Personal statement

I am currently a PhD Candidate in the Economics Department at the University of Western Ontario. I will join School of Finance, Shanghai University of Finance and Economics as an Assistant Professor this fall.

Work In Progress

1. Intermediate Goods and Misallocation in China's Manufacturing Sector (Job Market Paper)


This paper quantifies the novel role of intermediate goods frictions, i.e. time-to-order and borrowing constraints, in accounting for the documented substantial misallocation in China Industrial Enterprise Survey (CIES) (Hsieh and Klenow, 2009; Brandt, Van Biesebroeck, and Zhang, 2012). With a gross output production function, I incorporate intermediate goods frictions into the firm investment model of Cooper and Haltiwanger (2006). Firms order and prepay for a fraction of intermediate goods one period in advance (time-to-order), and face one borrowing constraint on capital and intermediate goods. Firms also face capital adjustment costs. I measure misallocation by the potential gross output gain as a percentage of actual gross output, if intermediate goods, capital and labor were hypothetically reallocated to equalize marginal products across firms. Over 1998-2007, misallocation in the CIES data averages 140 percent. The model accounts for around 70 percent of this misallocation, when calibrated to key moments in firm-level debt, productivity and market share distribution in the CIES data. Half of the misallocation in the model is attributed to intermediate goods frictions: 34 percent from borrowing constraints, and 16 percent from time-to-order. While borrowing constraints on capital induce small misallocation, capital adjustment costs account for the other half. Larger misallocation with intermediate goods frictions than without arises from its 70 percent gross output revenue share and recurrent need of financing. This tightens the borrowing constraint and interrupts the self-financing mechanism for capital accumulation. The importance of intermediate goods frictions in misallocation could be applicable to other countries with an underdeveloped financial system.

2. Dynamic Reallocation in China Industrial Enterprise Survey Data: 1998-2007

Substantial misallocation of inputs across firms is documented in the China Industrial Enterprise Survey Data (CIES) (e.g. Hsieh and Klenow, 2009). Is this measured misallocation due to distortions in reallocation across existing firms or distortions in entry and exit? To answer this question, I follow Bailey, Hulten and Campbell (1992) and decompose 5-year output-weighted aggregate productivity growth into contributions from reallocation, net entry, and firm-level productivity growth in the CIES. I find that net entry and firm-level productivity growth account for 91 percent and 18 percent of aggregate productivity growth, respectively. Reallocation across existing firms lowers growth by 9 percent. This is surprising, since the literature finds that reallocations account for over 30 percent of the U.S. manufacturing productivity growth (Bailey, Hulten and Campbell, 1992; Foster, Haltiwanger and Krizan, 2003). One potential explanation for this difference is that the CIES includes only privately owned firms with sales above 5 million yuan, while the U.S. census data covers all manufacturing firms. Over 1998-2003, only 57 percent of entrants in the CIES are new firms, while the rest are existing firms whose sales rise above 5 million yuan. The measured 17 percent exit rate from the CIES is also biased upwards, since many exiters are continuing firms whose sales fall below 5 million yuan. To quantify the impact of this measurement bias, I redo the decomposition with several alternative exit rates in the CIES. Varying the exit rate from 8 percent to 5 percent implies a decreasing contribution of reallocation from an upper bound of 20 percent to 2 percent. Given that large firms have a lower exit rate than the 8 percent for all manufacturing firms, I conclude that reallocation in China is more distorted than in the U.S., but less than what the direct decomposition in the CIES suggests.


MA, Economics

University of Waterloo


BA, Economics

Zhejiang University


Fields of Interests


Firm Dynamics

China’s Economy



Sir Arthur Currie Scholarship, 2015

University of Western Ontario

Graduate Teaching Assistant of the Year, 2013

University of Western Ontario

Graduate Student Scholarship, 2011-2015

University of Western Ontario

Graduate Student Scholarship 2010

University of Waterloo

Third Class of People’s Scholarship, 2009

Shanghai University of Finance & Economics

National Scholarship, 2007

Zhejiang University

First Class of Academic Scholarship, 2007

Zhejiang University


  • (+1)519-661-2111 ext. 85207
  • Jim MacGee

    Associate Professor (Advisor)

  • (+1)519-661-2111 ext. 85539
  • Igor Livshits

    Associate Professor

  • (+1)519-661-2111 ext. 85310
  • Simona Cociuba

    Assistant Professor

  • (+1)519-661-2111 ext. 80446
  • David Rivers

    Assistant Professor