This dissertation studies the political economy of international conflicts and development policies. It seeks to understand how to achieve development either within a country or across countries, paying particular attention to the role of the state in promoting (or disrupting) development from a political economy perspective.

In Chapter 1, I study the political economy consequences of de-globalization in the context of the US-China trade war. Exploiting variation in US-specific trade penetration across Chinese regions and the timing of the trade war, I find that the trade war had a larger negative impact on trust in Americans, and a larger positive impact on nationalism, for Chinese citizens living in regions with a higher level of ex ante US trade exposure. I also provide supporting ev...[ Read more ]

This dissertation studies the political economy of international conflicts and development policies. It seeks to understand how to achieve development either within a country or across countries, paying particular attention to the role of the state in promoting (or disrupting) development from a political economy perspective.

In Chapter 1, I study the political economy consequences of de-globalization in the context of the US-China trade war. Exploiting variation in US-specific trade penetration across Chinese regions and the timing of the trade war, I find that the trade war had a larger negative impact on trust in Americans, and a larger positive impact on nationalism, for Chinese citizens living in regions with a higher level of ex ante US trade exposure. I also provide supporting evidence on the impacts of the trade war on the economic status and information search behavior of citizens in differentially affected regions. The empirical findings can be better understood using a model of trade and social identity.

In Chapter 2, I study the political consequences of state expropriation of agricultural land in rural China by using national individual-level panel data for the period 2010-2018. Comparing outcomes before and after expropriation with changes among individuals not experiencing expropriation, I find that having one’s land expropriated decreases individuals’ trust towards local government officials, and increases the incidence of having conflicts with local government officials. I also provide evidence that the adverse political impacts can be mitigated by better local governance, undertaking projects with public benefits, and ex-ante non-agricultural employment.

In Chapter 3 (joint with Xianqiang Zou), we ask whether eminent domain can deliver net benefits to households and how affected citizens politically interact with or view the government. Our context is China’s house seizure and demolition during 2010-2018, a period that provides generous compensation for seized houses. Exploiting variation in the timing of house seizure and demolition across Chinese urban households and analyzing large-scale panel data, we find that having one household’s housing seized or demolished increases households’ housing wealth by 14% and total consumption by 20%, decreases the labor supply of affected household members, and improves their subjective well-being. We find no evidence of house seizure and demolition producing adverse political effects. Instead, housing demolition increases affected citizens’ trust in local officials as well as evaluation of local government performance in less corrupt cities. Our findings highlight the importance of fair compensation and sound governance in implementing eminent domain programs.