AFA2019会议论文（17）：Finance and Development

AFA2019会议论文（17）：Finance and Development

金融经济学 昨天

Capital Destruction and Economic Growth: The Effects of Sherman's March, 1850–1920

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The Externalities of Corruption: Evidence from Entrepreneurial Activity in China

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Who Benefits from the Decline of American Manufacturing? Evidence from 142,663 Foreign and Domestic Entries in China

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1. Capital Destruction and Economic Growth: The Effects of Sherman's March, 1850–1920

James Feigenbaum, Boston University

James Lee, Cornerstone Research

Filippo Mezzanotti, Northwestern University

Abstract

Using General William Sherman’s 1864–65 military march through Georgia, South Carolina, and North Carolina during the American Civil War, this paper studies the effect of capital destruction on medium and long-run local economic activity, and the role of financial markets in the recovery process. We match an 1865 US War Department map of Sherman’s march to county-level demographic, agricultural, and manufacturing data from the 1850-1920 US Censuses. We show that the capital destruction induced by the March led to a large contraction in agricultural investment, farming asset prices, and manufacturing activity. Elements of the decline in agriculture persisted through 1920. Using information on local banks and access to credit, we argue that the underdevelopment of financial markets played a role in weakening the recovery.

原文链接：

https://www.nber.org/papers/w25392

2. The Externalities of Corruption: Evidence from Entrepreneurial Activity in China

Mariassunta Giannetti, Stockholm School of Economics and CEPR

Guanmin Liao, Central University of Finance and Economics

Jiaxing You, Xiamen University

Xiaoyun Yu, Indiana University

Abstract

Exploiting the Chinese anti-corruption campaign as an exogenous shock to corruption, we show that following a decrease in corruption, the performance of firms in highly corrupt industries improves. Small firms appear to benefit to a larger extent. We identify the channels through which corruption hampers firm performance. Following the anti-corruption campaign, the allocation of capital and labor becomes more efficient in ex ante highly corrupt industries. Firms in these industries experience productivity gains, easier access to debt financing, and higher growth of sales than firms in other industries. Overall, our results suggest that corruption creates negative externalities. 

原文链接：

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2897558

3. Who Benefits from the Decline of American Manufacturing? Evidence from 142,663 Foreign and Domestic Entries in China

Minwen Li, Tsinghua University

Tanakorn Makaew, Securities and Exchange Commission

Vojislav Maksimovic, University of Maryland

Abstract

Using the establishment of U.S.-China Permanent Normal Trade Relation as a plausibly exogenous shock we study the effect of trade liberalization on an emerging market. We find almost half of new exporters in the Chinese Census are foreign owned. The rate of foreign entrants is more responsive to trade liberalization. This differential response is concentrated in financially underdeveloped localities. In these areas, foreign entrants are better capitalized, more liquid, and pay lower taxes. They tend to survive and grow faster than domestic entrants. Our results suggest that in underdeveloped markets, trade globalization may benefit foreign investors rather than domestic firms and entrepreneurs, who are financially constrained. 

原文链接：

https://editorialexpress.com/cgi-bin/conference/download.cgi?db_name=AFA2019&paper_id=1530

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