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A general equilibrium assessment of COVID-19's labor productivity impacts on china's regional economies

Author

Listed:
  • Xi He

    (Virginia Tech)

  • Edward J. Balistreri

    (The University of Nebraska-Lincoln)

  • Gyu Hyun Kim

    (Korea Energy Economics Institute)

  • Wendong Zhang

    (Iowa State University
    Cornell University)

Abstract

This study introduces a database for analyzing COVID-19’s impacts on China’s regional economies. This database contains various sectoral and regional economic outcomes at the weekly and monthly level. In the context of a general equilibrium trade model, we first formulate a mathematical representation of the Chinese regional economy and calibrate the model with China’s multi-regional input-output table. We then utilize the monthly provincial and sectoral value-added and national trade series to estimate COVID-19’s province-by-month labor-productivity impacts from February 2020 to September 2020. As a year-on-year comparison, relative to February 2019 levels, we find an average 39.5% decrease in labor productivity (equivalent to around 305 million jobs) and an average 25.9% decrease in welfare. Labor productivity and welfare quickly returned to the recent high-growth trends for China in the latter half of 2020. By September 2020, relative to September 2019, average labor productivity increased by 12.2% (equivalent to around 94 million jobs) and average welfare increased by 8.2%.

Suggested Citation

  • Xi He & Edward J. Balistreri & Gyu Hyun Kim & Wendong Zhang, 2022. "A general equilibrium assessment of COVID-19's labor productivity impacts on china's regional economies," Journal of Productivity Analysis, Springer, vol. 58(2), pages 129-150, December.
    • Handle: RePEc:kap:jproda:v:58:y:2022:i:2:d:10.1007_s11123-022-00642-3
    DOI: 10.1007/s11123-022-00642-3
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    Cited by:

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    2. Edward Balistreri & Felix Baquedano & John C. Beghin, 2022. "The impact of COVID‐19 and associated policy responses on global food security," Agricultural Economics, International Association of Agricultural Economists, vol. 53(6), pages 855-869, November.

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    More about this item

    Keywords

    J01; E20; F10; R13;
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • F10 - International Economics - - Trade - - - General
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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