Speaker: Assistant Professor Ye Lei (The Chinese University of Hong Kong)

Host: Assistant Professor Yu Li (Li Anmin Institute of Economic Research, Liaoning University)

Guest Introduction: Associate Professor Tang Rongsheng (Li Anmin Institute of Economic Research, Liaoning University)

Time: November 6, 2026 (Friday) 10:00–11:30 (Beijing Time)

Venue: Meeting Room 483, Economics Building, Puhe Campus, Liaoning University

Language: Chinese/English

Abstract:

This paper develops a multisector growth model incorporating firm heterogeneity, financial frictions, and input–output linkages to examine the coexistence of rapid growth and resource misallocation during China’s gradual reform. It argues that downstream liberalization, combined with continued support for upstream state-owned enterprises, can expand intermediate input supply and promote growth when capital scarcity and financing constraints impede private sector expansion, even as such support induces static misallocation. As capital accumulates, however, the allocative efficiency losses associated with continued support may outweigh its growth benefits, highlighting how the trade-off between static misallocation and dynamic growth evolves across stages of development.

Speaker Profile:

Ye Lei is currently an Assistant Professor in the Department of Decisions, Operations and Technology at the CUHK Business School, The Chinese University of Hong Kong. She received her Bachelor of Economics degree from Shanghai Jiao Tong University, her Master of Philosophy in Economics from The Chinese University of Hong Kong, and her Ph.D. in Economics from Washington University in St. Louis. Her main research areas include macroeconomics, economic growth and development, firm dynamics, and financial economics.