How Does People’s Liberation Army Related Business Closure Affect the Local Economy? (With Haozhe Han)
Abstract: People's Liberation Army (PLA) related business was rampant in China in the 1980s and 1990s, and they significantly disrupted the local economy. However, due to limited data about PLAs, this issue is rarely investigated and thus the negative impact is hardly measured. In this paper we introduce a new proxy for measuring the approximate level of PLA related business in a specific city, PLA hospital score, to identify cities that are more affected by PLA related business closure. We then employ a difference-in-differences (DID) framework and show that PLA related business closure does bring positive effects to China's local economy, about a 2% increase in GDP growth per year. We also find that this effect is more significant in cities with median economic size and cities that rely more on secondary and tertiary sectors. We finally provide a possible channel of this effect, which mainly works through providing a more efficient and competitive market to local private firms as well as an investment-friendly environment that attracts foreign investments.
Abstract: How important are mass protest events in driving political change among citizens? In this paper I exploit a globally-known event, the 2019 Anti-Extradition Law Amendment Bill Movement (ANTI-ELAB protest) in Hong Kong, and its impact on the subsequent 2019 Hong Kong District Council Election. Taking advantage of a granular dataset of organized events during the protest, I exploit spatial variation in protest intensity, as measured by the number of events, across Constituency Areas. Empirical results show that in Constituency Areas with higher protest intensity, there was larger increases in voter turnout in the 2019 District Council Election compared to 2015. The effect is primarily driven by local events, suggesting that proximate mobilization and interpersonal interactions play a crucial role in shaping political engagement. To strengthen causal interpretation, I employ a set of public transportation accessibility measures as instrumental variables. Additional analyses reveal that protest intensity also affected people's political stances, leading to a pronounced decline in neutral positions and an overall shift toward the Pro-democracy camp. These findings contribute to the emerging literature on the political consequences of protest and offer new insights into studying within-city-level social unrest.
Bots and Trade at the Ballot Box: The Impact of Automation and Imports on U.S. Elections (With Devashish Mitra and Yang Liang)
Abstract: This paper estimates the impacts of automation and Chinese import penetration on US political outcomes. Utilizing rich county-level geographic variation, we simultaneously study how both shocks affect the Republican vote share in the House, Senate, and Presidential elections from 2000 to 2016. Results suggest that greater exposure to automation consistently boosted Republican vote share, whereas import penetration from China initially benefited the Democratic Party in these elections before swinging to favor the Republican Party during the later years, 2014 and 2016. Our event study analysis shows that these results are not driven by pre-existing trends in voting behaviors.
End of Covid, Start of Death? Cross-border Consumption and the Hong Kong Food Industry (With Haozhe Han and Yichi Zhang)
Abstract: This paper examines the impact of cross-border consumption on Hong Kong's local economy, using administrative data on restaurant registrations from 2021Q3 and 2024Q4. We exploit the sudden lifting of COVID-19 restrictions and the subsequent border reopening between Mainland China and Hong Kong as a natural experiment. Empirical results show that neighborhoods closer to the border experienced significantly more restaurant exits after the border reopening. This adverse impact persists even considering the presence of a surge in Mainland Chinese visitors to Hong Kong. Further analysis suggests that local non-chain restaurants are particularly vulnerable, and the magnitude of the impact varies across regions. Taken together, the results highlight the distributional effects of cross-border consumption: while the overall society benefits from deeper regional integration and more open economic policies, policymakers need to pay attention to specific industries and individuals bearing disproportionate costs.
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Who Survived the US-China Trade War? Evidence from Chinese Exporters (With Yang Liang and Jiajun Lu)
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