Professor Xiang Li, PhD

Professor Xiang Li, PhD
Current Position

since 1/19

Head of the Research Group Financial Integration, Economic Growth and Financial Stability

Halle Institute for Economic Research (IWH) – Member of the Leibniz Association

since 10/18

Assistant Professor of Economics

Martin Luther University Halle-Wittenberg

since 10/18

Economist in the Department of Macroeconomics

Halle Institute for Economic Research (IWH) – Member of the Leibniz Association

Research Interests

  • international finance
  • Chinese economy
  • open economy macroeconomics

Xiang Li is Assistant Professor of Economics at Martin Luther University Halle-Wittenberg and a member of the Department of Macroeconomics at IWH since October 2018. Her research focuses on international finance.

Xiang Li received her two bachelor's degrees and her PhD from Peking University.

Your contact

Professor Xiang Li, PhD
Professor Xiang Li, PhD
Mitglied - Department Macroeconomics
Send Message +49 345 7753-805 Personal page

Publications

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From World Factory to World Investor: The New Way of China Integrating into the World

Bijun Wang Xiang Li

in: China Economic Journal, No. 2, 2017

Abstract

This paper argues that outward direct investment (ODI) is replacing international trade as the new way China integrates into the world. Based on two complementary datasets, we document the pattern of Chinese ODI. We argue that the rapid growth of China’s ODI is the result of strong economic development, increasing domestic constraints, and supportive government policies. Compared with trade integration, investment integration involves China more deeply in global business. As a new global investor, China’s ODI in the future is full of opportunities, risks, and challenges. The Chinese government should improve bureaucracy coordination and participate more in designing and maintaining international rules to protect ODI interests.

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Working Papers

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What Does Peer-to-Peer Lending Evidence Say About the Risk-taking Channel of Monetary Policy?

Yiping Huang Xiang Li Chu Wang

in: IWH Discussion Papers, No. 14, 2019

Abstract

This paper uses loan application-level data from a Chinese peer-to-peer lending platform to study the risk-taking channel of monetary policy. By employing a direct ex-ante measure of risk-taking and estimating the simultaneous equations of loan approval and loan amount, we are the first to provide quantitative evidence of the impact of monetary policy on the risk-taking of nonbank financial institution. We find that the search-for-yield is the main workhorse of the risk-taking effect, while we do not observe consistent findings of risk-shifting from the liquidity change. Monetary policy easing is associated with a higher probability of granting loans to risky borrowers and a greater riskiness of credit allocation, but these changes do not necessarily relate to a larger loan amount on average.

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What Does Peer-to-Peer Lending Evidence Say About the Risk-taking Channel of Monetary Policy?

Yiping Huang Xiang Li Chu Wang

in: CESifo Area Conferences 2019 Series: Macro, Money and International Finance, 2019

Abstract

This paper uses loan application-level data from a peer-to-peer lending platform to study the risk-taking channel of monetary policy. By employing a direct ex-ante measure of risk-taking and estimating the simultaneous equations of loan approval and loan amount, we are the first to provide quantitative evidence of the impact of monetary policy on the risk-taking of nonbank financial institution. We find that the search-for-yield is the main workhorse of the risk-taking effect, while we do not observe consistent findings of risk-shifting from the liquidity change. Monetary policy easing is associated with a higher probability of granting loans to risky borrowers and a greater riskiness of credit allocation, but these changes do not necessarily relate to a larger loan amount on average.

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China’s Monetary Policy Communication: Frameworks, Impact, and Recommendations

Michael McMahon Alfred Schipke Xiang Li

in: IMF Working Paper No. 18/244, 2018

Abstract

Financial markets are eager for any signal of monetary policy from the People’s Bank of China (PBC). The importance of effective monetary policy communication will only increase as China continues to liberalize its financial system and open its economy. This paper discusses the country’s unique institutional setup and empirically analyzes the impact on financial markets of the PBC’s main communication channels, including a novel communication channel. The results suggest that there has been significant progress but that PBC communication is still evolving toward the level of other major economies. The paper recommends medium-term policy reforms and reforms that can be adopted quickly.

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