingly...
Article
Full-text available
This paper studies the market reactions to corporate philanthropic giving in response to the 12 May 2008 Wenchuan earthquake in Sichuan, China. Based on a sample of 136 Chinese listed companies, our results indicate a significant and positive seven-day cumulative abnormal rise in the share prices of those companies making donations compared to thos...
Article
This paper presents a new economic theory to explain the evolution of a financial crisis and why a major crisis may take a long time to recover. It suggests that asymmetric psychological reactions of market players to gains and losses are the principal cause of a crisis and responsible for prolonging recovery. Three different shapes of recovery, V,...
Article
The US credit crunch generated substantial turmoil in the global financial markets and directly caused the collapse of several world banking giants. Nonetheless, Chinese commercial banks, decoupled from the rest of the world, achieved remarkable results because of their risk‐averse nature and banking reform during the past 10 years. To improve corp...
Article
This paper investigates the dynamic and long-run relationships between monetary policy and asset prices in China using monthly data from June 2005 to September 2010. Johansen’s cointegration approach based on vector autoregression (VAR) and Granger causality test are used to identify the long-run relationships and directions of causality between as...
Article
Rapid and sustained economic growth has transformed China from a centrally planned low-income country to a middle-income market economy in just three decades. It is also well known that income inequality has increased substantially. The exact extent and nature of changes in income inequality, however, are still not entirely agreed upon. This paper...
Book
This book is an investigation into China's reform process during the period 1979 to 1987, with especial reference to the effect of the process on the industries (mostly manufacturing) that are still owned by the state. The data on which this book is based results from a large-scale study in which the authors collaborated with the Institute of Econo...
Article
Translation consistency is an important issue in document-level translation. However, the con-sistency in Machine Translation (MT) output is generally overlooked in most MT systems due to the lack of the use of document contexts. To ad-dress this issue, we present a simple and effec-tive approach that incorporates document con-texts into an existin...
Chapter
From September 2008, the failure of large financial institutions in the United States and the EU became visible. It then badly affected real economic activities, resulting in deflation, falls in the prices of shares and commodities, a shrinkage in the level of production and services, the failures of large firms in manufacturing and services, sharp...
Article
A decline in the relative price of imported goods compared to that of domestically produced goods may have different effects on domestic consumption. Such effects may not be accurately detected and measured in a classical permanent-income model without considering consumption habit formation as pointed out by Nishiyama (2005). To resolve this probl...
Article
Full-text available
The scale and frequency of foreign direct investment (FDI) in foreign mining companies by China's large state-owned enterprises (SOEs) is still not well explained by existing investment or international business theories. This paper advances and verifies two important theoretical propositions. First, the efforts of China's big businesses to "go glo...
Article
This paper empirically analyzes the relationship between the Shanghai Stock Exchange (SSE) Composite Index and the indexes of 10 Chinese listed banks. In particular, we try to test whether the listing of these banks has played a role in leading the Chinese stock market boom during 2007. Using daily prices from 1 June 2006 to 15 November 2007, we fo...
Article
Full-text available
Higher education (HE) in China has been transformed from elite to mass education over the last decade due to commercialisation and funding reform. Many questions have been raised regarding the impact of HE expansion on social justice: what are the implications of the distribution of HE resources on regional inequality? How does it influence differe...
Book
After thirty years of economic reform, China has reached a crossroads in its development process, and faces many challenges in the use of natural resources, the living environment, and the economic, social and political systems. The sustainability of China’s reform and development is even more salient in the face of the global financial crisis and...
Chapter
Globalisation has resulted in an increasing demand for contract labour supply, including the supply of seafarers, from China. Since the late 1970s, China has been developing seafarer supply bases in the inland areas. This chapter examines how local government and labour agencies have responded to rising employment opportunities from the internation...
Article
Full-text available
The current financial crisis has hit the banking giants of the world really hard. It is striking to note that some of the large Chinese commercial banks have emerged to be the biggest winners as a result of the crisis, thanks to reforms over the past 10 years. The most significant reform before the crisis was ownership diversification, aiming to im...
Article
Employing the one-step stochastic frontier analysis (SFA) approach, this paper examines bank efficiency in China, paying special attention to the ownership, selection effect and dynamic effects of governance changes on bank performance. Bank efficiency has improved over the data period 1995-2008. The estimated average cost and profit efficiencies a...
Article
"Performance of the Chinese Insurance Industry under Economic Reforms is an excellent account of the development and efficiency of the Chinese insurance sector. The book is a significant read for academic researchers, policymakers, and students of economics, finance, and business, in particular for those interested in the complex insurance sector i...
Chapter
Over the past three decades, China’s economic miracle has featured an open-door policy, most notably in the absorption of foreign capital. One of the downside effects of economic reform, however, has been ever-rising inter-regional inequality. As foreign direct investment (FDI) is distributed unevenly across regions, many scholars and policymakers...
Article
China has accelerated banking reform since joining the Word Trade Organisation (WTO) in 2001. Employing a stochastic distance function approach, this paper examines bank technical efficiency and differentiates the static, selection and dynamic governance effects on bank efficiency for the 11-year period 1995–2005. The results show that bank efficie...
Article
Foreign direct investment (FDI) is blamed for being one of the main factors widening regional inequality in Chinese regions since it is highly unevenly distributed spatially. If this logic were true, then controlling the scale of FDI could be a solution to reduce regional inequality. However, it is difficult to reconcile the positive effect of FDI...
Article
Purpose – The purpose of this paper is to yield more plausible rural poverty lines for China and then assess the determinants of rural poverty using these newly revised rural poverty lines. Design/methodology/approach – In this paper it is argued that the Chinese official poverty line substantially misestimates the actual rural poverty situations....
Article
The Chinese stock markets were extremely volatile during the period 2005-08. The Shanghai Stock Exchange (SSE) Composite Index increased more than sixfold from 1,012 in 2005 to 6,124 by the end of 2007. It then declined continuously to reach a low of 1,929 on 17 September 2008, or a drop of 70 per cent from its peak in less than 10 months. Although...
Article
The current financial crisis hit the banking giants of the world really hard. It is striking to note that some of the large Chinese commercial banks have emerged to be the biggest winners as a result of the crisis thanks to reforms over the last 10 years. The most significant reform before the crisis was ownership diversification, aiming to improve...
Article
China has accelerated and deepened bank reform since it joined the WTO in 2001. Employing a stochastic distance function, this paper investigates the technical efficiency of banks and examines the static, selection and dynamic effects of governance changes on bank efficiency in China for the period 1995-2005. Our results show that bank efficiency h...
Article
Although China's economy has grown very rapidly in recent decades, there are still very large differences between the economy of mainland China and the economies of Hong Kong, Macau and Taiwan. For example, per capita income in Hong Kong is many, many times higher than per capita income in mainland China. This book considers the degree to which eco...
Article
Since China joined the World Trade Organization in 2001, the pressure for bank reforms has mounted as China ought to have fully opened up its financial market to foreign competition by 2006. Efficiency is key for domestic banks to survive in a liberalised environment, but it appears that the last hope for raising bank efficiency is through ownershi...
Article
Full-text available
This article presents two propositions on the role of FDI in economic growth: (1) FDI is a mover of production efficiency and (2) FDI is a shifter of the host country's production frontier. It then employs a production function with a large panel data set from the Chinese regions over 1979-2003 to test the propositions.
Article
Abstract The 17th Chinese Communist Party Congress in October 2007 attracted attention within and outside China for the bold development agenda that was placed before delegates. After 30 years of economic reform that has produced a remarkable improvement in living standards and China's reintegration into the world economy, the Party unveiled a prog...
Article
There are many similarities between the US, the UK and the Chinese housing markets, including the movements of interest rates and house prices. Some Chinese banks, especially the Bank of China, have been exposed to the US mortgage securitization market. These have triggered a serious concern as to whether the US credit crunch and housing market cri...
Article
This paper provides a survey on studies that analyze the macroeconomic effects of intellectual property rights (IPR). The first part of this paper introduces different patent policy instruments and reviews their effects on R&D and economic growth. This part also discusses the distortionary effects and distributional consequences of IPR protection a...
Article
Hong Kong and Macau were reunited with China in the late 1990s as two special administrative regions (SARs). Over the last half century, they were China's good examples of economic development, windows of openness and investors. Owing to historical reasons, China lagged far behind Hong Kong and Macau in terms of per capita incomes. However, rapid e...
Article
Air transport has experienced phenomenal growth in China over the last 30 years, but studies on China’s airport development are few. This paper aims to fill in this literature gap by focusing on the determinants of airport development in the Chinese regions using the most up-to-day and comprehensive data on China’s airports and their related econom...
Article
We in this paper argue that the Chinese official poverty line substantially misestimates theactual rural poverty situations. We recalculate the rural poverty lines following Ravallion (1994) with rural household survey data of China¡¯s two provinces, Hubei and Inner Mongolia. The results indicate that the poverty lines derived from a pan-country le...