Template-Type: ReDIF-Article 1.0 Author-Name: Jeffrey Sachs Author-X-Name-First: Jeffrey Author-X-Name-Last: Sachs Author-Name: Wing Thye Woo Author-X-Name-First: Wing Thye Author-X-Name-Last: Woo Title: China's Economic Growth After WTO Membership Abstract: We assess the prospects of China's future growth performance in two steps. The first step is to project the potential growth path by determining whether past successes were generated by economic experimentation that produced non-capitalist institutional innovations (e.g. incentive contracts to state enterprises, profit-oriented supervision by state industrial bureaux, collectively-owned rural enterprises), or by institutional convergence toward the advanced WTO economies like France, Japan and the United States - two interpretations known respectively as the experimentalist school and the convergence school. Because WTO membership would harmonise China's economic institutions with those of capitalist economies and reduce the scope for experimentation, the experimentalist school would project a lower potential growth path than the convergence school. The fact that China has sought WTO membership voluntarily and with great tenacity is recognition of the correctness of the convergence interpretation. The second step in assessing China's growth prospects is to project the extent and duration that actual growth would deviate from potential growth. We assess the possibility of a WTO-induced macroeconomic shock that would generate such great political turmoil that prolonged economic stagnation would result. This macroeconomic shock could take two forms: a flood of imports that would cause widespread unemployment; and the entry of foreign banks that would bankrupt the domestic banks, and hence shut down the national credit system, crippling production economy-wide. Our main conclusions are that the government has the technical means to avert such this WTO-induced macroeconomic shock, and that the real threat to macroeconomic stability is China's weak fiscal position. Journal: Journal of Chinese Economic and Business Studies Pages: 1-31 Issue: 1 Volume: 1 Year: 2003 Keywords: Fragile Financial System, Fiscal Crisis, Convergence School, Experimentalist School, X-DOI: 10.1080/1476528032000039721 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1476528032000039721 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:1:y:2003:i:1:p:1-31 Template-Type: ReDIF-Article 1.0 Author-Name: Xiao-Ming Li Author-X-Name-First: Xiao-Ming Author-X-Name-Last: Li Title: Time-varying Informational Efficiency in China's A-Share and B-Share Markets Abstract: This paper employs a time-varying framework to examine the informational efficiency of China's A-share and B-share markets, with a focus placed on the following issues: changing weak-form efficiency, the leverage effect, and information transmission in return volatility. We find that the A-share markets perform better than the B-share markets in terms of efficiency-improving; significant leverage effects exist in three of four markets but with different signs; and no weak and strong volatility transmissions characterise different pairs of markets. Market segmentation is also documented, as evidenced by no co-movements in the long-run behaviour of the four Chinese share markets. Journal: Journal of Chinese Economic and Business Studies Pages: 33-56 Issue: 1 Volume: 1 Year: 2003 Keywords: A Shares, B Shares, Weak-form Efficiency, Return Volatility, China, X-DOI: 10.1080/1476528032000039730 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1476528032000039730 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:1:y:2003:i:1:p:33-56 Template-Type: ReDIF-Article 1.0 Author-Name: Eric Girardin Author-X-Name-First: Eric Author-X-Name-Last: Girardin Author-Name: Zhenya Liu Author-X-Name-First: Zhenya Author-X-Name-Last: Liu Title: The Chinese Stock Market: A Casino with 'Buffer Zones'? Abstract: This paper uses Markov-switching techniques to examine the presence of different market conditions on the Shanghai A-share market since the start of active trading in the mid-1990s. The originality of the paper lies in the identification of three contrasting regimes: a speculative market, a bull market and a bear market. Overall, the 'Casino' character of the Chinese stock market is the main feature that is substantiated by the present paper. However, the bull market regime is always a buffer zone between the other two regimes. After early 1997, an investor with a weekly horizon most of the time finds herself in the bear market and makes capital losses. Only during very short periods of 'luck' does she make substantial capital gains, which on average will compensate her for the losses. Journal: Journal of Chinese Economic and Business Studies Pages: 57-70 Issue: 1 Volume: 1 Year: 2003 Keywords: Markov-switching, Chinese Stock Market, X-DOI: 10.1080/1476528032000039749 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1476528032000039749 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:1:y:2003:i:1:p:57-70 Template-Type: ReDIF-Article 1.0 Author-Name: Shujie Yao Author-X-Name-First: Shujie Author-X-Name-Last: Yao Author-Name: Zongyi Zhang Author-X-Name-First: Zongyi Author-X-Name-Last: Zhang Title: Openness and Economic Performance: A Comparative Study of China and the Asian NIEs Abstract: Being the world's largest developing economy, China's successful economic performance since 1978 has had a powerful impact on the global economy. Its open policy features an evolutionary process, involving the gradual liberalization of foreign exchange, international trade and foreign direct investments. This paper evaluates how this evolutionary process has contributed to China's economic success in comparison with the development experiences of the Asian newly industrialized economies (NIEs). It concludes that despite the economic crisis in 1997-98, China and the NIEs represent a successful development model, which is built upon openness and huge investments in physical and human capital. Journal: Journal of Chinese Economic and Business Studies Pages: 71-95 Issue: 1 Volume: 1 Year: 2003 Keywords: Openness, China, Asian Nies, X-DOI: 10.1080/1476528032000039758 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1476528032000039758 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:1:y:2003:i:1:p:71-95 Template-Type: ReDIF-Article 1.0 Author-Name: Jikun Huang Author-X-Name-First: Jikun Author-X-Name-Last: Huang Author-Name: Scott Rozelle Author-X-Name-First: Scott Author-X-Name-Last: Rozelle Author-Name: Yuping Xie Author-X-Name-First: Yuping Author-X-Name-Last: Xie Title: Distortions at the Border; Integration Inland: Assessing the Effect of WTO Accession on China's Agriculture Abstract: The main goal of the paper is to address the impact of the WTO on China's agricultural sector. To accomplish this goal we address two sets of issues. First, we seek to provide measures of the distortions in China's agricultural sector at a time prior to the nation's accession to WTO. This is accomplished by estimating the nominal rates of protection (NPRs) of the agricultural sector's major commodities using a new methodology to account for grain quality differences within China and between China and the world market. Second, we seek to assess how well integrated China's markets are in order to understand which areas of the country and which segments of the farming population will likely be isolated from, or affected by, the changes that WTO will bring. We find that NPRs differ among commodities. Some of China's agricultural commodities are well above and others are well below world market prices. We also find that if increased imports or exports affect China's domestic price at the border, its own domestic markets are mostly integrated so that price shifts in one area will affect prices in most of the rest of China. Our analysis finds, however, that a number of policy and structural factors limit the overall size of the shock. Journal: Journal of Chinese Economic and Business Studies Pages: 97-116 Issue: 1 Volume: 1 Year: 2003 Keywords: Wto Accession, Nominal Rates Of Protection, Integration, Impacts, China, X-DOI: 10.1080/1476528032000039767 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1476528032000039767 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:1:y:2003:i:1:p:97-116 Template-Type: ReDIF-Article 1.0 Author-Name: Ziping Wu Author-X-Name-First: Ziping Author-X-Name-Last: Wu Author-Name: Ken Thomson Author-X-Name-First: Ken Author-X-Name-Last: Thomson Title: Changes in Chinese Competitiveness in Major Food Products: Implications for WTO Membership Abstract: Chinese entry to the WTO in December 2001 marks a new phase in agricultural trade, both nationally and globally. After a context review of Chinese agriculture and WTO-related policy issues, this paper first uses a Balassa index approach to examine China's relative competitiveness in some major food products over the period since 1985, followed by an analysis of price-cost ratios and production cost structures for these products. It is found that China has revealed comparative advantages in meat products but disadvantages in cereals. With limited land resources, its production and trade competitiveness has declined despite rapid substitution of capital for labour, due to a marked rise in relative labour price in agriculture. In the long run, it is expected that WTO membership will boost Chinese agricultural trade, but its impact on competitiveness will probably depend more on production costs, and will differ between crops and animal products. Journal: Journal of Chinese Economic and Business Studies Pages: 117-130 Issue: 1 Volume: 1 Year: 2003 Keywords: Chinese Agriculture, Competitiveness, Wto, Production Costs, X-DOI: 10.1080/1476528032000039776 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1476528032000039776 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:1:y:2003:i:1:p:117-130 Template-Type: ReDIF-Article 1.0 Author-Name: Dai Xianglong Author-X-Name-First: Dai Author-X-Name-Last: Xianglong Title: China Development Forum 2002 Minister's Speech: Developing China's Capital Market and Speeding Up Banking Reform Abstract: In this ministerial speech to the China Development Forum in Beijing, March 2002, I emphasise the importance of the People's Bank of China in implementing sound monetary policy and strengthening financial support for economic development. For these purposes China's capital market needs to be further developed to increase the share of direct financing, and state-owned commercial banks need to be reformed to establish appropriate incentives for loan marketing as well as internal control. Journal: Journal of Chinese Economic and Business Studies Pages: 131-135 Issue: 1 Volume: 1 Year: 2003 Keywords: Monetary Policy Transmission, Capital Market Development, Commercial Bank Reform, China, X-DOI: 10.1080/1476528032000039785 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1476528032000039785 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:1:y:2003:i:1:p:131-135 Template-Type: ReDIF-Article 1.0 Author-Name: C. A. E. Goodhart Author-X-Name-First: C. A. E. Author-X-Name-Last: Goodhart Title: China's Financial Development Abstract: At the China Development Forum in Beijing, March 2002, I was asked to be discussant to Governor Dai Xianlong, but his paper, as in most cases, was not made available beforehand, so my own comments had to be made independently. Following that event, I can now remark on the Forum as well as reproducing my discussant paper. In this latter, I emphasize the importance of developing professional skills, greater competition and the application, through regulation, of appropriate incentives for the continued improvement of China's financial system. Journal: Journal of Chinese Economic and Business Studies Pages: 137-142 Issue: 1 Volume: 1 Year: 2003 Keywords: China's Financial System, Professional Skills, Competition, Regulation, Incentive Application, X-DOI: 10.1080/1476528032000039794 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1476528032000039794 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:1:y:2003:i:1:p:137-142 Template-Type: ReDIF-Article 1.0 Author-Name: Guy Shaojia Liu Author-X-Name-First: Guy Shaojia Author-X-Name-Last: Liu Author-Name: Haiyan Song Author-X-Name-First: Haiyan Author-X-Name-Last: Song Title: A Dual-Price Demand Theory for Economies under Transition Abstract: China adopted a dual-price system shortly after the economic reform started in 1978 to liberalise its price control. This led to the coexistence of both plan and market prices for an identical good in the economy. The conventional demand theory developed based on the pure market economies is not useful in explaining consumers' behaviour in the transitional economies such as China in which both plan and market prices are prevalent. This study develops an alternative demand theory for a dual-price (or dual-track) economy and derives the dual-price Slusky equation that identifies a replacement effect of price liberalisation. This demand theory distinguishes itself from the conventional demand theory and explains the ways in which consumers respond to the price liberalisation during the reform period. The new demand theory shows that the gradual approach to reform is superior to the 'Big Bang' approach in terms of reducing the 'corrected inflation' during the transition period. The new theory also suggests that the price elasticity of demand is higher in the dual-track system than that in a full market economy, implying that the price elasticity diminishes over the process of price liberalisation. This theory is tested using the Chinese aggregate consumption data. Journal: Journal of Chinese Economic and Business Studies Pages: 185-203 Issue: 2 Volume: 1 Year: 2003 Keywords: Dual-Track Demand Theory, Transition Economies, Price Elasticity, X-DOI: 10.1080/1476528032000066703F File-URL: http://www.tandfonline.com/doi/abs/10.1080/1476528032000066703F File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:1:y:2003:i:2:p:185-203 Template-Type: ReDIF-Article 1.0 Author-Name: Paul Crompton Author-X-Name-First: Paul Author-X-Name-Last: Crompton Author-Name: Yanrui Wu Author-X-Name-First: Yanrui Author-X-Name-Last: Wu Title: Bayesian Vector Autoregression Forecasts of Chinese Steel Consumption Abstract: China consumed 116 million tonnes of steel in 2000, making it the largest consumer of steel in the world. China differs fundamentally from other countries at similar levels of economic development in that the secondary sector, the traditional consumer of steel products, already accounts for a significant proportion of domestic production. This suggests that little of any future growth in China's steel consumption will result from further rises in the 'steel intensity' of domestic production. Rather, growth in GDP will be the driving force behind future growth in steel consumption. This paper uses a macroeconomic Bayesian vector autoregression model to forecast steel consumption in China to 2010. This technique uses historical correlations among the variables in a system of equations and Bayesian priors on the estimated parameters, to introduce more flexibility into the forecasting process and align the models closer in nature to structural commodity market models. The forecasts suggest that steel consumption in China will rise from 116 million tonnes in 2000 to around 182 million tonnes in 2010. Journal: Journal of Chinese Economic and Business Studies Pages: 205-219 Issue: 2 Volume: 1 Year: 2003 Keywords: China, Steel Consumption, Bayesian Vector Autoregression, X-DOI: 10.1080/1476528032000066703E File-URL: http://www.tandfonline.com/doi/abs/10.1080/1476528032000066703E File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:1:y:2003:i:2:p:205-219 Template-Type: ReDIF-Article 1.0 Author-Name: Yue Ma Author-X-Name-First: Yue Author-X-Name-Last: Ma Author-Name: Shu Kam Lee Author-X-Name-First: Shu Kam Author-X-Name-Last: Lee Author-Name: Hing Lin Chan Author-X-Name-First: Hing Lin Author-X-Name-Last: Chan Title: Estimating Firm Behavior under Rationing: a Panel Data Study of the Chinese Manufacturing Industry Abstract: The purpose of this paper is to investigate the impacts of rationing on firm behavior. A virtual price approach is adopted to derive the rationed elasticities of variable input demands and output supply under a translog profit function. To illustrate the difference between the rationed and unrationed elasticities, we conduct an analysis using a firm-level annual survey data of China over the period 1985-88. Our estimation results indicate that the values of most elasticities would have been affected significantly if the government had imposed rationing on material inputs. The behavior of Chinese firms would have been seriously distorted in a complicated way. The firms would have over-responded to market signals in making some of their input or output decisions and, at the same time, might have under-reacted, or would have not changed their reaction, in making the other input or output decisions, under a rationing regime. Journal: Journal of Chinese Economic and Business Studies Pages: 221-244 Issue: 2 Volume: 1 Year: 2003 Keywords: Rationing, Virtual Prices, Translog, Panel Data, China, X-DOI: 10.1080/1476528032000066703D File-URL: http://www.tandfonline.com/doi/abs/10.1080/1476528032000066703D File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:1:y:2003:i:2:p:221-244 Template-Type: ReDIF-Article 1.0 Author-Name: Shi Li Author-X-Name-First: Shi Author-X-Name-Last: Li Author-Name: Yaohui Zhao Author-X-Name-First: Yaohui Author-X-Name-Last: Zhao Title: The Decline of In-kind Wage Payments in Urban China Abstract: Chinese collective and state-owned enterprises have tended to over-compensate their employees. Using payments in kind as an example, this paper examines why and how firms engage in such 'irrational' behavior. In-kind payments (payments made in terms of consumer goods) used to be an important aspect of urban life in China - 68% of our sample workers received payments in kind in 1988. The ratio declined to only 10% in 1999. In explaining the prevalence of in-kind payment in the 1980s and the subsequent decline in the 1990s, two hypotheses are proposed. The first is the lack of access to consumer goods by individuals. The second is to evade the control on wage bills imposed by the government. Empirical evidence from an urban household survey is consistent with the second hypothesis. The results imply that the introduction of a hard budget constraint is essential to ensure the rational behavior of public enterprises in setting their wage payments. Journal: Journal of Chinese Economic and Business Studies Pages: 245-258 Issue: 2 Volume: 1 Year: 2003 Keywords: Payment In Kind, Chinese Collective And State-owned Enterprises, Government Control, Budget Constraints, Rational Behavior, X-DOI: 10.1080/1476528032000066703 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1476528032000066703 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:1:y:2003:i:2:p:245-258 Template-Type: ReDIF-Article 1.0 Author-Name: Yuping Du Author-X-Name-First: Yuping Author-X-Name-Last: Du Title: Haier's Survival Strategy to Compete with World Giants Abstract: The aim of this paper is to analyze the internationalization of Chinese companies; in particular, the very successful case - the Haier Group. This paper focuses on using a case study methodology to analyze Haier's survival strategy to compete with world giants. The following issues have been addressed to meet the respective objects: first, the Uppsala stages model and Haier's internationalization process; secondly, analysis and evaluation of Haier's strategic internationalization, using Dawar and Frost's survival strategy theory to compare with Haier's internationalization strategy; and finally, to explore the motives underlying Haier's entry strategy and development. Journal: Journal of Chinese Economic and Business Studies Pages: 259-266 Issue: 2 Volume: 1 Year: 2003 Keywords: Internationalization, Uppsala Stages Model, Exporting, Foreign Direct Investment, Joint Venture, X-DOI: 10.1080/1476528032000066703B File-URL: http://www.tandfonline.com/doi/abs/10.1080/1476528032000066703B File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:1:y:2003:i:2:p:259-266 Template-Type: ReDIF-Article 1.0 Author-Name: Hong Li Author-X-Name-First: Hong Author-X-Name-Last: Li Title: Dynamics of Income Distribution across Chinese Provinces during 1978-98 Abstract: This study attempts to examine the growth pattern of China's economy during 1978-98 from the perspective of income distribution dynamics. Motivated by the model of dynamic distribution, a transition matrix is derived from a panel of ratios of provincial real incomes to national averages across 30 provinces over 1978-98. The transition matrix is used not only to reveal the transitions of provinces between the states of income over time, but also to predict whether there is a tendency across provinces to converge in real income per worker in the long run. This study finds evidence of a slight reduction of income dispersion across Chinese provinces over 1978-98. However, the slight reduction of income dispersion is not strong enough for the provinces to converge to mean income. But there is a strong tendency to converge across provinces within regions and it is evident that, in the eastern region, poor provinces caught up with rich ones over the period under study. The long-run distribution indicates that there will not be a tendency to converge in real GDP per capita across provinces in the long run. Journal: Journal of Chinese Economic and Business Studies Pages: 145-157 Issue: 2 Volume: 1 Year: 2003 Keywords: China, Convergence, Dynamics, Income Distribution, X-DOI: 10.1080/1476528032000066703C File-URL: http://www.tandfonline.com/doi/abs/10.1080/1476528032000066703C File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:1:y:2003:i:2:p:145-157 Template-Type: ReDIF-Article 1.0 Author-Name: Mario Biggeri Author-X-Name-First: Mario Author-X-Name-Last: Biggeri Title: Key Factors of Recent Chinese Provincial Economic Growth Abstract: The aim of this paper is to analyse the factors that affected Chinese provincial economic growth after the reforms of the early 1980s, through a panel analysis (period 1986-2001). The production function approach focuses on human capital, 'space-serving' infrastructure, sectoral allocation of labour and institutional changes. Indices relevant for the analysis are elaborated and provincial capital stocks are estimated. The empirical results indicate the positive role of capital stock, human capital and physical infrastructure and underline that sectoral allocation of labour and institutional changes affected the level of aggregate output. A redistribution policy in favour of the inland provinces needs to be implemented so that human capital and infrastructure can be enhanced, bottlenecks can be overcome and investment can be attracted. Journal: Journal of Chinese Economic and Business Studies Pages: 159-183 Issue: 2 Volume: 1 Year: 2003 Keywords: China, Institutional Changes, Human Capital, Physical Infrastructure, Structural Change, Transition Economics, X-DOI: 10.1080/1476528032000066703A File-URL: http://www.tandfonline.com/doi/abs/10.1080/1476528032000066703A File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:1:y:2003:i:2:p:159-183 Template-Type: ReDIF-Article 1.0 Author-Name: Jr-Tsung Huang Author-X-Name-First: Jr-Tsung Author-X-Name-Last: Huang Author-Name: Chun-Chien Kuo Author-X-Name-First: Chun-Chien Author-X-Name-Last: Kuo Author-Name: An-Pang Kao Author-X-Name-First: An-Pang Author-X-Name-Last: Kao Title: The Inequality of Regional Economic Development in China between 1991 and 2001 Abstract: This paper measures the unequal development of the regional economies in China and investigates the primary factors leading to the inequality. The official data on China's regional GDP and the regional GDP of three industrial sectors from 1991-2001, as reported in the China Statistical Yearbook and A Statistical Survey of China, are adopted to calculate and decompose the Gini coefficient for each year. The primary finding is that the levels of inequality in China's regional economies clearly showed a slight upward trend after 1991. The inequality of the overall GDP is primarily attributed to the between-group effect rather than to the within-group effect. It is also found that the regional inequality of the secondary industry sector's development accounted for half of the overall inequality. Thus, this study suggests that it is crucial for China to formulate and adhere to policies that will help it to develop the economy more equally among all areas and to develop the secondary industry sector among all regions/provinces in order to overcome the important issue of the inequality in regional economic development. Journal: Journal of Chinese Economic and Business Studies Pages: 273-285 Issue: 3 Volume: 1 Year: 2003 Keywords: China, Economic Development, Gini Coefficient Decomposition, Inequality, JEL Classifications: D39, O10, R12, X-DOI: 10.1080/476828032000108553 File-URL: http://www.tandfonline.com/doi/abs/10.1080/476828032000108553 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:1:y:2003:i:3:p:273-285 Template-Type: ReDIF-Article 1.0 Author-Name: Laurence Copeland Author-X-Name-First: Laurence Author-X-Name-Last: Copeland Author-Name: Biqiong Zhang Author-X-Name-First: Biqiong Author-X-Name-Last: Zhang Title: Volatility and Volume in Chinese Stock Markets Abstract: The fact that stock market returns in Europe and the USA are characterised by conditional heteroscedasticity is by now well documented in a large literature. We address the question of whether the same is true of the four Chinese stock markets (Shanghai and Shenzhen A and B) over the period from 25 November 1994 to 27 April 2001. Using daily index data, we make two departures from the standard GARCH(1,1) model. First, we use exponential GARCH (EGARCH) to allow for asymmetry in the volatility, which may be present as a result of leverage effects. Second, we respond to evidence of two-way causality between volume and return (and return volatility) by introducing a simultaneous equation model of the relationship. The results of estimating the model indicate that asymmetry does not seem to be present to a significant degree, possibly as a result of lack of information or concern among Chinese investors. We find that volume appears to play a significant part in determining index volatility, which may reflect information arrival effects or may alternatively result from the direct impact of trading on volatility. At the same time, we also find that both the level of returns and their conditional variance have an impact on trade volume, probably because positive (negative) returns tend to attract (deter) investors into the markets. Journal: Journal of Chinese Economic and Business Studies Pages: 287-300 Issue: 3 Volume: 1 Year: 2003 Keywords: JEL Classifications: C3, G1, X-DOI: 10.1080/1476528032000108562 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1476528032000108562 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:1:y:2003:i:3:p:287-300 Template-Type: ReDIF-Article 1.0 Author-Name: Linxiu Zhang Author-X-Name-First: Linxiu Author-X-Name-Last: Zhang Author-Name: Jikun Huang Author-X-Name-First: Jikun Author-X-Name-Last: Huang Author-Name: Scott Rozelle Author-X-Name-First: Scott Author-X-Name-Last: Rozelle Title: China's War on Poverty: Assessing Targeting and the Growth Impacts of Poverty Programs Abstract: In this paper, we attempt to assess the effectiveness of China's Poverty Alleviation Programs in contributing to economic growth in poor areas. To meet this overall goal, we briefly describe China's poor area policy and examine how its leaders have implemented one of the developing world's largest poverty alleviation programs. Second, we examine whether or not the poverty programs have been implemented in the parts of China that are truly poor. Finally, we attempt to assess if the poverty programs have affected growth. The major findings are that China's poverty programs do get implemented in areas of the nation that are poor, but there are many poor areas that have been left out of the government's various programs. We also find that poverty programs contribute to economic growth and that economic growth promotes poverty reduction. Journal: Journal of Chinese Economic and Business Studies Pages: 301-317 Issue: 3 Volume: 1 Year: 2003 Keywords: China, Poverty Alleviation, Economic Growth, Targeting, Program Evaluation, X-DOI: 10.1080/1476528032000108571 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1476528032000108571 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:1:y:2003:i:3:p:301-317 Template-Type: ReDIF-Article 1.0 Author-Name: Steven Si Author-X-Name-First: Steven Author-X-Name-Last: Si Author-Name: M. Ruhul Amin Author-X-Name-First: M. Ruhul Author-X-Name-Last: Amin Author-Name: John Cullen Author-X-Name-First: John Author-X-Name-Last: Cullen Title: Cultural Influence, Questionnaire Formation and Manager Response in Sino-American International Joint Ventures Abstract: This paper explores the differences in tendencies toward using middle-of-the scale responses between Chinese and American managers in Sino-American International Joint Ventures when questionnaire instruments were administered with an explicit midpoint. Results demonstrate that Chinese and American managers had different propensities to choose middle response alternatives when an explicit midpoint in questionnaire items was offered. Journal: Journal of Chinese Economic and Business Studies Pages: 319-325 Issue: 3 Volume: 1 Year: 2003 Keywords: Midpoint Response, International Joint Venture, The Chinese Business Environment, X-DOI: 10.1080/1476528032000108580 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1476528032000108580 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:1:y:2003:i:3:p:319-325 Template-Type: ReDIF-Article 1.0 Author-Name: Peter Buckley Author-X-Name-First: Peter Author-X-Name-Last: Buckley Title: The Role of China in the Global Strategy of Multinational Enterprises Abstract: This paper moves from the general to the particular. First, it examines the differential speed of globalization in different types of market - specifically markets in finance, goods and services, and finally labour markets. It then analyses the location and ownership strategies of multinational enterprises (MNEs), both as regards individual national markets and then in terms of the interaction between national markets (the 'local/global' spectrum). This analytical framework is applied to the place of China in the global strategy of MNEs. This application illuminates the role of DFI (direct foreign investment) in China and illustrates the peculiarities of China's place in the global system. The distortions in China's domestic system interact with the global strategies of MNEs to produce several interesting results, including: (1) the importance of MNEs' ownership strategy; (2) non-optimal location decisions; (3) the 'excessive internalization' of activities in China; and (4) the growing importance of China as a location for DFI and, in future, the potential for growth of outward DFI from China. Journal: Journal of Chinese Economic and Business Studies Pages: 1-25 Issue: 1 Volume: 2 Year: 2004 Keywords: China, multinational enterprises, globalisation, direct foreign investment, X-DOI: 10.1080/14765280310001631354 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280310001631354 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:2:y:2004:i:1:p:1-25 Template-Type: ReDIF-Article 1.0 Author-Name: Zhongmin Wu Author-X-Name-First: Zhongmin Author-X-Name-Last: Wu Author-Name: Yu Zhu Author-X-Name-First: Yu Author-X-Name-Last: Zhu Title: Income Differential and Out-migration: the Impacts of Between-gap and Within-gap Abstract: In this paper, we use pooled cross-sectional data on 28 provinces to study out-migration in China. In particular, we estimate inter- and intra-province rural-to-urban migration in a simultaneous-equations model. Allowing for the joint determination of inter- and intra-migration, we find the effect of the within province rural-urban income gap on intra-province migration to be almost three times as strong as that of the between province urban wage gap on inter-province migration. Journal: Journal of Chinese Economic and Business Studies Pages: 27-37 Issue: 1 Volume: 2 Year: 2004 Keywords: Out-migration, income differential, China, JEL classifications: R23, I61, X-DOI: 10.1080/14765280310001631363 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280310001631363 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:2:y:2004:i:1:p:27-37 Template-Type: ReDIF-Article 1.0 Author-Name: Zheng Wang Author-X-Name-First: Zheng Author-X-Name-Last: Wang Title: Regional Divergence of per capita GDP in China: 1991-99 Abstract: Using China's regional data from 1991 to 1999, this paper investigates inter-regional income inequalities. GMM estimation has been used to explore a dynamic panel data model based on the Solow growth model. We find that regions conditionally converge to their own steady states at an annual rate of 8%, indicating around 8 years for a region to halve the deviation from its balanced growth path. However, the panel data exploration of convergence could not explain the catching up phenomenon. To see whether poorer regions can grow faster than richer ones, sigma and absolute beta divergence have been employed. We find that when the regional income gap enlarges during the 1990s, the initially poor regions do not catch up with the initially rich regions. Journal: Journal of Chinese Economic and Business Studies Pages: 39-53 Issue: 1 Volume: 2 Year: 2004 Keywords: Growth, convergence, divergence, income inequality, X-DOI: 10.1080/14760280310001631372 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14760280310001631372 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:2:y:2004:i:1:p:39-53 Template-Type: ReDIF-Article 1.0 Author-Name: Ping Zheng Author-X-Name-First: Ping Author-X-Name-Last: Zheng Author-Name: Pamela Siler Author-X-Name-First: Pamela Author-X-Name-Last: Siler Author-Name: Gianluigi Giorgioni Author-X-Name-First: Gianluigi Author-X-Name-Last: Giorgioni Title: FDI and the Export Performance of Chinese Indigenous Firms: a Regional Approach Abstract: The primary purpose of this paper is to examine the impact of Foreign Direct Investment (FDI) on the export performance of Chinese indigenous firms. A panel data analysis is employed using data across 29 provinces over the 1985-99 period. Owing to the exceptionally uneven distribution of FDI, the analysis compares the impact of FDI on all provincial exports and exports of indigenous firms over the three macro-regions of China. While the findings of the empirical analysis should be viewed with caution, they do show that FDI has less influence on the export performance of indigenous firms than on all firms (foreign and indigenous). The findings imply that linkages between the foreign and domestic sectors need to be improved if FDI is to be a vehicle for improving the competitiveness of domestic firms. Alternatively, policies may have to be directed towards the indigenous firms themselves to enhance their export performance. Journal: Journal of Chinese Economic and Business Studies Pages: 55-71 Issue: 1 Volume: 2 Year: 2004 Keywords: Foreign direct investment (FDI), China, export performance, indigenous firms, international competitiveness, panel data, JEL classifications: C23, F14, F23, O53, P33, X-DOI: 10.1080/14765280310001631381 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280310001631381 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:2:y:2004:i:1:p:55-71 Template-Type: ReDIF-Article 1.0 Author-Name: John Wong Author-X-Name-First: John Author-X-Name-Last: Wong Author-Name: Wong Chee Kong Author-X-Name-First: Wong Chee Author-X-Name-Last: Kong Title: China's Software Industry: Moving on the Fast Track Abstract: China is poised to establish itself not only as a global manufacturing centre, but also aims to become a world centre for the information technology (IT) products within the next decade. This paper looks at China's software industry in particular, which has traditionally been neglected, and still accounts for only a minuscule share of the world software market. With empirical evidence, the paper shows that while China still faces major obstacles to the growth of its software industry, such as rampant piracy, shortage of professionals and strong external competition, it has been moving fast to bolster the industry in the post-WTO era. China has also a long way to go before catching up with its neighbouring IT giant, India. The paper concludes that China should capitalize on its own strengths, generated by a strong domestic demand, increasing pool of software professionals, including returnees from abroad, and capability to develop Chinese language-based software platform. Journal: Journal of Chinese Economic and Business Studies Pages: 73-95 Issue: 1 Volume: 2 Year: 2004 Keywords: China, software, hardware, information technology (IT), software parks, software piracy, Microsoft, Linux, India, X-DOI: 10.1080/14765280310001631390 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280310001631390 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:2:y:2004:i:1:p:73-95 Template-Type: ReDIF-Article 1.0 Author-Name: Peter Nolan Author-X-Name-First: Peter Author-X-Name-Last: Nolan Author-Name: Huaichuan Rui Author-X-Name-First: Huaichuan Author-X-Name-Last: Rui Title: Industrial Policy and Global Big Business Revolution: the Case of the Chinese Coal Industry1 Abstract: China has actively implemented an industrial policy during the last two decades. However, despite important progress, the overall result is rather disappointing. Should China continue to pursue industrial policy? Should China focus instead on developing successful globally competitive firms within the global value chain? This paper, based on an in-depth case study on the Shenhua Group, which has been deliberately built as an indigenous globally competitive coal corporation, argues that it is still possible for China to build powerful big businesses in some sectors. However, a well-designed industrial policy is necessary. Journal: Journal of Chinese Economic and Business Studies Pages: 97-113 Issue: 2 Volume: 2 Year: 2004 Keywords: Industrial policy, big business revolution, coal industry, China, X-DOI: 10.1080/14765280410001684779 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280410001684779 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:2:y:2004:i:2:p:97-113 Template-Type: ReDIF-Article 1.0 Author-Name: Xiao-Ming Li Author-X-Name-First: Xiao-Ming Author-X-Name-Last: Li Title: The Long-run and Short-run Multipliers of Fiscal Policy in the Chinese Economy Abstract: To examine the long-run and short-run multipliers of fiscal policy in China, simple models with some basic characteristics of the Chinese economy are developed and then estimated using cointegration and error correction approaches. Empirical results confirm some similarities between the Chinese economy and well-developed market economies, but also uncover the unique features that China possesses, in terms of the multipliers of permanent and temporary changes in government spending, Okun's coefficient, and the short-run adjustment mechanism. Journal: Journal of Chinese Economic and Business Studies Pages: 115-131 Issue: 2 Volume: 2 Year: 2004 Keywords: Multiplier, fiscal policy, China, X-DOI: 10.1080/14765280410001684788 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280410001684788 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:2:y:2004:i:2:p:115-131 Template-Type: ReDIF-Article 1.0 Author-Name: Cecile Batisse Author-X-Name-First: Cecile Author-X-Name-Last: Batisse Author-Name: Sandra Poncet Author-X-Name-First: Sandra Author-X-Name-Last: Poncet Title: Protectionism and Industry Location in Chinese Provinces Abstract: This paper investigates the determinants of activities' location in Chinese provinces based on a unique panel data set, paying particular attention to the role of local protectionism. We estimate a model of production location across Chinese provinces that combines factor endowments and geographical consideration. Results emphasize that the dynamics of comparative advantages and the forces of the new geographic economy are at work in Chinese provinces. Estimations, however, lend strong support to the role of local protectionism. The location of economic activities in Chinese provinces does thus not exclusively follow the logic of the market. Journal: Journal of Chinese Economic and Business Studies Pages: 133-154 Issue: 2 Volume: 2 Year: 2004 Keywords: China, protectionism, international trade, location of activities, externalities, X-DOI: 10.1080/14765280410001684797 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280410001684797 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:2:y:2004:i:2:p:133-154 Template-Type: ReDIF-Article 1.0 Author-Name: Xuemei Bai Author-X-Name-First: Xuemei Author-X-Name-Last: Bai Author-Name: Gang Li Author-X-Name-First: Gang Author-X-Name-Last: Li Title: Industrial Productivity Convergence in China Abstract: This paper examines the convergence process of industrial productivity between Chinese regions. Both σ- and β-convergences are investigated using a panel data set of 30 provinces and autonomous regions over the period 1985-1999. Unconditional σ- and β-convergence methods fail to detect productivity convergence over the whole sample period, although they suggest convergence during a sub-period 1985-1990. The estimates of a human capital enhanced production function, with the constant return to scale constraint, show that productivity gaps between Chinese regions declined during 1985-1999 with a rate of convergence of around 1.3% per annum. Similar results are also found when the data are disaggregated into three broader geographic regions. Journal: Journal of Chinese Economic and Business Studies Pages: 155-168 Issue: 2 Volume: 2 Year: 2004 Keywords: Convergence, productivity, China, industry, X-DOI: 10.1080/14765280410001684805 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280410001684805 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:2:y:2004:i:2:p:155-168 Template-Type: ReDIF-Article 1.0 Author-Name: Qingjie Xia Author-X-Name-First: Qingjie Author-X-Name-Last: Xia Author-Name: Colin Simmons Author-X-Name-First: Colin Author-X-Name-Last: Simmons Title: The Determinants of Labour-time Allocation between Farm and Off-farm Work in Rural China: the Case of Liaoning Province Abstract: This article examines the determinants of the allocation process of labour time between farm and off-farm activities (OFAs) in north-east rural China during the late 1990s. The question is addressed by means of a dedicated fieldwork survey of 450 rural households in a clustering of nine villages in Xinmin County located in Liaoning Province. The econometric methodology consists of deploying a multinomial logit model to track the distribution of OFA employment opportunities. Our results reveal that market forces, rather than overt political connections, are assuming increasing significance, especially for those operating own-account enterprises (OAEs); that birthplace and location remain potent determinants of work destination and earnings capacity; and that being male and single motivates rural inhabitants to seek OFAs to a much greater extent than other household members. These findings have implications for those responsible for framing policy. In particular, a further round of liberalization to favour OFAs is suggested. Journal: Journal of Chinese Economic and Business Studies Pages: 169-184 Issue: 2 Volume: 2 Year: 2004 Keywords: China, employment diversification, off-farm activities, own-account enterprises, X-DOI: 10.1080/14765280410001684814 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280410001684814 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:2:y:2004:i:2:p:169-184 Template-Type: ReDIF-Article 1.0 Author-Name: Simon Appleton Author-X-Name-First: Simon Author-X-Name-Last: Appleton Author-Name: John Knight Author-X-Name-First: John Author-X-Name-Last: Knight Author-Name: Lina Song Author-X-Name-First: Lina Author-X-Name-Last: Song Author-Name: Qingjie Xia Author-X-Name-First: Qingjie Author-X-Name-Last: Xia Title: Contrasting paradigms: segmentation and competitiveness in the formation of the chinese labour market Abstract: An urban labour market is in the process of being formed in China. The objective of this paper is to analyse the stage that it has reached. A 1999 household survey is used to investigate whether the labour market has three tiers comprised of recently retrenched and re-employed urban workers, non-retrenched urban workers, and rural-urban migrants. It tests whether wage levels and structures differ across these categories of worker. Panel data are used to model the evolution of the wage structure and, specifically, the impact of retrenchment and re-employment. The results indicate that non-retrenched urban workers enjoy a wage premium, although migrants receive similar returns to education. Re-employed workers receive no return to education and appear to have lost out on the wage rises enjoyed by the non-retrenched. There is evidence to suggest that the urban labour market is segmented into these categories, which differ in their openness to market competition. The urban labour market has a long way to go before it is fully competitive. Journal: Journal of Chinese Economic and Business Studies Pages: 185-205 Issue: 3 Volume: 2 Year: 2004 Keywords: Chinese labour market, retrenchment, unemployment, re-employment, wages, migration, JEL classifications: J31, J42, O15, P23, X-DOI: 10.1080/1476528042000276141 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1476528042000276141 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:2:y:2004:i:3:p:185-205 Template-Type: ReDIF-Article 1.0 Author-Name: Xiaobo Zhang Author-X-Name-First: Xiaobo Author-X-Name-Last: Zhang Author-Name: Timothy Mount Author-X-Name-First: Timothy Author-X-Name-Last: Mount Author-Name: Richard Boisvert Author-X-Name-First: Richard Author-X-Name-Last: Boisvert Title: Industrialization, urbanization and land use in China Abstract: Rapid industrial development and urbanization transfer more and more land away from agricultural production and affect the patterns of land use intensity. This paper analyzes the determinants of land use by modeling arable land and sown area separately. An inverse U-shaped relationship between land use intensity and industrialization is explored both theoretically and empirically. The findings highlight the conflict between the two policy goals of industrialization and grain self-sufficiency in the end. Several policy recommendations are offered to reconcile the conflict. Journal: Journal of Chinese Economic and Business Studies Pages: 207-224 Issue: 3 Volume: 2 Year: 2004 Keywords: Industrialization, urbanization, land use and China, JEL classifications: O13, Q15, R14, X-DOI: 10.1080/1476528042000276132 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1476528042000276132 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:2:y:2004:i:3:p:207-224 Template-Type: ReDIF-Article 1.0 Author-Name: Huayu Sun Author-X-Name-First: Huayu Author-X-Name-Last: Sun Author-Name: Yue Ma Author-X-Name-First: Yue Author-X-Name-Last: Ma Title: Money and price relationship in China Abstract: This paper investigates the effectiveness monetary policy by Granger causality tests in the two regimes of inflation and deflation, respectively. The surplus lag rolling estimation is applied to deal with the problem of the frequent structural changes in the Chinese monetary system. We found that the monetary policies have become less effective in stabilizing the price level in the deflation era that started from 1998. There is also empirical evidence to suggest that money was endogenous in China during the inflation period. This implies that the People's Bank of China had difficulty exercising the power of money supply to reduce inflation if the endogeneity was the result of the market behaviour. However, if the endogeneity was due to the government inflation-targeting rule, then there is no evidence to suggest that this rule has been effective for M0, M1 and M2 instruments, except for the M0 instrument during the inflation period of April 1990 to March 1995. Although it was found that money ceased to be endogenous in the deflation periods, it does not support the proposal of utilizing the money supply as a policy instrument, as we found that money is impotent in influencing price in the deflation regime. Our findings provide some empirical evidence to support the Chinese government adopting alternative policy instruments such as an active fiscal policy in the era of deflation. Journal: Journal of Chinese Economic and Business Studies Pages: 225-247 Issue: 3 Volume: 2 Year: 2004 Keywords: Money, price, Granger causality, China, JEL classifications: E52, E31, C32, X-DOI: 10.1080/1476528042000276123 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1476528042000276123 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:2:y:2004:i:3:p:225-247 Template-Type: ReDIF-Article 1.0 Author-Name: Christer Ljungwall Author-X-Name-First: Christer Author-X-Name-Last: Ljungwall Title: Guangdong: A catalyst for economic growth and exports in hunan province Abstract: This paper uses the concept of Granger-causality to analyze the link between export expansion in the rapidly growing Guangdong province and GDP growth and exports in Hunan, its adjacent northwest neighbor province. Data cover the 1978 to 2001 period. A long-run equilibrium relationship is found between the variables and a long-run positive causality is detected from export expansion in Guangdong to both GDP growth and exports in Hunan. Hence, the results seem to support the unbalanced regional development policy implemented by the central government in the late 1970s and early 1980s. Journal: Journal of Chinese Economic and Business Studies Pages: 249-265 Issue: 3 Volume: 2 Year: 2004 Keywords: Spillover effects, backward linkages, error-correction, China, JEL classifications: C22, F14, F15, O10, O53, X-DOI: 10.1080/147658042000276114 File-URL: http://www.tandfonline.com/doi/abs/10.1080/147658042000276114 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:2:y:2004:i:3:p:249-265 Template-Type: ReDIF-Article 1.0 Author-Name: Stephen Green Author-X-Name-First: Stephen Author-X-Name-Last: Green Author-Name: Jenna Ho Author-X-Name-First: Jenna Author-X-Name-Last: Ho Title: Old stocks, new owners: Two cases of ownership change in China's stock market Abstract: During the 1990s, ownership of China's listed firms remained stable: state entities remained in control of restructured state-owned enterprises since only a minority of shares were allowed to trade publicly and to be owned privately. However, since 1999, the ownership of China's listed firms has become more fluid due to the development of an off-exchange market in 'legal person' shares. This paper examines two such cases of ownership change. The case of Taitai's take-over of Lizhu shows that transfer of control is now occurring on a commercial basis. However, the Baiwen case shows that buy-outs are still being organized by government entities to support failing state firms. The deals suggest that while the government is using all means to restructure listed firms, rather than de-list them, it is also moving to create a competitive market in control. Journal: Journal of Chinese Economic and Business Studies Pages: 267-280 Issue: 3 Volume: 2 Year: 2004 Keywords: China, economic development, stock market, acquisition, restructuring, state-owned enterprises, privatization, JEL classifications: G18, H71, K22, L33, P31, X-DOI: 10.1080/1476528042000276105 File-URL: http://www.tandfonline.com/doi/abs/10.1080/1476528042000276105 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:2:y:2004:i:3:p:267-280 Template-Type: ReDIF-Article 1.0 Author-Name: Peter Hugh Nolan Author-X-Name-First: Peter Hugh Author-X-Name-Last: Nolan Title: China at the crossroads Abstract: Since the late 1970s, China has enjoyed one of the most remarkable periods of economic growth ever seen. However, the country faces deep economic, ecological, political and social challenges. It is at the crossroads. In order to attempt to resolve the challenges, which path will China take? Will it turn towards 'primitive capital accumulation', 'free market democracy', 'backwards to Maoism' or 'use the past to serve the present'? This paper argues that the only path towards sustainable development is to look to the country's long history as a guide to building a socially just, stable, cohesive and prosperous society. If, by the 'Third Way', we mean a creative symbiotic interrelationship between state and market, then we can say that China practised its own 'Third Way' for two thousand years. This was the foundation of its hugely impressive long-run economic and social development. By taking the 'choice of no choice' for its own system survival, China's can contribute to global survival and sustainable development, by offering a beacon as an alternative to the US-dominated drive towards global free market fundamentalism. Journal: Journal of Chinese Economic and Business Studies Pages: 1-22 Issue: 1 Volume: 3 Year: 2005 Keywords: China, economic growth, primitive capital accumulation, free market demo-cracy, Maoism, X-DOI: 10.1080/14765280500040327 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280500040327 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:3:y:2005:i:1:p:1-22 Template-Type: ReDIF-Article 1.0 Author-Name: V. N. Balasubramanyam Author-X-Name-First: V. N. Author-X-Name-Last: Balasubramanyam Author-Name: Yingqi Wei Author-X-Name-First: Yingqi Author-X-Name-Last: Wei Title: Textiles and clothing exports from india and china: a comparative analysis Abstract: This paper compares the export performance of the textiles and clothing industries in India and China using the revealed comparative advantage and the Kreinin-Finger similarity indices. The results indicate that China has much higher shares in world exports of both textiles and clothing, while India has a comparative advantage in women's clothing of various sorts and men's shirts. With the abolition of the MFA, China is likely to gain at the expense of India in most items of exports of clothing, even in categories where India has a higher market share than China. India would have to improve her competitive strengths in export markets vis-a-vis China, especially so in high value design oriented products in the EU and the US markets. Journal: Journal of Chinese Economic and Business Studies Pages: 23-37 Issue: 1 Volume: 3 Year: 2005 Keywords: China, textiles and clothing, comparative advantage, Kreinin-Finger similarity index, X-DOI: 10.1080/14765280500040427 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280500040427 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:3:y:2005:i:1:p:23-37 Template-Type: ReDIF-Article 1.0 Author-Name: Ping Wang Author-X-Name-First: Ping Author-X-Name-Last: Wang Author-Name: Peijie Wang Author-X-Name-First: Peijie Author-X-Name-Last: Wang Author-Name: Aying Liu Author-X-Name-First: Aying Author-X-Name-Last: Liu Title: Stock return volatility and trading volume: evidence from the chinese stock market Abstract: This study investigates the dynamic relationship between stock return volatility and trading volume for individual stocks listed on the Chinese stock market as well as market portfolios of these stocks. We found that the inclusion of trading volume, which is used as a proxy of information arrival, in the GARCH specification reduces the persistence of the conditional variance dramatically, and the volume effect is positive and statistically significant in all the cases for individual stocks. Consistent with our analysis of the institutional and ownership structure of listed Chinese companies, trading volume is found to play a role of proxies of information arrivals for the two B share portfolios, but not for the two A share portfolios. Our conclusion is that the information-based effect helps in explaining the GARCH effect to a large extent. Nevertheless, GARCH does not completely vanish as a result of this inclusion. Journal: Journal of Chinese Economic and Business Studies Pages: 39-54 Issue: 1 Volume: 3 Year: 2005 Keywords: Trading volume, stock market return volatility, GARCH models, China, X-DOI: 10.1080/14765280500040518 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280500040518 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:3:y:2005:i:1:p:39-54 Template-Type: ReDIF-Article 1.0 Author-Name: Shujie Yao Author-X-Name-First: Shujie Author-X-Name-Last: Yao Author-Name: Genfu Feng Author-X-Name-First: Genfu Author-X-Name-Last: Feng Author-Name: Aying Liu Author-X-Name-First: Aying Author-X-Name-Last: Liu Author-Name: Guohua Fu Author-X-Name-First: Guohua Author-X-Name-Last: Fu Title: On China's rural and agricultural development after WTO accession Abstract: Most people expect that China's accession to the WTO would have a significant and negative effect on agricultural production and rural development. After joining the WTO, China has an obligation not to subsidize agriculture, but without government support the future of agricultural production and rural development is highly pessimistic. This paper presents a comprehensive analysis of this important issue, drawing lessons of successes and failures in the last half a century of economic development. It concludes that without a fundamental shift in industry policy and regional development strategy, China's rural and agricultural problems cannot be easily resolved. Journal: Journal of Chinese Economic and Business Studies Pages: 55-74 Issue: 1 Volume: 3 Year: 2005 Keywords: Agriculture, rural development and China, X-DOI: 10.1080/14765280500040583 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280500040583 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:3:y:2005:i:1:p:55-74 Template-Type: ReDIF-Article 1.0 Author-Name: J. D. Mullen Author-X-Name-First: J. D. Author-X-Name-Last: Mullen Title: Domestic grain market reform in china: the contribution of economic policy research funded by ACIAR Abstract: This paper reports an assessment of the impact of economics research into domestic grain marketing policy in China, which was partly supported by the Australian Centre for International Agricultural Research. A financial analysis was conducted to value the contribution of these projects in bringing forward the adoption of more liberalized grain marketing policy. An estimate had to be made of the potential welfare gains from market reform in China because grain marketing policy in China in recent decades has been characterized by periods of reform alternating with periods of retrenchment in the face of uncertainty about how best to ensure food security. Any attempt to attribute some share of these potential gains to a particular research project is highly subjective when there are multiple sources of policy advice. The potential benefit cost ratio from the Australian investment may be in the order of 5 to 10:1. Journal: Journal of Chinese Economic and Business Studies Pages: 75-94 Issue: 1 Volume: 3 Year: 2005 Keywords: China, grain marketing policy, benefit cost analysis, X-DOI: 10.1080/14765280500040815 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280500040815 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:3:y:2005:i:1:p:75-94 Template-Type: ReDIF-Article 1.0 Author-Name: Jonathan Story Author-X-Name-First: Jonathan Author-X-Name-Last: Story Title: China: Workshop of the world? Abstract: Because China's transformation process is complex and remains open-ended, there are many partial answers provided to the many questions asked by foreign observers and Chinese people alike about where China is heading. The argument here is that it is wrong to assert China's coming collapse, just as it is not correct to assert that the dynamics so visibly at work in China will lead to China becoming the world's workshop. It is closer to the truth to maintain that the dynamics at work in China can lead in any direction, and that the necessary, let alone the sufficient conditions for them leading to a desirable outcome are daunting, but not impossible to achieve. This article suggests both necessary and sufficient conditions for China to emerge as the world's workshop, and then looks forward to assess whether we may expect regime change or political development. Journal: Journal of Chinese Economic and Business Studies Pages: 95-109 Issue: 2 Volume: 3 Year: 2005 Keywords: Transition, globalization, political development, marketization, Jel Classifications: B52, F0, F23, P20, X-DOI: 10.1080/14765280500119973 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280500119973 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:3:y:2005:i:2:p:95-109 Template-Type: ReDIF-Article 1.0 Author-Name: Peter Buckley Author-X-Name-First: Peter Author-X-Name-Last: Buckley Author-Name: Chen Meng Author-X-Name-First: Chen Author-X-Name-Last: Meng Title: The Strategy of foreign-invested manufacturing enterprises in China: Export-orientated and market-orientated FDI revisited Abstract: This paper examines export-orientated and market-orientated foreign direct investment (FDI) in China's manufacturing industry. Based on Fung's (1995) survey estimation of China's market-orientated FDI in 1992 and China's Third National Industrial Census in 1995, we quantify the proportion of market-orientated FDI in China 1992-2002. By combining and verifying various data sources, our estimation shows that market-orientated FDI accounts for the majority of China's total inward FDI in manufacturing industry and has grown faster than export-orientated FDI over the period 1992-2002. Our industry level analysis suggests that Overseas Chinese investors are more export-orientated than Western investors. The study suggests that many inward investors follow a dual market strategy. The coexistence of export-orientated and Chinese domestic market-orientated FDI is a reflection of the flexibility of MNEs to adjust and adapt ownership attributes to the local market context. The study offers insights into the evolutionary development path taken by foreign-invested manufacturing enterprises in China. Journal: Journal of Chinese Economic and Business Studies Pages: 111-131 Issue: 2 Volume: 3 Year: 2005 Keywords: Export-orientated FDI, market-orientated FDI, foreign-invested enterprises (FIEs), China, Jel Codes: L1, M21, X-DOI: 10.1080/14765280500120112 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280500120112 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:3:y:2005:i:2:p:111-131 Template-Type: ReDIF-Article 1.0 Author-Name: Jianhong Zhang Author-X-Name-First: Jianhong Author-X-Name-Last: Zhang Title: An explanatory study of bilateral FDI relations: The case of China Abstract: A bilateral FDI relationship should include two dimensions, size and intensity. This study explores the factors that contribute to an explanation of both the size and the intensity of bilateral FDI relations, using the case of China. The results suggest that the countries, which are geographically, politically, ethnically, and economically close to China, have a firm intention of investing in China and enjoy a high FDI intensity. The countries with a large market, high productivity and an advanced structure are capable of investing more in China, and they enjoy a higher FDI value than other countries. The two factors, the overseas Chinese and the distance from China, are significant influences on both the size and the intensity of the FDI relationship. Journal: Journal of Chinese Economic and Business Studies Pages: 133-150 Issue: 2 Volume: 3 Year: 2005 Keywords: China, FDI, FDI intensity, gravity model, Jel Classifications: F21, X-DOI: 10.1080/14765280500120054 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280500120054 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:3:y:2005:i:2:p:133-150 Template-Type: ReDIF-Article 1.0 Author-Name: Hwy-Chang Moon Author-X-Name-First: Hwy-Chang Author-X-Name-Last: Moon Title: Investment strategies by foreign automobile firms in China: A comparative study of Volkswagen, Honda, and Hyundai Abstract: The main question motivating this research is: why did foreign automakers (i.e. Volkswagen, Honda, and Hyundai) decide to enter different markets within China (Shanghai, Guangdong and Beijing respectively)? We analyze this situation in three steps. First, by applying Dunning's Eclectic (OLI) Paradigm, we show Volkswagen, Honda and Hyundai entered China to exploit their technological firm specific assets. Instead of traditional market instruments, these firms engaged in FDI to access China's large market because of the high regulations on its automobile industry. The second section incorporates the Diamond Model analysis and concludes that Shanghai is the most attractive automobile cluster. Although the OLI predicts all firms to enter the most attractive location, Shanghai, the firms actually entered three separate regions. In the following section, we adopt the Imbalance Theory to clarify the rationale behind choosing alternate locations. The Imbalance Theory conclusively demonstrates that geographical diversification occurred as a direct result of the strategic goals of the individual firms. Journal: Journal of Chinese Economic and Business Studies Pages: 151-171 Issue: 2 Volume: 3 Year: 2005 Keywords: Automobile industry in China, FDI, Eclectic (OLI) Paradigm, Diamond Model, Imbalance Theory, X-DOI: 10.1080/14765280500120096 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280500120096 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:3:y:2005:i:2:p:151-171 Template-Type: ReDIF-Article 1.0 Author-Name: Pei Sun Author-X-Name-First: Pei Author-X-Name-Last: Sun Title: Industrial policy, corporate governance, and the competitiveness of China's national champions: The case of Shanghai Baosteel Group Abstract: The paper presents an in-depth case study of the Shanghai Baosteel Group as a contribution to the overall assessment of the competitiveness and catch-up capability of the Chinese national champions after China's WTO accession. Significant competitive advantages of the firm in the domestic industry are identified, with cautionary remarks concerning the future stiff competition with the global steel giants. Through detailed examinations of the corporate governance mechanism and the industrial policy implementation in Baosteel and the whole steel sector, the paper sheds light on the institutional and policy challenges that the Chinese government has to face in building up its big businesses. It is concluded that whether Baosteel could emerge as a globally competitive steel firm depends critically upon the effectiveness of both the further reform of the state-dominated corporate governance system and the improvement of the industrial policy enforcement. Journal: Journal of Chinese Economic and Business Studies Pages: 173-192 Issue: 2 Volume: 3 Year: 2005 Keywords: China, steel industry, industrial policy, corporate governance, competitiveness, national champions, JEL classification, L53, L61, M2, P31, X-DOI: 10.1080/14765280500120013 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280500120013 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:3:y:2005:i:2:p:173-192 Template-Type: ReDIF-Article 1.0 Author-Name: Gregory Chow Author-X-Name-First: Gregory Author-X-Name-Last: Chow Title: The Role of Planning in China's Market Economy Abstract: This paper addresses issues raised in 'The Background of China's Planning Institutional Reform' circulated in advance of the International Conference on China's Planning System Reform, held on 24-25 March 2004 in Beijing. The discussion is structured around four topics: (1) the scope of planning; (2) the administration of the planning system; (3) methods of planning; and (4) the coordination of planning with market activities. A critical issue is whether the Chinese government is doing too much or too little in planning the broad range of activities in a market economy, and various policy options are examined in relation to this issue. A central conclusion is that as China's economic and political system evolves within the framework of the Five-Year Plan, the scope of planning will naturally reduce as the market sector replaces a number of activities formerly undertaken by government. Journal: Journal of Chinese Economic and Business Studies Pages: 193-203 Issue: 3 Volume: 3 Year: 2005 Keywords: China, eonomic planning, policy options, X-DOI: 10.1080/14765280500317866 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280500317866 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:3:y:2005:i:3:p:193-203 Template-Type: ReDIF-Article 1.0 Author-Name: Wei Zhang Author-X-Name-First: Wei Author-X-Name-Last: Zhang Author-Name: Tao Zhang Author-X-Name-First: Tao Author-X-Name-Last: Zhang Title: Competitiveness of China's Manufacturing Industry and its Impacts on the Neighbouring Countries Abstract: This paper investigates the rapid growth of China's share in the international commodity market and the structural changes of China's commodity exports. It demonstrates a significant improvement of international competitiveness in China's manufacturing sector. The panel data analysis, based on a Solow-Swan type growth model on China's 37 manufacturing industries from 1991 to 2002, reveals that the main sources of the strengthened competitiveness of China's manufacturing sector have been mainly from Total Factor Productivity (TFP), while labour productivity has been increasing and capital productivity has been falling. A preliminary empirical analysis on the impacts of China's increasing competitiveness finds that there are negative correlations between China and most of its neighbouring countries, both newly industrialised economies and other Southeast Asian developing economies. However, there is no evidence of negative impacts of China's increasing competitiveness on developed countries such as the United States and Japan. Journal: Journal of Chinese Economic and Business Studies Pages: 205-229 Issue: 3 Volume: 3 Year: 2005 Keywords: Chinese economy, productivity, international competitiveness, international trade, X-DOI: 10.1080/14765280500317940 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280500317940 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:3:y:2005:i:3:p:205-229 Template-Type: ReDIF-Article 1.0 Author-Name: Richard Sanders Author-X-Name-First: Richard Author-X-Name-Last: Sanders Author-Name: Yang Chen Author-X-Name-First: Yang Author-X-Name-Last: Chen Title: On Privatisation and Property Rights: Should China Go Down the Road of Outright Privatisation? Abstract: Fierce debate is ongoing in China concerning the appropriate role for the private sector in the current stage of reform and enterprise restructuring. There are many economists, both within China and without, who argue that China should now increase both the scale and pace of privatisation and reduce the barriers to private sector involvement in the remaining large-sized State-Owned Enterprises as a matter of urgency. This paper argues, however, that on both theoretical and empirical grounds, wholesale privatisation in China should not be adopted, that 'fuzzy' property rights have served China well in the last twenty years of reform and that the appropriate boundary between the public and private sectors should be drawn pragmatically and on a case-by-case basis. Journal: Journal of Chinese Economic and Business Studies Pages: 231-245 Issue: 3 Volume: 3 Year: 2005 Keywords: JEL Classifications: A11, B13, D23, H42, L32, L33, P20, X-DOI: 10.1080/14765280500317874 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280500317874 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:3:y:2005:i:3:p:231-245 Template-Type: ReDIF-Article 1.0 Author-Name: Zhicheng Liang Author-X-Name-First: Zhicheng Author-X-Name-Last: Liang Title: Financial Development, Market Deregulation and Growth: Evidence from China Abstract: In this paper, the relationship between finance and growth is analysed in the context of an endogenous growth model with government regulation and intervention. Our theoretical model suggests that financial intermediaries can affect the process of economic growth in several ways. Using the recent Generalized Method of Moments (GMM) techniques, we test our model in a panel data set covering 29 Chinese provinces over the period of 1990-2001. Empirical results show that financial development and government deregulation in the financial sector significantly promote China's economic growth. Journal: Journal of Chinese Economic and Business Studies Pages: 247-262 Issue: 3 Volume: 3 Year: 2005 Keywords: Financial development, economic growth, financial intermediaries, Chinese economy, JEL Classifications: O16, O40, R11, X-DOI: 10.1080/14765280500317924 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280500317924 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:3:y:2005:i:3:p:247-262 Template-Type: ReDIF-Article 1.0 Author-Name: Hongxin Li Author-X-Name-First: Hongxin Author-X-Name-Last: Li Author-Name: Marcel Merette Author-X-Name-First: Marcel Author-X-Name-Last: Merette Title: Population Ageing and Pension System Reform in China: A Computable Overlapping-Generations General Equilibrium Model Analysis Abstract: Over the next 50 years, China will face an increase of its old-age population by approximately three times. Such a demographic change may result in a large increase of pension payments, which would require a significant rise in the pension contribution rate. This also implies important intergenerational redistribution issues and may even harm living standards as a whole. This paper analyses for China the economic impact of an ageing population by means of a computable dynamic general equilibrium model with an overlapping generations structure. The paper explores the effect on the social security system and economic development of China under alternative scenarios for the benefit rates on pensions, retirement age and technological progress. Our research indicates that a pension reform plus positive technological progress can compensate for the menace of a decline in living standards for both seniors and working generations. Journal: Journal of Chinese Economic and Business Studies Pages: 263-277 Issue: 3 Volume: 3 Year: 2005 Keywords: Population ageing, pension system reform, CGE model, OLG structure, X-DOI: 10.1080/14765280500317908 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280500317908 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:3:y:2005:i:3:p:263-277 Template-Type: ReDIF-Article 1.0 Author-Name: Wing Thye Woo Author-X-Name-First: Wing Thye Author-X-Name-Last: Woo Title: The Structural Nature of Internal and External Imbalances in China Abstract: China has a built-in inflationary tendency because of the partially-reformed nature of its economic system. Specifically, the post-1978 marketization of the economy has interacted with the continued state ownership to create an inflationary 'liquidity tango' between the state-owned enterprises (SOEs) and the state-owned banks. Whenever the hard budget constraint is imposed on the SOEs, China's dysfunctional financial system would impart a deflationary bias to the economy and render China a capital exporting country by constraining the growth of aggregate demand to be less than the growth of aggregate supply. The use of price mechanisms as the only instruments for all economic problems is not appropriate for China's transitional economy, e.g. trade surpluses are better handled by the establishment of an efficient financial intermediation mechanism than by appreciation of the Yuan. Journal: Journal of Chinese Economic and Business Studies Pages: 1-19 Issue: 1 Volume: 4 Year: 2006 Keywords: China, internal and external imbalances, macroeconomic management, price mechanism, quantitative restrictions, X-DOI: 10.1080/14765280600551208 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280600551208 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:4:y:2006:i:1:p:1-19 Template-Type: ReDIF-Article 1.0 Author-Name: Xiaolei Qian Author-X-Name-First: Xiaolei Author-X-Name-Last: Qian Author-Name: Russell Smyth Author-X-Name-First: Russell Author-X-Name-Last: Smyth Title: Growth Accounting for the Chinese Provinces 1990-2000: Incorporating Human Capital Accumulation Abstract: This paper examines the linkage between aggregate real output, capital, labour, education, and productivity within a growth accounting framework for 27 Chinese provinces between 1990 and 2000. The results suggest that human capital has had a significant role in facilitating economic growth of all of the provinces throughout the 1990s. Regional disparities in factor accumulation are also considered. The results suggest that uneven distribution of resources between the coastal and inland provinces increased the regional gap in economic growth throughout the 1990s. Journal: Journal of Chinese Economic and Business Studies Pages: 21-37 Issue: 1 Volume: 4 Year: 2006 Keywords: China, economic growth, human capital, reform, X-DOI: 10.1080/14765280600551216 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280600551216 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:4:y:2006:i:1:p:21-37 Template-Type: ReDIF-Article 1.0 Author-Name: Kwan Wai Ko Author-X-Name-First: Kwan Wai Author-X-Name-Last: Ko Author-Name: Jagdish Handa Author-X-Name-First: Jagdish Author-X-Name-Last: Handa Title: Currency Substitution in a Currency Board Context: The Evidence for Hong Kong Abstract: Hong Kong is an open economy that uses foreign currencies extensively in domestic payments. This paper focuses on substitution between the domestic and foreign currencies in their role as media of payments in such an economy. It uses quarterly data to estimate currency substitution (CS) for Hong Kong during 1984:I to 2001:III when it had a fixed exchange rate under a currency board system. Two models, a money demand function and a dynamic adjustment model, are estimated using the Johansen cointegration and error-correction technique. The estimates for both these models indicate significant CS in the media of payments. Our estimates also show a significant ratchet effect in CS. Journal: Journal of Chinese Economic and Business Studies Pages: 39-56 Issue: 1 Volume: 4 Year: 2006 Keywords: Currency substitution, currency board, China, X-DOI: 10.1080/14765280600551224 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280600551224 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:4:y:2006:i:1:p:39-56 Template-Type: ReDIF-Article 1.0 Author-Name: Fengxia Dong Author-X-Name-First: Fengxia Author-X-Name-Last: Dong Author-Name: Allen Featherstone Author-X-Name-First: Allen Author-X-Name-Last: Featherstone Title: Technical and Scale Efficiencies for Chinese Rural Credit Cooperatives: A Bootstrapping Approach in Data Envelopment Analysis Abstract: Chinese rural credit cooperatives (RCCs) are a major supplier of credit to the rural sector in China. However, Chinese RCCs are currently encountering operating problems, and experimental reform is occurring to restructure the RCCs. In order to have some idea about the efficacy of reform, it is important to have an understanding of the institutional economics underlying the delivery of rural credit in China. This paper evaluates pure technical efficiency, overall technical efficiency, and scale efficiencies for RCCs in China using non-parametric techniques. The use of a bootstrap algorithm allows for inference on efficiency measures. Journal: Journal of Chinese Economic and Business Studies Pages: 57-75 Issue: 1 Volume: 4 Year: 2006 Keywords: Bootstrapping, Chinese rural credit cooperatives, data envelopment analysis, scale efficiency, technical efficiency, X-DOI: 10.1080/14765280600551240 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280600551240 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:4:y:2006:i:1:p:57-75 Template-Type: ReDIF-Article 1.0 Author-Name: Dilip Das Author-X-Name-First: Dilip Author-X-Name-Last: Das Title: The Chinese and Indian Economies: Comparing the Comparables Abstract: Both China and India were noted for their prowess and prosperity in the remote past, but in the recent past they went into a precipitous decline and became marginal economies, known for large impoverished masses and economic stagnation. Early in the 21st century, China and India are once again being seen as two emerging economic powers of the global economy. The closing decades of the 20th century were remarkable for both the economies. China in particular turned in a stellar economic performance. In the beginning of the 21st century, it was even being seen as the economic super power of the future. It has emerged as a low-cost manufacturing juggernaut invading global markets in a sizeable array of products, with a high and rapidly rising level merchandise exports and imports. In comparison, India's post-1991 growth performance has shown improvement. Although its success in the services sector exports is noteworthy, its economic performance did not match that of China. The economic weight of China and its integration into the global economy is going to continue to increase, and India could follow suit. This article compares and contrasts the two emerging-market economies of Asia, their soaring global significance and global integration and draws policy related lessons from it. Journal: Journal of Chinese Economic and Business Studies Pages: 77-89 Issue: 1 Volume: 4 Year: 2006 Keywords: China, India, comparison, Global significance, X-DOI: 10.1080/14765280600551281 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280600551281 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:4:y:2006:i:1:p:77-89 Template-Type: ReDIF-Article 1.0 Author-Name: John Knight Author-X-Name-First: John Author-X-Name-Last: Knight Author-Name: Jinjun Xue Author-X-Name-First: Jinjun Author-X-Name-Last: Xue Title: How High is Urban Unemployment in China? Abstract: Rapid economic growth and radical structural transformation pose a challenge to official statisticians as they seek to encompass new economic activities and phenomena. The accuracy of official statistics is liable to come into question. Urban unemployment in China is a good example. This paper estimates the urban unemployment rate using administrative statistics, population census data and a recent sample survey data set, and provides a critique showing in some detail how and why Chinese unemployment statistics are a minefield for the unwary and unemployment is so difficult to measure. Nevertheless, it is found that the urban unemployment rate rose rapidly over the 1990s and exceeded 11% in 1999 and 2000. The paper concludes by considering the implications of the findings for understanding unemployment, for policy, and for the collection of statistics. Journal: Journal of Chinese Economic and Business Studies Pages: 91-107 Issue: 2 Volume: 4 Year: 2006 Keywords: JEL Classifications: C13, J21, J64, J79, O53, X-DOI: 10.1080/14765280600736833 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280600736833 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:4:y:2006:i:2:p:91-107 Template-Type: ReDIF-Article 1.0 Author-Name: Christer Ljungwall Author-X-Name-First: Christer Author-X-Name-Last: Ljungwall Title: Export-led Growth: Application to China's Provinces, 1978-2001 Abstract: China's economic development has in many ways taken the world by storm, and no part of the country has been left fully unaffected. Many attempts have been made to explain the sources of this rapid, yet uneven, development. Previous studies on the specific relationship between growing exports and economic growth provide important information on the issue, but results from individual provinces are lacking. To fill the gap, this paper reviews the basic empirical question defined by the export-led growth (ELG) hypothesis, i.e. whether growth in exports drives growth in GDP, at the provincial level. The ELG hypothesis is validated in 13 of the 27 provinces in the sample. Journal: Journal of Chinese Economic and Business Studies Pages: 109-126 Issue: 2 Volume: 4 Year: 2006 Keywords: JEL Classifications: C32, F14, F19, O53, X-DOI: 10.1080/14765280600736866 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280600736866 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:4:y:2006:i:2:p:109-126 Template-Type: ReDIF-Article 1.0 Author-Name: Alyson Ma Author-X-Name-First: Alyson Author-X-Name-Last: Ma Title: Export Spillovers to Chinese Firms: Evidence from Provincial Data Abstract: Multinational firms are important conduits of managerial skills, foreign market linkages, and technology. Foreign export spillovers associated with multinational firms have the potential to reduce entry costs for local exporting firms. This paper examines whether exports by multinational firms increase the probability of exporting by domestic Chinese firms. The findings from the Probit estimation highlight the varying relationships between multinational exports and local foreign entry based on the type of ownership. The results from separating foreign-invested enterprises into overseas Chinese companies and OECD-based multinational firms suggest that the export activity of the former does not increase the probability of exporting by local firms, whereas the latter positively influence the export decision of local firms, particularly under processing trade. Journal: Journal of Chinese Economic and Business Studies Pages: 127-149 Issue: 2 Volume: 4 Year: 2006 Keywords: JEL Classifications: F1, F14, F23, X-DOI: 10.1080/14765280600736908 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280600736908 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:4:y:2006:i:2:p:127-149 Template-Type: ReDIF-Article 1.0 Author-Name: Bing Zhang Author-X-Name-First: Bing Author-X-Name-Last: Zhang Author-Name: Xindan Li Author-X-Name-First: Xindan Author-X-Name-Last: Li Title: Do Calendar Effects Still Exist in the Chinese Stock Markets? Abstract: The paper uses rolling sample tests to investigate time-varying calendar effects in the Chinese stock market, based on the GARCH (1, 1)-GED model. The Friday effect existed with low volatility at the early stage, but it seems to have disappeared since 1997. The positive Tuesday effect began to appear then. There is a small-firm January effect with high volatility. The turn-of-the month effect has also disappeared in the Chinese stock market since 1997. Journal: Journal of Chinese Economic and Business Studies Pages: 151-163 Issue: 2 Volume: 4 Year: 2006 Keywords: JEL Classifications: J14, J15, X-DOI: 10.1080/14765280600736999 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280600736999 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:4:y:2006:i:2:p:151-163 Template-Type: ReDIF-Article 1.0 Author-Name: Paresh Kumar Narayan Author-X-Name-First: Paresh Kumar Author-X-Name-Last: Narayan Author-Name: Xiujian Peng Author-X-Name-First: Xiujian Author-X-Name-Last: Peng Title: An Econometric Analysis of the Determinants of Fertility for China, 1952-2000 Abstract: This study investigates the determinants of the fertility rate in China over the 1952-2000 period. Consistent with theory, the key explanatory variables in our fertility model are real per capita income, infant mortality rate, female illiteracy and female labour force participation rates. The long-run results and the test for cointegration are based on the Johansen (1988) and Johansen & Juselius (1990) approach. Our long-run results conform to theory in that all variables appear with their expected signs, and the dummy variable used to capture the effects of the family planning policy indicates that in the years of the policy, fertility rates have been falling by around 10-12%. Our results suggest that socio-economic development - consistent with the traditional structural hypothesis - played a key role in China's fertility transition. Journal: Journal of Chinese Economic and Business Studies Pages: 165-183 Issue: 2 Volume: 4 Year: 2006 Keywords: JEL Classifications: J13, C22, C52, X-DOI: 10.1080/14765280600737039 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280600737039 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:4:y:2006:i:2:p:165-183 Template-Type: ReDIF-Article 1.0 Author-Name: Charles Goodhart Author-X-Name-First: Charles Author-X-Name-Last: Goodhart Author-Name: Xiaosong Zeng Author-X-Name-First: Xiaosong Author-X-Name-Last: Zeng Title: China's Banking Reform: Problems and Potential Solutions Abstract: Despite recent reforms to China's financial system, there remain numerous shortcomings. The asset quality of state-owned banks continues to be unsatisfactory, with taxpayers and depositors subsidising both SOBs and SOEs. Banks' loan margins and capital adequacy remain too low. The capital market is also inefficient. The fundamental problem is the lack of an appropriate property rights infrastructure, without an adequate informational, incentive and legal framework. Journal: Journal of Chinese Economic and Business Studies Pages: 185-198 Issue: 3 Volume: 4 Year: 2006 Keywords: State-owned banks, non-performing loans, asset management companies, 'Modern Enterprise System', property rights infrastructure, X-DOI: 10.1080/14765280600992204 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280600992204 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:4:y:2006:i:3:p:185-198 Template-Type: ReDIF-Article 1.0 Author-Name: Meixing Dai Author-X-Name-First: Meixing Author-X-Name-Last: Dai Title: Inflation-targeting under a Managed Exchange Rate: the Case of the Chinese Central Bank Abstract: In 2004, the People's Bank of China (PBC) is reported to have abandoned the quantity of money as its intermediate goal and to adopt some elements of the apparatus of inflation targeting, without giving up the managed exchange rate regime for the renminbi (RMB), the Chinese currency. We show in this paper, using a dynamic setting, that partially implementing the apparatus of inflation targeting by the PBC to improve the performance of monetary policy encounters various difficulties from out-of-equilibrium dynamics to macro-economic and financial instability. In this context, some macro-economic measures can be helpful for reducing disequilibrium. Further development of internal monetary and financial markets and assigning balanced weights by the PBC to inflation and output targets are necessary conditions for the regime to be stable. Journal: Journal of Chinese Economic and Business Studies Pages: 199-219 Issue: 3 Volume: 4 Year: 2006 Keywords: Inflation targeting, renminbi (RMB), managed exchange rate, macro-economic and financial instability, JEL CLASSIFICATION: E52, E58, F41, X-DOI: 10.1080/14765280600995579 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280600995579 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:4:y:2006:i:3:p:199-219 Template-Type: ReDIF-Article 1.0 Author-Name: Jinghai Zheng Author-X-Name-First: Jinghai Author-X-Name-Last: Zheng Author-Name: Angang Hu Author-X-Name-First: Angang Author-X-Name-Last: Hu Title: An Empirical Analysis of Provincial Productivity in China (1979-2001) Abstract: This study estimates and analyzes provincial productivity growth in China for the period 1979-2001. The Malmquist Index approach allows us to decompose productivity growth into two components, technological progress and efficiency change. Considerable productivity growth was found for most of the data period, but it was accomplished mainly through technological progress rather than efficiency improvement. Although China's capital stock has accumulated at record speed in recent years, our findings show that TFP growth slowed down significantly during 1995-2001. The study thus raises serious questions about whether China's recent growth pattern is consistent with its comparative advantages, and whether its reliance on capital accumulation can be sustained in the long run. Journal: Journal of Chinese Economic and Business Studies Pages: 221-239 Issue: 3 Volume: 4 Year: 2006 Keywords: Productivity, technological progress, efficiency, China, JEL Classification: O47, O53, D24, X-DOI: 10.1080/14765280600991917 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280600991917 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:4:y:2006:i:3:p:221-239 Template-Type: ReDIF-Article 1.0 Author-Name: Jianling Wang Author-X-Name-First: Jianling Author-X-Name-Last: Wang Author-Name: Lin Song Author-X-Name-First: Lin Author-X-Name-Last: Song Title: Timeliness of Annual Reports of Chinese Listed Companies Abstract: The timeliness of annual reports has received serious attention by the Chinese regulatory and professional bodies in recent years. Using 8294 company reports from the Chinese listed companies during 1993-2003, this paper analyzes the timeliness of annual reports by first examining the trend of reporting lags, separating the effects of 'good' and 'bad' news on timeliness, and then by using a multivariate regression to identify the determinants of reporting lags. It is found that there is a significant improvement on timeliness of reports although the shortening of reporting lags shows a U-shape over the data period. There is strong evidence that reporting lags were related to firm performance as bad news tended to hold back timely release of corporate reports. It is interesting to note that government policies have also played an important role in improving timeliness of corporate annual reporting in China but much more work needs to be done to make sure that listed companies provide more timely and reliable reports to investors and regulatory authorities. Journal: Journal of Chinese Economic and Business Studies Pages: 241-257 Issue: 3 Volume: 4 Year: 2006 Keywords: Annual report, timeliness, Chinese listed companies, JEL Classification: G14, G38, X-DOI: 10.1080/14765280600995538 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280600995538 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:4:y:2006:i:3:p:241-257 Template-Type: ReDIF-Article 1.0 Author-Name: Andrea Goldstein Author-X-Name-First: Andrea Author-X-Name-Last: Goldstein Title: The Political Economy of Industrial Policy in China: The Case of Aircraft Manufacturing Abstract: This paper focuses on China's efforts to build a world-class aircraft manufacturing industry. In the first half of the 1990s, the potential of the Chinese industry to mount a competitive challenge to Western aircraft builders was largely discounted. Nowadays, the threat is taken more seriously. The growth in the Chinese air transport market has reinforced the bargaining power of national aircraft producers and authorities are giving priority to building science and technology capacity in this area. Progress in creating military/civilian synergies has proven much more modest and the overall industry still lacks effective coordination. Journal: Journal of Chinese Economic and Business Studies Pages: 259-273 Issue: 3 Volume: 4 Year: 2006 Keywords: Aerospace, China, JEL Classification: H11, L62, O14, X-DOI: 10.1080/14765280600991628 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280600991628 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:4:y:2006:i:3:p:259-273 Template-Type: ReDIF-Article 1.0 Author-Name: James Laurenceson Author-X-Name-First: James Author-X-Name-Last: Laurenceson Author-Name: Kam Ki Tang Author-X-Name-First: Kam Ki Author-X-Name-Last: Tang Title: Opening China's Capital Account: Modeling the Capital Flow Response Abstract: Capital account convertibility in China is on the rise. In this paper we consider the impact that removing remaining capital controls might have on the volume of China's international capital flows. Better understanding of this capital flow response can shed light on China's current degree of international financial integration, which has important implications for policy decisions such as whether China should move toward a more flexible exchange rate regime. It is also relevant to discussing the financial stability consequences of removing remaining capital controls. The main finding is that China's capital account is already quite open, thus implying a tradeoff presently exists between exchange rate stability on the one hand and monetary independence on the other. In terms of financial stability, the results generally serve to allay fears that further opening the capital account would compromise China's international payments ability or disrupt global capital flows. Journal: Journal of Chinese Economic and Business Studies Pages: 1-18 Issue: 1 Volume: 5 Year: 2007 Keywords: JEL CLASSIFICATION: F30, F47, X-DOI: 10.1080/14765280601109196 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280601109196 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:5:y:2007:i:1:p:1-18 Template-Type: ReDIF-Article 1.0 Author-Name: Yue Ma Author-X-Name-First: Yue Author-X-Name-Last: Ma Author-Name: Huayu Sun Author-X-Name-First: Huayu Author-X-Name-Last: Sun Title: Hot Money Inflows and Renminbi Revaluation Pressure Abstract: Despite a series of revaluations, which started in July 2005, hot money has been sporadically sneaking into China in anticipation of further revaluations of the renminbi. In this paper we build a monetary model to show how anticipated revaluations lead to the instability of a pegged exchange rate regime. This model assumes current account convertibility and some degree of capital control, and fundamentally sound domestic policies and economy, as is the case in China. The model demonstrates that market-oriented interest rates can act as an automatic stabilizer to ease revaluation pressures, but cannot resolve them completely because the nominal interest rate has a zero nominal bound. Therefore, the official parity is difficult to defend and the revaluation expectations can be self-fulfilling, in the absence of external intervention. The empirical results of Granger causality tests are consistent with the main findings of our theoretical model. There are a number of policy intervention measures that can extend the life of a pegged exchange rate regime. Journal: Journal of Chinese Economic and Business Studies Pages: 19-36 Issue: 1 Volume: 5 Year: 2007 Keywords: JEL CLASSIFICATION: E58, F31, X-DOI: 10.1080/14765280601109220 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280601109220 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:5:y:2007:i:1:p:19-36 Template-Type: ReDIF-Article 1.0 Author-Name: Zhang Jun Author-X-Name-First: Zhang Author-X-Name-Last: Jun Author-Name: Guanghua Wan Author-X-Name-First: Guanghua Author-X-Name-Last: Wan Author-Name: Yu Jin Author-X-Name-First: Yu Author-X-Name-Last: Jin Title: The Financial Deepening-Productivity Nexus in China: 1987-2001 Abstract: The financial intermediation-growth nexus is a widely studied topic in the literature of development economics. Deepening financial intermediation may promote economic growth by mobilizing more investments, and lifting returns to financial resources, which raises productivity. Relying on provincial panel data from China, this paper attempts to examine if regional productivity growth is accounted for by the deepening process of financial development. Towards this end, an appropriate measurement of financial depth is constructed and then included as a determinant of productivity growth. It finds that a significant and positive nexus exists between financial deepening and productivity growth. Given the divergent pattern of financial deepening between coastal and inland provinces, this finding also helps explain the rising regional disparity in China. Journal: Journal of Chinese Economic and Business Studies Pages: 37-49 Issue: 1 Volume: 5 Year: 2007 Keywords: JEL CLASSIFICATION: N1, O5, X-DOI: 10.1080/14765280601109253 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280601109253 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:5:y:2007:i:1:p:37-49 Template-Type: ReDIF-Article 1.0 Author-Name: Ming-Yuan Leon Li Author-X-Name-First: Ming-Yuan Leon Author-X-Name-Last: Li Author-Name: Her-Jiun Sheu Author-X-Name-First: Her-Jiun Author-X-Name-Last: Sheu Author-Name: Lin Lin Author-X-Name-First: Lin Author-X-Name-Last: Lin Author-Name: Yu-Chi Tang Author-X-Name-First: Yu-Chi Author-X-Name-Last: Tang Title: Market Conditions and Abnormal Returns of IPO-An Empirical Study of Taiwan's High-Tech Companies Abstract: Four new determinants of initial/long-run IPO (initial public offering) returns from the perspectives of market conditions are proposed in this paper. The associated effects are examined by using the samples of Taiwan's high-tech IPO companies. Our empirical findings are consistent with the following notions. First, the four new determinants proposed perform remarkable effects on the IPO returns. Second, the length for IPO and IPO clustering phenomena has notable impacts on the long-run returns of IPO. In contrast, the performances of public stock markets show significant effects on the initial returns of IPO. Journal: Journal of Chinese Economic and Business Studies Pages: 51-64 Issue: 1 Volume: 5 Year: 2007 Keywords: JEL CLASSIFICATION: G11, G12, G15, X-DOI: 10.1080/14765280601109329 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280601109329 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:5:y:2007:i:1:p:51-64 Template-Type: ReDIF-Article 1.0 Author-Name: Miao-Ling Chen Author-X-Name-First: Miao-Ling Author-X-Name-Last: Chen Title: Incentive and Dilution Effects of Employee Stock Bonuses and Stock Options: Evidence from Taiwan Abstract: Employee stock bonuses (ESBs) and employee stock options (ESOs) are the means for high-technology companies in Taiwan to reward their employees. This research connects the Ohlson (1995) model and Linear Structural Relations (LISREL) model to investigate these effects of ESBs and ESOs, respectively, for a sample of high-technology companies in Taiwan. I generate two empirical generalizations. (1) The incentive effects of ESBs are significantly associated with performance, thus enhancing firm value; in addition, the incentive effects of ESBs are greater than the dilution effects. (2) The incentive effects of ESOs are also significantly associated with performance, whereas the dilution effects of ESOs are insignificant. Although evidence supports the incentive effects of providing ESOs and ESBs, it is debatable whether ESOs and ESBs dilute shareholders' equity. Journal: Journal of Chinese Economic and Business Studies Pages: 65-73 Issue: 1 Volume: 5 Year: 2007 Keywords: Employee stock bonuses, employee stock options, Black-Scholes model, valuation, X-DOI: 10.1080/14765280601109352 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280601109352 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:5:y:2007:i:1:p:65-73 Template-Type: ReDIF-Article 1.0 Author-Name: Yue Wang Author-X-Name-First: Yue Author-X-Name-Last: Wang Title: Understanding Contractual Joint Ventures in China Abstract: Contractual Joint Ventures (CJVs) in China have been under-studied despite their importance as one of the three major forms of foreign direct investment (FDI) prescribed by the Chinese government. Based on first-hand survey data and within a transaction cost-comparative institution framework, the paper conceptualizes the nature of CJVs as a relational subcontracting arrangement rather than a form of FDI. Formed mainly between Hong Kong and Chinese manufacturing firms in the South China province of Guangdong, CJVs display quasi-market and quasi-hierarchy features, sitting between Processing and Assembling arrangements (P&As) on the one hand and Equity Joint Ventures (EIVs) and Wholly Foreign Owned Enterprises (WFOEs) on the other. The theoretical and practical implications are discussed. Journal: Journal of Chinese Economic and Business Studies Pages: 75-90 Issue: 1 Volume: 5 Year: 2007 Keywords: Jel Classification, F23, X-DOI: 10.1080/14765280601109394 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280601109394 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:5:y:2007:i:1:p:75-90 Template-Type: ReDIF-Article 1.0 Author-Name: Jeremy Cheng Author-X-Name-First: Jeremy Author-X-Name-Last: Cheng Author-Name: David Bennett Author-X-Name-First: David Author-X-Name-Last: Bennett Title: Success Strategies in the Chinese Chemical Industry: A Survey and Case Study Investigations Abstract: The chemical industry in China is facing fierce competition and exposure to market forces as a result of changes in the country's economic policy. The Chinese government has applied administrative actions rather than simply relying on market forces to address the changing dynamics. It has attempted to privatise state-owned chemical enterprises (SOCEs) by corporatisation, coupled with industrial restructuring by merging individual state-owned enterprises into groups. Based on a quantitative survey in combination with case studies of two Chinese chemical enterprises, this paper concludes that in this industry building competences is more effective than privatisation and restructuring to improve performance. Journal: Journal of Chinese Economic and Business Studies Pages: 91-112 Issue: 2 Volume: 5 Year: 2007 Keywords: Performance, China, chemical industry, resource-based view (RBV), privatisation, X-DOI: 10.1080/14765280701362232 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280701362232 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:5:y:2007:i:2:p:91-112 Template-Type: ReDIF-Article 1.0 Author-Name: Penelope B. Prime Author-X-Name-First: Penelope B. Author-X-Name-Last: Prime Title: West China Development: Updates on Policy and Progress Abstract: Journal: Journal of Chinese Economic and Business Studies Pages: 113-113 Issue: 2 Volume: 5 Year: 2007 Keywords: Poverty, West China, regional development, X-DOI: 10.1080/14765280701362299 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280701362299 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:5:y:2007:i:2:p:113-113 Template-Type: ReDIF-Article 1.0 Author-Name: Jane Golley Author-X-Name-First: Jane Author-X-Name-Last: Golley Title: China's Western Development Strategy and Nature versus Nurture Abstract: The current trend of rising inequalities in industrial development between East and West China has resulted from a combination of nature and nurture. Given the natural tendency for firms to agglomerate in a developing, market economy, and the numerous geographical and historical factors that have long favoured the Eastern region, it is hardly surprising that this is where Chinese industry has become increasingly agglomerated in recent decades. It is even less surprising in light of deliberate policy choices that compounded, or nurtured, this natural tendency. Left to market forces alone, the agglomeration process should reverse itself (to some extent) in the (very) long-run, as firms relocate to provinces with relatively low costs of production. However, that theoretical long-run is too far away for the Chinese central government, which has introduced a 'Western Development Strategy' to try and speed up economic development in China's poorest region. This paper assesses the likelihood that this Strategy in its current guise will succeed in promoting industrial development in the West. Journal: Journal of Chinese Economic and Business Studies Pages: 115-129 Issue: 2 Volume: 5 Year: 2007 Keywords: JEL Classifications: O14, O18, O25, O53, R58, R11, X-DOI: 10.1080/14765280701362380 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280701362380 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:5:y:2007:i:2:p:115-129 Template-Type: ReDIF-Article 1.0 Author-Name: Susan M. Walcott Author-X-Name-First: Susan M. Author-X-Name-Last: Walcott Title: The Dragon's Tail: Utilizing Chengdu and Chongqing Technology Development Zones to Anchor West China Economic Advancement Abstract: This research examines the role of post-1999 'Develop the West' policies in promoting accelerated economic development in Chengdu and Chongqing, the two largest, spatially proximate metropolitan centers of western China. Differences between these two cities test theories regarding utilization of characteristics that flow from a place's location, history, political-economy, and cultural resources. Chengdu serves as the traditional capital of Sichuan province. The mountainous setting of Chongqing relegated it to a military-industrial complex dominated by state-owned enterprises. Its new autonomous status and completion of the Three Gorges Dam will solidify the city as the western edge of the Yangtze. It is argued that geographically reinforced historical cultural patterns form the basis of systemic problems. A key difference between the two cities lies in their different utilization of university research, a proxy for openness to information fueling change. Statistics and interviews accumulated in both cities flesh out this comparative examination of two major geographical bases for economic dynamism in west China. Journal: Journal of Chinese Economic and Business Studies Pages: 131-145 Issue: 2 Volume: 5 Year: 2007 Keywords: JEL Classifications: R12, R58, X-DOI: 10.1080/14765280701362422 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280701362422 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:5:y:2007:i:2:p:131-145 Template-Type: ReDIF-Article 1.0 Author-Name: Rachel Connelly Author-X-Name-First: Rachel Author-X-Name-Last: Connelly Author-Name: Zhenzhen Zheng Author-X-Name-First: Zhenzhen Author-X-Name-Last: Zheng Title: School Enrollment and Graduation Rates in Western China Based on the 2000 Census Abstract: This paper examines the 2000 Chinese Census data for educational enrollment and graduation of Western Chinese youth aged 10-18. Analysis is done on a regional, provincial, and individual level and comparisons are offered between Western and Eastern China. Comparisons are also made with the 1990 Census in order to explore changes over the decade of the 1990s. We find a substantial improvement in educational attainment rates for all groups and at all levels over the decade. School initiations are very high in every province. The aggregate gender gap has also narrowed significantly over this period. Individual level analysis shows that boys are still more likely to start school, graduate from primary school and start middle school. There is no significant gender gap when it comes to finishing middle school or starting high school. Journal: Journal of Chinese Economic and Business Studies Pages: 147-161 Issue: 2 Volume: 5 Year: 2007 Keywords: JEL Classification: I21, X-DOI: 10.1080/14765280701362448 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280701362448 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:5:y:2007:i:2:p:147-161 Template-Type: ReDIF-Article 1.0 Author-Name: Anqing Shi Author-X-Name-First: Anqing Author-X-Name-Last: Shi Author-Name: Shuming Bao Author-X-Name-First: Shuming Author-X-Name-Last: Bao Title: Migration, Education and Rural Development: Evidence from China 2000 Population Census Data Abstract: There has been a concern that the growth of towns has been stalled recently and with it, the creation of non-farm jobs in rural industries. This study uses 2000 census tabulations to look at this issue by examining in-migration in towns in three provinces in China, Zhejiang, Henan, and Sichuan. In addition to the diversified patterns of town in-migrants revealed in these provinces, this paper finds that town in-migrants generally possess higher levels of educational attainment than those of the local population in towns, especially in the less-developed western and central provinces of Sichuan and Henan. There is also evidence that as towns themselves grow wealthier, such as in Zhejiang, better educated people in rural areas were likely to shift their jobs from the farm to non-farm sector in towns nearby, instead of leaving the countryside to migrate to other provinces. Labor markets in towns in less-developed western and central provinces were more flexible in accommodating in-migrants, whereas in the coastal province of Zhejiang, labor markets tend to become segregated between migrants and the local population. Journal: Journal of Chinese Economic and Business Studies Pages: 163-177 Issue: 2 Volume: 5 Year: 2007 Keywords: JEL CLASSIFICATIONS: R23, J61, X-DOI: 10.1080/14765280701362471 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280701362471 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:5:y:2007:i:2:p:163-177 Template-Type: ReDIF-Article 1.0 Author-Name: Wing Thye Woo Author-X-Name-First: Wing Thye Author-X-Name-Last: Woo Title: For the Motion Abstract: Journal: Journal of Chinese Economic and Business Studies Pages: 179-191 Issue: 3 Volume: 5 Year: 2007 X-DOI: 10.1080/14765280701656625 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280701656625 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:5:y:2007:i:3:p:179-191 Template-Type: ReDIF-Article 1.0 Author-Name: Barry Naughton Author-X-Name-First: Barry Author-X-Name-Last: Naughton Title: Against the Motion Abstract: Journal: Journal of Chinese Economic and Business Studies Pages: 193-202 Issue: 3 Volume: 5 Year: 2007 X-DOI: 10.1080/14765280701656591 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280701656591 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:5:y:2007:i:3:p:193-202 Template-Type: ReDIF-Article 1.0 Author-Name: Xun Lu Author-X-Name-First: Xun Author-X-Name-Last: Lu Author-Name: Dietrich Fausten Author-X-Name-First: Dietrich Author-X-Name-Last: Fausten Author-Name: Russell Smyth Author-X-Name-First: Russell Author-X-Name-Last: Smyth Title: Financial Development, Capital Accumulation and Productivity Improvement: Evidence from China Abstract: Financial sector development may contribute to economic growth by facilitating capital accumulation and by improving productivity. This article investigates empirically the contribution that financial development may make to these two alternative drivers of economic growth in China using annual data for the period 1952 to 2005. Using cointegration and Granger-causality testing we examine the relationship between financial development and, respectively, capital accumulation and productivity in a time-series vector autoregression (VAR) framework. The substantive findings are that there is either bi-directional Granger causality between financial development and capital accumulation or that Granger causality runs from capital accumulation to financial development, depending on how capital accumulation and financial development are measured. The link between financial development and productivity is found to be statistically weak. Journal: Journal of Chinese Economic and Business Studies Pages: 227-242 Issue: 3 Volume: 5 Year: 2007 Keywords: Financial development, economic growth, China, causality, X-DOI: 10.1080/14765280701656658 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280701656658 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:5:y:2007:i:3:p:227-242 Template-Type: ReDIF-Article 1.0 Author-Name: Ying Ding Author-X-Name-First: Ying Author-X-Name-Last: Ding Title: Fiscal Decentralization and Economic Growth in China, 1994-2002 Abstract: The question of whether fiscal decentralization has affected economic growth since the 1994 fiscal reform in China is interesting to both policy makers and economists. Using a simple model of endogenous growth that incorporates spending by different levels of government, and a panel data set for 30 provinces for the period of 1994-2002, this paper finds that fiscal decentralization contributes significantly to economic growth. This finding is consistent with the theoretical prediction that fiscal decentralization can increase economic efficiency. In addition, this paper attempts to investigate how the relationship between fiscal decentralization and provincial growth differs in the different regions considered. For this purpose, the 30 Chinese provinces and regions are categorized into three conventional economic belts that comprise the eastern, central, and western areas. This study finds that the effects of fiscal decentralization on economic growth vary among these three regions. Journal: Journal of Chinese Economic and Business Studies Pages: 243-260 Issue: 3 Volume: 5 Year: 2007 Keywords: Fiscal decentralization, economic growth, Chinese economy, E62, H2, H5, O4, R5, X-DOI: 10.1080/14765280701656682 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280701656682 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:5:y:2007:i:3:p:243-260 Template-Type: ReDIF-Article 1.0 Author-Name: Daniel Shapiro Author-X-Name-First: Daniel Author-X-Name-Last: Shapiro Author-Name: Yao Tang Author-X-Name-First: Yao Author-X-Name-Last: Tang Author-Name: Cathy Xuejing Author-X-Name-First: Cathy Author-X-Name-Last: Xuejing Title: Mode of Entry and the Regional Distribution of Foreign Direct Investment in China Abstract: In this paper we re-examine the regional determinants of FDI in China using both total FDI flows, and FDI flows disaggregated by entry mode. Building on both the FDI location and entry mode choice literatures, we argue for the existence of mode-specific location advantages, and test for their existence. We first specify and estimate a location model of aggregate FDI flows to Chinese regions. Using the aggregate model as a benchmark, we then estimate separate equations for each of three different entry modes (wholly-owned subsidiaries, equity joint ventures and cooperative joint ventures), and compare the results with the aggregate model. The results indicate that mode-specific location advantages do exist, at least within China, but they are limited to a small number of factors. In particular, we identify the accumulated stock of FDI as being more likely to attract high control modes of entry, while existing policies to attract FDI are more likely to attract lower control modes of entry. Journal: Journal of Chinese Economic and Business Studies Pages: 261-277 Issue: 3 Volume: 5 Year: 2007 Keywords: Foreign Direct Investment, location choice, entry modes, China, X-DOI: 10.1080/14765280701656690 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280701656690 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:5:y:2007:i:3:p:261-277 Template-Type: ReDIF-Article 1.0 Author-Name: Barry Bosworth Author-X-Name-First: Barry Author-X-Name-Last: Bosworth Author-Name: Susan Collins Author-X-Name-First: Susan Author-X-Name-Last: Collins Title: United States-China trade: where are the exports? Abstract: This paper empirically examines US goods trade with China, focusing on the performance of exports. Throughout the analysis, we explore whether US trade is unusual by contrasting it with trade from Japan and the EU-15. The issue is examined from three perspectives: the commodity composition of exports, the role of multinational firms, and the estimation of a set of 'gravity equations' that explore the role of market size and distance from the United States. We find that the commodity composition of trade with China is not distorted, nor can the low level be related to an unusual role of US multinationals in China. Instead, distance does seem to exert a surprisingly large effect on trade. Finally, while exports to China may be a small share of US GDP, they are relatively substantial compared to US exports to other countries. In other words, the measure of US trade performance in China is distorted by the low level of its exports to all countries. Journal: Journal of Chinese Economic and Business Studies Pages: 1-21 Issue: 1 Volume: 6 Year: 2008 Keywords: China, United States, trade, X-DOI: 10.1080/14765280701841292 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280701841292 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:6:y:2008:i:1:p:1-21 Template-Type: ReDIF-Article 1.0 Author-Name: Peter Buckley Author-X-Name-First: Peter Author-X-Name-Last: Buckley Author-Name: Jeremy Clegg Author-X-Name-First: Jeremy Author-X-Name-Last: Clegg Author-Name: Hui Tan Author-X-Name-First: Hui Author-X-Name-Last: Tan Title: Organization and action in a Chinese state-owned service intermediary: the case of Sinotrans Abstract: Thompson's (1967) framework is regarded as one of the classic work for analysing organizations in the West. This paper analyses organizational changes in Sinotrans utilizing a longitudinal case study to examine whether Thompson's framework is valid for understanding firms in a transitional economy. As a Chinese state-owned service intermediary, Sinotrans faces uncertainty arising from political interference from government and party institutions. Over time it has faced increasing market pressure, which has caused it to attempt to close off its technical core by short run strategies that have frequently then been reversed. Thompson's (1967) framework proves to be an excellent means of capturing the dynamics of Sinotrans' actions by focusing on the changing types of uncertainty with which the managers in Sinotrans have attempted to cope. Journal: Journal of Chinese Economic and Business Studies Pages: 23-48 Issue: 1 Volume: 6 Year: 2008 Keywords: Thompson's framework, state-owned enterprise, organizational changes, uncertainty, service intermediary, China, X-DOI: 10.1080/14765280701841326 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280701841326 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:6:y:2008:i:1:p:23-48 Template-Type: ReDIF-Article 1.0 Author-Name: Tao Peng Author-X-Name-First: Tao Author-X-Name-Last: Peng Author-Name: Minsoo Lee Author-X-Name-First: Minsoo Author-X-Name-Last: Lee Author-Name: Christopher Gan Author-X-Name-First: Christopher Author-X-Name-Last: Gan Title: Has the Chinese currency been undervalued? Abstract: China's trade surplus reached a record $102 billion in 2005 while the US trade deficit of $717 billion accounted for 5.8% of US Gross Domestic Product in the same year. US policy makers claim China's currency is undervalued about 25 to 35% against the US dollar and they blame China for holding the value of the RMB weak to keep Chinese products competitive on prices in international markets. Given the unique situation in China, where the capital account is only partially convertible and the economy has been growing at an annual average rate of 10% over the last two decades, this paper empirically examines the magnitude of the exchange rate misalignment of China's RMB against the US dollar by using the Behavioral Equilibrium Exchange Rate (BEER) and Permanent Equilibrium Exchange Rate (PEER) models. Our results show that the RMB was undervalued by approximately 15% from 2002:Q2 to 2003:Q4; however, it is interesting to note that while the RMB was overvalued during 1997:Q4-2002:Q2, China experienced a huge trade surplus during that period. Journal: Journal of Chinese Economic and Business Studies Pages: 49-66 Issue: 1 Volume: 6 Year: 2008 Keywords: behavioral equilibrium exchange rate, misalignment, exchange rate regime, X-DOI: 10.1080/14765280701841375 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280701841375 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:6:y:2008:i:1:p:49-66 Template-Type: ReDIF-Article 1.0 Author-Name: Raymond Tse Author-X-Name-First: Raymond Author-X-Name-Last: Tse Author-Name: James Webb Author-X-Name-First: James Author-X-Name-Last: Webb Title: Housing markets in China: an empirical evaluation of present-value model Abstract: Derived from the present-value model, our model implies that house price is a linear function of expected house rents and the expected rate of growth of house rents where expectations are formed adaptively. The model is used to explain the link between expected inflation and expected house rental growth rates. The estimated parameters of the housing markets in Hong Kong, Shanghai, Guangzhou and Shenzhen were compared. Journal: Journal of Chinese Economic and Business Studies Pages: 67-75 Issue: 1 Volume: 6 Year: 2008 Keywords: housing markets, adaptive expectations, house rents, China, X-DOI: 10.1080/14765280701841516 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280701841516 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:6:y:2008:i:1:p:67-75 Template-Type: ReDIF-Article 1.0 Author-Name: Zhong Zhao Author-X-Name-First: Zhong Author-X-Name-Last: Zhao Title: Health demand and health determinants in China Abstract: This paper identifies health determinants in rural and urban China. Using the 2000 wave of the China Health and Nutrition Survey, we find that education has an important positive effect on health. We also find that regional location is an important determinant of health. Our results indicate that the self-reported health status is not significantly different between the urban and the rural population. Our study suggests that Chinese males have better health than females, and married persons have better health than single persons. We also find that rural residents who live in suburbs have worse health than those who live in remote villages. Journal: Journal of Chinese Economic and Business Studies Pages: 77-98 Issue: 1 Volume: 6 Year: 2008 Keywords: self-reported health status, health determinants, ordered probit, China, X-DOI: 10.1080/14765280701841573 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280701841573 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:6:y:2008:i:1:p:77-98 Template-Type: ReDIF-Article 1.0 Author-Name: Shyh-Wei Chen Author-X-Name-First: Shyh-Wei Author-X-Name-Last: Chen Title: Untangling the web of causalities among four disaggregate government expenditures, government revenue and output in Taiwan Abstract: Using Taiwan data, this empirical study delves into the causal links among four disaggregate real government expenditures, real government revenue and real output. The results substantiate that there is (i) neutrality between real government revenue and real government expenditure on economic development; (ii) unidirectional causality from real government revenue to real government expenditures on national defence, on general administration and on education, science and culture, confirming the tax-and-spend hypothesis; (iii) neutrality between output and the four disaggregate government expenditures; and (iv) unidirectional causality from real output to real government revenue. Several implications emerge from our empirical results. Journal: Journal of Chinese Economic and Business Studies Pages: 99-107 Issue: 1 Volume: 6 Year: 2008 Keywords: government expenditure, tax, Granger causality, VAR, X-DOI: 10.1080/14765280701841581 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280701841581 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:6:y:2008:i:1:p:99-107 Template-Type: ReDIF-Article 1.0 Author-Name: Jinghai Zheng Author-X-Name-First: Jinghai Author-X-Name-Last: Zheng Title: On Chinese productivity studies Abstract: The key to making China wealthy and powerful was to raise total factor productivity. (Dwight Perkins 1988) Journal: Journal of Chinese Economic and Business Studies Pages: 109-119 Issue: 2 Volume: 6 Year: 2008 Keywords: productivity, China, growth, X-DOI: 10.1080/14765280802028187 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280802028187 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:6:y:2008:i:2:p:109-119 Template-Type: ReDIF-Article 1.0 Author-Name: Gary Jefferson Author-X-Name-First: Gary Author-X-Name-Last: Jefferson Author-Name: Thomas Rawski Author-X-Name-First: Thomas Author-X-Name-Last: Rawski Author-Name: Yifan Zhang Author-X-Name-First: Yifan Author-X-Name-Last: Zhang Title: Productivity growth and convergence across China's industrial economy Abstract: Using a firm-level data set for 1998 and 2005 including all of China's 'above designated size' enterprises that together account for more than 85% of China's industrial output, this paper investigates three issues. One key issue in China's industrial system is the extent to which growth has been driven by productivity change. A second issue is the relative productivity performance of enterprises of different ownership types, including a comparison of state-owned versus various forms of non-state ownership. The third issue is whether productivity across China's key regions-coast, northeast, central, and west-exhibits convergence or divergence. One key finding that cuts across all three issues is the exceptional contribution to productivity growth made by exiting and entering firms, much of which is associated with restructuring. During 1998-2005, the phenomenon of firm exit and entry contributed substantially to China's overall industrial productivity growth, to the relatively rapid growth of state industry productivity, and to substantial productivity catch-up with the coastal region by many of the interior provinces. Journal: Journal of Chinese Economic and Business Studies Pages: 121-140 Issue: 2 Volume: 6 Year: 2008 Keywords: productivity, growth, convergence, X-DOI: 10.1080/14765280802028237 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280802028237 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:6:y:2008:i:2:p:121-140 Template-Type: ReDIF-Article 1.0 Author-Name: Yanrui Wu Author-X-Name-First: Yanrui Author-X-Name-Last: Wu Title: The role of productivity in China's growth: new estimates Abstract: The impressive growth of the Chinese economy in the past three decades has attracted a lot of attention and hence the research interest of many scholars and policy makers. One of the focuses in the literature is the role of productivity in China's economic growth. This paper aims to revisit the debate about the role of productivity in China's growth, to provide an updated estimate of productivity growth and hence to make a contribution to the understanding of China's economic growth in recent years. Its objective is to propose and apply a growth accounting technique to assess economic performance in China, in particular the role of technological progress in China's recent growth. The findings about the latter may have important policy implications for the sustainability of China's economic growth in the future. Journal: Journal of Chinese Economic and Business Studies Pages: 141-156 Issue: 2 Volume: 6 Year: 2008 Keywords: total factor productivity, growth accounting stochastic frontier approach, X-DOI: 10.1080/14765280802028260 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280802028260 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:6:y:2008:i:2:p:141-156 Template-Type: ReDIF-Article 1.0 Author-Name: Jinghai Zheng Author-X-Name-First: Jinghai Author-X-Name-Last: Zheng Author-Name: Zheng Wang Author-X-Name-First: Zheng Author-X-Name-Last: Wang Author-Name: Jinchuan Shi Author-X-Name-First: Jinchuan Author-X-Name-Last: Shi Title: Industrial productivity performance in Chinese regions (1987-2002): a decomposition approach Abstract: This article investigates the productivity performance of China's industries 1987-2002, by means of a provincial panel. Productivity growth is decomposed into four components: technical progress, scale efficiezncy change, and improvements in technical and allocative efficiency. Although total factor productivity growth had been the second major contributor to industrial growth (after capital accumulation), it has been driven mainly by technical progress rather than efficiency improvement. The estimated stochastic production frontier function exhibits substantial economies of scale. Regional differences in technical progress are negligible, but differences in technical efficiency are statistically significant across regions. The restructuring of state-owned enterprises from the mid-1990s seems to have improved technical efficiency considerably, while the performance of allocative efficiency does not seem to be converging towards standard conditions for optimizing firms under perfect competition. Factor price distortions, like artificially cheap capital together with suppressed wage levels, might have been the driving forces behind China's capital-intensive industrial growth and technology-dependent productivity performance. Journal: Journal of Chinese Economic and Business Studies Pages: 157-175 Issue: 2 Volume: 6 Year: 2008 Keywords: transition, industry, productivity, TFP, SOE reform, X-DOI: 10.1080/14765280802028278 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280802028278 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:6:y:2008:i:2:p:157-175 Template-Type: ReDIF-Article 1.0 Author-Name: Jun Zhang Author-X-Name-First: Jun Author-X-Name-Last: Zhang Title: Estimation of China's provincial capital stock (1952-2004) with applications Abstract: Construction of physical capital stock data is a key element for estimating production functions, measuring total factor productivity growth, and for growth accounting. Existing literature, however, shows great variations in the estimates of China's national capital stocks because different methodologies and statistical sources were used. Systematic improvements and adjustments to China's GDP accounting practices have made it possible to produce a consistent and comparable series for provincial level capital stock using the perpetual inventory method (PIM). This article recommends a standardized procedure in constructing the level of capital stock for 30 Chinese provinces from 1952 to 2004. The merit of such statistical construction, although with some drawbacks, is that the series can be easily updated to more recent years using official statistics. Applying our capital stock data, we estimate total factor productivity growth and characterize the spatial pattern across provinces in post-reform China. Journal: Journal of Chinese Economic and Business Studies Pages: 177-196 Issue: 2 Volume: 6 Year: 2008 Keywords: capital stock, total factor productivity, X-DOI: 10.1080/14765280802028302 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280802028302 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:6:y:2008:i:2:p:177-196 Template-Type: ReDIF-Article 1.0 Author-Name: Shujin Zhu Author-X-Name-First: Shujin Author-X-Name-Last: Zhu Author-Name: Mingyong Lai Author-X-Name-First: Mingyong Author-X-Name-Last: Lai Author-Name: Xiaolan Fu Author-X-Name-First: Xiaolan Author-X-Name-Last: Fu Title: Spatial characteristics and dynamics of provincial total factor productivity in China Abstract: This paper explores the influence of spatial effects on the convergence of total factor productivity (TFP) across Chinese regions. We use the Moran index, Markov transition matrix and panel data techniques to analyse spatial dependence, transition dynamics and disparities in TFP across Chinese provinces over the period from 1978 to 2004. We find that in the period following 1978, there has been an increase in spatial dependence in provincial-level TFPs across the various regions in China. However, the extent of this dependence is not the same across regions and the direction of movement of provincial TFP does not show convergence. On the contrary, provincial TFPs at the middle quintile level moved to the quintile levels at the highest and lowest levels, suggesting divergence and polarization in TFP across Chinese regions. The 'New Eastern Region' appears to be a TFP convergence club over the sampling period but no evidence is found suggesting convergence of TFP between provinces in the other subgroups. Policy implications are discussed. Journal: Journal of Chinese Economic and Business Studies Pages: 197-217 Issue: 2 Volume: 6 Year: 2008 Keywords: productivity, spatial dependence, transition dynamics, convergence, X-DOI: 10.1080/14765280802028328 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280802028328 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:6:y:2008:i:2:p:197-217 Template-Type: ReDIF-Article 1.0 Author-Name: Gregory Chow Author-X-Name-First: Gregory Author-X-Name-Last: Chow Title: Another look at the rate of increase in TFP in China Abstract: There has been some controversy concerning the rate of growth of total factor productivity after economic reform started in China in 1978. It is the purpose of this note to present evidence to show that an annual rate of increase of about 2.7% is reliable and that the capital elasticity of output is close to 0.6. I first present time series evidence and then supporting evidence from other sources. Journal: Journal of Chinese Economic and Business Studies Pages: 219-224 Issue: 2 Volume: 6 Year: 2008 Keywords: China, total factor productivity, X-DOI: 10.1080/14765280802028344 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280802028344 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:6:y:2008:i:2:p:219-224 Template-Type: ReDIF-Article 1.0 Author-Name: Aaron Mehrotra Author-X-Name-First: Aaron Author-X-Name-Last: Mehrotra Author-Name: Jouko Rautava Author-X-Name-First: Jouko Author-X-Name-Last: Rautava Title: Do sentiment indicators help to assess and predict actual developments of the Chinese economy? Abstract: This paper evaluates the usefulness of business sentiment indicators for forecasting developments in the Chinese real economy. We use data on diffusion indices collected by the People's Bank of China for forecasting industrial production, retail sales and exports. Our bivariate vector autoregressive models, each composed of one diffusion index and one real sector variable, generally outperform univariate autoregressive models in forecasting one to four quarters ahead. Similarly, principal components analysis, combining information from various diffusion indices, leads to enhanced forecasting performance. Our results indicate that Chinese business sentiment indicators convey useful information about current and future developments in the real economy. Moreover, the results could be seen as support for the reliability of the official data on the real economy, as both survey and real sector data seem to reflect the same underlying economic dynamics. … But historically, we always observed in the past that the hard data followed suit soft data. There was a strong correlation. (Jean-Claude Trichet, President of the European Central Bank)1 Journal: Journal of Chinese Economic and Business Studies Pages: 225-239 Issue: 3 Volume: 6 Year: 2008 Keywords: forecasting, diffusion index, VAR, China, X-DOI: 10.1080/14765280802283451 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280802283451 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:6:y:2008:i:3:p:225-239 Template-Type: ReDIF-Article 1.0 Author-Name: Ping Hua Author-X-Name-First: Ping Author-X-Name-Last: Hua Title: Real exchange rates and China's bilateral exports towards industrialized countries Abstract: A bilateral export demand function is used to estimate the effects on the Chinese bilateral exports of three real exchange rates: (1) bilateral real exchange rate capturing the price-competitiveness of the Chinese products in the market of the considered import country (traditional effect); (2) real effective exchange rate capturing the price-competitiveness of the goods of Chinese competitors in the same market (third-export-country effect); (3) real effective exchange rate capturing the price-competitiveness of the Chinese products in China's other export markets (third-import-country effect). This function is applied for the Chinese bilateral real exports towards 11 industrialized countries over the period from 1991 to 2004. The econometric results confirm the effects of the three real exchange rates, as well as the effects of the demand from developed countries. Journal: Journal of Chinese Economic and Business Studies Pages: 241-259 Issue: 3 Volume: 6 Year: 2008 Keywords: bilateral exports, China, real exchange rates, X-DOI: 10.1080/14765280802283493 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280802283493 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:6:y:2008:i:3:p:241-259 Template-Type: ReDIF-Article 1.0 Author-Name: Myint Moe Chit Author-X-Name-First: Myint Moe Author-X-Name-Last: Chit Title: Exchange rate volatility and exports: evidence from the ASEAN-China Free Trade Area Abstract: This paper examines the impact of exchange rate volatility on the bilateral exports within the ASEAN-China Free Trade Area (ACFTA) by using a generalized gravity model. A panel data set of 20 bilateral observations for the period from 1982:Q1 to 2005:Q1 is estimated using fixed-effect and random effect methods. Panel unit-roots and panel cointegration tests confirm the long-run relationship among the variables. The empirical results suggest that bilateral real exchange rate volatility has a statistically significant negative impact on the bilateral exports of the major ACFTA countries. But the magnitude of the impact appears to be fairly small. Journal: Journal of Chinese Economic and Business Studies Pages: 261-277 Issue: 3 Volume: 6 Year: 2008 Keywords: ACFTA, trade, exchange rate volatility, X-DOI: 10.1080/14765280802283543 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280802283543 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:6:y:2008:i:3:p:261-277 Template-Type: ReDIF-Article 1.0 Author-Name: Helian Xu Author-X-Name-First: Helian Author-X-Name-Last: Xu Author-Name: Mingyong Lai Author-X-Name-First: Mingyong Author-X-Name-Last: Lai Author-Name: Peng Qi Author-X-Name-First: Peng Author-X-Name-Last: Qi Title: Openness, human capital and total factor productivity: evidence from China Abstract: This paper examines the drivers behind China's economic growth. In particular, it focuses on the channels of knowledge spillovers: human capital and openness to trade and foreign direct investment. The specific features of the study include using the most recent comprehensive panel data consisting of 29 provinces during the period 1994-2006 and performing unit root and cointegration tests in the panel data framework. The paper finds that human capital, trade and FDI are the significant determinants of total factor productivity, but their importance varies with technological levels of provinces. These findings have important policy implications. Journal: Journal of Chinese Economic and Business Studies Pages: 279-289 Issue: 3 Volume: 6 Year: 2008 Keywords: openness, human capital, economic growth, panel data, X-DOI: 10.1080/14765280802283576 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280802283576 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:6:y:2008:i:3:p:279-289 Template-Type: ReDIF-Article 1.0 Author-Name: Jie Chen Author-X-Name-First: Jie Author-X-Name-Last: Chen Author-Name: Qianjin Hao Author-X-Name-First: Qianjin Author-X-Name-Last: Hao Title: The impacts of distance to CBD on housing prices in Shanghai: a hedonic analysis Abstract: It is widely recognized that location is the primary determining factor of housing price. But to what extent the variation of housing price in Shanghai can be explained by the locational factor has not been empirically examined. In this paper, we examine the power of applying the hedonic method to the spatial-statistical analysis of housing prices in Shanghai. The data we use covers all new commercial residential housings sold in Shanghai during July 2004 and June 2006. The main focus in this paper is to examine the effect of geographical distance to city centre on the selling price of residential housings in Shanghai. We also discuss how the price gradient varies at different directions in Shanghai. Finally, we demonstrate the importance of applying quality control on the development of a housing price index. The statistical methodology and empirical results obtained in this paper carry interesting implications for other cities in China as well. Journal: Journal of Chinese Economic and Business Studies Pages: 291-302 Issue: 3 Volume: 6 Year: 2008 Keywords: hedonic analysis, Shanghai housing market, price gradient, constant-quality housing price index, X-DOI: 10.1080/14765280802283584 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280802283584 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:6:y:2008:i:3:p:291-302 Template-Type: ReDIF-Article 1.0 Author-Name: Ying Fan Author-X-Name-First: Ying Author-X-Name-Last: Fan Title: Country of origin, branding strategy and internationalisation: the case of Chinese piano companies Abstract: This paper studies the internationalisation of Chinese piano firms from a branding perspective. The purpose of the paper is twofold. First, it examines the interplay between the country of origin (COO) effect and international branding, and how COO affects the choice of branding strategies in international markets. Second, it explores the possible link between international branding decisions and international expansion of the firm. A model is introduced that illustrates the relationships between COO, branding options and internationalisation. Corresponding to its progress in internationalisation, a firm's branding development in international markets may follow certain stages. As the firm moves to advanced stages, it increases its international brand equity; the impact from negative COO will decrease and eventually become irrelevant. The literature on internationalisation is largely based on the experience of MNEs from Western developed countries. Multinational firms from developing countries such as China possess some unique characteristics that make it very difficult to apply Western theories to them. The emergence of MNEs from developing countries calls for the development of new theories. Journal: Journal of Chinese Economic and Business Studies Pages: 303-319 Issue: 3 Volume: 6 Year: 2008 Keywords: country of origin (COO), international branding, OEM, internationalisation, piano industry, China, X-DOI: 10.1080/14765280802283618 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280802283618 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:6:y:2008:i:3:p:303-319 Template-Type: ReDIF-Article 1.0 Author-Name: Geon-Cheol Shin Author-X-Name-First: Geon-Cheol Author-X-Name-Last: Shin Author-Name: Yaokun Ma Author-X-Name-First: Yaokun Author-X-Name-Last: Ma Title: Factors affecting trust between Korean IT firms and their Chinese counterparts Abstract: Trust is important in that it facilitates relational exchanges by permitting partners to transcend short-run inequities or risks to concentrate on long-term profits or gains. This study investigates what factors affect the trust between distribution-channel members, principally those between Korean IT firms and their exporting partners in China. We suggest that factors affecting trust include reputation, size, expertise, length of the relationship, communication, and satisfaction with previous outcomes of conflict episodes. Data were collected through a survey of 128 Korean IT firms, which have export-transaction relationships with Chinese buyers. The data strongly support the research hypotheses. As hypothesized, the results of data analysis show that reputation, communication, and satisfaction with previous outcomes tend to enhance trust. Additionally, we noticed that trust seems to decrease as the experience of conflict episodes increases. Journal: Journal of Chinese Economic and Business Studies Pages: 321-334 Issue: 3 Volume: 6 Year: 2008 Keywords: trust, IT firms, Chinese market, X-DOI: 10.1080/14765280802287791 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280802287791 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:6:y:2008:i:3:p:321-334 Template-Type: ReDIF-Article 1.0 Author-Name: Laixiang Sun Author-X-Name-First: Laixiang Author-X-Name-Last: Sun Author-Name: Damian Tobin Author-X-Name-First: Damian Author-X-Name-Last: Tobin Title: Special issue on China's adaptation to global best business practices: introduction Abstract: Journal: Journal of Chinese Economic and Business Studies Pages: 335-340 Issue: 4 Volume: 6 Year: 2008 X-DOI: 10.1080/14765280802431597 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280802431597 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:6:y:2008:i:4:p:335-340 Template-Type: ReDIF-Article 1.0 Author-Name: Damian Tobin Author-X-Name-First: Damian Author-X-Name-Last: Tobin Author-Name: Shikha Singh Author-X-Name-First: Shikha Author-X-Name-Last: Singh Title: International best practices, domestic constraints and international listing: evidence from China's state banking sector Abstract: The objective of this paper is to gauge the extent to which Chinese state-owned commercial banks are converging with international best banking and corporate governance practices, with a particular focus on the policy of international listing given its recent popularity. Drawing on the international listings of China's state-owned banks on the Hong Kong stock market, the paper finds that formal convergence is possible to achieve. More difficult to achieve is substantive convergence. In general, the findings suggest that the domestic institutional framework still matters, but what may matter more is that banks have the autonomy to integrate best-practices in a manner consistent with domestic conditions. Journal: Journal of Chinese Economic and Business Studies Pages: 341-361 Issue: 4 Volume: 6 Year: 2008 Keywords: corporate governance, banks, China, Hong Kong, international listing, X-DOI: 10.1080/14765280802431746 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280802431746 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:6:y:2008:i:4:p:341-361 Template-Type: ReDIF-Article 1.0 Author-Name: Damian Tobin Author-X-Name-First: Damian Author-X-Name-Last: Tobin Title: From Maoist self-reliance to international oil consumer: a resource-based appraisal of the challenges facing China's petrochemical sector Abstract: Resource-based theories of the firm argue that the success of one firm over another is largely due to its resource endowments. Large enterprises have long been recognised as leading sources of learning innovation and growth. This is not just restricted to large firms in developed economies, but also applies to firms in developing economies such as China, where large firms have long and complex histories in the state bureaucracy. Focusing on the case of China's petrochemical sector, this paper argues that even if a sector has a long history in central planning, the critical resources of a firm matter. It shows how existing organisational resources inherited from the pre-reform era, when provided with the correct incentive structures, can survive economic transition and be successfully applied under market conditions. In the petrochemical sector a key inducement was the commitment of the state to expose the sector to international developments where possible. The paper describes how this commitment has resulted in a mostly positive adjustment, but has also created ambiguities over how resources should be developed in future in a rapidly changing global industry. Journal: Journal of Chinese Economic and Business Studies Pages: 363-383 Issue: 4 Volume: 6 Year: 2008 Keywords: critical resources, firm theory, petrochemicals, oil, China, X-DOI: 10.1080/14765280802431761 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280802431761 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:6:y:2008:i:4:p:363-383 Template-Type: ReDIF-Article 1.0 Author-Name: Sebastian Bruck Author-X-Name-First: Sebastian Author-X-Name-Last: Bruck Author-Name: Laixiang Sun Author-X-Name-First: Laixiang Author-X-Name-Last: Sun Title: Dream of the red financial supermarket: the gradual emergence of integrated financial services provision in China in the 21st century Abstract: While the current regulatory trend in the area of banking scope regulation favours integrated financial services provision, China continues to restrict commercial banks' permissible range of business activities via its 1995 Commercial Bank Law. In this article, we propose an analytical framework that explicitly incorporates the sophistication-level constraint of a country's financial system into the regulatory trade-off calculation between banks' need for new growth opportunities and an increased risk of financial instability. Applying this framework to China, we first discuss the episode of financial instability that led policy-makers to re-segment the financial industry in 1995 and then analyse the rationale behind China's recent, gradual movement back towards integrated financial services provision. While improved risk management capabilities mean that China may now be ready for a more liberal banking scope regulatory regime, we find that a financial crisis could still derail this important element of China's financial sector reform strategy. Journal: Journal of Chinese Economic and Business Studies Pages: 385-405 Issue: 4 Volume: 6 Year: 2008 Keywords: financial regulation, integrated financial services, banking, China, X-DOI: 10.1080/14765280802431696 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280802431696 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:6:y:2008:i:4:p:385-405 Template-Type: ReDIF-Article 1.0 Author-Name: Chao Xi Author-X-Name-First: Chao Author-X-Name-Last: Xi Title: Foreign solutions for local problems? The use of US-style fiduciary duties to regulate agreed takeovers in China Abstract: The private sale of corporate control, or agreed takeover, of listed companies has been the primary form of control transactions in China. However, such takeovers have, in many cases, presented an opportunity for the control buyer and seller to extract value from the company at the expense of the target company's non-insider minority shareholders. One key legal development that attempts to address this issue is the imposition of US-style fiduciary duties on both incumbent and new controllers. This article argues that placing controllers under fiduciary duties has largely failed to protect the minority shareholders of Chinese listed companies from the exploitation of both the seller and buyer of corporate control. The failure is partly due to the weakness of the requisite complementary legal institutions, and partly due to the absence of a supporting social context. Journal: Journal of Chinese Economic and Business Studies Pages: 407-420 Issue: 4 Volume: 6 Year: 2008 Keywords: fiduciary duty, corporate control transactions, company law, China, X-DOI: 10.1080/14765280802431779 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280802431779 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:6:y:2008:i:4:p:407-420 Template-Type: ReDIF-Article 1.0 Author-Name: Matthieu Llorca Author-X-Name-First: Matthieu Author-X-Name-Last: Llorca Author-Name: Andre Meunie Author-X-Name-First: Andre Author-X-Name-Last: Meunie Title: SO2 emissions and the environmental Kuznets curve: the case of Chinese provinces Abstract: This paper aims at estimating the Environmental Kuznets Curve (EKC) for the sulphur dioxide (SO2) emissions in a panel of 28 Chinese provinces. First, using a fixed effects model, econometric findings reveal an N shape EKC with a turning point of 4500 yuans (index 1990). However, a Chow test reveals a break in 1995, so that the estimation of the model indicates an increasing linear relationship between GDP per capita and SO2 emissions. The previous results imply that the decrease of the Chinese sulphur dioxide emissions during 1996-1999 did not result from the ECK but from an exogenous public action. Journal: Journal of Chinese Economic and Business Studies Pages: 1-16 Issue: 1 Volume: 7 Year: 2009 Keywords: sulphur dioxide emissions, environmental Kuznets curve, Chinese provinces, fixed effect models, X-DOI: 10.1080/14765280802604656 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280802604656 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:7:y:2009:i:1:p:1-16 Template-Type: ReDIF-Article 1.0 Author-Name: Yu Chen Author-X-Name-First: Yu Author-X-Name-Last: Chen Title: What do we need besides trade? Abstract: Trade has been shown by many authors to have strong positive impact on productivity. However, we also see some others being more reserved about such an impact. This study intends to investigate whether trade is enough for better economic performance, or rather, whether the impact of trade depends on the quality of local institutions. Using a panel of China's provincial data, empirical estimation results show that the better the quality of local institutions, the stronger the positive impact of trade on total factor productivity. If local institutions did not reach a certain quality level, trade expansion could have a negative marginal effect on total factor productivity. Journal: Journal of Chinese Economic and Business Studies Pages: 17-30 Issue: 1 Volume: 7 Year: 2009 Keywords: trade, institutions, total factor productivity, China (Asia), X-DOI: 10.1080/14765280802604680 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280802604680 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:7:y:2009:i:1:p:17-30 Template-Type: ReDIF-Article 1.0 Author-Name: Mario Biggeri Author-X-Name-First: Mario Author-X-Name-Last: Biggeri Author-Name: Marco Sanfilippo Author-X-Name-First: Marco Author-X-Name-Last: Sanfilippo Title: Understanding China's move into Africa: an empirical analysis Abstract: An important new issue on the international scene is the upsurge in market and non-market South-South relations. The aim of this paper is to understand the dynamics that lie behind the recent Chinese move into Africa by empirically exploring the determinants of Sino-African relationships. In order to have a comprehensive picture, the analysis takes into consideration the main channels of commercial and political interactions: outward foreign direct investment (OFDI), trade and aid (international economic cooperation). The empirical analysis utilises a panel data set, from 1998 to 2005, for 43 African countries. The econometric estimates for three simultaneous equations are based on an instrumental variables method. Results show that the Chinese move into Africa is driven by strategic interaction among the three channels (FDI, trade and economic cooperation) as well as by pull factors, i.e. the characteristics of the receiving countries in terms of natural resource endowments and their market potential. Journal: Journal of Chinese Economic and Business Studies Pages: 31-54 Issue: 1 Volume: 7 Year: 2009 Keywords: China, Africa, FDI, trade, aid, X-DOI: 10.1080/14765280802604714 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280802604714 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:7:y:2009:i:1:p:31-54 Template-Type: ReDIF-Article 1.0 Author-Name: Rui Hao Author-X-Name-First: Rui Author-X-Name-Last: Hao Author-Name: Zheng Wei Author-X-Name-First: Zheng Author-X-Name-Last: Wei Title: Measuring inter-provincial income inequality in China: a sensitivity analysis Abstract: China's regional inequality is a hotly debated topic in the literature, but the fundamental issue of measurement has somehow escaped from the deliberations. In this paper, we select several commonly used income indicators, inequality indices and concepts to measure China's inter-provincial inequality and compare the results. We find China's inter-provincial inequality is very sensitive to different measurements. These sensitivity analyses help us to understand the ongoing debates on China's regional income inequality. We also conduct a cross-country comparison to illustrate the broad ranking of China's regional inequality in the world. We find that China's regional inequality appears not to be as high as usually perceived, despite approaching an alarming level. Journal: Journal of Chinese Economic and Business Studies Pages: 55-76 Issue: 1 Volume: 7 Year: 2009 Keywords: inter-provincial inequality, measurement, sensitivity, China, X-DOI: 10.1080/14765280802604722 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280802604722 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:7:y:2009:i:1:p:55-76 Template-Type: ReDIF-Article 1.0 Author-Name: Benu Bidani Author-X-Name-First: Benu Author-X-Name-Last: Bidani Author-Name: Niels-Hugo Blunch Author-X-Name-First: Niels-Hugo Author-X-Name-Last: Blunch Author-Name: Chor-Ching Goh Author-X-Name-First: Chor-Ching Author-X-Name-Last: Goh Author-Name: Christopher O'Leary Author-X-Name-First: Christopher Author-X-Name-Last: O'Leary Title: Evaluating job training in two Chinese cities Abstract: Recent years have seen a surge in work on the impacts of active labor market programs for numerous countries. However, little evidence has been presented on the effectiveness of such programs in China. Recent economic reforms, associated with massive lay-offs, and the accompanying public retraining programs make China fertile ground for rigorous impact evaluations. This study uses survey data from the two large industrial cities Shenyang and Wuhan, covering the period 1998 to 2000, to evaluate retraining programs for over 2000 workers two years after they had been observed as displaced and unemployed. Using a comparison group design, this study is, to our knowledge, the first evaluation of its kind in China. The evidence suggests that retraining helped workers find jobs in Wuhan, but had little effect in Shenyang. The study raises questions about the overall effectiveness of retraining expenditures, and it offers some directions for policy-makers about future interventions to help laid-off workers. Journal: Journal of Chinese Economic and Business Studies Pages: 77-94 Issue: 1 Volume: 7 Year: 2009 Keywords: active labor market programs, job training, impact evaluation, propensity score matching, China, X-DOI: 10.1080/14765280802604763 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280802604763 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:7:y:2009:i:1:p:77-94 Template-Type: ReDIF-Article 1.0 Author-Name: Xiao Sun Author-X-Name-First: Xiao Author-X-Name-Last: Sun Author-Name: Catharine Ross Author-X-Name-First: Catharine Author-X-Name-Last: Ross Title: The training of Chinese managers: a critical analysis of using overseas training for management development Abstract: Chinese policy makers are aware that developing China's managers is crucial to creating competitive advantage in the post-WTO period. Consequently, large numbers of Chinese managers have been sent abroad, particularly to Western and developed countries, on management training courses in order to bring new ideas and approaches to their organisations. This paper questions whether these training programmes have successfully achieved their objectives. An empirical study is adopted to invite the opinions of different stakeholder groups involved in the training process (526 participants). Specific characteristics of China's overseas management training are discussed and problem areas are also explored. Journal: Journal of Chinese Economic and Business Studies Pages: 95-113 Issue: 1 Volume: 7 Year: 2009 Keywords: overseas training, management development, China, X-DOI: 10.1080/14765280802604771 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280802604771 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:7:y:2009:i:1:p:95-113 Template-Type: ReDIF-Article 1.0 Author-Name: Shyh-Wei Chen Author-X-Name-First: Shyh-Wei Author-X-Name-Last: Chen Title: Investigating causality among unemployment, income and crime in Taiwan: evidence from the bounds test approach Abstract: This paper examines the long-run and causal relationships among unemployment, income and crime in Taiwan. The results clearly indicate that there is a long-run level equilibrium relationship among unemployment, income and total crime. There are also long-run relationships among unemployment, income and theft and among unemployment, income and economic fraud. The causality test results from the ECM-VAR and level VAR models indicate that there is a neutral relationship among unemployment, income and total crime, and a neutral relationship among unemployment, income and all three categories of crime. It is concluded that there is no strong evidence in favor of the unemployment-led crime (ULC) or the crime-led unemployment (CLU) hypotheses in Taiwan. Journal: Journal of Chinese Economic and Business Studies Pages: 115-125 Issue: 1 Volume: 7 Year: 2009 Keywords: crime, unemployment, bounds test, Granger causality, X-DOI: 10.1080/14765280802604797 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280802604797 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:7:y:2009:i:1:p:115-125 Template-Type: ReDIF-Article 1.0 Author-Name: Wei Zhang Author-X-Name-First: Wei Author-X-Name-Last: Zhang Author-Name: Xiaohui Liu Author-X-Name-First: Xiaohui Author-X-Name-Last: Liu Title: Introduction: Success and challenges: an overview of China's economic growth and reform since 1978 Abstract: Journal: Journal of Chinese Economic and Business Studies Pages: 127-138 Issue: 2 Volume: 7 Year: 2009 Keywords: China's economic reforms, economic growth, economic transition, X-DOI: 10.1080/14765280902847551 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280902847551 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:7:y:2009:i:2:p:127-138 Template-Type: ReDIF-Article 1.0 Author-Name: Wing Thye Woo Author-X-Name-First: Wing Thye Author-X-Name-Last: Woo Title: Updating China's international economic policy after 30 years of reform and opening: what position on regional and global economic architecture? Abstract: The 30 years of reform and opening have brought great material progress to China. By becoming a big country, China's actions created huge spillovers on other countries. The result has been a rise in trade tension between China and its trade partners. Recently, some have claimed that China's prolonged large trade surpluses have undermined global financial stability and tilted the world into a deep recession, if not a 1930s-style depression. Others have claimed that the greenhouse gases from China's industrialization would soon cause cataclysmic global climate change. One blunt but effective way to eliminate these negative spillovers is to restrict imports from China. Labor in the rich countries is under considerable stress because of the deep global structural adjustments brought by: (1) the integration of the labor force of China, India and the Soviet bloc into the world economy; and (2) the acceleration of technological innovations (as exemplified by the revolution in information technology). The new global equilibrium could be a win-win outcome for the world but the process of moving to it is a painful one. Protectionism to avoid the transitional pains is, however, likely to end up in a lose-lose outcome for the world. China must therefore, in its own interests, help to reduce international tension by updating its strategy of international economic engagement. China has to go beyond being a passive beneficiary of the WTO system to being an active promoter of WTO objectives. China should work with the US to bring Doha Rounds negotiations to a successful conclusion. China must also play a stronger and more constructive role in the forthcoming international talks on global climate change. China and India are simply too big to be exempted for a long time from national ceilings on the emission of greenhouse gases. China will have to face down its internal political opposition to replace the backward state-controlled financial system with a dynamic, but well-regulated, diversified private financial system in order to eliminate the odd phenomenon of a poor country lending to a rich country. For its neighborhood, China should push for an Asian Economic Union that takes the form of a WTO-plus free trade and open investment area that has regional pooling of foreign exchange reserves. Since there is no prospect of free labor mobility within East Asia, monetary integration would produce an economically inefficient outcome. East Asia should therefore be focusing its energy on creating as large a free trade area as possible, and forgo the unrealistic goal of a common Asian currency. Journal: Journal of Chinese Economic and Business Studies Pages: 139-166 Issue: 2 Volume: 7 Year: 2009 Keywords: US-China relations, protectionism, technological innovation, globalization, currency manipulation, Asian Economic Union, free trade area, monetary integration, X-DOI: 10.1080/14765280902847601 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280902847601 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:7:y:2009:i:2:p:139-166 Template-Type: ReDIF-Article 1.0 Author-Name: Xiaohui Liu Author-X-Name-First: Xiaohui Author-X-Name-Last: Liu Author-Name: Trevor Buck Author-X-Name-First: Trevor Author-X-Name-Last: Buck Title: The internationalisation strategies of Chinese firms: Lenovo and BOE Abstract: Theories of overseas investment and forms of internationalisation are reconsidered in the face of two exploratory, 'critical instance' case studies collected in China from Lenovo and BOE. The two cases tentatively suggest refinements to conventional OFDI theories that see internationalisation in two important MNEs from China as being driven by factors such as ownership advantages and low labour costs at overseas locations. In terms of entry modes, it would appear that latecomer multinationals from emerging economies may aim to build global strategic linkages, seek new markets and obtain advanced technology, through foreign ventures that are accelerated quickly through entry modes towards acquisitions. Journal: Journal of Chinese Economic and Business Studies Pages: 167-181 Issue: 2 Volume: 7 Year: 2009 Keywords: internationalisation, Chinese MNEs, strategic linkages, X-DOI: 10.1080/14765280902847627 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280902847627 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:7:y:2009:i:2:p:167-181 Template-Type: ReDIF-Article 1.0 Author-Name: Adam Blake Author-X-Name-First: Adam Author-X-Name-Last: Blake Author-Name: Ziliang Deng Author-X-Name-First: Ziliang Author-X-Name-Last: Deng Author-Name: Rod Falvey Author-X-Name-First: Rod Author-X-Name-Last: Falvey Title: How does the productivity of foreign direct investment spill over to local firms in Chinese manufacturing? Abstract: We use a firm-level dataset for Chinese manufacturing, to estimate productivity spillovers from foreign direct investment (FDI) to local firms. The spillover channels considered include inter-firm labour turnover/mobility; vertical input-output linkages; exporting externalities; and horizontal effects. The roles of these channels are dependent on various factors including export propensity, R&D expenditure per capita, employee training, and ownership structure. We find that export of multinational enterprises (MNEs) is the most prominent spillover channel. Labour turnover and horizontal demonstration and competition bring positive spillovers to SOEs but not to local private firms. Vertical linkages are not found to be significant. Journal: Journal of Chinese Economic and Business Studies Pages: 183-197 Issue: 2 Volume: 7 Year: 2009 Keywords: productivity spillover, foreign direct investment (FDI), labour mobility/turnover, linkages, export, X-DOI: 10.1080/14765280902847676 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280902847676 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:7:y:2009:i:2:p:183-197 Template-Type: ReDIF-Article 1.0 Author-Name: Zhi Shen Author-X-Name-First: Zhi Author-X-Name-Last: Shen Author-Name: Hailin Liao Author-X-Name-First: Hailin Author-X-Name-Last: Liao Author-Name: Thomas Weyman-Jones Author-X-Name-First: Thomas Author-X-Name-Last: Weyman-Jones Title: Cost efficiency analysis in banking industries of ten Asian countries and regions Abstract: Despite the great achievement of three decades of economic reform, the Chinese banking sector takes the blame for its dysfunctional system, especially the large amount of non-performing loans. The ease of foreign banks' entry set by the WTO from December 2007 raises our concern of the capability of domestic banks to compete against foreign Asian banks. This study attempts to address this issue by measuring the cost efficiency of ten major Asian banking industries from 1998 to 2005 using panel data stochastic frontier approaches. Based on our preferred consistent panel data estimating models, the higher cost efficiency score from including cross-country environmental variables suggests that differences between countries can explain part of the inefficiency. We also find that the overall cost efficiency level of Chinese commercial banks ranks in the fifth place, suggesting that Chinese banks still need to strengthen their ability in competition. Some policy implications are also suggested. Journal: Journal of Chinese Economic and Business Studies Pages: 199-218 Issue: 2 Volume: 7 Year: 2009 Keywords: stochastic frontier approach, panel data, banking efficiency, X-DOI: 10.1080/14765280902847734 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280902847734 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:7:y:2009:i:2:p:199-218 Template-Type: ReDIF-Article 1.0 Author-Name: Tuuli Koivu Author-X-Name-First: Tuuli Author-X-Name-Last: Koivu Author-Name: Aaron Mehrotra Author-X-Name-First: Aaron Author-X-Name-Last: Mehrotra Author-Name: Riikka Nuutilainen Author-X-Name-First: Riikka Author-X-Name-Last: Nuutilainen Title: An analysis of Chinese money and prices using a McCallum-type rule Abstract: This paper evaluates the usefulness of a McCallum-type monetary policy rule based on money supply for maintaining price stability in mainland China. We examine whether excess money relative to rule-based values provides information that improves the forecasting of price developments. The results suggest that our monetary variable helps in predicting both consumer and corporate goods price inflation, but the results for consumer prices depend on the forecasting period. Moreover, results using a structural vector autoregression suggest that our measure of excess money supply could be used to identify monetary policy shocks in the Chinese economy. Journal: Journal of Chinese Economic and Business Studies Pages: 219-235 Issue: 2 Volume: 7 Year: 2009 Keywords: McCallum rule, monetary policy, China, X-DOI: 10.1080/14765280902847742 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280902847742 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:7:y:2009:i:2:p:219-235 Template-Type: ReDIF-Article 1.0 Author-Name: Heiner Flassbeck Author-X-Name-First: Heiner Author-X-Name-Last: Flassbeck Author-Name: Massimiliano La Marca Author-X-Name-First: Massimiliano Author-X-Name-Last: La Marca Title: Currency speculation, domestic and international monetary systems: reforming China's and the global financial architecture Abstract: China has undergone a deep, although gradual, process of reform of its financial system and exchange rate regime while avoiding large speculative inflows and uncontrolled real appreciation through non-monetary anti-inflationary policies, low interest rates and capital account controls. These policies remain of crucial importance while the country is strengthening its domestic financial system and its exchange rate market, but they should be supported by internationally coordinated policies and cooperative monetary schemes to reduce global imbalances and destabilizing cross-currency speculation. Journal: Journal of Chinese Economic and Business Studies Pages: 237-258 Issue: 2 Volume: 7 Year: 2009 Keywords: foreign exchange, interest rate parity, global imbalances, currency carry trade, X-DOI: 10.1080/14765280902847775 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280902847775 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:7:y:2009:i:2:p:237-258 Template-Type: ReDIF-Article 1.0 Author-Name: Thomas Gries Author-X-Name-First: Thomas Author-X-Name-Last: Gries Author-Name: Margarethe Redlin Author-X-Name-First: Margarethe Author-X-Name-Last: Redlin Title: China's provincial disparities and the determinants of provincial inequality Abstract: The paper explains the growth-inequality nexus for China's provinces. The theoretical model of provincial development consists of two regions and studies the interactions of a mutually dependent development process. Owing to positive externalities, incoming trade and FDI induce imitation and hence productivity growth. The regional government can influence the economy by changing international transaction costs and providing a public infrastructure. Mobile domestic capital reinforces disparity effects. The implications of the theoretical model are tested. As the central intention of the paper is to explain provincial disparity, we directly relate income disparity (indicated by the contribution to the per capita income Theil index) to the disparity of selected income determining factors (indicated by the contribution to every other Theil index of the determinants). We examine the determinants of inequality for 28 Chinese provinces over the period 1991-2004 and apply a fixed effects panel estimation. The results confirm the theoretical framework and suggest a direct link between the factors that determine regional income and regional disparity. More specifically, it is apparent that disparities in trade, foreign and domestic capital and infrastructure have an impact on the provincial income Theil disparity, whereas provincial disparities in government expenditure and human capital do not seem to drive the income Theil disparity. Therefore, three decades of government reforms led to an extraordinary success of some provinces and increasing inequality. However, government expenditures and public human capital investments seemed to have a stabilizing effect on provincial disparity. Journal: Journal of Chinese Economic and Business Studies Pages: 259-281 Issue: 2 Volume: 7 Year: 2009 Keywords: regional development, FDI, international integration, China, X-DOI: 10.1080/14765280902847783 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280902847783 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:7:y:2009:i:2:p:259-281 Template-Type: ReDIF-Article 1.0 Author-Name: Yuning Gao Author-X-Name-First: Yuning Author-X-Name-Last: Gao Author-Name: Angang Hu Author-X-Name-First: Angang Author-X-Name-Last: Hu Title: A comparative study of the development mode of China's iron and steel industry Abstract: The development of China's iron and steel industry (ISI) is an important indication of China's industrialization. This paper analyses the industry from the perspectives of historical retrospect, international comparison and sustainable development. We find that China's ISI has made huge progress at the technical level. During the same period of time its over-consumption of resources and impact on the environment has dropped. However, compared with other main developed steel producers, there is still a big gap. Besides, its openness is still much lower than those of other countries. Journal: Journal of Chinese Economic and Business Studies Pages: 283-297 Issue: 3 Volume: 7 Year: 2009 Keywords: China's iron and steel industry, development mode, comparative study, X-DOI: 10.1080/14765280903073090 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280903073090 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:7:y:2009:i:3:p:283-297 Template-Type: ReDIF-Article 1.0 Author-Name: Anders Johansson Author-X-Name-First: Anders Author-X-Name-Last: Johansson Title: An analysis of dynamic risk in the Greater China equity markets Abstract: This study looks at the time-varying nature of systematic risk in the Greater China equity markets. The Shanghai and Shenzhen markets both have a low average systematic risk when measured against the world market. The short outbursts in systematic risk for these two markets seem to be directly related to policy shifts. The Hong Kong and Taiwan markets are more integrated with world markets and they show signs of large variations in systematic risk over time. Furthermore, conditional betas in the Shanghai and Shenzhen markets are stationary, while the Hong Kong and Taiwan betas are integrated of order one. In addition, long memory tests show that all four markets exhibit a long-run dependence in their conditional betas. While the two mainland China market betas are covariance stationary, the Hong Kong and Taiwan betas are not. Journal: Journal of Chinese Economic and Business Studies Pages: 299-320 Issue: 3 Volume: 7 Year: 2009 Keywords: Greater China, time-varying beta, multivariate GARCH, unit roots, long memory, X-DOI: 10.1080/14765280903073165 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280903073165 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:7:y:2009:i:3:p:299-320 Template-Type: ReDIF-Article 1.0 Author-Name: Jian Zhang Author-X-Name-First: Jian Author-X-Name-Last: Zhang Author-Name: Sandeep Mohapatra Author-X-Name-First: Sandeep Author-X-Name-Last: Mohapatra Author-Name: Steve Boucher Author-X-Name-First: Steve Author-X-Name-Last: Boucher Author-Name: Scott Rozelle Author-X-Name-First: Scott Author-X-Name-Last: Rozelle Title: Regulation of local governments and enterprise formation in rural China Abstract: With the rise of the private sector in rural China, power has been shifting from the hands of local government officials to the hands of entrepreneurs. In this situation, economic theory offers two opposing predictions regarding how local governments will react to the attrition of power: the economic losers hypothesis (local governments will resist change because it threatens their economic rents) and the helping hand hypothesis (incentives of local government are aligned with the change, limiting resistance). We econometrically test the two hypotheses using a nationally representative sample of data on almost 2500 villages in rural China. Our findings provide strong support for the economic losers hypothesis - local governments resist competition that emerges with the rise of private firms using discriminatory regulation. Our findings suggest that entrepreneurial policies that encourage an impartial regulatory environment for different types of enterprises in rural China may have long run efficiency implication for China's economy. However, left on their own, local governments may not have an incentive to promote such reforms. Journal: Journal of Chinese Economic and Business Studies Pages: 321-339 Issue: 3 Volume: 7 Year: 2009 Keywords: firm, governance, entrepreneurial policy, China, X-DOI: 10.1080/14765280903073199 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280903073199 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:7:y:2009:i:3:p:321-339 Template-Type: ReDIF-Article 1.0 Author-Name: Fung Kwan Author-X-Name-First: Fung Author-X-Name-Last: Kwan Title: Agricultural labour and the incidence of surplus labour: experience from China during reform Abstract: This paper contributes to the pool of studies of rural underemployment and revisits a number of estimates of surplus agricultural labour in China. The study is devoted to the conceptualization, identification and measurement of surplus at regional, provincial and national levels by a stochastic frontier functional specification. The analysis indicates that the existing size of agricultural surplus labour is still significantly large with the continued practice of the household registration system and China's WTO membership. Journal: Journal of Chinese Economic and Business Studies Pages: 341-361 Issue: 3 Volume: 7 Year: 2009 Keywords: surplus labour, Chinese agricultural labour, stochastic frontier, X-DOI: 10.1080/14765280903073215 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280903073215 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:7:y:2009:i:3:p:341-361 Template-Type: ReDIF-Article 1.0 Author-Name: Russell Smyth Author-X-Name-First: Russell Author-X-Name-Last: Smyth Author-Name: Qingguo Zhai Author-X-Name-First: Qingguo Author-X-Name-Last: Zhai Author-Name: Xiaoxu Li Author-X-Name-First: Xiaoxu Author-X-Name-Last: Li Title: The impact of gender differences on determinants of job satisfaction among Chinese off-farm migrants in Jiangsu Abstract: This study examines the effect of own income versus reference group income and the subjective factors considered important in a job for a sample of off-farm migrants in China. We find that own income has a positive effect on job satisfaction while the effect of reference group income is gender specific. We find evidence that males experience a tunnelling effect (higher income co-workers increase their job satisfaction) while females experience a jealousy effect (higher income co-workers lower their job satisfaction). We explain this result in terms of men reacting more positively in competitive environments and that, in China, males have better prospects for promotion. We find that compared with employees in western countries, off-farm migrants in China place much more emphasis on income and less importance on collegiality and job stability. Journal: Journal of Chinese Economic and Business Studies Pages: 363-380 Issue: 3 Volume: 7 Year: 2009 Keywords: China, migrants, job satisfaction, X-DOI: 10.1080/14765280903073256 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280903073256 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:7:y:2009:i:3:p:363-380 Template-Type: ReDIF-Article 1.0 Author-Name: Gang Liu Author-X-Name-First: Gang Author-X-Name-Last: Liu Title: The paths of relative steady states of several economies Abstract: In this paper, an economy means a national economy; an economy's relative steady state means an economy's steady state of per-capita output relative to the mean of those of a broad set of economies. This paper provides a method used not only to get the path of an economy's relative steady state, but also to assess whether an economy's relative steady state changed between two given periods and whether an economy's relative steady state in a given period differed from another economy's in the same or a different given period. This paper also shows the paths of relative steady states of six economies (China, India, South Korea, Taiwan, Japan and USA) using the estimates of their relative steady states in four successive periods (1960s, 1970s, 1980s and 1990s). A comparison of the paths gives valuable information. Journal: Journal of Chinese Economic and Business Studies Pages: 381-400 Issue: 3 Volume: 7 Year: 2009 Keywords: steady state, relative steady state, test of the hypothesis of conditional convergence, Wald test, social infrastructure, X-DOI: 10.1080/14765280903073272 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280903073272 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:7:y:2009:i:3:p:381-400 Template-Type: ReDIF-Article 1.0 Author-Name: Yingqi Wei Author-X-Name-First: Yingqi Author-X-Name-Last: Wei Author-Name: Chengang Wang Author-X-Name-First: Chengang Author-X-Name-Last: Wang Title: Understanding China's international economic integration Abstract: Journal: Journal of Chinese Economic and Business Studies Pages: 401-408 Issue: 4 Volume: 7 Year: 2009 Keywords: Chinese economy, trade, foreign direct investment, diaspora, economic integration, X-DOI: 10.1080/14765280903332272 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280903332272 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:7:y:2009:i:4:p:401-408 Template-Type: ReDIF-Article 1.0 Author-Name: Hua Wang Author-X-Name-First: Hua Author-X-Name-Last: Wang Author-Name: Jingjing Yang Author-X-Name-First: Jingjing Author-X-Name-Last: Yang Author-Name: Mingyong Lai Author-X-Name-First: Mingyong Author-X-Name-Last: Lai Title: Export behaviour and firm productivity in China Abstract: This study examines whether exporters become more productive through estimating a production function using Chinese firm-level data from 1997 to 2000. The results indicate that exporters are more productive and, more importantly, that export strategies promote the productivity of these firms. The test for the relative timing of export behaviour and gains in productivity provides strong evidence for the existence of learning-by-exporting effects rather than self-selection effects. These results are robust when controlling simultaneous bias and selection bias by using a fixed-effects model, SYS-GMM estimation and semi-parametric estimation. Journal: Journal of Chinese Economic and Business Studies Pages: 409-428 Issue: 4 Volume: 7 Year: 2009 Keywords: export, self-selection, learning-by-exporting, estimation bias, X-DOI: 10.1080/14765280903332223 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280903332223 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:7:y:2009:i:4:p:409-428 Template-Type: ReDIF-Article 1.0 Author-Name: Jingjing Yang Author-X-Name-First: Jingjing Author-X-Name-Last: Yang Author-Name: Helian Xu Author-X-Name-First: Helian Author-X-Name-Last: Xu Author-Name: Chengang Wang Author-X-Name-First: Chengang Author-X-Name-Last: Wang Author-Name: Mingyong Lai Author-X-Name-First: Mingyong Author-X-Name-Last: Lai Author-Name: Yingqi Wei Author-X-Name-First: Yingqi Author-X-Name-Last: Wei Title: Productivity spillovers from foreign direct investment in Chinese industries Abstract: This paper investigates productivity spillover effects of FDI and relates it to the capital- or labour-intensive nature of the industry. Using a panel data set of 35 industries in China, it shows that the presence and magnitude of FDI spillover effects vary by different channels and the nature of the industry. On average, FDI has no horizontal spillover effects but has positive backward linkage effects. However, there are substantial differences in FDI spillover effects via demonstration, competition and labour mobility between capital- and labour-intensive industries. The findings have important policy implications. Journal: Journal of Chinese Economic and Business Studies Pages: 429-446 Issue: 4 Volume: 7 Year: 2009 Keywords: FDI, horizontal and vertical linkages, capital- and labour-intensive industries, X-DOI: 10.1080/14765280903332314 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280903332314 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:7:y:2009:i:4:p:429-446 Template-Type: ReDIF-Article 1.0 Author-Name: Yabin Zhang Author-X-Name-First: Yabin Author-X-Name-Last: Zhang Author-Name: Jiang Wu Author-X-Name-First: Jiang Author-X-Name-Last: Wu Author-Name: Hongshan Ai Author-X-Name-First: Hongshan Author-X-Name-Last: Ai Title: The technology gap and the limit of imitation: An inspection of the strategy of 'exchanging market for technology' Abstract: Has China's strategy of 'exchanging market for technology' been successful? This paper analyses the effectiveness of this strategy based on the duopoly model of vertical product differentiation by Choi and Shin (1992). It is shown that the outcome is influenced by technology gap and absorptive capacity. The profit of a developing country firm shows an inverted U-shaped relationship with its technology level when holding the foreign firm's technology level constant. In the process of technology improvement by imitation, the developing country firm faces a limit on imitation. A developing country may benefit from the strategy of 'exchanging market for technology' at the early stage and needs to bring in FDI with advanced technology so that it can overcome restraints from the limit of imitation. For one with a smaller technology gap with the home country of FDI, the country in the long run has to achieve technological progress through innovation. Journal: Journal of Chinese Economic and Business Studies Pages: 447-455 Issue: 4 Volume: 7 Year: 2009 Keywords: 'exchanging market for technology' strategy, technology gap, limit of imitation, innovation, X-DOI: 10.1080/14765280903332330 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280903332330 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:7:y:2009:i:4:p:447-455 Template-Type: ReDIF-Article 1.0 Author-Name: Wei Song Author-X-Name-First: Wei Author-X-Name-Last: Song Author-Name: Weiyue Wang Author-X-Name-First: Weiyue Author-X-Name-Last: Wang Title: Asian currency union? An investigation into China's membership with other Asian countries Abstract: This paper applies Optimum Currency Area (OCA) theory to investigate the suitability of Asian currency union and its membership, in which China is taken as the central country. Cluster analysis is applied for this study. Both hierarchical clustering and fuzzy clustering approaches are used. The study finds that Japan, Korea, Hong Kong, Malaysia, Philippines, Singapore, Thailand, Cambodia and Vietnam are most converged with China, and these countries are more likely to be the member countries of the Asian Currency Union. Journal: Journal of Chinese Economic and Business Studies Pages: 457-476 Issue: 4 Volume: 7 Year: 2009 Keywords: Asian currency union, China, OCA theory, cluster analysis, X-DOI: 10.1080/14765280903332298 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280903332298 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:7:y:2009:i:4:p:457-476 Template-Type: ReDIF-Article 1.0 Author-Name: Hao Xiao Author-X-Name-First: Hao Author-X-Name-Last: Xiao Author-Name: Shujin Zhu Author-X-Name-First: Shujin Author-X-Name-Last: Zhu Author-Name: Lafang Wang Author-X-Name-First: Lafang Author-X-Name-Last: Wang Title: Will the financial crisis become the turning point for China's auto industry? A dynamic computable general equilibrium analysis with imperfect competition Abstract: Following the substantial damage from the financial crisis in 2008, can China's auto industry successfully take up new challenges and grasp the opportunities ahead? First and foremost, this paper summarises the ways that the financial crisis has impacted upon China's economy. By analysing the impacts based on the MCHUGE model, the paper concludes that reductions in export demand and consumption expectations have limited impact on China's auto industry, while the comparative reduction in investment expectations has a great impact on China's auto industry. The paper builds the MCHUGE model with imperfect competition in order to assess whether China's auto industry, characterised as an oligopoly, could successfully accept such a challenge. The conclusion of this paper indicates that the damage to China's auto industry caused by the financial crisis would appear even more serious if the static effect of an oligopoly was the only consideration. Finally, by simulating the implementation of the Revitalisation Plans of the Automobile Industry, it is concluded that the revitalisation policy aims to boost auto consumption and will thus bring new opportunities for China's auto industry; on the other hand, the mergers and acquisitions between and among auto industries, as well as the relevant potential technology progress and the popularisation of new energy automobiles, will further promote the development of China's auto industry. Journal: Journal of Chinese Economic and Business Studies Pages: 477-497 Issue: 4 Volume: 7 Year: 2009 Keywords: financial crisis, China's auto industry, imperfect competition, CGE, X-DOI: 10.1080/14765280903332249 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280903332249 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:7:y:2009:i:4:p:477-497 Template-Type: ReDIF-Article 1.0 Author-Name: Gang Liu Author-X-Name-First: Gang Author-X-Name-Last: Liu Title: The paths of relative steady states of several economies Abstract: Journal: Journal of Chinese Economic and Business Studies Pages: 499-499 Issue: 4 Volume: 7 Year: 2009 X-DOI: 10.1080/14765280903467235 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280903467235 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:7:y:2009:i:4:p:499-499 Template-Type: ReDIF-Article 1.0 Author-Name: Yiping Zhu Author-X-Name-First: Yiping Author-X-Name-Last: Zhu Title: Trade, capital flows and external balance: is China unique in two hundred years of globalisation? Abstract: This study examines China's growth patterns through its exports, foreign capital inflows, balance of payments and terms of trade, and projects them into a comparative framework. It brings together, for the first time, various sources of historical data from the first globalisation era, relating to four of the most industrialised economies - the UK, the US, Germany and Japan. By comparison, it finds that China's trade expansion has no doubt exceeded that of any of the industrialised economies in the first globalisation era; however, this trade boom is a characteristic of post-war globalisation. Large capital inflows, surplus in both current and capital accounts, and the negative correlation between terms of trade and exports are not unique Chinese phenomena in the history of globalisation. However, China's trade liberalisation, industrialisation policy, FDI strategy and cautious foreign exchange policy have all contributed to the exploitation of the positive effects of globalisation. Journal: Journal of Chinese Economic and Business Studies Pages: 1-22 Issue: 1 Volume: 8 Year: 2010 Keywords: globalisation, exports, foreign direct investment, dual surplus, terms of trade, X-DOI: 10.1080/14765280903488322 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280903488322 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:8:y:2010:i:1:p:1-22 Template-Type: ReDIF-Article 1.0 Author-Name: Jens Kaalhauge Nielsen Author-X-Name-First: Jens Kaalhauge Author-X-Name-Last: Nielsen Title: The flower that didn't bloom: why did the industrial revolution happen in Europe and not in China? Abstract: This paper throws light on the question: why did the industrial revolution happen in the West and not in China? The key to an understanding of the development of China's civilization lies in the way China historically has been characterized by a peculiar 'freeze' of the cultural-political axis of societal differentiation. It's most direct manifestation was that of a monolith state. This had implications for the cognitive matrix of society, where a modern scientific system never developed, while at the same time China's rich sources of inventions were often poorly institutionalized. These flaws were also manifest in the weakness of Chinese civil society. Historically, this development can be traced back to the Shang dynasty yet these processes reached a crystallizing moment in the Qin dynasty. In the case of Europe, two seed-bed societies, the Greek and the Germanic tribes, played the key roles in safeguarding Europe's trajectory. One essential prerequisite in this process is the lack of cultural and political hegemony characterizing Europe's history. By this token, the fall of the Roman Empire and the rise of a system of fragmented Germanic kingdoms in the initial years of the Middle Ages were fundamental prerequisites for Europe's road toward an industrial revolution. Journal: Journal of Chinese Economic and Business Studies Pages: 23-44 Issue: 1 Volume: 8 Year: 2010 Keywords: China, Europe, the industrial revolution, socio-cultural evolution, cultural lag, civil society, X-DOI: 10.1080/14765280903488330 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280903488330 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:8:y:2010:i:1:p:23-44 Template-Type: ReDIF-Article 1.0 Author-Name: Ya Ping Yin Author-X-Name-First: Ya Ping Author-X-Name-Last: Yin Author-Name: Jianlu Shang Author-X-Name-First: Jianlu Author-X-Name-Last: Shang Author-Name: Mick Broadbent Author-X-Name-First: Mick Author-X-Name-Last: Broadbent Title: Efficiency measurement and decomposition for the Chinese state-owned commercial banks at the provincial level Abstract: This study adopts a bank production function approach to the measurement of efficiency of the Chinese state-owned commercial banking groups at the provincial level from 1998 to 2003. Applying Data Envelopment Analysis and efficiency decomposition analysis, this paper for the first time presents detailed empirical evidence on the technical efficiencies of the Chinese state-owned commercial banks across both the provinces and banking groups. The empirical evidence has revealed limited effects of the banking reform programmes and highlighted the need to encourage spatial competition and corporate governance reform across Chinese provinces and to take differential strategies to further improve operational efficiency at the provincial branch level. Journal: Journal of Chinese Economic and Business Studies Pages: 45-65 Issue: 1 Volume: 8 Year: 2010 Keywords: banking efficiency measurement, DEA, efficiency decomposition, Chinese SOCBs, X-DOI: 10.1080/14765280903488348 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280903488348 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:8:y:2010:i:1:p:45-65 Template-Type: ReDIF-Article 1.0 Author-Name: Li Qi Author-X-Name-First: Li Author-X-Name-Last: Qi Title: Capital flows and domestic market integration in China Abstract: This paper examines whether reforms have created a substantial commercial sector with market characteristics in China's financial system. Many studies conclude that the operation of China's capital markets lacks market features, resulting in fragmentation. Yet, this lack of integration coincides with rapid and continuous economic growth. We study the dynamic pattern of domestic capital mobility with a unique data set on provincial savings and investment, which allows us to examine components as well as aggregates. After stripping out foreign and officially influenced funds, we find that the behavior of capital flows in what we define as China's commercial sector looks increasingly like that of interstate flows in the US and other advanced nations. Tracking the direction and size of capital flows also highlights the different behavior of commercial and non-commercial funds transfers in China. This result undercuts the widespread view of China's economy as lacking domestic integration. Journal: Journal of Chinese Economic and Business Studies Pages: 67-94 Issue: 1 Volume: 8 Year: 2010 Keywords: China's economy, capital market, financial integration, X-DOI: 10.1080/14765280903488355 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280903488355 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:8:y:2010:i:1:p:67-94 Template-Type: ReDIF-Article 1.0 Author-Name: T. Thanh-Binh Nguyen Author-X-Name-First: T. Thanh-Binh Author-X-Name-Last: Nguyen Author-Name: Kuan-Min Wang Author-X-Name-First: Kuan-Min Author-X-Name-Last: Wang Title: Causality between housing returns, inflation and economic growth with endogenous breaks Abstract: This paper investigates the housing-macroeconomic nexus in Taiwan with endogenous structural breaks during 1991-2006. GDP and CPI are taken into consideration for examining the inflation hedging ability of Taiwan's housing returns and the contribution of the housing market to economic growth. The empirical results show that the growth of GDP actually affects inflation, but it does not cause the growth in housing returns. In particular, when taking the time trend into account, it is found that the effect of inflation on housing returns is negative and the effect of housing returns on inflation is positive. This evidence demonstrates the ineffectiveness of inflation hedging of Taiwan's housing during the period of study and the opportunistic characteristic of investors. In addition, the growth of the housing market is not beneficial for economic growth in the long-run, yet it leads to higher inflation in the short-run. Journal: Journal of Chinese Economic and Business Studies Pages: 95-115 Issue: 1 Volume: 8 Year: 2010 Keywords: housing returns, inflation hedge, economic growth, structural breaks, Taiwan, X-DOI: 10.1080/14765280903488397 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765280903488397 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:8:y:2010:i:1:p:95-115 Template-Type: ReDIF-Article 1.0 Author-Name: Linda Yueh Author-X-Name-First: Linda Author-X-Name-Last: Yueh Title: Thirty years of legal and economic reform in China: growth, institutions, and laws Abstract: China's impressive economic growth over three decades has seemingly occurred in the absence of a strong legal system. This paper views China's reform process over the past three decades as one that has entailed a gradual introduction of market forces into areas of the economy, which requires both dismantling the structure of the centrally planned economy and developing market-oriented institutions. This paper argues that China's transition is premised on a set of informal, and increasingly formal, institutions that provided incentives during the process of gradual liberalization. Therefore, institutional developments were not absent. The exploration of the interplay between growth and institutions leads to the conclusion that continued economic growth in China will depend on implementing legal reforms better suited to the nature of the decentralized economy, hastened by the introduction of international economic laws and rules with greater global integration. Journal: Journal of Chinese Economic and Business Studies Pages: 117-132 Issue: 2 Volume: 8 Year: 2010 Keywords: China, economic growth, institutions, X-DOI: 10.1080/14765281003750157 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765281003750157 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:8:y:2010:i:2:p:117-132 Template-Type: ReDIF-Article 1.0 Author-Name: Lingwen Huang Author-X-Name-First: Lingwen Author-X-Name-Last: Huang Author-Name: Yang Yao Author-X-Name-First: Yang Author-X-Name-Last: Yao Title: Impacts of privatization on employment: evidence from China Abstract: This paper evaluates the impact of privatization on firm employment using a panel dataset of 386 firms in China in the period 1995-2001. Our panel regressions find that employment drops more slowly in privatized firms than in pure state-owned firms by a margin of 17.7 percentage points over the base year of 1995. We also study the dynamic impacts of privatization on employment growth and find that the performance of privatized firms improves over time. Using the difference-in-difference propensity score matching method, we arrive at similar results. To test the robustness of our conclusions, we use alternative definitions of privatization and find that the impacts of privatization on employment are independent of the definition of privatization. These findings are robust even after we control other performance and financial variables as well as the pre-privatization employment history of privatized firms. Journal: Journal of Chinese Economic and Business Studies Pages: 133-156 Issue: 2 Volume: 8 Year: 2010 Keywords: privatization, employment, propensity score matching, X-DOI: 10.1080/14765281003750199 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765281003750199 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:8:y:2010:i:2:p:133-156 Template-Type: ReDIF-Article 1.0 Author-Name: Karsten von Kleist Author-X-Name-First: Karsten Author-X-Name-Last: von Kleist Title: Migrant happiness in China Abstract: In China, surveys find that migrant households' average happiness (compared with rural households) is lower despite higher income. These findings appear to contradict the standard microeconomic utility function, which predicts that higher income will always result in higher utility. We show that an intuitively plausible modification of the utility function, relating income to status and security utility, preserves standard microeconomic maximization results, and also provides a consistent explanation for the empirical findings on happiness. These results lead to some novel but intuitively plausible implications for economic development in China and elsewhere. Journal: Journal of Chinese Economic and Business Studies Pages: 157-166 Issue: 2 Volume: 8 Year: 2010 Keywords: China, migrant utility, status, security, Easterlin paradox, X-DOI: 10.1080/14765281003750207 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765281003750207 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:8:y:2010:i:2:p:157-166 Template-Type: ReDIF-Article 1.0 Author-Name: Chaohong Zhou Author-X-Name-First: Chaohong Author-X-Name-Last: Zhou Title: Toward an institutional ecology of establishment of foreign firms in the Chinese construction industry Abstract: In the current study, an integration of insights from institutional theory and organization ecology is used to explain the relationship between industry-level ownership structure and the establishment of foreign invested firms in the Chinese construction industry. It is argued that in a stated-owned enterprises dominated environment, where the market forces are weak, legitimation is the major driving force harming the proliferation of foreign firms, whereas in a private-enterprise dominated environment, where the market forces are strong, competition is the major driving force inhibiting the viability of foreign firms. Thus, concentration of either state ownership, implying lower legitimation of the foreign firm form, or concentration of private ownership, triggering tough competition from domestic private firms, is hypothesized to have a negative impact on the number of foreign firms. Using a regional data set from 1994 to 2007, estimation of a cross-section-time series model largely confirms our theoretical claims. Journal: Journal of Chinese Economic and Business Studies Pages: 167-184 Issue: 2 Volume: 8 Year: 2010 Keywords: institution theory, organization ecology, legitimation, competition, China, X-DOI: 10.1080/14765281003750223 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765281003750223 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:8:y:2010:i:2:p:167-184 Template-Type: ReDIF-Article 1.0 Author-Name: Yi-Chein Chiang Author-X-Name-First: Yi-Chein Author-X-Name-Last: Chiang Author-Name: Jing-Syue Lin Author-X-Name-First: Jing-Syue Author-X-Name-Last: Lin Title: A study of the capital structure of Taiwanese firms investing in China Abstract: We use the panel threshold regression model to examine the capital structure decision of Taiwanese firms investing in China for the period 2000 to 2006. Results of the entire sample reveal that a firm's debt ratio decreases as foreign direct investments (FDIs) in China increase when firms have low FDIs but becomes insignificant when firms have high FDIs in China. When we examine Taiwanese firms having FDIs in China and in other developed countries, their debt ratios increase as FDIs in China increase. In contrast, their debt ratios decline when Taiwanese firms with FDIs in China and in other developing countries are considered. Our results imply that the capital structure of Taiwanese firms depends on the overall portfolio risk of their investments. Journal: Journal of Chinese Economic and Business Studies Pages: 185-201 Issue: 2 Volume: 8 Year: 2010 Keywords: FDIs in China, capital structure, panel threshold regression model, bootstrap method, upstream-downstream hypothesis, X-DOI: 10.1080/14765281003750231 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765281003750231 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:8:y:2010:i:2:p:185-201 Template-Type: ReDIF-Article 1.0 Author-Name: Liming Wang Author-X-Name-First: Liming Author-X-Name-Last: Wang Author-Name: Jinghai Zheng Author-X-Name-First: Jinghai Author-X-Name-Last: Zheng Title: China and the changing landscape of the world economy Abstract: The rapid development of emerging markets is changing the landscape of the world economy and may have profound implications for international relations. China is often regarded as the most influential emerging market economy because, during the last three decades, it has become increasingly integrated into the world economic system and its success and failure now affect the well-being of other nations in the world. As the financial crisis in the US and EU intensifies, the economic prosperity of the world depends to a large extent on the sustained development of the Chinese economy and other emerging markets, and vice versa. Journal: Journal of Chinese Economic and Business Studies Pages: 203-214 Issue: 3 Volume: 8 Year: 2010 Keywords: Chinese economy, China's model, economic integration, X-DOI: 10.1080/14765284.2010.493637 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2010.493637 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:8:y:2010:i:3:p:203-214 Template-Type: ReDIF-Article 1.0 Author-Name: Baocheng Ji Author-X-Name-First: Baocheng Author-X-Name-Last: Ji Title: China's economic recovery and the China model Abstract: Starting with the US subprime crisis, the world has fallen into the most severe economic crisis since the Great Depression. Unlike other major nations, China was the first to recover from the economic downturn. Researchers and policymakers have begun to wonder if China could actually bring the world out of the financial crisis. This paper intends to contribute to the discussion relating China's outstanding economic performance with reference to the 'China model'. China has recently managed to escape from the world economic recession and demonstrated a strong tendency for full recovery. The core reason lies in the fact that the Chinese system is characterized with a unique mechanism of resource allocation, and a macroeconomic decision-making process functions as a powerful and effective instrument with regard to crisis management. Moreover, the existence of state enterprises that are compatible with a market-oriented economy has played an important role in stimulating economic activity. Journal: Journal of Chinese Economic and Business Studies Pages: 215-226 Issue: 3 Volume: 8 Year: 2010 Keywords: China model, China's economic recovery, financial crisis, X-DOI: 10.1080/14765284.2010.493638 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2010.493638 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:8:y:2010:i:3:p:215-226 Template-Type: ReDIF-Article 1.0 Author-Name: Arne Melchior Author-X-Name-First: Arne Author-X-Name-Last: Melchior Title: Globalisation and the provinces of China: the role of domestic versus international trade integration Abstract: Regional disparities are particularly high in some larger emerging economies, such as Russia and China, and inter-provincial inequality in China has increased rapidly after 1990. In the literature, a statistical link between globalisation and increased regional disparities in China has been established, but not the precise mechanisms and causal relationships. In the paper, we therefore simulate a world trade model with 166 countries and regions in order to shed light on these mechanisms and the future development of regional disparities in China. Our results suggest that the faster growth in coastal regions may be caused by the role of these regions as transport hubs for international trade. However, uneven growth could also be caused by domestic trade disintegration, as suggested by some other research. In the paper, we demonstrate these mechanisms, but we are not able to draw firm conclusions about the relative role each of them play empirically. The weaker development for some peripheral regions can be reversed by stronger domestic trade integration or better cross-border infrastructure. Journal: Journal of Chinese Economic and Business Studies Pages: 227-252 Issue: 3 Volume: 8 Year: 2010 Keywords: trade, globalisation, regional development, economic integration, X-DOI: 10.1080/14765284.2010.493639 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2010.493639 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:8:y:2010:i:3:p:227-252 Template-Type: ReDIF-Article 1.0 Author-Name: Ziyin Zhuang Author-X-Name-First: Ziyin Author-X-Name-Last: Zhuang Author-Name: Wei Zou Author-X-Name-First: Wei Author-X-Name-Last: Zou Title: Market structure, FDI, imitation and innovation: a model of North-South intellectual property rights conflict Abstract: We develop an extended North-South model to analyse the US-China IPRs conflict and possible policies. In our model, innovation in the North (US), imitation in the South (China), and Foreign Direct Investment (FDI) are all endogenous. We predict that whether tighter IPRs benefit the US or China depends crucially on market structure. In an oligopoly market induced by vertical innovation, tighter IPRs hurt both economies; while, in a monopolistic competition market induced by horizontal innovation, tighter IPRs benefit both economies as long as the degree of IPRs is appropriately chosen. We prove the existence of an optimal degree of IPRs protection in China, which may differentiate it from that in the US. Journal: Journal of Chinese Economic and Business Studies Pages: 253-267 Issue: 3 Volume: 8 Year: 2010 Keywords: Intellectual Property Rights, market structure, FDI, imitation, innovation, X-DOI: 10.1080/14765284.2010.493640 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2010.493640 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:8:y:2010:i:3:p:253-267 Template-Type: ReDIF-Article 1.0 Author-Name: Zhigang Huang Author-X-Name-First: Zhigang Author-X-Name-Last: Huang Title: Monetary policy and trade imbalance adjustment Abstract: The paper sets up a small open economy general equilibrium model to study the dynamics of the adjustment of trade imbalances under different policies based on the Chinese economy. The policies that adjust domestic prices require a long period to achieve trade balance and induce fluctuations of output and inflation, regardless of whether capital markets are open or closed, while policies that adjust the exchange rate quickly result in diminished trade surpluses, and do not cause fluctuations of output and inflation. However, policies that adjust the exchange rate slowly also lead to fluctuations under a capital flow setting. Nominal frictions are important factors to these differences, because they slow down the price adjustment, but do not bother the exchange rate changes. From the perspective of welfare, fast exchange rate adjustment policies are better than price policies, and adjustment under capital flow is better than adjustment under capital control. The implications for China's trade surplus are analyzed. Journal: Journal of Chinese Economic and Business Studies Pages: 269-292 Issue: 3 Volume: 8 Year: 2010 Keywords: trade imbalance, monetary policy, capital flow, welfare, X-DOI: 10.1080/14765284.2010.493641 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2010.493641 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:8:y:2010:i:3:p:269-292 Template-Type: ReDIF-Article 1.0 Author-Name: Anders Johansson Author-X-Name-First: Anders Author-X-Name-Last: Johansson Title: China's financial market integration with the world Abstract: It is commonly argued that China's financial markets are effectively insulated from the rest of the world. To see if this is true, and to better understand China's financial development, we analyse China's integration with major financial markets. Using conditional copulas, we show that China has experienced an increasing level of integration with several major financial markets during the last decade, albeit at a slow pace and from very low levels. Furthermore, the level of integration has increased with several major markets during the global financial crisis. The results and possible reasons for the increasing integration are analysed and the implications for policymakers and market participants are discussed. Journal: Journal of Chinese Economic and Business Studies Pages: 293-314 Issue: 3 Volume: 8 Year: 2010 Keywords: China, financial market integration, co-dependence, Copula, X-DOI: 10.1080/14765284.2010.493642 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2010.493642 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:8:y:2010:i:3:p:293-314 Template-Type: ReDIF-Article 1.0 Author-Name: Jian Ke Author-X-Name-First: Jian Author-X-Name-Last: Ke Author-Name: Liming Wang Author-X-Name-First: Liming Author-X-Name-Last: Wang Author-Name: Louis Murray Author-X-Name-First: Louis Author-X-Name-Last: Murray Title: An empirical analysis of the volatility spillover effect between primary stock markets abroad and China Abstract: This paper tests the volatility spillovers between the Shanghai market and the main developed stock markets abroad, namely New York, Tokyo, London, and Frankfurt, as well as between the Shanghai market and the emerging stock markets, namely Hong Kong, and Korea. The tests cover the period of 11 July 2005-12 July 2007 and 1 August 2007-10 July 2009, since the financial crisis started from July 2007. To account for asymmetries in the volatility transmission mechanism, we have used the GARCH and EGARCH model. The main findings are as follows. First, the degree of the Leverage Effect of the Shanghai market changes in the opposite direction from most of the other sample markets after the financial crisis began in July 2007. This change implies that investors in the Shanghai markets began to pay close attention to bad news. Secondly, reciprocal spillovers exist for some market pairs before the crisis, as the Shanghai A-share market has unidirectional influence on the emerging markets. After the onset of the financial crisis, the stock markets in developed countries have bidirectional influences on each other. The financial crisis brings the developed markets closer together than before, but they do not receive volatility spillover from the Shanghai A-share market. The financial crisis also influences the Asian emerging markets so as to decrease the volatility transmission that comes from the Shanghai A-share market. The Chinese mainland market is still not a vital security market in the world, although it has become the third largest one. Thirdly, the risk-precautionary role of the Shanghai B-share market is not as significant as expected. Journal: Journal of Chinese Economic and Business Studies Pages: 315-333 Issue: 3 Volume: 8 Year: 2010 Keywords: volatility spillover, financial crisis, GARCH, leverage effect, X-DOI: 10.1080/14765284.2010.493645 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2010.493645 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:8:y:2010:i:3:p:315-333 Template-Type: ReDIF-Article 1.0 Author-Name: Yanqing Jiang Author-X-Name-First: Yanqing Author-X-Name-Last: Jiang Title: An empirical study of structural factors and regional growth in China Abstract: Based on data of 31 Chinese provinces over the period 1980-2004, the study in this paper presents new evidence on the effects of structural shocks and structural transformation on growth and convergence among the Chinese regions. The division of overall regional growth in labour productivity into three components - growth due to structural shocks, growth due to structural transformation and a 'residual' indicating growth due to region-specific changes - provides us with a better framework than the traditional one-sector Solow growth model for attributing growth and convergence to various different sources. Among other findings, the study has shown that during 1990-1999, structural shocks worked to widen the gap between rich regions and poor regions in China, while structural transformation worked to narrow the gap. Journal: Journal of Chinese Economic and Business Studies Pages: 335-352 Issue: 4 Volume: 8 Year: 2010 Keywords: economic growth, convergence, total factor productivity, structural shocks, structural transformation, X-DOI: 10.1080/14765284.2010.513173 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2010.513173 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:8:y:2010:i:4:p:335-352 Template-Type: ReDIF-Article 1.0 Author-Name: Christer Ljungwall Author-X-Name-First: Christer Author-X-Name-Last: Ljungwall Author-Name: Patrik Gustavsson Tingvall Author-X-Name-First: Patrik Gustavsson Author-X-Name-Last: Tingvall Title: Is China different? A meta-analysis of the effects of foreign direct investment on domestic firms Abstract: Empirical evidence suggests that China has benefited from foreign direct investment (FDI). An important question that remains unanswered is whether China has benefited more from FDI than other countries in general, and other transition and developing countries in particular. This paper investigates this issue by performing a meta-analysis on a sample of 67 country-specific studies yielding 137 observations that have gauged the link between FDI and measures of economic growth. The results suggest that the impact of FDI is, on average, more positively significant for China than for the full sample of countries, but that the difference between China and other transition economies is less clear. Journal: Journal of Chinese Economic and Business Studies Pages: 353-371 Issue: 4 Volume: 8 Year: 2010 Keywords: meta-analysis, foreign direct investment, economic growth, China, X-DOI: 10.1080/14765284.2010.513175 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2010.513175 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:8:y:2010:i:4:p:353-371 Template-Type: ReDIF-Article 1.0 Author-Name: Mehdi Shafaeddin Author-X-Name-First: Mehdi Author-X-Name-Last: Shafaeddin Author-Name: Juan Pizarro Author-X-Name-First: Juan Author-X-Name-Last: Pizarro Title: The evolution of value added in assembly operations: the case of China and Mexico Abstract: China and Mexico embarked, around the early 1980s, on the process of liberalization of trade and FDI and established some export oriented industries through assembly operations with the help of FDI. Both countries had the same objective of increasing value added in export processing industries. The authors examine the comparative achievements of their common objectives in the light of the export oriented strategy hypothesis. Applying the indicators of Revealed Comparative Advantage to exports and imports, the authors show that while there are some similarities in the performance of the two countries, there are also striking differences. Both have managed to increase manufactured exports, particularly in IT products, significantly during 1990s. Both, but particularly China, have developed comparative advantage in export and production of many industries, which had been initiated through import substitution. However, Mexico has achieved little, compared with China, in increasing value added in exports and in developing comparative advantage in production in assembly operations. Further, unlike China, since the early years of the 2010 decade it has not been able to sustain its rapid export growth. Journal: Journal of Chinese Economic and Business Studies Pages: 373-397 Issue: 4 Volume: 8 Year: 2010 Keywords: international trade, industrialization, Mexico, China, value added, X-DOI: 10.1080/14765284.2010.513176 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2010.513176 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:8:y:2010:i:4:p:373-397 Template-Type: ReDIF-Article 1.0 Author-Name: Katsushi Imai Author-X-Name-First: Katsushi Author-X-Name-Last: Imai Author-Name: Xiaobing Wang Author-X-Name-First: Xiaobing Author-X-Name-Last: Wang Author-Name: Woojin Kang Author-X-Name-First: Woojin Author-X-Name-Last: Kang Title: Poverty and vulnerability in rural China: effects of taxation Abstract: This paper studies the impact of taxation on poverty and ex ante vulnerability of households in rural China based on national household survey data in 1988, 1995 and 2002. It has been confirmed that (i) poverty and vulnerability have reduced significantly with a great deal of geographical disparity; (ii) education, land, and access to infrastructure and irrigation facilities are the key factors to reduce vulnerability; and (iii) the highly regressive tax system increased farmers' poverty and vulnerability. The abolishment of rural tax since 2006 would thus have a significant negative impact on both poverty and vulnerability of rural households. Journal: Journal of Chinese Economic and Business Studies Pages: 399-425 Issue: 4 Volume: 8 Year: 2010 Keywords: poverty, vulnerability, taxation, rural China, X-DOI: 10.1080/14765284.2010.513177 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2010.513177 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:8:y:2010:i:4:p:399-425 Template-Type: ReDIF-Article 1.0 Author-Name: Hsiao-Chuan Chang Author-X-Name-First: Hsiao-Chuan Author-X-Name-Last: Chang Title: The impact of casinos on employment across sectors in Macau Abstract: This paper investigates a contemporary issue of Macau concerning the impact of casinos on other sectors' employment. The long-run and short-run effects are investigated using data-oriented econometric models. In the long-run, the casino boom leads to an employment expansion in other sectors. However, the effect is insignificant in the short-run. Simulations from a theoretical model disclose the pure crowding-out effect of the increased casino employment on other sectors with other things the same as the situation of 2003. During the period 2004-2008, the crowding-out effect is more serious on the non-casino service sector than on the industrial sector. Results from both types of models shed light on policy options. Journal: Journal of Chinese Economic and Business Studies Pages: 427-444 Issue: 4 Volume: 8 Year: 2010 Keywords: casino industry, unit root, cointegration, error correction model, intertemporal general equilibrium model, X-DOI: 10.1080/14765284.2010.513178 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2010.513178 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:8:y:2010:i:4:p:427-444 Template-Type: ReDIF-Article 1.0 Author-Name: Taotao Chen Author-X-Name-First: Taotao Author-X-Name-Last: Chen Author-Name: Ari Kokko Author-X-Name-First: Ari Author-X-Name-Last: Kokko Author-Name: Patrik Gustavsson Tingvall Author-X-Name-First: Patrik Gustavsson Author-X-Name-Last: Tingvall Title: FDI and spillovers in China: non-linearity and absorptive capacity Abstract: Using a fixed effect variance decomposition model we estimate SUR models to analyse FDI spillovers from contagion and spillovers from competition on local firms in China. While the former type of spillover mainly depends on the degree of foreign presence, the latter kind is related to how foreign and local firms interact. The main conclusion is that FDI has been beneficial for the Chinese economy but that spillovers are not evenly distributed across firms and industries. Spillovers from contagion tend to exhibit an inverse U-shaped pattern with respect to the degree of foreign presence at the industry level, whereas spillovers from competition are more linear. Industries with high absorptive capacity and/or high efficiency are the ones best equipped to take advantage of spillovers from foreign-owned firms. Journal: Journal of Chinese Economic and Business Studies Pages: 1-22 Issue: 1 Volume: 9 Year: 2011 Keywords: spillovers, China, FDI, fixed effect variance decomposition, X-DOI: 10.1080/14765284.2011.542882 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2011.542882 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:9:y:2011:i:1:p:1-22 Template-Type: ReDIF-Article 1.0 Author-Name: Martijn Boermans Author-X-Name-First: Martijn Author-X-Name-Last: Boermans Author-Name: Hein Roelfsema Author-X-Name-First: Hein Author-X-Name-Last: Roelfsema Author-Name: Yi Zhang Author-X-Name-First: Yi Author-X-Name-Last: Zhang Title: Regional determinants of FDI in China: a factor-based approach Abstract: We empirically investigate the factors that drive the uneven regional distribution of foreign direct investment (FDI) across Chinese provinces from 1995 to 2006. We first perform a factor analysis to summarize information embodied in around 40 variables and derive four FDI determinants: 'institutional quality', 'labour costs', 'market size', and 'geography'. Applying these estimated factors, we then employ instrumental variable (IV) estimation to account for endogeneity. In line with theoretical predictions, we find that foreign firms invest in provinces with good institutions, low labour costs, and large market size. The Arellano-Bond dynamic panel generalised method of moments (GMM) results show strong agglomeration effects that multinationals tend to invest in provinces which attract other foreign firms, consistent with the economic geography literature. Several robustness tests indicate that low labour costs combined with improvements in institutions are the key for attracting FDI in China. Journal: Journal of Chinese Economic and Business Studies Pages: 23-42 Issue: 1 Volume: 9 Year: 2011 Keywords: China, FDI, regional distribution, factor analysis, X-DOI: 10.1080/14765284.2011.542884 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2011.542884 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:9:y:2011:i:1:p:23-42 Template-Type: ReDIF-Article 1.0 Author-Name: Dylan Sutherland Author-X-Name-First: Dylan Author-X-Name-Last: Sutherland Author-Name: Lutao Ning Author-X-Name-First: Lutao Author-X-Name-Last: Ning Title: Exploring 'onward-journey' ODI strategies in China's private sector businesses Abstract: Are the internationalization strategies of China's private businesses different from those of state-owned businesses? To date, little systematic empirical research addresses this question, despite the now well-established arguments that market and institutional imperfections influence the outward foreign direct investment (ODI) of China's state sector MNEs. Why is so little known about private sector foreign direct investment? One important reason is that private companies have gone to considerable lengths to conceal their activities by using offshore holding companies in tax havens. This paper, using a sample of offshore listed companies that are privately controlled, investigates what we dub 'onward-journeying' - foreign direct investment undertaken via tax havens. In doing so it further explores the ODI strategies of some of China's most successful private companies. Journal: Journal of Chinese Economic and Business Studies Pages: 43-65 Issue: 1 Volume: 9 Year: 2011 Keywords: onward-journeying, Chinese MNEs, outward foreign direct investment, private sector, internationalization strategies, X-DOI: 10.1080/14765284.2011.542885 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2011.542885 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:9:y:2011:i:1:p:43-65 Template-Type: ReDIF-Article 1.0 Author-Name: Colin Hawes Author-X-Name-First: Colin Author-X-Name-Last: Hawes Author-Name: Eng Chew Author-X-Name-First: Eng Author-X-Name-Last: Chew Title: The cultural transformation of large Chinese enterprises into internationally competitive corporations: case studies of Haier and Huawei Abstract: The Chinese government has recently introduced a policy requiring all large Chinese business corporations to transform their corporate cultures with the aim of increasing their competitiveness on the international stage. This paper traces the origins of the policy to the outstanding performance of a small number of Chinese firms since the late 1980s, a phenomenon attributed by the CEOs of these firms to effective implementation of cultural values change among their workforces. We give detailed accounts of two such firms, Haier Group and Huawei Technologies, demonstrating how they have utilized cultural management techniques to improve their employees' performance. We also identify some negative aspects of their approach to cultural management that may impede these firms in their efforts to become truly international corporations. Journal: Journal of Chinese Economic and Business Studies Pages: 67-83 Issue: 1 Volume: 9 Year: 2011 Keywords: China, corporate culture, Haier, Huawei, management, internationalization, X-DOI: 10.1080/14765284.2011.542886 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2011.542886 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:9:y:2011:i:1:p:67-83 Template-Type: ReDIF-Article 1.0 Author-Name: Henk Berkman Author-X-Name-First: Henk Author-X-Name-Last: Berkman Author-Name: Nick Nguyen Author-X-Name-First: Nick Author-X-Name-Last: Nguyen Author-Name: Liping Zou Author-X-Name-First: Liping Author-X-Name-Last: Zou Title: The value impact of name changes evidence from Chinese firms during the technology boom Abstract: For a sample of US stocks in the period 1998-1999, Cooper, Dimitrov, and Rau (2001) report dramatic value increases in the 10 days around the announcement of dotcom name changes. We find much smaller value changes for a sample of Chinese listed firms with changes to internet-related dotcom names for the 1998 to 2002 period. This result is surprising given the high proportion of retail trading in China and the prohibition to short sell Chinese stocks. Also in contrast to Cooper, Dimitrov, and Rau (2001), we find that most of the value increase for our sample firms is realized gradually prior to the announcement. Further investigation reveals that our sample firms experience more frequent CEO-turnover, significant increase in return-on-assets, and involve more restructure activities around the name change event. These results suggest that the value increases for firms with name changes are the consequence of substantial and successful operational changes, and that the name change is simply part of that process, instead of the cosmetic effects of name change or investor mania suggested by previous studies. Journal: Journal of Chinese Economic and Business Studies Pages: 85-96 Issue: 1 Volume: 9 Year: 2011 Keywords: name change, event study, price reaction, investor mania, internet bubble, X-DOI: 10.1080/14765284.2011.545590 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2011.545590 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:9:y:2011:i:1:p:85-96 Template-Type: ReDIF-Article 1.0 Author-Name: Gucheng Li Author-X-Name-First: Gucheng Author-X-Name-Last: Li Author-Name: Liangzhi You Author-X-Name-First: Liangzhi Author-X-Name-Last: You Author-Name: Zhongchao Feng Author-X-Name-First: Zhongchao Author-X-Name-Last: Feng Title: The sources of total factor productivity growth in Chinese agriculture: technological progress or efficiency gain? Abstract: Provincial panel data from the agricultural sector and stochastic frontier production function model were employed to study the total factor productivity (TFP) growth since the 1980s in China. We decomposed the TFP growth into technological progress and technical efficiency changes (efficiency gains) as well as the aggregate agricultural TFP growth into crop-specific subsector's TFP growths. We found that Chinese agriculture experienced significant productivity growth in the last few decades, although the growth rates vary considerably among the subsectors. During this period, the source of productivity growth comes from either technological progress or efficiency gains, not from both of them simultaneously. Particularly since the 1990s, Chinese agriculture experienced a great technological progress and yet a considerable efficiency loss. The differences among sources of productivity growth and among subsectors call for distinct policy responses. Journal: Journal of Chinese Economic and Business Studies Pages: 181-203 Issue: 2 Volume: 9 Year: 2011 Keywords: China's agriculture, total factor productivity, technological progress, technical efficiency, stochastic frontier production function, X-DOI: 10.1080/14765284.2011.568686 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2011.568686 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:9:y:2011:i:2:p:181-203 Template-Type: ReDIF-Article 1.0 Author-Name: Finn Førsund Author-X-Name-First: Finn Author-X-Name-Last: Førsund Author-Name: Lennart Hjalmarsson Author-X-Name-First: Lennart Author-X-Name-Last: Hjalmarsson Author-Name: Jinghai Zheng Author-X-Name-First: Jinghai Author-X-Name-Last: Zheng Title: A short-run production function for electricity generation in China Abstract: Process industries, such as chemicals, aluminium, steel, pulp and paper, and thermal electricity generation, are important basic industries for economic growth in an economy such as the Chinese one. In order to promote improved efficiency and growth-inducing structural change, it is of paramount importance to model the development of such industries in a relevant way. It will then be necessary to go outside the smooth textbook production theory and turn to models incorporating typical features of process industries, such as embodied technical change, a sharp difference in substitution possibilities before and after investing, and a dynamic change at the industry level driven by entry and exit of plants and embodied technical change. The purpose of the paper is to give an introduction to the key production function concept of a short-run industry production function, and to show how this concept is the key to understanding industry dynamics. An empirical application is made on data for Chinese coal-fired electricity generation plants for one year. However, this will only be the first stage in a full-blown dynamic analysis. Combined cross-section and time-series data for plants are then required. Journal: Journal of Chinese Economic and Business Studies Pages: 205-216 Issue: 2 Volume: 9 Year: 2011 Keywords: short-run production function, embodied technical change, dynamic structural change, Chinese electricity generation, X-DOI: 10.1080/14765284.2011.568689 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2011.568689 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:9:y:2011:i:2:p:205-216 Template-Type: ReDIF-Article 1.0 Author-Name: Jinghai Zheng Author-X-Name-First: Jinghai Author-X-Name-Last: Zheng Title: Measuring and explaining productivity growth in China Abstract: Europe was the past, the US is the present and a China-dominated Asia the future of the global economy. (Martin Wolf, 2003) Journal: Journal of Chinese Economic and Business Studies Pages: 97-109 Issue: 2 Volume: 9 Year: 2011 X-DOI: 10.1080/14765284.2011.568681 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2011.568681 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:9:y:2011:i:2:p:97-109 Template-Type: ReDIF-Article 1.0 Author-Name: Yanrui Wu Author-X-Name-First: Yanrui Author-X-Name-Last: Wu Title: Total factor productivity growth in China: a review Abstract: The debate on the role of total factor productivity (TFP) in China's rapid economic growth has led to the emergence of a large pool of papers on this topic. There is however hardly any consensus in the literature. This paper surveys 74 studies published from the 1990s onwards and employs meta-analysis to investigate whether the empirical findings are systematically affected by the choice of methods, selection of samples, and objectives of individual studies. Insights gained are used to draw implications for further studies. Journal: Journal of Chinese Economic and Business Studies Pages: 111-126 Issue: 2 Volume: 9 Year: 2011 Keywords: meta-analysis, total factor productivity growth, Chinese economy, X-DOI: 10.1080/14765284.2011.568682 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2011.568682 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:9:y:2011:i:2:p:111-126 Template-Type: ReDIF-Article 1.0 Author-Name: Kyoji Fukao Author-X-Name-First: Kyoji Author-X-Name-Last: Fukao Author-Name: Tomohiko Inui Author-X-Name-First: Tomohiko Author-X-Name-Last: Inui Author-Name: Keiko Ito Author-X-Name-First: Keiko Author-X-Name-Last: Ito Author-Name: Young Gak Kim Author-X-Name-First: Young Gak Author-X-Name-Last: Kim Author-Name: Tangjun Yuan Author-X-Name-First: Tangjun Author-X-Name-Last: Yuan Title: An international comparison of the TFP levels and the productivity convergence of Japanese, Korean, Taiwanese and Chinese listed firms Abstract: Focusing on Japanese, Korean, Taiwanese, and Chinese firms in the manufacturing sector, this paper examines productivity catch-up at the firm level using the distance from the technology frontier as a direct measure of the potential for catch-up. We also examine the role of absorptive capacity for technological catch-up by including variables such as R&D expenditure and foreign ownership in our empirical estimation. We find that the national frontier has a stronger pull on domestic firms than the regional frontier, which is in line with findings by Bartelsman, Haskel, and Martin (2008). This result indicates that policies to raise the technology level of national frontier firms are beneficial for all firms in that country. Journal: Journal of Chinese Economic and Business Studies Pages: 127-150 Issue: 2 Volume: 9 Year: 2011 Keywords: productivity, catch-up, absorptive capacity, X-DOI: 10.1080/14765284.2011.568683 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2011.568683 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:9:y:2011:i:2:p:127-150 Template-Type: ReDIF-Article 1.0 Author-Name: Yanqing Jiang Author-X-Name-First: Yanqing Author-X-Name-Last: Jiang Title: Economic environment, technology diffusion, and growth of regional total factor productivity in China Abstract: This paper examines the effects of the regional economic environment and technology diffusion on China's regional total factor productivity (TFP) growth. We build a model of TFP growth in which Chinese regions achieve growth in TFP by making use of technology spillovers from the world technology frontier. We hypothesize that given the world frontier level of TFP, China's regional TFP growth is positively related to regional openness and negatively related to the current level of regional TFP. Empirical analysis in this paper of 29 province-level regions in China strongly supports our hypothesis. By using a nonlinear least squares regression method, we show that regional openness has a significantly positive effect on regional TFP growth. As a by-product, we also estimate a value of the output elasticity of capital that conforms to its traditionally accepted values. The findings of this paper lend strong support to the claim that the opening up process of China promotes the country's economic growth. Journal: Journal of Chinese Economic and Business Studies Pages: 151-161 Issue: 2 Volume: 9 Year: 2011 Keywords: economic environment, technology diffusion, total factor productivity, openness, convergence, X-DOI: 10.1080/14765284.2011.568684 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2011.568684 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:9:y:2011:i:2:p:151-161 Template-Type: ReDIF-Article 1.0 Author-Name: Dylan Sutherland Author-X-Name-First: Dylan Author-X-Name-Last: Sutherland Author-Name: Lutao Ning Author-X-Name-First: Lutao Author-X-Name-Last: Ning Author-Name: Sam Beatson Author-X-Name-First: Sam Author-X-Name-Last: Beatson Title: Productivity performance in Chinese business groups: the positive and negative impacts of business group affiliation Abstract: This paper considers evidence on business group productivity performance in China. It also carries out a detailed investigation into China's 50 largest groups to see if pyramidal groups are forming. As such, we further explore what can be considered as some of the positive and negative attributes of Chinese groups. We show that although improvements in productivity have taken place, some Chinese business groups are also taking the first steps towards developing pyramidal structures. This could have important implications for longer-term productivity growth in China's business groups. Journal: Journal of Chinese Economic and Business Studies Pages: 163-180 Issue: 2 Volume: 9 Year: 2011 Keywords: pyramidal groups, ownership structure, firm performance, productivity, X-DOI: 10.1080/14765284.2011.568685 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2011.568685 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:9:y:2011:i:2:p:163-180 Template-Type: ReDIF-Article 1.0 Author-Name: Go Yano Author-X-Name-First: Go Author-X-Name-Last: Yano Author-Name: Maho Shiraishi Author-X-Name-First: Maho Author-X-Name-Last: Shiraishi Author-Name: Xohrat Mahmut Author-X-Name-First: Xohrat Author-X-Name-Last: Mahmut Title: What caused the 'marginal-products-of-labour wage gap' in state-owned enterprises in China during the early-reform era? A reconsideration based on a case study in Henan Abstract: The marginal-products-of-labour (MPL) wage gap is studied in the early-reform Chinese economy, using the Olley-Pakes estimation technique to estimate the production function, based on micro data including different categories of labour. From this measurement of MPL-wage gaps and econometric analyses, several conclusions are drawn. First, the MPL-wage gap was anomalously large for managers in state-owned enterprises (SOEs) compared with other categories of labour. Second, the large MPL-wage gap of managers raised the average MPL-wage gap across various categories of labour, resulting in higher than the average wage MPL throughout the entire workforce, which is regarded as homogeneous. Third, the large MPL-wage gap, or, in other words, the under-employment of managers, occurred not only because the state still centrally employed and allocated labour to SOEs, but because the economy faced a labour-supply constraint of managers in early-reform China. This observation supports a modified version of the state labour-monopsony hypothesis. Journal: Journal of Chinese Economic and Business Studies Pages: 217-238 Issue: 3 Volume: 9 Year: 2011 Keywords: marginal products of labour-wage gap, Olley-Pakes estimator, different categories of labour, labour-monopsony hypothesis, supply constraints of managers (educated workers), X-DOI: 10.1080/14765284.2011.592351 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2011.592351 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:9:y:2011:i:3:p:217-238 Template-Type: ReDIF-Article 1.0 Author-Name: Xia Li Author-X-Name-First: Xia Author-X-Name-Last: Li Author-Name: Christopher Gan Author-X-Name-First: Christopher Author-X-Name-Last: Gan Author-Name: Baiding Hu Author-X-Name-First: Baiding Author-X-Name-Last: Hu Title: The impact of microcredit on women's empowerment: evidence from China Abstract: The impact of microcredit on women's empowerment remains controversial, as documented in the microfinance literature. While some studies claim that microcredit helps women increase their income earning abilities, leading to greater power to overcome cultural asymmetries, others contend that small loans allocated to women are usually controlled by their spouses, which results in more severe subordination of women and leaves them more vulnerable to the patriarchy system within the household and/or at society level. This paper evaluates the empowerment impact of microcredit on rural women in China. Logistic regression is employed for empirical analysis and data are collected through a rural household survey. The results confirm that microcredit has a significant impact on five dimensions of women's empowerment, ranging from economic security to awareness of social/legal issues. Journal: Journal of Chinese Economic and Business Studies Pages: 239-261 Issue: 3 Volume: 9 Year: 2011 Keywords: microcredit, women's empowerment, rural China, X-DOI: 10.1080/14765284.2011.592352 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2011.592352 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:9:y:2011:i:3:p:239-261 Template-Type: ReDIF-Article 1.0 Author-Name: Florence Bouvet Author-X-Name-First: Florence Author-X-Name-Last: Bouvet Author-Name: Alyson Ma Author-X-Name-First: Alyson Author-X-Name-Last: Ma Title: Wage disparities in China: an analysis by firm types Abstract: This paper investigates the evolution of interprovincial wage inequality and the causes behind its increase over the last two decades. We focus more specifically on the impact of export-led-market reforms on wages disparities within and between five firm types in China. When measured with the GE(1) index, overall wage inequality among Chinese provinces increased by 50% between 1993 and 2007, most notably during the early 1990s as China accelerated its integration into the world economy. The inequality analysis by firm type suggests that increased international competition has had a large impact on wage inequality among domestic firms but almost none on inequality among foreign firms. The panel analysis conducted in this paper also suggests that factors enhancing labor productivity such as larger capital stock endowment per worker and better infrastructure endowment have a greater impact on wage inequality than an increase in economic integration, particularly for domestic firms located in the interior region. Journal: Journal of Chinese Economic and Business Studies Pages: 263-282 Issue: 3 Volume: 9 Year: 2011 Keywords: China, wage inequality, inequality decomposition, globalization, X-DOI: 10.1080/14765284.2011.592355 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2011.592355 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:9:y:2011:i:3:p:263-282 Template-Type: ReDIF-Article 1.0 Author-Name: Rachel Connelly Author-X-Name-First: Rachel Author-X-Name-Last: Connelly Author-Name: Kenneth Roberts Author-X-Name-First: Kenneth Author-X-Name-Last: Roberts Author-Name: Zhenzhen Zheng Author-X-Name-First: Zhenzhen Author-X-Name-Last: Zheng Title: The settlement of rural migrants in urban China - some of China's migrants are not 'floating' anymore Abstract: This paper considers economic models of migration in the context of current Chinese migration. We argue that using formally changing one's household registration (hukou) location is too narrow a definition of settlement for policy purposes. Instead we show that time in the city and co-residence with spouses and separately with children reveals systematic settlement behavior on the part of a subset of migrants. The empirical evidence offered is largely descriptive but shows that those migrants who were younger at the age of migration, who are currently married and self-employed spend more years in the city. Men who have been in the city longer and are self-employed are much more likely to be co-residing with their wife. Self-employment is also a predictor of co-residence with children for both mothers and fathers. Journal: Journal of Chinese Economic and Business Studies Pages: 283-300 Issue: 3 Volume: 9 Year: 2011 Keywords: permanent migration, circular migration, settlement, urbanization, X-DOI: 10.1080/14765284.2011.592356 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2011.592356 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:9:y:2011:i:3:p:283-300 Template-Type: ReDIF-Article 1.0 Author-Name: Chia-Liang Lin Author-X-Name-First: Chia-Liang Author-X-Name-Last: Lin Author-Name: Kuan-Min Wang Author-X-Name-First: Kuan-Min Author-X-Name-Last: Wang Title: Predicting the bankruptcy risk of Taiwanese OTC corporations Abstract: Using non-probability purposive sampling, this study matched 23 Taiwanese OTC (Over-the-Counter) bankrupt corporations with 23 non-bankrupt corporations during the period 1999-2005. On the basis of the sample, a predictive and secondary research design was conducted to construct a rolling-prediction model and validate its prediction in Taiwan on OTC corporation bankruptcy risks. The empirical results indicated that the rolling-logit model, compared with the benchmark model, exhibited higher overall accuracy. The successful predictive performances were attributed to a recall mechanism in the rolling-logit model, measuring a corporation's risks on the basis of consistent information across time. However, this study had limitations due to the selection of the sample and variables. These limitations suggest that future research could validate its applicability in other markets or select other explanatory variables in order to improve the predictive ability. Journal: Journal of Chinese Economic and Business Studies Pages: 301-316 Issue: 3 Volume: 9 Year: 2011 Keywords: bankruptcy, rolling-logit model, Taiwan OTC market, financial ratios, matched-pair method, recall mechanism, X-DOI: 10.1080/14765284.2011.592359 File-URL: http://www.tandfonline.com/doi/abs/10.1080/14765284.2011.592359 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:9:y:2011:i:3:p:301-316 Template-Type: ReDIF-Article 1.0 Author-Name: Rongping Mu Author-X-Name-First: Rongping Author-X-Name-Last: Mu Author-Name: Yonggang Fan Author-X-Name-First: Yonggang Author-X-Name-Last: Fan Title: Framework for building national innovation capacity in China Abstract: With the view of becoming an innovation-driven nation by 2020, national innovation capacity (NIC) building has become a key issue for China to transform its development pattern. A series of fundamental questions, such as how to build NIC and what roles should the government play, are faced by both the government and academia. The current literature concerning NIC mainly focuses on measurement and determinant analysis, which cannot give direct and sufficient support to policy making. This paper tries to fill the gap between theoretical analysis of NIC and policies for building NIC by proposing a conceptual framework, in which the inherent connections between innovation capacity indicators and policy options for building NIC are investigated. Policy measures for building NIC in China are discussed in the end of this paper. Journal: Journal of Chinese Economic and Business Studies Pages: 317-327 Issue: 4 Volume: 9 Year: 2011 Month: 8 X-DOI: 10.1080/14765284.2011.618588 File-URL: http://hdl.handle.net/10.1080/14765284.2011.618588 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:9:y:2011:i:4:p:317-327 Template-Type: ReDIF-Article 1.0 Author-Name: Xiaolan Fu Author-X-Name-First: Xiaolan Author-X-Name-Last: Fu Author-Name: Jing Zhang Author-X-Name-First: Jing Author-X-Name-Last: Zhang Title: Technology transfer, indigenous innovation and leapfrogging in green technology: the solar-PV industry in China and India Abstract: In recent years China and India have achieved tremendous technological progress and development in the solar photovoltaic (PV) industry. Using case studies, this paper analyses and compares the technology progress in the solar PV industry in China and India, and discusses the role national innovation systems played in sustaining technology acquisition, adaptation and development. It illustrates that both countries adopted a strategy of mixing and sequencing different technology transfer and indigenous innovation mechanisms. The experience of both countries also suggests that a functional national environmental innovation system is important in sustaining and advancing technology acquisition, adaptation and development. This paper provides an alternative pathway for developing countries to follow in catching up with developed countries in the emergent green industries and in leapfrogging towards an internationally competitive green economy. Journal: Journal of Chinese Economic and Business Studies Pages: 329-347 Issue: 4 Volume: 9 Year: 2011 Month: 8 X-DOI: 10.1080/14765284.2011.618590 File-URL: http://hdl.handle.net/10.1080/14765284.2011.618590 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:9:y:2011:i:4:p:329-347 Template-Type: ReDIF-Article 1.0 Author-Name: Xielin Liu Author-X-Name-First: Xielin Author-X-Name-Last: Liu Author-Name: Peng Cheng Author-X-Name-First: Peng Author-X-Name-Last: Cheng Author-Name: Ao Chen Author-X-Name-First: Ao Author-X-Name-Last: Chen Title: Basic research and catch-up in China's high-speed rail industry Abstract: The existing literature has not studied the role of basic research in industrial catch-up in developing countries in any depth. This article takes high-speed rail as a case study in order to show how basic research has helped the industry to master imported technology and produce secondary innovations. The role of government is important in terms of coordinating the process of technology importation, digesting imported technology and innovation. The role of the home market is also very important in an era of globalisation to promote innovation in this emerging industry. Journal: Journal of Chinese Economic and Business Studies Pages: 349-367 Issue: 4 Volume: 9 Year: 2011 Month: 8 X-DOI: 10.1080/14765284.2011.618593 File-URL: http://hdl.handle.net/10.1080/14765284.2011.618593 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:9:y:2011:i:4:p:349-367 Template-Type: ReDIF-Article 1.0 Author-Name: Enjun Xia Author-X-Name-First: Enjun Author-X-Name-Last: Xia Author-Name: Xiaohui Liu Author-X-Name-First: Xiaohui Author-X-Name-Last: Liu Title: Technology spillover effects in the context of the evolution of inter-regional industrial structure in China Abstract: This paper focuses on the relationship between technology spillovers in the context of the evolution of China's regional industrial structure. Based on a theoretical model, we have formally shown the impact of the evolution of the regional industrial structure and have also empirically tested technology spillovers for the period 1991--2007 in the context of the evolution of the regional industrial structure in China. The findings provide an important theoretical and practical basis for the government to formulate regional economic policies and industrial development strategies. Journal: Journal of Chinese Economic and Business Studies Pages: 369-381 Issue: 4 Volume: 9 Year: 2011 Month: 8 X-DOI: 10.1080/14765284.2011.618595 File-URL: http://hdl.handle.net/10.1080/14765284.2011.618595 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:9:y:2011:i:4:p:369-381 Template-Type: ReDIF-Article 1.0 Author-Name: Xiaolan Fu Author-X-Name-First: Xiaolan Author-X-Name-Last: Fu Author-Name: Jizhen Li Author-X-Name-First: Jizhen Author-X-Name-Last: Li Author-Name: Martin Johnson Author-X-Name-First: Martin Author-X-Name-Last: Johnson Title: Internal and external sources of tacit knowledge: evidence from the Chinese optical fibre and cable industry Abstract: This paper provides an analysis of the relative significance of various methods of acquiring tacit knowledge within the Chinese optical fibre and cable industry. The paper contributes to the definition, understanding and investigation of tacit knowledge using firm-level data in a developing country context, helping to complete a gap in the existing broader literature on technological learning. The research suggests that in industries where tacit knowledge is a more important component of technological learning than codified knowledge, internal R&D activities and domestic peers are important knowledge sources. Additionally, universities are shown to be an important asset in creating learning organisations and provide effective knowledge sources of both tacit and codified knowledge. However, imports of equipment and licensing are a less effective learning channel in the acquisition of tacit foreign technology. Journal: Journal of Chinese Economic and Business Studies Pages: 383-399 Issue: 4 Volume: 9 Year: 2011 Month: 8 X-DOI: 10.1080/14765284.2011.618597 File-URL: http://hdl.handle.net/10.1080/14765284.2011.618597 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:9:y:2011:i:4:p:383-399 Template-Type: ReDIF-Article 1.0 Author-Name: Jenni Pääkkönen Author-X-Name-First: Jenni Author-X-Name-Last: Pääkkönen Title: Are there industrial and agricultural convergence clubs in China? Abstract: This paper discusses the growth differentials between Chinese provinces geared to agricultural activities and those that have focused on industrial production over three decades of economic reform. Following Hansen and Prescott's (2002) model, we suggest that the differences between regions stem from the resource allocation in place at the beginning of the reform process. We show that provinces with high initial shares of industrial production (the industrial club) have converged, and that agricultural provinces that have shifted to industrial production have been catching up with provinces that were industrialized at the outset. Provinces that have clung to an agricultural strategy (the agricultural club) show no evidence of convergence and appear to have been left behind in terms of economic development. Journal: Journal of Chinese Economic and Business Studies Pages: 1-13 Issue: 1 Volume: 10 Year: 2012 Month: 6 X-DOI: 10.1080/14765284.2012.638458 File-URL: http://hdl.handle.net/10.1080/14765284.2012.638458 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:10:y:2012:i:1:p:1-13 Template-Type: ReDIF-Article 1.0 Author-Name: Paul De Grauwe Author-X-Name-First: Paul Author-X-Name-Last: De Grauwe Author-Name: Romain Houssa Author-X-Name-First: Romain Author-X-Name-Last: Houssa Author-Name: Giulia Piccillo Author-X-Name-First: Giulia Author-X-Name-Last: Piccillo Title: African trade dynamics: is China a different trading partner? Abstract: This paper employs the standard gravity model to identify the quality of governance of China's African trade partners. As a benchmark, we perform the same analysis on other major African trade partners: France, Germany, UK, and USA. Data from 53 African countries in 1996--2009 show that only China is consistently willing to import more from African countries with a lower governance standing. By doing so; China fills a gap left open by the other major world economies, and might even play a key role in the future development of Africa. Journal: Journal of Chinese Economic and Business Studies Pages: 15-45 Issue: 1 Volume: 10 Year: 2012 Month: 8 X-DOI: 10.1080/14765284.2012.638460 File-URL: http://hdl.handle.net/10.1080/14765284.2012.638460 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:10:y:2012:i:1:p:15-45 Template-Type: ReDIF-Article 1.0 Author-Name: Valeria Gattai Author-X-Name-First: Valeria Author-X-Name-Last: Gattai Title: Chinese ODI in Italy: an empirical investigation at the firm-level Abstract: This paper provides original evidence about Chinese Outward Direct Investments in Italy. Data have been collected at the micro level, through a multiple-choice questionnaire, designed by the author and submitted to the whole population of Dragon multinationals. With a response rate of 86%, we draw a detailed profile of Chinese parent companies and document their pull, push factors, and entry mode strategies. Empirical findings are consistent with the theoretical literature. Journal: Journal of Chinese Economic and Business Studies Pages: 47-66 Issue: 1 Volume: 10 Year: 2012 Month: 10 X-DOI: 10.1080/14765284.2012.638465 File-URL: http://hdl.handle.net/10.1080/14765284.2012.638465 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:10:y:2012:i:1:p:47-66 Template-Type: ReDIF-Article 1.0 Author-Name: Huanguang Qiu Author-X-Name-First: Huanguang Author-X-Name-Last: Qiu Author-Name: Jikun Huang Author-X-Name-First: Jikun Author-X-Name-Last: Huang Author-Name: Carl Pray Author-X-Name-First: Carl Author-X-Name-Last: Pray Author-Name: Scott Rozelle Author-X-Name-First: Scott Author-X-Name-Last: Rozelle Title: Consumers’ trust in government and their attitudes towards genetically modified food: empirical evidence from China Abstract: Understanding the determinants of consumers’ acceptance towards genetically modified food (GMF) is critically important for the biotechnology industry. Based on a unique data set collected by the authors in 2002 and 2003 in 11 cities of China, an econometric model of consumers’ acceptance of GMF is estimated. The results show that consumers’ acceptance of GMF is high in urban China and consumers’ trust in government has a significantly positive effect on consumers’ acceptance of GMF. Our study also shows that failure to consider the endogeneity of consumers’ trust in government will lead to serious underestimation of its impacts on consumers’ acceptance of GMF. This is, to the best of our knowledge, the first study on the impact of consumers’ trust in government with consideration of the endogenous problems that often are encountered in consumer perception studies. Journal: Journal of Chinese Economic and Business Studies Pages: 67-87 Issue: 1 Volume: 10 Year: 2012 Month: 7 X-DOI: 10.1080/14765284.2012.638471 File-URL: http://hdl.handle.net/10.1080/14765284.2012.638471 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:10:y:2012:i:1:p:67-87 Template-Type: ReDIF-Article 1.0 Author-Name: Qiwei Chen Author-X-Name-First: Qiwei Author-X-Name-Last: Chen Author-Name: Ying Jiang Author-X-Name-First: Ying Author-X-Name-Last: Jiang Author-Name: Yuan Li Author-X-Name-First: Yuan Author-X-Name-Last: Li Title: The state of the market and the contrarian strategy: evidence from China's stock market Abstract: Using the most comprehensive weekly dataset of ‘A’ shares listed on the Chinese stock market, this paper examines short-term contrarian strategies under different market states from 1995--2010. We find statistically significant profits from contrarian strategies, especially during the period after 2007, when China (along with other countries) experienced an economic downturn following the worldwide financial crisis. Our empirical evidence suggests that: (1) no significant profit is generated from either momentum or contrarian strategies in the intermediate horizon; (2) after microstructure effects are adjusted for, contrarian strategies with only four to eight weeks holding periods based on the stocks’ previous four to eight week's performance generate statistically significant profits of around 0.2% per week; (3) the contrarian strategy following a ‘down’ market generates higher profit than those following an ‘up’ market, suggesting that a contrarian strategy could be used as a shelter when the market is in decline. The profits following a ‘down’ market are robust after risk adjustment. Journal: Journal of Chinese Economic and Business Studies Pages: 89-108 Issue: 1 Volume: 10 Year: 2012 Month: 9 X-DOI: 10.1080/14765284.2012.638473 File-URL: http://hdl.handle.net/10.1080/14765284.2012.638473 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:10:y:2012:i:1:p:89-108 Template-Type: ReDIF-Article 1.0 Author-Name: Jian Chen Author-X-Name-First: Jian Author-X-Name-Last: Chen Title: Introduction to the special issue on corporate finance and corporate governance Journal: Journal of Chinese Economic and Business Studies Pages: 109-110 Issue: 2 Volume: 10 Year: 2012 Month: 5 X-DOI: 10.1080/14765284.2012.673289 File-URL: http://hdl.handle.net/10.1080/14765284.2012.673289 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:10:y:2012:i:2:p:109-110 Template-Type: ReDIF-Article 1.0 Author-Name: Jian Chen Author-X-Name-First: Jian Author-X-Name-Last: Chen Author-Name: Roger Strange Author-X-Name-First: Roger Author-X-Name-Last: Strange Title: Political economy of IPO underpricing: the evidence from China Abstract: This paper looks at the IPO underpricing puzzle in a political economy perspective, as previous theories have considered only the ‘market economy factor’ in IPO underpricing, and failed to incorporate the ‘political economy factor’ in determining IPO underpricing. This is particularly relevant to emerging markets such as China, where the IPO is not only a process of raising fresh capital, but also one of privatisation. By examining the Chinese case with the political economy perspective, we find that the IPO underpricing is negatively related to the proportion of the shares held by various government organisations. We also offer explanations using an angle of political economy. Journal: Journal of Chinese Economic and Business Studies Pages: 111-129 Issue: 2 Volume: 10 Year: 2012 Month: 1 X-DOI: 10.1080/14765284.2012.673778 File-URL: http://hdl.handle.net/10.1080/14765284.2012.673778 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:10:y:2012:i:2:p:111-129 Template-Type: ReDIF-Article 1.0 Author-Name: Chunxia Jiang Author-X-Name-First: Chunxia Author-X-Name-Last: Jiang Author-Name: Genfu Feng Author-X-Name-First: Genfu Author-X-Name-Last: Feng Author-Name: Jianhua Zhang Author-X-Name-First: Jianhua Author-X-Name-Last: Zhang Title: Corporate governance and bank performance in China Abstract: This paper examines the effects of corporate governance on bank performance in China over the period 1995--2008. Bank performance has improved significantly and the mean profit efficiency level is estimated at 61%. The results suggest that differences in corporate governance have significant impacts on bank performance: banks with majority foreign ownership are most profitable while banks with majority state ownership are most unprofitable. We find no evidence that foreign minority ownership in domestic banks improves performance. Banks with more dispersed ownership are found to be more profit efficient. Journal: Journal of Chinese Economic and Business Studies Pages: 131-146 Issue: 2 Volume: 10 Year: 2012 Month: 1 X-DOI: 10.1080/14765284.2012.673779 File-URL: http://hdl.handle.net/10.1080/14765284.2012.673779 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:10:y:2012:i:2:p:131-146 Template-Type: ReDIF-Article 1.0 Author-Name: Damian Tobin Author-X-Name-First: Damian Author-X-Name-Last: Tobin Title: The Anglo-Saxon paradox: corporate governance best-practices and the reform deficit in China's banking sector Abstract: Corporate governance is now a key concern in China's banking sector. Its importance is related to the important policy questions of how to foster economic growth without increasing inflation in an environment where monetary guidance does not function in a conventional manner and there exist few constraints on bank lending. Under such an environment top-down best practice models offer considerable appeal, but their implementation in China's banking sector suffers from a reform deficit. In this context, this study argues that innovative reforms that draw on existing institutions and expertise such as the reform of the China Postal and Savings Bank and the relaxation of restrictions on foreign banks in the rural sector indicate a unique and policy-driven response to this conundrum. Their advantage is that they provide the state with a ready-made platform to influence economic activity in the rural economy. Journal: Journal of Chinese Economic and Business Studies Pages: 147-168 Issue: 2 Volume: 10 Year: 2012 Month: 2 X-DOI: 10.1080/14765284.2012.673780 File-URL: http://hdl.handle.net/10.1080/14765284.2012.673780 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:10:y:2012:i:2:p:147-168 Template-Type: ReDIF-Article 1.0 Author-Name: Renzeng Wang Author-X-Name-First: Renzeng Author-X-Name-Last: Wang Author-Name: Jean J. Chen Author-X-Name-First: Jean J. Author-X-Name-Last: Chen Title: ARCH effects, trading volume and the information flow interpretation: empirical evidence from the Chinese stock markets Abstract: This study revisits the relation between ARCH effects and trading volume. We extend the specification of the VA-GARCH (1, 1) model by using various volume variants and constructing contrast equity groups. We verify that the information flow assumed to be contained in the four trading volume variants has a starkly different explanatory power compared with the ARCH effects. Successive improvement of the model's empirical fit and the reduction of the fat-tailedness in the model residuals in the sequence of volume adjustment imply an increase in the strength of explaining the static aspects of volatility dynamics by the further adjusted volume variants. Journal: Journal of Chinese Economic and Business Studies Pages: 169-191 Issue: 2 Volume: 10 Year: 2012 Month: 1 X-DOI: 10.1080/14765284.2012.673782 File-URL: http://hdl.handle.net/10.1080/14765284.2012.673782 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:10:y:2012:i:2:p:169-191 Template-Type: ReDIF-Article 1.0 Author-Name: Tzu-Yun Tseng Author-X-Name-First: Tzu-Yun Author-X-Name-Last: Tseng Title: Will China's split share structure reform mitigate agency problems? Abstract: China's unique split share structure has rendered its capital market more imperfect and agency problems more severe than those in other emerging markets. Since 2005, China has invested tremendous efforts to facilitate its split share structure reform (SSSR), undoubtedly the most influential institutional change in the development of China's stock market. Hence, the SSSR provides us with a valuable opportunity to examine whether the agency problems of listed firms in China have been mitigated via the implementation of SSSR. The sample is drawn from the firms listed on the Shenzhen and Shanghai Stock Exchanges that had completed the SSSR processes prior to the end of 2005. Covering the period from 2002 to 2008, the study finds that the SSSR does play a positive role in alleviating the agency problems of listed firms in China. Journal: Journal of Chinese Economic and Business Studies Pages: 193-207 Issue: 2 Volume: 10 Year: 2012 Month: 2 X-DOI: 10.1080/14765284.2012.673781 File-URL: http://hdl.handle.net/10.1080/14765284.2012.673781 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:10:y:2012:i:2:p:193-207 Template-Type: ReDIF-Article 1.0 Author-Name: Yanqing Jiang Author-X-Name-First: Yanqing Author-X-Name-Last: Jiang Title: A new study of the Chinese regions in a neoclassical framework of models of growth Abstract: This study tests economic growth and convergence across the Chinese provinces during the period 1981--2005 based on augmented neoclassical growth models where land is included as a production input. A positive steady-state growth of per capita output cannot be sustained if the population growth rate or the output elasticity of land is sufficiently high. The study implements a panel data approach and shows that land may have an output elasticity as high as 1/3, suggesting that the natural environment indeed poses an important constraint on China's economic growth. In this study of the Chinese provinces, the panel data approach has implied much higher rates of conditional convergence in per capita output, compared with cross-section estimations. Journal: Journal of Chinese Economic and Business Studies Pages: 209-228 Issue: 3 Volume: 10 Year: 2012 Month: 11 X-DOI: 10.1080/14765284.2012.699701 File-URL: http://hdl.handle.net/10.1080/14765284.2012.699701 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:10:y:2012:i:3:p:209-228 Template-Type: ReDIF-Article 1.0 Author-Name: Bruno Deschamps Author-X-Name-First: Bruno Author-X-Name-Last: Deschamps Author-Name: Paolo Bianchi Author-X-Name-First: Paolo Author-X-Name-Last: Bianchi Title: An evaluation of Chinese macroeconomic forecasts Abstract: This article evaluates the quality of professional macroeconomic forecasts in China for the years 1995--2009. Using a large panel of forecasts on four macroeconomic variables (GDP, inflation, consumption and investment), we reject the hypothesis of unbiasedness, and find that forecasters have been, on average, overly pessimistic. The source of the bias lies primarily in forecasters' slow adjustment to structural shocks to the level of economic growth. We also reject the hypothesis that forecasters use information efficiently, and find that a large number of forecasters overreact to economic news. Finally, we document large differences of forecast accuracy across both forecasters and variables. Journal: Journal of Chinese Economic and Business Studies Pages: 229-246 Issue: 3 Volume: 10 Year: 2012 Month: 12 X-DOI: 10.1080/14765284.2012.699704 File-URL: http://hdl.handle.net/10.1080/14765284.2012.699704 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:10:y:2012:i:3:p:229-246 Template-Type: ReDIF-Article 1.0 Author-Name: Xinhua He Author-X-Name-First: Xinhua Author-X-Name-Last: He Author-Name: Duo Qin Author-X-Name-First: Duo Author-X-Name-Last: Qin Author-Name: Yimeng Liu Author-X-Name-First: Yimeng Author-X-Name-Last: Liu Title: Exchange rate misalignments: a comparison of China today against recent historical experiences of Japan, Germany, Singapore and Taiwan Abstract: The familiar claim of Chinese currency manipulation is generally asserted without reference to empirical evidence. To investigate the legitimacy of the claim, we ask if the undervalued misalignment found in the real effective exchange rate (REER) of the Chinese renminbi (RMB) over the past decade has any recent historical precedents. Four cases are examined: the Japanese yen, the Deutschmark (DM), the Singapore dollar and the new Taiwan dollar. Panel-based misalignment estimates of the REER of the four currencies are obtained using quarterly data from the late 1970s to the early 2000s. Our estimates suggest that there are precedents to the recent misalignment of the RMB in terms of magnitude, duration or breadth of currency coverage, and that a net build-up in foreign assets does not necessarily result in currency misalignment. In addition to finding little empirical justification for the claim of Chinese currency manipulation, we note that REER misalignment runs a risk of propagating inflation in the home economy. Journal: Journal of Chinese Economic and Business Studies Pages: 247-266 Issue: 3 Volume: 10 Year: 2012 Month: 5 X-DOI: 10.1080/14765284.2012.699703 File-URL: http://hdl.handle.net/10.1080/14765284.2012.699703 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:10:y:2012:i:3:p:247-266 Template-Type: ReDIF-Article 1.0 Author-Name: Yong Tan Author-X-Name-First: Yong Author-X-Name-Last: Tan Author-Name: Christos Floros Author-X-Name-First: Christos Author-X-Name-Last: Floros Title: Bank profitability and GDP growth in China: a note Abstract: This article examines the effect of GDP growth on bank profitability in China over the period 2003--2009. The one-step system GMM estimator is used to test the persistence of profitability in the Chinese banking industry. The empirical findings suggest that cost efficiency is positively related to bank profitability, while lower profitability can also be explained by higher taxes paid by banks. In addition, there is a negative relationship between GDP growth and bank profitability. Furthermore, the results show that (1) the profitability in the Chinese banking industry is significantly affected by the level of non-performing loans, and (2) Chinese banks with higher levels of capital have lower profitability. Finally, we find that the departure from a perfectly competitive market structure in the Chinese banking industry is relatively small. Journal: Journal of Chinese Economic and Business Studies Pages: 267-273 Issue: 3 Volume: 10 Year: 2012 Month: 1 X-DOI: 10.1080/14765284.2012.703541 File-URL: http://hdl.handle.net/10.1080/14765284.2012.703541 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:10:y:2012:i:3:p:267-273 Template-Type: ReDIF-Article 1.0 Author-Name: Riccardo Cristadoro Author-X-Name-First: Riccardo Author-X-Name-Last: Cristadoro Author-Name: Daniela Marconi Author-X-Name-First: Daniela Author-X-Name-Last: Marconi Title: Household savings in China Abstract: The domestic saving rate in China is the highest in the world and it surpasses the investment share in GDP, which is also very high by international standards. This excessive saving results in a large current account surplus. Understanding why the Chinese save so much is a central issue in the debate on global imbalances. The goal of our paper is to analyse empirically Chinese household saving behaviour taking into account the disparities within the country, at the provincial level and between rural and urban households. We first show that, notwithstanding the rising contribution of government and firms to national savings the real peculiarity lies with Chinese families. We move from Modigliani and Cao's (2004) attempt to explain rising personal saving in China within the life cycle hypothesis and show how a more careful analysis indicates that life-cycle determinants do not suffice, especially in the most recent period. Once we consider regional differences and distinguish urban and rural households using provincial-level data, it becomes clear that additional explanations are needed and that precautionary motives and liquidity constraints are playing an important role. Our results suggest that in order to reduce the propensity to save of Chinese households it is necessary to improve social services provision and to facilitate the access to credit. Journal: Journal of Chinese Economic and Business Studies Pages: 275-299 Issue: 3 Volume: 10 Year: 2012 Month: 11 X-DOI: 10.1080/14765284.2012.699702 File-URL: http://hdl.handle.net/10.1080/14765284.2012.699702 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:10:y:2012:i:3:p:275-299 Template-Type: ReDIF-Article 1.0 Author-Name: Liming Wang Author-X-Name-First: Liming Author-X-Name-Last: Wang Author-Name: Jianghai Zheng Author-X-Name-First: Jianghai Author-X-Name-Last: Zheng Title: China's rise as a new paradigm in the world economy: preliminaries Abstract: Drawing on the fast growing literature concerning Chinese development and transition, we sketch a general framework for understanding the ‘China Miracle’ that the ‘conventional wisdom’ and ‘Washington Consensus’ cannot fully explain. Reflecting upon the recent financial crisis and the subsequent worldwide economic downturn, an attempt is made to present a paradigm, inspired by Chinese practice over the past decades, from a historical perspective. We conjecture that a desirable China model may maintain the characteristics of a good economy as proposed in Phelps (2006) with full employment and rights to personal development. With regard to the functioning of freely competitive markets and macroeconomic policy, not only should a China model be able to mimic the rule of law and accountability of liberal western democracies, but it might also possess a mainstream ideology that is deeply rooted in Chinese culture with modern social sciences as theoretical foundations. To divest China of undesirable properties from the existing system, it is necessary to establish a principle-agent relationship that can provide stable governance structure for day-to-day efficient management of the economy and society, and protect the fundamental interests of its citizens when external challenges threaten to weaken social cohesion and political stability. Journal: Journal of Chinese Economic and Business Studies Pages: 301-312 Issue: 4 Volume: 10 Year: 2012 Month: 8 X-DOI: 10.1080/14765284.2012.724979 File-URL: http://hdl.handle.net/10.1080/14765284.2012.724979 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:10:y:2012:i:4:p:301-312 Template-Type: ReDIF-Article 1.0 Author-Name: Wing Thye Woo Author-X-Name-First: Wing Thye Author-X-Name-Last: Woo Title: China meets the middle-income trap: the large potholes in the road to catching-up Abstract: We follow Woo (2011) in using the Catch-Up Index (CUI) to define the middle-income trap and identify the countries caught in it. The CUI shows that China became a middle-income country in 2007--2008. We see five major types of middle-income trap to which China is vulnerable: (a) fiscal stress from the nonperforming loans generated by the interaction between the lending practices of the state banks and the innate desire by state enterprise managers to over-invest and embezzle; (b) the frequent use of macro-stabilization tools that hurt long-term productivity growth; (c) flaws in socio-political governance that exacerbate social tensions; (d) ineffective management of environmental challenges that threaten sustainable development; and (e) inept handling of international economic tensions that could unleash trade conflict. We recommend new governance principles and management methods to prevent China from falling into these five types of middle-income trap. Journal: Journal of Chinese Economic and Business Studies Pages: 313-336 Issue: 4 Volume: 10 Year: 2012 Month: 8 X-DOI: 10.1080/14765284.2012.724980 File-URL: http://hdl.handle.net/10.1080/14765284.2012.724980 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:10:y:2012:i:4:p:313-336 Template-Type: ReDIF-Article 1.0 Author-Name: Stephan Ortmann Author-X-Name-First: Stephan Author-X-Name-Last: Ortmann Title: The ‘Beijing consensus’ and the ‘Singapore model’: unmasking the myth of an alternative authoritarian state-capitalist model Abstract: What is today touted as the ‘Beijing consensus’ or the ‘China model’ is nothing more than a resized version of the ‘Singapore model’ or an attempt to revive the developmental state. In particular, the ‘Beijing consensus’ assumes a greater role for the state in the economy under authoritarian rule. Since Deng Xiaoping's Southern Tour in 1992, Chinese academics, politicians, and administrators have flocked to the soft-authoritarian city-state and the result has not only been a sprawling discourse but also a number of political reforms aimed at increasing the effectiveness of the state and strengthening one-party rule. An analysis of this discourse shows that while providing Chinese policy-makers with many important ideas, these studies reveal serious weaknesses in China's attempt to follow the ‘Singapore model’. Instead of having found an alternative authoritarian state-capitalist model, the ‘Beijing consensus’ is only a transitory phase. Journal: Journal of Chinese Economic and Business Studies Pages: 337-359 Issue: 4 Volume: 10 Year: 2012 Month: 8 X-DOI: 10.1080/14765284.2012.724981 File-URL: http://hdl.handle.net/10.1080/14765284.2012.724981 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:10:y:2012:i:4:p:337-359 Template-Type: ReDIF-Article 1.0 Author-Name: Miao Han Author-X-Name-First: Miao Author-X-Name-Last: Han Title: The People's Bank of China during the global financial crisis: policy responses and beyond Abstract: During the economic crises of the last decade or so, China suffered limited losses; this is evident from studies of both the 1997 Asian Financial Crisis (AFC) and the 2008 global financial crisis (GFC). China has gone on to achieve unparalleled GDP growth since the second half of 2009, when most of the developed world still struggled to recover. Throughout this period central banks have widely employed various instruments to manage the various crises. Although the People's Bank of China (PBC) has adopted complicated facilities to mitigate contagion from the global market, China's uncompleted financial reform has initially limited its exposure to external shocks. This paper therefore explores the PBC's role and its emerging limitations by comparing its performance in these two crises. Although the PBC has assisted China to achieve its immediate target of economic recovery, economic imbalance has been in effect deteriorated from the longer-term perspective due to internal susceptibility to external shocks. Journal: Journal of Chinese Economic and Business Studies Pages: 361-390 Issue: 4 Volume: 10 Year: 2012 Month: 8 X-DOI: 10.1080/14765284.2012.724982 File-URL: http://hdl.handle.net/10.1080/14765284.2012.724982 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:10:y:2012:i:4:p:361-390 Template-Type: ReDIF-Article 1.0 Author-Name: Ningyue Liu Author-X-Name-First: Ningyue Author-X-Name-Last: Liu Author-Name: Liming Wang Author-X-Name-First: Liming Author-X-Name-Last: Wang Author-Name: Min Zhang Author-X-Name-First: Min Author-X-Name-Last: Zhang Author-Name: Wen Zhang Author-X-Name-First: Wen Author-X-Name-Last: Zhang Title: Government intervention and executive compensation contracts of state-owned enterprises: empirical evidence from China Abstract: This paper attempts to examine the impact of government intervention on executive compensation contracts by employing the data of listed companies in the Chinese equity market. The results show that redundancy burden caused by government intervention significantly reduces the compensation-performance sensitivity of executives in state-owned enterprises (SOEs), increases the level of compensation stickiness and leads to more executive perks. However, there is no evidence to support this conclusion in non-SOEs. Our results indicate that government has great responsibility for redundancy in SOEs and has a significant impact on the design of executive compensation contracts, but has limited impact on that of non-SOEs. Therefore, the impact of redundancy burden on executive compensation contracts is different between SOEs and non-SOEs. Our findings have important implications for the relationship between property rights and corporate performance, the formation mechanism of redundancy, and the impact of redundancy burden on executive compensation contracts. Journal: Journal of Chinese Economic and Business Studies Pages: 391-411 Issue: 4 Volume: 10 Year: 2012 Month: 8 X-DOI: 10.1080/14765284.2012.724983 File-URL: http://hdl.handle.net/10.1080/14765284.2012.724983 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:10:y:2012:i:4:p:391-411 Template-Type: ReDIF-Article 1.0 Author-Name: Xiaobing Wang Author-X-Name-First: Xiaobing Author-X-Name-Last: Wang Author-Name: Nick Weaver Author-X-Name-First: Nick Author-X-Name-Last: Weaver Title: Surplus labour and Lewis turning points in China Abstract: It has been widely recognised that China has had a large pool of surplus labour. However, despite its significant implications for wage levels and the Chinese economy, the current debates yield conflicting results as to whether a Lewis turning point has been reached. This paper clarifies a theoretical issue about the mechanisms of surplus labour absorption, subsequently indentifies two Lewis turning points and examines the factors that affect the reaching of these two points. It then applies the framework to China to study the labour absorption process and examines some of the likely implications of the removal of the Hukou system in terms of welfare and economic performance. Journal: Journal of Chinese Economic and Business Studies Pages: 1-12 Issue: 1 Volume: 11 Year: 2013 Month: 2 X-DOI: 10.1080/14765284.2012.755303 File-URL: http://hdl.handle.net/10.1080/14765284.2012.755303 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:11:y:2013:i:1:p:1-12 Template-Type: ReDIF-Article 1.0 Author-Name: Mohsen Bahmani-Oskooee Author-X-Name-First: Mohsen Author-X-Name-Last: Bahmani-Oskooee Author-Name: Jia Xu Author-X-Name-First: Jia Author-X-Name-Last: Xu Title: The J-Curve and Japan--China commodity trade Abstract: Previous studies that have tested the J-Curve phenomenon for Japan or China employed either aggregate trade data between each country and the rest of the world, or aggregate bilateral data between two trade partners. These studies have found no support for the J-Curve. Suspecting that their models could suffer from aggregation bias, in this paper, we disaggregate bilateral trade flows between the two countries and examine trade by 73 industries. We find evidence of the J-Curve phenomenon in 24 industries, a unique finding for trade between Japan and China. Journal: Journal of Chinese Economic and Business Studies Pages: 13-28 Issue: 1 Volume: 11 Year: 2013 Month: 2 X-DOI: 10.1080/14765284.2012.755300 File-URL: http://hdl.handle.net/10.1080/14765284.2012.755300 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:11:y:2013:i:1:p:13-28 Template-Type: ReDIF-Article 1.0 Author-Name: Meixing Dai Author-X-Name-First: Meixing Author-X-Name-Last: Dai Title: In search of an optimal strategy for yuan’s real revaluation Abstract: International commentators seem to have a consensus view that the Chinese yuan is substantially undervalued and the Chinese monetary authority must take speedy actions to redress the currency misalignment by rapid nominal revaluation. This paper argues for a gradualist but comprehensive strategy for adjusting the renminbi’s exchange rate. Taking into consideration the facts that the yuan’s undervaluation is caused by an array of domestic and international factors and that the Chinese central bank cannot effectively invest its growing holdings of foreign reserves, we develop a framework to provide a theoretical underpinning for the optimal strategy for the renminbi’s gradual revaluation. With this strategy, the renminbi undervaluation problem is gradually redressed through a combination of nominal appreciation and higher inflation plus some other structural and macroeconomic policies. This strategy can also allow absorption of external imbalances, hence strengthening the foundation of China’s long-term growth. Journal: Journal of Chinese Economic and Business Studies Pages: 29-46 Issue: 1 Volume: 11 Year: 2013 Month: 2 X-DOI: 10.1080/14765284.2012.755301 File-URL: http://hdl.handle.net/10.1080/14765284.2012.755301 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:11:y:2013:i:1:p:29-46 Template-Type: ReDIF-Article 1.0 Author-Name: Raul Gouvea Author-X-Name-First: Raul Author-X-Name-Last: Gouvea Author-Name: Raj V. Mahto Author-X-Name-First: Raj V. Author-X-Name-Last: Mahto Author-Name: M.J.R. Montoya Author-X-Name-First: M.J.R. Author-X-Name-Last: Montoya Title: BRIC national export performance: a portfolio approach Abstract: The BRIC countries (Brazil, Russia, India, and China) have expanded their export sector considerably in the last two decades. Their export portfolios range from commodities to knowledge-intensive products. In this paper, we use two portfolio approaches (Markowitz and single index models) to assess export diversification strategies. The results indicate that China’s export portfolio dominates the portfolios of Brazil, India, and Russia. China has a highly diversified export profile and also expresses the highest efficiency amongst the BRIC countries. Thus, we make several conclusions about the impact of BRIC countries on the global political economy: (1) export portfolios can be used as a measure of geo-political influence, (2) BRIC countries’ export performance approximates the economic behavior of a global ‘middle class,’ and (3) China’s dominance among the BRIC countries, particularly its diverse profile, largely represents the global economy. China’s portfolio beta for export is closest to the global portfolio beta. Journal: Journal of Chinese Economic and Business Studies Pages: 47-58 Issue: 1 Volume: 11 Year: 2013 Month: 2 X-DOI: 10.1080/14765284.2012.755299 File-URL: http://hdl.handle.net/10.1080/14765284.2012.755299 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:11:y:2013:i:1:p:47-58 Template-Type: ReDIF-Article 1.0 Author-Name: Kuo-Wei Chou Author-X-Name-First: Kuo-Wei Author-X-Name-Last: Chou Author-Name: Po-Chun Lin Author-X-Name-First: Po-Chun Author-X-Name-Last: Lin Title: Oil price shocks and producer prices in Taiwan: an application of non-linear error-correction models Abstract: This study estimated the short-term and long-term pass-through effects of oil prices on inflation in Taiwan from 1981M1-2011M5, employing the producer price general index and various basic sub-indices for evaluation. The empirical results show that oil prices have long-term and short-term pass-through effects on Taiwan’s producer price indices. Moreover, producer prices have significant non-linear error-correction relationships with the oil price, output and wages, suggesting asymmetric and time-variant properties of error correction. When the deviation of price in the equilibrium is greater, the error-correction adjustment will be faster. Our findings could therefore enable the monetary authorities and manufacturers to formulate a more effective policy from the oil price shocks. Journal: Journal of Chinese Economic and Business Studies Pages: 59-72 Issue: 1 Volume: 11 Year: 2013 Month: 2 X-DOI: 10.1080/14765284.2012.755302 File-URL: http://hdl.handle.net/10.1080/14765284.2012.755302 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:11:y:2013:i:1:p:59-72 Template-Type: ReDIF-Article 1.0 Author-Name: Damian Tobin Author-X-Name-First: Damian Author-X-Name-Last: Tobin Title: The renminbi as an international currency: the next instalment of China’s economic reforms Journal: Journal of Chinese Economic and Business Studies Pages: 73-79 Issue: 2 Volume: 11 Year: 2013 Month: 5 X-DOI: 10.1080/14765284.2013.789679 File-URL: http://hdl.handle.net/10.1080/14765284.2013.789679 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:11:y:2013:i:2:p:73-79 Template-Type: ReDIF-Article 1.0 Author-Name: Damian Tobin Author-X-Name-First: Damian Author-X-Name-Last: Tobin Title: Renminbi internationalisation: precedents and implications Abstract: Although it is commonly assumed that there are no precedents against which to benchmark Renminbi (RMB), this study argues that the People’s Republic of China (PRC) own development experience provides a useful perspective on the internationalisation debate. This study indicates that lessons can be learnt from both the successes and the shortcomings of efforts to internationalise the RMB in the 1970s. During this period, state-owned banks in Hong Kong played a central role in mobilising finance for foreign trade. Access to Hong Kong’s financial institutions allowed the PRC to maximise international trade receipts while minimising the risk of undue swings in capital flows. This study shows that although China no longer faces foreign exchange scarcity, economic reforms have not yet resolved vulnerabilities in China’s financial institutions. As a consequence, Hong Kong has retained its role in mitigating the risks of internationalisation and as a globalising force for China’s banking sector more generally. Journal: Journal of Chinese Economic and Business Studies Pages: 81-99 Issue: 2 Volume: 11 Year: 2013 Month: 5 X-DOI: 10.1080/14765284.2013.789677 File-URL: http://hdl.handle.net/10.1080/14765284.2013.789677 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:11:y:2013:i:2:p:81-99 Template-Type: ReDIF-Article 1.0 Author-Name: Robert N. McCauley Author-X-Name-First: Robert N. Author-X-Name-Last: McCauley Title: Renminbi internationalisation and China’s financial development Abstract: There is a widespread view that China’s currency can be used in international markets only after the liberalisation of China’s domestic financial markets and the opening of its capital account. Yet evidently the renminbi’s internationalisation is preceding these so-called preconditions. This article assesses the tensions inherent in renminbi internationalisation starting at a transitional period in China’s financial development. For now, effective capital controls allow the Chinese authorities to retain regulated deposit and lending rates, quantitative credit guidance and bond market rationing. Relaxation of the capital controls would put these policies at risk. Reserve requirements can be extended to bank inflows from the offshore market but only at a price. Journal: Journal of Chinese Economic and Business Studies Pages: 101-115 Issue: 2 Volume: 11 Year: 2013 Month: 5 X-DOI: 10.1080/14765284.2013.789681 File-URL: http://hdl.handle.net/10.1080/14765284.2013.789681 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:11:y:2013:i:2:p:101-115 Template-Type: ReDIF-Article 1.0 Author-Name: Guonan Ma Author-X-Name-First: Guonan Author-X-Name-Last: Ma Author-Name: Yan Xiandong Author-X-Name-First: Yan Author-X-Name-Last: Xiandong Author-Name: Liu Xi Author-X-Name-First: Liu Author-X-Name-Last: Xi Title: China’s evolving reserve requirements Abstract: We examine the role of reserve requirements as a cheaper substitute for the open market operations of the People’s Bank of China (PBC) to sterilise foreign exchange interventions in recent years. China’s reserve requirements have also been used to address a range of other policy objectives, not least macroeconomic management, financial stability and credit policy. The preference for reserve requirements reflects the size of sterilisation and the associated costs, in a quantity-oriented monetary policy framework faced with policy dilemmas. The PBC often finds it easier to make reserve requirement adjustments than interest rate decisions and enjoys greater discretion in applying this tool. The monetary effects of reserve requirements need to be explored not in isolation but in conjunction with other policy actions. Depending on the policy mix, higher reserve requirements tend to signal a tightening bias, to squeeze excess reserves of banks, to push market interest rates higher and to help widen net interest spreads, thus tightening domestic monetary conditions. Reserve requirements, however, impose an implicit tax burden on Chinese banks, albeit the latter seem to pass through a large but incomplete portion of these costs to their customers. Journal: Journal of Chinese Economic and Business Studies Pages: 117-137 Issue: 2 Volume: 11 Year: 2013 Month: 5 X-DOI: 10.1080/14765284.2013.789682 File-URL: http://hdl.handle.net/10.1080/14765284.2013.789682 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:11:y:2013:i:2:p:117-137 Template-Type: ReDIF-Article 1.0 Author-Name: Yuning Gao Author-X-Name-First: Yuning Author-X-Name-Last: Gao Author-Name: D’Maris Coffman Author-X-Name-First: D’Maris Author-X-Name-Last: Coffman Title: Renminbi internationalization as a response to the global imbalance Abstract: The build-up of huge foreign exchange reserve makes China a net creditor and also brings in significant challenges to the Chinese economy. Considering the internationalization of the renminbi as China’s response to the global imbalance, this paper analyzes the effect of renminbi internationalization on the formation of reserves and compares its benefits and costs in rebalancing China’s external position with those of outward direct investment. It assesses the current progress in the practice of using the renminbi in cross-border trade settlement and in the development of the offshore renminbi market. It further examines the possibility of the renminbi serving as a global reserve currency in the future. Journal: Journal of Chinese Economic and Business Studies Pages: 139-151 Issue: 2 Volume: 11 Year: 2013 Month: 5 X-DOI: 10.1080/14765284.2013.789683 File-URL: http://hdl.handle.net/10.1080/14765284.2013.789683 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:11:y:2013:i:2:p:139-151 Template-Type: ReDIF-Article 1.0 Author-Name: Ding Lu Author-X-Name-First: Ding Author-X-Name-Last: Lu Title: Challenges to an upper-middle income country Journal: Journal of Chinese Economic and Business Studies Pages: 153-159 Issue: 3 Volume: 11 Year: 2013 Month: 8 X-DOI: 10.1080/14765284.2013.814452 File-URL: http://hdl.handle.net/10.1080/14765284.2013.814452 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:11:y:2013:p:153-159 Template-Type: ReDIF-Article 1.0 Author-Name: Patrick Karl O'Brien Author-X-Name-First: Patrick Karl Author-X-Name-Last: O'Brien Title: Fiscal, financial and monetary foundations for the formation of nation states in the west compared to imperial states in the east c.1415--c.1839 Abstract: This speech introduces O'Brien's research approach to the divergence debate and presents the fiscal capacities of the states as the key condition for ushering in modern economic growth in the pre-industrialization West. The concerns of pre-modern European states (1415--1839) were not with economic development, but with external security and internal stability of their kingdoms. Mercantilism prepared European states for capitalist industrialization. Historical evidence supports the hypothesis that effective command and control over sovereign revenues were what gave Britain and other European states the advantage over their oriental counterparts in providing public goods of external security and internal stability, which made the divergence in economic development inevitable. Journal: Journal of Chinese Economic and Business Studies Pages: 161-168 Issue: 3 Volume: 11 Year: 2013 Month: 8 X-DOI: 10.1080/14765284.2013.814455 File-URL: http://hdl.handle.net/10.1080/14765284.2013.814455 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:11:y:2013:i:3:p:161-168 Template-Type: ReDIF-Article 1.0 Author-Name: Henrique Schneider Author-X-Name-First: Henrique Author-X-Name-Last: Schneider Title: An Austrian view on the middle income trap Abstract: This paper intends to give a nuanced interpretation 'the middle income trap' in the discussion on China's economic future. A developing nation gets 'trapped' when it reaches a relatively comfortable level of income but cannot take the step into the next level. In this paper, the usually made connection between income trap and the structure of economy is critically examined and the 'trap' is interpreted as a bearer of information in itself. According to the Austrian school of economics (Hayek), prices represent the sum of information that is available to the markets. Stagnating incomes will consequentially be read as information concerning the lack of growth of the productivity of the work force and the industry. The 'middle income trap' has to be addressed at microeconomic level, focusing on the increase of productivity. Usually, the trap cannot be addressed by government policies, but has to be solved by increased entrepreneurship. Journal: Journal of Chinese Economic and Business Studies Pages: 169-178 Issue: 3 Volume: 11 Year: 2013 Month: 8 X-DOI: 10.1080/14765284.2013.814457 File-URL: http://hdl.handle.net/10.1080/14765284.2013.814457 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:11:y:2013:i:3:p:169-178 Template-Type: ReDIF-Article 1.0 Author-Name: Yan Yuan Author-X-Name-First: Yan Author-X-Name-Last: Yuan Author-Name: Lihe Xu Author-X-Name-First: Lihe Author-X-Name-Last: Xu Title: What determine the interest rates in China's informal market? Abstract: The interest rate is one of the most important factors in farmers' decision-making of borrowing and lending in the informal financial market in China. This paper explores the determinants of the interest rate with microfinance data. Results show that the income disparity, the relationship between borrowers and lenders, the usage of borrowing, and formal credit constraints are important factors affecting interest rates. More importantly, to borrow from those in the higher income hierarchy, farmers have to bear higher interest rates. We attribute this to different social capitals across income groups and higher default risks for the poor. This paper contributes to a better understanding of the informal financial market in rural China and sheds light on the mechanism of higher informal interest rate formation. Journal: Journal of Chinese Economic and Business Studies Pages: 179-196 Issue: 3 Volume: 11 Year: 2013 Month: 8 X-DOI: 10.1080/14765284.2013.814459 File-URL: http://hdl.handle.net/10.1080/14765284.2013.814459 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:11:y:2013:i:3:p:179-196 Template-Type: ReDIF-Article 1.0 Author-Name: Shi Li Author-X-Name-First: Shi Author-X-Name-Last: Li Author-Name: John Whalley Author-X-Name-First: John Author-X-Name-Last: Whalley Author-Name: Xiliang Zhao Author-X-Name-First: Xiliang Author-X-Name-Last: Zhao Title: Housing price and household savings rates: evidence from China Abstract: This article investigates the effect of house prices on household savings rates in urban China employing the 2002 and 2007 data of the Chinese Households Income Project (CHIP). We find that the rapid appreciation of house prices cannot explain high Chinese households' savings rates and the rising of Chinese savings rates. On the contrary, we find a negative relationship between house prices and household savings rates for home renters and homeowners. We do not find any evidence of 'savings for housing purchase' for young home renters when house prices increase. Their savings rates declined during housing market booms in recent 10 years. Savings rates of homeowners possessing multiple housing have decreased more because of 'the pure housing wealth effects.' Journal: Journal of Chinese Economic and Business Studies Pages: 197-217 Issue: 3 Volume: 11 Year: 2013 Month: 8 X-DOI: 10.1080/14765284.2013.814461 File-URL: http://hdl.handle.net/10.1080/14765284.2013.814461 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:11:y:2013:i:3:p:197-217 Template-Type: ReDIF-Article 1.0 Author-Name: Chenyi He Author-X-Name-First: Chenyi Author-X-Name-Last: He Author-Name: Kwamena K. Quagrainie Author-X-Name-First: Kwamena K. Author-X-Name-Last: Quagrainie Author-Name: H. Holly Wang Author-X-Name-First: H. Holly Author-X-Name-Last: Wang Title: Determinants of shrimp importation into the USA: an application of an augmented gravity model Abstract: Shrimp farmers in the USA are facing the situation of increased imports resulting in reduced market share, falling prices, and reduced profitability for their farm-raised shrimp. The study examined the determinants of shrimp imports from China, Vietnam, Thailand, and Indonesia using an augmented gravity model of international trade. The results reveal that US imports from the four exporting countries are significantly affected by the GDP of exporting countries, GDP of the USA, exchange rate, unit import value (proxy for import price) of shrimp, and tariff. Tariff policy has implications for the US shrimp industry. Journal: Journal of Chinese Economic and Business Studies Pages: 219-228 Issue: 3 Volume: 11 Year: 2013 Month: 8 X-DOI: 10.1080/14765284.2013.814466 File-URL: http://hdl.handle.net/10.1080/14765284.2013.814466 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:11:y:2013:i:3:p:219-228 Template-Type: ReDIF-Article 1.0 Author-Name: Boyang Miao Author-X-Name-First: Boyang Author-X-Name-Last: Miao Author-Name: Si Zhou Author-X-Name-First: Si Author-X-Name-Last: Zhou Author-Name: Jing Nie Author-X-Name-First: Jing Author-X-Name-Last: Nie Author-Name: Zhichao Zhang Author-X-Name-First: Zhichao Author-X-Name-Last: Zhang Title: Renminbi exchange rate exposure: evidence from Chinese industries Abstract: This paper investigates sensitivity of stock returns of industry-sorted Chinese firms with respect to renminbi exchange rate movements. Strong evidence of significant exposure is documented for 7 out of 16 Chinese industries. Evidence is also found of the size asymmetry effects. In addition, we explore the characteristics of the exposure, and detect evidence of significant exposure among non-exporters in some of the industries. Special attention is given to examining the time-varying exposure under the impact of the new Chinese exchange rate regime in place since 2005, in which even stronger exchange rate exposure is reported. The conditional exposure estimated in this paper also reveals the close relation between stock returns and changes of the renminbi exchange rate. Journal: Journal of Chinese Economic and Business Studies Pages: 229-250 Issue: 4 Volume: 11 Year: 2013 Month: 11 X-DOI: 10.1080/14765284.2013.838386 File-URL: http://hdl.handle.net/10.1080/14765284.2013.838386 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:11:y:2013:i:4:p:229-250 Template-Type: ReDIF-Article 1.0 Author-Name: H.O. Stekler Author-X-Name-First: H.O. Author-X-Name-Last: Stekler Author-Name: Huixia Zhang Author-X-Name-First: Huixia Author-X-Name-Last: Zhang Title: An evaluation of Chinese economic forecasts Abstract: This paper analyses the real GDP growth and inflation forecasts prepared by the International Monetary Fund, the Organization for Economic Cooperation and Development, and the private forecasters between 1999 and 2010. The empirical results show that the long-term growth forecasts were inferior to a naïve model and were biased. The average of a number of short-term private forecasts dominated those made by the international organisations. Journal: Journal of Chinese Economic and Business Studies Pages: 251-259 Issue: 4 Volume: 11 Year: 2013 Month: 11 X-DOI: 10.1080/14765284.2013.838387 File-URL: http://hdl.handle.net/10.1080/14765284.2013.838387 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:11:y:2013:i:4:p:251-259 Template-Type: ReDIF-Article 1.0 Author-Name: Simplice A. Asongu Author-X-Name-First: Simplice A. Author-X-Name-Last: Asongu Author-Name: Gilbert A.A. Aminkeng Author-X-Name-First: Gilbert A.A. Author-X-Name-Last: Aminkeng Title: The economic consequences of China--Africa relations: debunking myths in the debate Abstract: This study dissects with great acuteness some of the big questions on China--Africa relations in order to debunk burgeoning myths surrounding the nexus. It reviews a wealth of recent literature and presents the debate in three schools of thought. No substantial empirical evidence is found to back up sinister prophesies of coming catastrophe from critics of the direction of China--Africa relations. In the mean, the relationship from an economic standpoint is promising and encouraging but more needs to be done regarding multilateral relations, improvement of institutions, and sustainability of resources management. A number of positive signs suggest that China is heading toward the direction which would provide openings for a multipolar dialog. While benefiting in the short run, African governments have the capacity to tailor this relationship and address some socio-economic matters arising that may negatively affect the nexus in the long term. Policy implications are discussed. Journal: Journal of Chinese Economic and Business Studies Pages: 261-277 Issue: 4 Volume: 11 Year: 2013 Month: 11 X-DOI: 10.1080/14765284.2013.838384 File-URL: http://hdl.handle.net/10.1080/14765284.2013.838384 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:11:y:2013:i:4:p:261-277 Template-Type: ReDIF-Article 1.0 Author-Name: Junfang Sun Author-X-Name-First: Junfang Author-X-Name-Last: Sun Author-Name: Haiqing Hu Author-X-Name-First: Haiqing Author-X-Name-Last: Hu Title: Trade credit and productivity: evidence from China's ethnic areas Abstract: Using 2004--2009 firm-level microdata for enterprises in China's ethnic areas, we investigate whether trade credit really works as an alternative external financing source. We find statistical evidence that trade credit is positively correlated with enterprise productivity; the result continues to hold when taking into account the intermediate role of the working capital turnover ratio. Moreover, our results confirm the positive impact of bank financing on enterprise productivity. All these findings are particularly tenable for Han enterprises. Journal: Journal of Chinese Economic and Business Studies Pages: 279-297 Issue: 4 Volume: 11 Year: 2013 Month: 11 X-DOI: 10.1080/14765284.2013.838388 File-URL: http://hdl.handle.net/10.1080/14765284.2013.838388 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:11:y:2013:i:4:p:279-297 Template-Type: ReDIF-Article 1.0 Author-Name: Qiwei Chen Author-X-Name-First: Qiwei Author-X-Name-Last: Chen Title: Risk and seasonal effects: international evidence Abstract: Various explanations have been advanced for the January effect in the existing literature, but no consensus has been arrived at to distinguish one particular explanation from any others. In this paper, a time-series GARCH-M model with conditional variance as a proxy for market systematic risk is applied to investigate the seasonal effects in four countries with different tax system and tax year end: the USA, the UK, China and Australia. Empirical evidence showed a January effect in the USA, a January and an April effect in the UK, a July effect in Australia and no significant seasonal effect in China. This pattern consistently links to tax year end and the tax system in the sample countries; however, no clear evidence has been found to support the proposition that market risk is higher or priced highly only in calendar months with a seasonal effect. However, to reflect the seasonal effect, an interactive dummy variable is added into the time-series GARCH-M model, and the seasonal effects are explained away. The results of the sampled countries support the proposition that market volatility increases when it is close to the date of financial statement performance due to the uncertainty of the financial information. Journal: Journal of Chinese Economic and Business Studies Pages: 299-311 Issue: 4 Volume: 11 Year: 2013 Month: 11 X-DOI: 10.1080/14765284.2013.838385 File-URL: http://hdl.handle.net/10.1080/14765284.2013.838385 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:11:y:2013:i:4:p:299-311 Template-Type: ReDIF-Article 1.0 Author-Name: Gary H. Jefferson Author-X-Name-First: Gary H. Author-X-Name-Last: Jefferson Author-Name: Miao Ouyang Author-X-Name-First: Miao Author-X-Name-Last: Ouyang Title: FDI spillovers in China: why do the research findings differ so much? Abstract: This paper investigates a large body of research for the purpose of sorting out the variety of data-sets, research methods, and findings that have emerged over the past decade concerning FDI productivity spillovers in Chinese industry. The review includes 16 papers, which together represent a striking range of data-sets, models, econometric strategies, and research results. After reviewing six dimensions of comparisons of the literature, the paper seeks to identify the common findings, explain why the differences are so extensive, and identify a set of guidelines for framing future research in this field. Journal: Journal of Chinese Economic and Business Studies Pages: 1-27 Issue: 1 Volume: 12 Year: 2014 Month: 2 X-DOI: 10.1080/14765284.2013.875292 File-URL: http://hdl.handle.net/10.1080/14765284.2013.875292 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:12:y:2014:i:1:p:1-27 Template-Type: ReDIF-Article 1.0 Author-Name: Qingjie Xia Author-X-Name-First: Qingjie Author-X-Name-Last: Xia Author-Name: Lina Song Author-X-Name-First: Lina Author-X-Name-Last: Song Author-Name: Shi Li Author-X-Name-First: Shi Author-X-Name-Last: Li Author-Name: Simon Appleton Author-X-Name-First: Simon Author-X-Name-Last: Appleton Title: The effect of the state sector on wage inequality in urban China: 1988--2007 Abstract: This paper examines the effect of the public sector and state-owned enterprises (SOEs) on wage inequality in urban China using China Household Income Project data. It applies quantile regression analysis, the Machado and Mata decomposition to investigate how urban wage inequality was affected by the changes in wage structure and employment shares of the public sector and SOEs. We find that since the radical state sector reforms designed to reduce overstaffing and improve efficiency in the late 1990s, urban wage gaps were narrowed due to the reduction in the employment share of the state sector; the wage premium of the state sector in comparison with the non-state sector increased significantly; and changes in the wage structure of the labour market caused the rise in urban wage inequality. Journal: Journal of Chinese Economic and Business Studies Pages: 29-45 Issue: 1 Volume: 12 Year: 2014 Month: 2 X-DOI: 10.1080/14765284.2013.875282 File-URL: http://hdl.handle.net/10.1080/14765284.2013.875282 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:12:y:2014:i:1:p:29-45 Template-Type: ReDIF-Article 1.0 Author-Name: Xiaobing Wang Author-X-Name-First: Xiaobing Author-X-Name-Last: Wang Author-Name: Adam Ozanne Author-X-Name-First: Adam Author-X-Name-Last: Ozanne Author-Name: Xin Hao Author-X-Name-First: Xin Author-X-Name-Last: Hao Title: The West's aid dilemma and the Chinese solution? Abstract: There are currently two contrasting approaches towards aid policy in Africa: that followed by the West is well known for its conditionality and selectivity and focus on direct financial support, while the approach adopted by China eschews conditionality and concentrates on infrastructure building. The Chinese approach has been criticized for its failure to create direct employment and because, it is argued, its unconditionality hampers good governance in Africa. However, this paper argues that the West faces a dilemma in that governance and its improvements are endogenous to the economic development of a country. Making aid conditional upon governance therefore unduly penalizes countries at the bottom. The Chinese approach, in contrast, avoids this dilemma by directly targeting constraints to development; it may therefore be more effective in generating long-run growth, which may in turn foster good governance. Journal: Journal of Chinese Economic and Business Studies Pages: 47-61 Issue: 1 Volume: 12 Year: 2014 Month: 2 X-DOI: 10.1080/14765284.2013.875287 File-URL: http://hdl.handle.net/10.1080/14765284.2013.875287 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:12:y:2014:i:1:p:47-61 Template-Type: ReDIF-Article 1.0 Author-Name: Hui Tan Author-X-Name-First: Hui Author-X-Name-Last: Tan Author-Name: Alice Gartland Author-X-Name-First: Alice Author-X-Name-Last: Gartland Title: Language, knowledge transfer and firm's strategic assets: the strategic role of language in knowledge transfer to China Abstract: This article is intended to examine the exact role of language in intra-firm cross-country knowledge transfer from the perspective of developing firm's strategic assets. We find that inadequate language ability can lead to communication failures and cultural misunderstanding, and has the potential to destroy the process of knowledge transfer. Hence, language is not an operational issue but of strategic importance to the transfer of knowledge within multinational enterprises. As language ability is uniquely related to the specific technical, managerial and cultural aspects of a firm, hard to substitute and imitate, it should be regarded as one of the firm's strategic assets and be dealt at strategic level. Journal: Journal of Chinese Economic and Business Studies Pages: 63-79 Issue: 1 Volume: 12 Year: 2014 Month: 2 X-DOI: 10.1080/14765284.2013.875288 File-URL: http://hdl.handle.net/10.1080/14765284.2013.875288 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:12:y:2014:i:1:p:63-79 Template-Type: ReDIF-Article 1.0 Author-Name: Hui-Sung Kao Author-X-Name-First: Hui-Sung Author-X-Name-Last: Kao Title: The relationships between IFRS, earnings losses threshold and earnings management Abstract: An increasing number of countries have adopted International Financial Reporting Standards (IFRS). Prior research indicates that IFRS increase the relevance of financial statements, but also increase opportunism in earnings management (EM). Despite this, no evidence is found in this study to demonstrate that the adoption of IFRS increases the use of EM by companies as a whole. Furthermore, the results indicate that the use of IFRS can enhance the neutrality of financial statements. However, these phenomena occur only in the case of firms with positive earnings. Therefore, if a firm faces earnings losses (ELOSS), the manager will often exhibit EM behaviour after implementing IFRS. Thus, when the firm has ELOSS and adopts IFRS, the situation that results will usually decrease the neutrality of financial statements. As for the management implications, these findings suggest that the government and regulator should implement more in-depth supervision to prevent the increased use of EM by managers following the adoption of IFRS. Journal: Journal of Chinese Economic and Business Studies Pages: 81-98 Issue: 1 Volume: 12 Year: 2014 Month: 2 X-DOI: 10.1080/14765284.2013.875289 File-URL: http://hdl.handle.net/10.1080/14765284.2013.875289 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:12:y:2014:i:1:p:81-98 Template-Type: ReDIF-Article 1.0 Author-Name: Jizhen Li Author-X-Name-First: Jizhen Author-X-Name-Last: Li Author-Name: Si Zhang Author-X-Name-First: Si Author-X-Name-Last: Zhang Author-Name: Poh Kam Wong Author-X-Name-First: Poh Kam Author-X-Name-Last: Wong Author-Name: Xiaolan Fu Author-X-Name-First: Xiaolan Author-X-Name-Last: Fu Title: Harnessing internal and external resources for innovation in emerging economies Journal: Journal of Chinese Economic and Business Studies Pages: 99-101 Issue: 2 Volume: 12 Year: 2014 Month: 5 X-DOI: 10.1080/14765284.2014.901481 File-URL: http://hdl.handle.net/10.1080/14765284.2014.901481 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:12:y:2014:i:2:p:99-101 Template-Type: ReDIF-Article 1.0 Author-Name: Yuri Simachev Author-X-Name-First: Yuri Author-X-Name-Last: Simachev Author-Name: Mikhail Kuzyk Author-X-Name-First: Mikhail Author-X-Name-Last: Kuzyk Author-Name: Vera Feygina Author-X-Name-First: Vera Author-X-Name-Last: Feygina Title: The nature of innovation channels at the micro level: evidence from Russian manufacturing firms Abstract: The main purpose of the paper is to analyze different channels for innovations. We analyze the influence of such channels on Russian companies taking into account industrial organization - vertical or horizontal orientation, peculiarities of corporate demography, roles and motives of different owners (including government and foreign investors), demand trends, customers' profile, nature, and intensity of competition in relevant markets. Our study's empirical base is provided by a survey of 652 Russian industrial companies conducted in 2012. We find that innovations in Russian industry are spread in accordance with two main models: vertical through corporate connections, and horizontal, based on the example of foreign companies in the atmosphere of developed competition. Journal: Journal of Chinese Economic and Business Studies Pages: 103-123 Issue: 2 Volume: 12 Year: 2014 Month: 5 X-DOI: 10.1080/14765284.2014.900942 File-URL: http://hdl.handle.net/10.1080/14765284.2014.900942 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:12:y:2014:i:2:p:103-123 Template-Type: ReDIF-Article 1.0 Author-Name: Y.Y. Zhao Author-X-Name-First: Y.Y. Author-X-Name-Last: Zhao Author-Name: P.K. Wong Author-X-Name-First: P.K. Author-X-Name-Last: Wong Author-Name: A.M. Subramanian Author-X-Name-First: A.M. Author-X-Name-Last: Subramanian Author-Name: C.C. Hang Author-X-Name-First: C.C. Author-X-Name-Last: Hang Title: Technology licensing and innovation performance: evidence from Chinese latecomers in high-tech industries Abstract: As a catalyst for endogenous technological change, inward technology licensing (ITL) can improve a firm's innovation performance. This paper investigates the effect of learning by licensing and choice of licensed-in technologies on innovation performance. We extend the ITL strategy to the latecomer context, addressing two critical factors: (1) number of licenses and (2) age of licensed-in technology. We hypothesize about the relationship of the licensee's innovation performance with the number of licenses and age of licensed-in technology, as well as the moderating effect of the licensee's absorptive capacity. Based on a sample of 154 Chinese high-tech firms, empirical evidence is found in support of our arguments. This study is the first to consider the significance of the age of licensed-in technology to innovation performance and found that the number of licenses has a curvilinear (an inverted U) relationship with innovation performance. We also confirmed the significant moderating effect of absorptive capacity on the above two relationships. Journal: Journal of Chinese Economic and Business Studies Pages: 125-147 Issue: 2 Volume: 12 Year: 2014 Month: 5 X-DOI: 10.1080/14765284.2014.900946 File-URL: http://hdl.handle.net/10.1080/14765284.2014.900946 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:12:y:2014:i:2:p:125-147 Template-Type: ReDIF-Article 1.0 Author-Name: Zhongjuan Sun Author-X-Name-First: Zhongjuan Author-X-Name-Last: Sun Title: Domestic technological acquisitions and the innovation performance of acquiring firms Abstract: This study explores how the external technology base affects innovation performance of domestic technological acquisition based on multiple cases of 108 Chinese firms undertaking technological acquisition from 2001 to 2008. This study reveals interesting results. First, technological acquisitions improve innovation performance of the acquiring firm. Second, based on a Poisson regression with 108 observations, the result shows that the absolute size positively affects post-acquisition innovation performance while the relative size of the acquired external technology negatively affects post-acquisition innovation performance. In addition, the absorptive capacity does not have the positive impact on the relationship between acquired technology and innovation performance. This result, however, is not similar to the conclusion that is drawn in developed countries. This paper is a helpful answer to the question as to how firms obtain resources and competitive advantages in developing countries. Journal: Journal of Chinese Economic and Business Studies Pages: 149-170 Issue: 2 Volume: 12 Year: 2014 Month: 5 X-DOI: 10.1080/14765284.2014.900944 File-URL: http://hdl.handle.net/10.1080/14765284.2014.900944 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:12:y:2014:i:2:p:149-170 Template-Type: ReDIF-Article 1.0 Author-Name: Fourry Handoko Author-X-Name-First: Fourry Author-X-Name-Last: Handoko Author-Name: Alan Smith Author-X-Name-First: Alan Author-X-Name-Last: Smith Author-Name: Colin Burvill Author-X-Name-First: Colin Author-X-Name-Last: Burvill Title: The role of government, universities, and businesses in advancing technology for SMEs' innovativeness Abstract: Knowledge and technologies play an essential part in this rapid-response capability, by maintaining opportunities for continuous improvement and innovation needed in the development of sustainable competitive advantage. However, the low capability of SMEs to provide the required resources is a barrier to the in-house technology development. Consequently, external resources such as government, businesses, and universities, to support their performance in developing technological capabilities utilize so-called 'knowledge and technology transfer' programs, which are needed as a shortcut to improve technological process innovation. This study provides theoretical and empirical support for the role of government, businesses, and universities in transferring knowledge and technology for SMEs' innovativeness in emerging economies and the impact of process innovation on SMEs' competitiveness. The results suggest policy directions for governments to support SMEs in emerging economies. Journal: Journal of Chinese Economic and Business Studies Pages: 171-180 Issue: 2 Volume: 12 Year: 2014 Month: 5 X-DOI: 10.1080/14765284.2014.900968 File-URL: http://hdl.handle.net/10.1080/14765284.2014.900968 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:12:y:2014:i:2:p:171-180 Template-Type: ReDIF-Article 1.0 Author-Name: Sunil Kumar Ambrammal Author-X-Name-First: Sunil Kumar Author-X-Name-Last: Ambrammal Author-Name: Ruchi Sharma Author-X-Name-First: Ruchi Author-X-Name-Last: Sharma Title: R&D and patenting by firms in India in high- and medium-high-technology industries Abstract: Innovation by a firm is vital in attaining a competitive edge over other firms in an industry, particularly in high- and medium-high-technology industries. The present study captures the innovative activity of Indian firms investing in research and development (R&D) and further on the output in the form of patenting simultaneously. The data cover firms of high-tech and medium-high-tech sectors during 1995-2010. We employ Heckman's two-step procedure to study the determinant of R&D equation and Hurdle count data model for patenting. The study finds that patent policy changes significantly influence R&D and patenting intensity. After the introduction of patent policy changes in India, foreign firms are relocating their R&D units into India and taking patent from Indian patent offices. However, the study does not find any direct evidence of R&D-oriented patenting activity in India. Journal: Journal of Chinese Economic and Business Studies Pages: 181-207 Issue: 2 Volume: 12 Year: 2014 Month: 5 X-DOI: 10.1080/14765284.2014.900957 File-URL: http://hdl.handle.net/10.1080/14765284.2014.900957 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:12:y:2014:i:2:p:181-207 Template-Type: ReDIF-Article 1.0 Author-Name: Jinghai Zheng Author-X-Name-First: Jinghai Author-X-Name-Last: Zheng Author-Name: Robin Sickles Author-X-Name-First: Robin Author-X-Name-Last: Sickles Title: Towards comprehensive frameworks for Chinese productivity studies Journal: Journal of Chinese Economic and Business Studies Pages: 209-210 Issue: 3 Volume: 12 Year: 2014 Month: 8 X-DOI: 10.1080/14765284.2014.931425 File-URL: http://hdl.handle.net/10.1080/14765284.2014.931425 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:12:y:2014:i:3:p:209-210 Template-Type: ReDIF-Article 1.0 Author-Name: Robin C. Sickles Author-X-Name-First: Robin C. Author-X-Name-Last: Sickles Author-Name: Jiaqi Hao Author-X-Name-First: Jiaqi Author-X-Name-Last: Hao Author-Name: Chenjun Shang Author-X-Name-First: Chenjun Author-X-Name-Last: Shang Title: Panel data and productivity measurement: an analysis of Asian productivity trends Abstract: The paper studies consensus estimates of Asian productivity growth from 1980 to 2000. We outline methods that have been proposed to measure productivity growth and its two main factors, innovation and catch-up. We show how such methods have particular canonical representations that seamlessly transfer to the panel data literature and discuss a number of competing specifications introduced into the productivity literature. We then point out how such models can be combined to provide consensus model average estimates of innovation and catch-up, utilizing results from recent work by Hao on world productivity growth. We utilize data from the United Nations Industrial Development Organization to examine productivity trends and its decomposition for a number of different groupings of Asian countries. Journal: Journal of Chinese Economic and Business Studies Pages: 211-231 Issue: 3 Volume: 12 Year: 2014 Month: 8 X-DOI: 10.1080/14765284.2014.931428 File-URL: http://hdl.handle.net/10.1080/14765284.2014.931428 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:12:y:2014:i:3:p:211-231 Template-Type: ReDIF-Article 1.0 Author-Name: Rolf F�re Author-X-Name-First: Rolf Author-X-Name-Last: F�re Author-Name: Shawna Grosskopf Author-X-Name-First: Shawna Author-X-Name-Last: Grosskopf Author-Name: Tommy Lundgren Author-X-Name-First: Tommy Author-X-Name-Last: Lundgren Author-Name: Per-Olov Marklund Author-X-Name-First: Per-Olov Author-X-Name-Last: Marklund Author-Name: Wenchao Zhou Author-X-Name-First: Wenchao Author-X-Name-Last: Zhou Title: Pollution-generating technologies and environmental efficiency Abstract: In this paper, we study environmental efficiency (EE) within a pollution-generating technology. Good output and bad output (pollution) are explicitly modeled by imposing technology properties of disposability and null-jointness. With data on firms from Swedish manufacturing, we investigate the potential to reduce emissions, and we take a closer look at the pulp and paper sector. Dividing the firms into 'brown' and 'green' firms, we find that there is significant potential, in both categories, to improve EE, and hence lower emissions, of three air pollutants (CO2, SO2, NOx). Generally, the methods and results encourage similar and comparative studies on the manufacturing sector in other countries. If there is a comparable potential elsewhere, such as in major polluting countries like China, there is potential to promote a sustainable society by conducting effective energy and climate policies. We also suggest that treating biofuels as completely carbon neutral, as is common practice when constructing emission data in Sweden (Statistics Sweden), may lead to incorrect EE scores and consequently misleading policy implications. Journal: Journal of Chinese Economic and Business Studies Pages: 233-251 Issue: 3 Volume: 12 Year: 2014 Month: 8 X-DOI: 10.1080/14765284.2014.931429 File-URL: http://hdl.handle.net/10.1080/14765284.2014.931429 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:12:y:2014:i:3:p:233-251 Template-Type: ReDIF-Article 1.0 Author-Name: Song Han Author-X-Name-First: Song Author-X-Name-Last: Han Author-Name: Peng Jiang Author-X-Name-First: Peng Author-X-Name-Last: Jiang Author-Name: Yanqing Jiang Author-X-Name-First: Yanqing Author-X-Name-Last: Jiang Title: The performance of Chinese commercial banks after accession to the WTO: from an efficiency perspective Abstract: This paper investigates the competitiveness of domestic commercial banking in China by evaluating the performance of Chinese commercial banks after China's accession to the World Trade Organization. Based on a panel of 14 banks over the period 2002-2009, we measure the efficiency of Chinese commercial banking by using data envelopment analysis (DEA). Different from other studies, this work applies for four efficiency indicators, namely, social productive efficiency, service efficiency, profit efficiency, and growth efficiency, to investigate the competitive advantages of different banks. Our empirical results show that, compared with joint-stock banks, the levels of social productive efficiency, profit efficiency, and growth efficiency of four state-owned banks are very low while these banks exhibit higher levels of service efficiency. However, when we change our measure of labor input from the number of employees to employee salary, the efficiency of state-owned banks becomes higher than that of the joint-stock banks. In addition, our results also show, among other findings, that corporation structure affects efficiency. However, the specific relationship of state-owned stock and efficiency is not always negative, and a positive relationship between foreign shares and efficiency only holds for product efficiency. Journal: Journal of Chinese Economic and Business Studies Pages: 253-271 Issue: 3 Volume: 12 Year: 2014 Month: 8 X-DOI: 10.1080/14765284.2014.931424 File-URL: http://hdl.handle.net/10.1080/14765284.2014.931424 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:12:y:2014:i:3:p:253-271 Template-Type: ReDIF-Article 1.0 Author-Name: Kent Wickstr&#F8;m Jensen Author-X-Name-First: Kent Wickstr&#F8;m Author-X-Name-Last: Jensen Author-Name: Thomas Sch&#F8;tt Author-X-Name-First: Thomas Author-X-Name-Last: Sch&#F8;tt Title: Firms' innovation embedded in their networks of collaboration: China compared to the world Abstract: Purpose: Innovation in a firm is performed in social contexts. Innovation is embedded in a network of relations around the firm, at micro-level, and in society, at macro-level. Innovation benefits from networking, but innovation, networking, and benefit of networking are hypothesized to differ between China and the rest of the world. Method: A fairly representative sample of 24,937 firms around the world, including 706 in China, reported on networking and innovation in Global Entrepreneurship Monitor 2012. These data on firms in many countries are analyzed by hierarchical mixed-linear models. Findings: Networking and innovation are as extensive in China as abroad, and networking benefits innovation considerably, but the benefit in China is significantly less than in the rest of the world. Value: This study seems the first to ascertain benefit of networking for innovation in China compared to elsewhere, using representative sampling so findings generalize to China and the World. Journal: Journal of Chinese Economic and Business Studies Pages: 273-292 Issue: 3 Volume: 12 Year: 2014 Month: 8 X-DOI: 10.1080/14765284.2014.931427 File-URL: http://hdl.handle.net/10.1080/14765284.2014.931427 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:12:y:2014:i:3:p:273-292 Template-Type: ReDIF-Article 1.0 Author-Name: Francisco Urdinez Author-X-Name-First: Francisco Author-X-Name-Last: Urdinez Author-Name: Gilmar Masiero Author-X-Name-First: Gilmar Author-X-Name-Last: Masiero Author-Name: Mario Ogasavara Author-X-Name-First: Mario Author-X-Name-Last: Ogasavara Title: China's quest for energy through FDI: new empirical evidence Abstract: China's current economic development depends heavily on its access to energy resources, and it is increasingly shaping Chinese Outward Foreign Direct Investment (OFDI) in a quest for resources located abroad. The aim of this paper is to answer the two following questions: How much did the Chinese global quest for energy drive its OFDI between 2005 and 2012? And has the quest for energy been sensitive to the geographical location of the resources? We used data on Chinese OFDI from the China Global Investment Tracker, as well as diverse host countries determinants of previously tested OFDI. We measured the impact of host country energy production in the allocation of investments. Using several multivariate regression models, we demonstrate that energy resources were the main driver of Chinese OFDI in 92 host countries during the studied period, and that there was no sensitivity to the geographical location of the resources. Journal: Journal of Chinese Economic and Business Studies Pages: 293-314 Issue: 4 Volume: 12 Year: 2014 Month: 11 X-DOI: 10.1080/14765284.2014.952516 File-URL: http://hdl.handle.net/10.1080/14765284.2014.952516 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:12:y:2014:i:4:p:293-314 Template-Type: ReDIF-Article 1.0 Author-Name: Nicola Angelillo Author-X-Name-First: Nicola Author-X-Name-Last: Angelillo Title: Vulnerability to poverty in China: a subjective poverty line approach Abstract: Wide arrays of econometric techniques have been proposed to assess vulnerability to poverty. All such measures attempt to determine the probability to fall (or remain) into poverty given households' characteristics. We have used cross-section data from the Chinese Household Income Project Series and subjective poverty lines to shed light on the sources of uncertainty in China. The lack of a comprehensive pension system and distance from the markets raise vulnerability in rural areas, whereas the hukou registration system has generated a growing mass of exploited and unprotected migrants in urban areas. Journal: Journal of Chinese Economic and Business Studies Pages: 315-331 Issue: 4 Volume: 12 Year: 2014 Month: 11 X-DOI: 10.1080/14765284.2014.952512 File-URL: http://hdl.handle.net/10.1080/14765284.2014.952512 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:12:y:2014:i:4:p:315-331 Template-Type: ReDIF-Article 1.0 Author-Name: Eric Girardin Author-X-Name-First: Eric Author-X-Name-Last: Girardin Author-Name: Guy Liu Author-X-Name-First: Guy Author-X-Name-Last: Liu Author-Name: Jinghai Zheng Author-X-Name-First: Jinghai Author-X-Name-Last: Zheng Title: An introduction: the challenges of the Chinese electricity industry and its reform Abstract: This introduction is to highlight comprehensively the Chinese electricity industry for issues related to the institutional reform, capacity growth, pricing regime, technology development, supply structure and new investment in upgrading electric power grids. Through reviews of statistics and documentaries, we provide a generally updated understanding of the current development and reform of China's electric power industry, which is one strategic focus of the Chinese Government for its further reform in the energy sector. Journal: Journal of Chinese Economic and Business Studies Pages: 333-352 Issue: 4 Volume: 12 Year: 2014 Month: 11 X-DOI: 10.1080/14765284.2014.952513 File-URL: http://hdl.handle.net/10.1080/14765284.2014.952513 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:12:y:2014:i:4:p:333-352 Template-Type: ReDIF-Article 1.0 Author-Name: Guy Liu Author-X-Name-First: Guy Author-X-Name-Last: Liu Author-Name: Liang Zhang Author-X-Name-First: Liang Author-X-Name-Last: Zhang Author-Name: Eric Girardin Author-X-Name-First: Eric Author-X-Name-Last: Girardin Title: The Chinese electricity industry: supply capacity and its determinants with reference to OECD countries Abstract: This paper takes a two-stage estimation approach to investigate the direct and indirect determinants of the capacity of power supply in China, with reference to the Organization for Economic Cooperation and Development countries. In the first stage we investigate the determinants of demand for electric consumption and in the second stage we test the impact of demand for consumption on capacity. Our study shows that the direct impact on capacity growth is mainly of GDP growth, which is a China-specific effect, and load factor, which is a non-China specific effect. Capacity investment is driven by the demand for power relative to the utilization of existing capacity. Furthermore, power prices and the industrial structure of an economy are the indirect determinants of capacity through their impacts on demand. The industrial structure has a strong influence on the power demand in China, since the country has accelerated its industrialization with more investment in heavy industry that further fuels the demand for power and therefore supply capacity. Journal: Journal of Chinese Economic and Business Studies Pages: 353-382 Issue: 4 Volume: 12 Year: 2014 Month: 11 X-DOI: 10.1080/14765284.2014.952515 File-URL: http://hdl.handle.net/10.1080/14765284.2014.952515 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:12:y:2014:i:4:p:353-382 Template-Type: ReDIF-Article 1.0 Author-Name: Jean-Baptiste Lesourd Author-X-Name-First: Jean-Baptiste Author-X-Name-Last: Lesourd Author-Name: Guy Liu Author-X-Name-First: Guy Author-X-Name-Last: Liu Author-Name: St�phane Genoud Author-X-Name-First: St�phane Author-X-Name-Last: Genoud Title: The efficiencies of Chinese coal-fired power plants: a stochastic-frontier approach Abstract: We apply the stochastic frontier of translog production function to estimate the efficiencies of Chinese coal-fired power plants, using a survey sample of 300 power plants over 5 years from 2004 to 2008 for estimation. By taking into account, the ages of generators and a technological factor reflected by a dummy for supercritical generators, we identified the improvement of efficiencies in the Chinese power industry over the period, and the coal-fired power plants that still run inefficiently by approximate 9% on average when compared with the best practice of cost efficiency in the power industry. Journal: Journal of Chinese Economic and Business Studies Pages: 383-393 Issue: 4 Volume: 12 Year: 2014 Month: 11 X-DOI: 10.1080/14765284.2014.952514 File-URL: http://hdl.handle.net/10.1080/14765284.2014.952514 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:12:y:2014:i:4:p:383-393 Template-Type: ReDIF-Article 1.0 Author-Name: Peter Nolan Author-X-Name-First: Peter Author-X-Name-Last: Nolan Title: The west and China: globalisation and competition in financial services Abstract: This paper examines the evolution of the industrial structure of global financial firms since the 1970s, during which time, free market policies dominated theoretical and practical policy discussion. It examines the logic behind and evidence on consolidation in the international financial services industry. It analyses the impact of Washington Consensus policies upon the expansion of global banks in developing and transition economies. It contrasts the evolution of the international banking structure during the era of modern globalisation with that in China, which has followed a fundamentally different path. Although Chinese banks have large profits and market capitalisation, their international competitiveness is still limited. Global banks have only a small role in the Chinese economy and Chinese banks have a small role in the international economy. The contrast between the two systems is of central importance for the way in which competition and regulation develops in the global financial sector. Journal: Journal of Chinese Economic and Business Studies Pages: 87-104 Issue: 2 Volume: 13 Year: 2015 Month: 5 X-DOI: 10.1080/14765284.2015.1022978 File-URL: http://hdl.handle.net/10.1080/14765284.2015.1022978 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:13:y:2015:i:2:p:87-104 Template-Type: ReDIF-Article 1.0 Author-Name: Lan Gao Author-X-Name-First: Lan Author-X-Name-Last: Gao Author-Name: Xiaohui Liu Author-X-Name-First: Xiaohui Author-X-Name-Last: Liu Author-Name: Eleni Lioliou Author-X-Name-First: Eleni Author-X-Name-Last: Lioliou Title: A double-edged sword: the impact of institutions and political relations on the international market expansion of Chinese state-owned enterprises Abstract: This study examines the interaction of three factors, the involvement of the home country government, of host country institutions and of bilateral political relations, as they affect the post-entry market expansion of Chinese state-owned enterprises (SOEs) in emerging, developing and developed countries. This study employs the case study method. The findings show that home country government involvement can either support or constrain SOEs’ subsequent market expansion. In emerging and developing countries, underdeveloped institutions create difficulties which can deter the market expansion of Chinese SOEs. In developed host countries, the challenges associated with unfamiliar institutions can be overcome through experiential learning. The political relations between the host country and China may influence the impact of institutions in the host country on the market expansion of Chinese SOEs. Journal: Journal of Chinese Economic and Business Studies Pages: 105-125 Issue: 2 Volume: 13 Year: 2015 Month: 5 X-DOI: 10.1080/14765284.2015.1021131 File-URL: http://hdl.handle.net/10.1080/14765284.2015.1021131 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:13:y:2015:i:2:p:105-125 Template-Type: ReDIF-Article 1.0 Author-Name: Vincent K.K. Leung Author-X-Name-First: Vincent K.K. Author-X-Name-Last: Leung Author-Name: Marco Chi Keung Lau Author-X-Name-First: Marco Chi Author-X-Name-Last: Keung Lau Author-Name: Zhe Zhang Author-X-Name-First: Zhe Author-X-Name-Last: Zhang Author-Name: Flora F. Gu Author-X-Name-First: Flora F. Author-X-Name-Last: Gu Title: Explorative versus exploitative alliances: evidence from the glass industry in China Abstract: How do firms learn from their alliance partners? Do alliance learning outcomes vary among different types of alliances? Are the learning differentials contingent upon contextual factors in an emerging economy? To address these important questions, this study empirically delineates the nature of explorative and exploitative alliances, examines how they affect product and process innovations, and investigates how such effects vary in different contexts. Using a sample of 220 Chinese firms in the glass industry, we use the structural equation modeling procedure to analyze the data. We find that explorative alliances have a stronger impact on both product and process innovations than do exploitative alliances, product, and process innovations are positively related to both market and efficiency performance, and environmental turbulence enhances the impact of product and process innovations. Our findings provide implications for choosing between explorative and exploitative alliances in line with alliance objectives and firms’ resources, and environmental contexts. Journal: Journal of Chinese Economic and Business Studies Pages: 127-146 Issue: 2 Volume: 13 Year: 2015 Month: 5 X-DOI: 10.1080/14765284.2015.1021115 File-URL: http://hdl.handle.net/10.1080/14765284.2015.1021115 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:13:y:2015:i:2:p:127-146 Template-Type: ReDIF-Article 1.0 Author-Name: Maria Csanádi Author-X-Name-First: Maria Author-X-Name-Last: Csanádi Title: Systemic background of local indebtedness and investment overheating during the global crisis in China Abstract: This paper focuses on the immediate economic and systemic reasons of steadily increasing local government indebtedness and investment overheating in China despite central efforts to contain them. These two phenomena emerged between 2008 and 2011 as a direct consequence of an external shock caused by the global crisis and the subsequent internal reaction in the form of intensified stimulating state intervention. New opportunities for resource distribution and investments through state intervention mobilized distribution priorities and politically rational economic behavior of actors, which are characteristic of party-state systems. Locations of mobilization were defined by the decentralized Chinese system specifics along the intertwined party-state structure. Systemic characteristics and the Chinese specifics together resulted in investment overheating on a national and local level, causing a steady growth of local indebtedness through large and state-owned enterprises and local governments. This process was further amplified by the characteristics of the transforming economy in China, as actors in the private sphere were mobilized by the increased input demands of those privileged by the systemic priorities of state intervention. Journal: Journal of Chinese Economic and Business Studies Pages: 147-174 Issue: 2 Volume: 13 Year: 2015 Month: 5 X-DOI: 10.1080/14765284.2015.1021114 File-URL: http://hdl.handle.net/10.1080/14765284.2015.1021114 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:13:y:2015:i:2:p:147-174 Template-Type: ReDIF-Article 1.0 Author-Name: Qiang Gao Author-X-Name-First: Qiang Author-X-Name-Last: Gao Author-Name: Sujit Banerji Author-X-Name-First: Sujit Author-X-Name-Last: Banerji Title: The growth appraisal system for Chinese SMEs Abstract: In China, research into SME growth has become more important and has drawn considerable attention from both government and scholars, but there is no universally accepted way to define and measure an SME’s growth prospects. Based on a comprehensive and systematic literature review on different aspects of SME growth, and the consensus achieved through using the Delphi technique among 11 experts including policy-makers, scholars and entrepreneurs, this exploratory study has developed an effective growth appraisal system for Chinese SMEs. In building this system, the analytic hierarchy process was selected as the appropriate method for data analysis. Then, an in-depth case study of two Chinese SMEs was undertaken to illustrate the calculation and utilization of the growth appraisal system. Journal: Journal of Chinese Economic and Business Studies Pages: 175-193 Issue: 2 Volume: 13 Year: 2015 Month: 5 X-DOI: 10.1080/14765284.2015.1026046 File-URL: http://hdl.handle.net/10.1080/14765284.2015.1026046 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:13:y:2015:i:2:p:175-193 Template-Type: ReDIF-Article 1.0 Author-Name: Guy S. Liu Author-X-Name-First: Guy S. Author-X-Name-Last: Liu Author-Name: John Beirne Author-X-Name-First: John Author-X-Name-Last: Beirne Author-Name: Pei Sun Author-X-Name-First: Pei Author-X-Name-Last: Sun Title: The performance impact of firm ownership transformation in China: mixed ownership vs. fully privatised ownership Abstract: Does ownership transformation affect firm performance? On the basis of an analysis of over 1100 Chinese companies during the period of ownership reform (1997--2003), this paper identifies that, for China that has the world’s largest state sector under transition, the mix of state and private ownership -- partial privatisation -- emerges as the best performing type of ownership model for Chinese firms. The finding supports the argument that firms can gain the best synergy of both state support and private business strength, which provides a good explanation to the current campaign of mixed ownership for further reform of state enterprises after 2013. Journal: Journal of Chinese Economic and Business Studies Pages: 197-216 Issue: 3 Volume: 13 Year: 2015 Month: 8 X-DOI: 10.1080/14765284.2015.1056476 File-URL: http://hdl.handle.net/10.1080/14765284.2015.1056476 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:13:y:2015:i:3:p:197-216 Template-Type: ReDIF-Article 1.0 Author-Name: Rodrigo Zeidan Author-X-Name-First: Rodrigo Author-X-Name-Last: Zeidan Title: The displacement effects of Chinese exports on the US clothing market Abstract: This paper focuses on the displacement of other countries’ exports by Chinese exports in the US clothing market during the 2002--2010 period (sector 62 of the Harmonized System). The main contribution is to consider individual product data and its dynamic for finding evidence of displacement. Data are for 13 countries, with balanced panels of 12 variables, 104 months, and 277 goods (08 digits). I find evidence of trade displacement for more than half of the sample, composed of developing and developed countries alike. There is evidence that Chinese exports displace other countries’ exports in all three income groups, but clearly the most affected group is the middle-income group. For Mexico and Thailand, displacement is significant and the effect is large. Some low-income countries are also affected, particularly Sri Lanka. Data on Taiwan show a particularly interesting result, with a conjecture regarding disappearance of tariff arbitrage and re-exports of Chinese apparel to the USA through Taiwan. There is no evidence of displacement patterns changing due to quotas imposed by MFA and previous trade agreements. Journal: Journal of Chinese Economic and Business Studies Pages: 217-231 Issue: 3 Volume: 13 Year: 2015 Month: 8 X-DOI: 10.1080/14765284.2015.1063890 File-URL: http://hdl.handle.net/10.1080/14765284.2015.1063890 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:13:y:2015:i:3:p:217-231 Template-Type: ReDIF-Article 1.0 Author-Name: Yanqing Jiang Author-X-Name-First: Yanqing Author-X-Name-Last: Jiang Title: Education expenditure in China: potential strategic behavior among regional governments Abstract: In this study, we examine whether significant strategic interaction exists among Chinese provincial governments in determining the levels of their expenditures on education. The presence of such spatial interaction may be either due to spatial spillovers or due to spatial resource flows between provinces. We derive our basic regression specification based on the theoretical models in the literature. By applying a panel data generalized method of moments (GMM) method, we show that under a ‘smooth-distance-decay’ assumption in constructing the weighting scheme for the relevance of interaction between two provinces, our regression results provide evidence that supports the claim that there exists significant inter-provincial strategic interaction in public expenditure for education among the Chinese provinces. Journal: Journal of Chinese Economic and Business Studies Pages: 233-246 Issue: 3 Volume: 13 Year: 2015 Month: 8 X-DOI: 10.1080/14765284.2015.1021113 File-URL: http://hdl.handle.net/10.1080/14765284.2015.1021113 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:13:y:2015:i:3:p:233-246 Template-Type: ReDIF-Article 1.0 Author-Name: K. Ali Akkemik Author-X-Name-First: K. Ali Author-X-Name-Last: Akkemik Author-Name: Jia Li Author-X-Name-First: Jia Author-X-Name-Last: Li Title: General equilibrium evaluation of deregulation in energy sectors in China Abstract: The central government in China has implemented ambitious energy policy reforms since 1978. An important pillar of these reforms is the deregulation in the energy markets which manifests itself in the formation of energy prices. This study examines the macroeconomic impacts of deregulation in China using an applied CGE model and counterfactual policy simulations. The results point to substantial welfare improvement. Sectoral results point to a reallocation of resources and diversion of economic activities more toward domestic services. Journal: Journal of Chinese Economic and Business Studies Pages: 247-268 Issue: 3 Volume: 13 Year: 2015 Month: 8 X-DOI: 10.1080/14765284.2015.1056475 File-URL: http://hdl.handle.net/10.1080/14765284.2015.1056475 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:13:y:2015:i:3:p:247-268 Template-Type: ReDIF-Article 1.0 Author-Name: Yuanchun Liu Author-X-Name-First: Yuanchun Author-X-Name-Last: Liu Author-Name: Yanbin Chen Author-X-Name-First: Yanbin Author-X-Name-Last: Chen Author-Name: Yanqing Jiang Author-X-Name-First: Yanqing Author-X-Name-Last: Jiang Author-Name: Jinghai Zheng Author-X-Name-First: Jinghai Author-X-Name-Last: Zheng Title: China’s macroeconomic trends in downward pressures: the ‘micro stimulus’ effects and steady growth Abstract: This study reports China’s macroeconomic trends in downward pressures and discusses the effects of the ‘micro stimulus’ on the growth performance of Chinese economy. It appears that economic growth rebounds significantly in the short term every time ‘micro stimulus’ is applied, but the economy slows down again once the stimulus dwindles. China’s economic growth thus exhibits a pattern of significant ‘stimulus-dependence’. When facing economic downturn, China has only resorted to stimulus policy to sustain growth. Not surprisingly, our findings indicate that ‘micro stimulus’ cannot realize the strategic intent of growth stabilization and structural adjustment, and may even lead to more structural chaos. One problem that can be attributed to the near-sighted strategy is the worsening productivity performance since the financial crisis of 2008. Therefore both improvement in social security systems and social programs designed for maintaining long run growth are needed in order to improve productivity performance on the one hand and to facilitate structural adjustments on the other. Journal: Journal of Chinese Economic and Business Studies Pages: 269-284 Issue: 3 Volume: 13 Year: 2015 Month: 8 X-DOI: 10.1080/14765284.2015.1059592 File-URL: http://hdl.handle.net/10.1080/14765284.2015.1059592 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:13:y:2015:i:3:p:269-284 Template-Type: ReDIF-Article 1.0 Author-Name: Cyrielle Auffray Author-X-Name-First: Cyrielle Author-X-Name-Last: Auffray Author-Name: Xiaolan Fu Author-X-Name-First: Xiaolan Author-X-Name-Last: Fu Title: Chinese MNEs and managerial knowledge transfer in Africa: the case of the construction sector in Ghana Abstract: This paper considers the case of managerial knowledge spillovers from Chinese FDI in Africa, in the context of the Ghanaian construction sector. Using empirical data from in-depth qualitative interviews, the paper first identifies key channels and determinants of managerial knowledge spillovers. Limited local employment at the managerial level in Chinese construction firms is the main impediment to managerial knowledge spillovers from these firms. Cultural and linguistic barriers can explain this situation. Localisation strategies, defined as the progressive replacement of Chinese managers by local ones, can help overcome these barriers and foster managerial knowledge spillovers. Journal: Journal of Chinese Economic and Business Studies Pages: 285-310 Issue: 4 Volume: 13 Year: 2015 Month: 11 X-DOI: 10.1080/14765284.2015.1092415 File-URL: http://hdl.handle.net/10.1080/14765284.2015.1092415 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:13:y:2015:i:4:p:285-310 Template-Type: ReDIF-Article 1.0 Author-Name: Daniel Shapiro Author-X-Name-First: Daniel Author-X-Name-Last: Shapiro Author-Name: Yao Tang Author-X-Name-First: Yao Author-X-Name-Last: Tang Author-Name: Miaojun Wang Author-X-Name-First: Miaojun Author-X-Name-Last: Wang Author-Name: Weiying Zhang Author-X-Name-First: Weiying Author-X-Name-Last: Zhang Title: The effects of corporate governance and ownership on the innovation performance of Chinese SMEs Abstract: We investigate the degree to which corporate governance and ownership affect the innovation performance of firms in China with a particular focus on privately owned small and medium enterprises. Using the appropriate theoretical frameworks, we derive hypotheses regarding the impact of ownership concentration, board size and composition, and the background of the CEO on innovative activity. These hypotheses are tested using a unique sample of 370 mostly private and relatively small Chinese firms in Zhejiang province, for the period 2004--2006. Using two measures of innovation, invention patents and new product sales, and a variety of estimation methods appropriate to each measure, we find limited evidence that corporate governance affects innovation performance, but the results do depend on the measure of innovation. In general, the results suggest that for this sample, corporate governance and ownership affect innovation activity more strongly when innovation is measured by patenting activity, rather than new product sales. We conclude with a discussion about why this might be. Journal: Journal of Chinese Economic and Business Studies Pages: 311-335 Issue: 4 Volume: 13 Year: 2015 Month: 11 X-DOI: 10.1080/14765284.2015.1090267 File-URL: http://hdl.handle.net/10.1080/14765284.2015.1090267 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:13:y:2015:i:4:p:311-335 Template-Type: ReDIF-Article 1.0 Author-Name: Jaime Ortiz Author-X-Name-First: Jaime Author-X-Name-Last: Ortiz Author-Name: Haibo Wang Author-X-Name-First: Haibo Author-X-Name-Last: Wang Author-Name: Da Huo Author-X-Name-First: Da Author-X-Name-Last: Huo Title: The delicate balance for jointly pursuing economic growth in Latin America and China Abstract: This paper examines the sources of economic growth for a group of Latin American countries in relation to their export performance in China. The analytical framework is based on an extended normalized quadratic profit function. The ensuing econometric results confirm that a favorable export record with China represents a positive source of growth for Latin America. However, it also creates long-run dependability conditions in terms of reduced prices and thinner profits that weaken its growth capacity. Latin American countries must seek product diversification away from their current commodity base and aggressively climb up the value chain to remain competitive worldwide.Managerial Relevance: identify the sources of economic growth for a group of Latin American countries in relation to their export performance in China; the weakness of this economic growth model; how to seek product diversification away from their current commodity base with emphasis on value chain. Journal: Journal of Chinese Economic and Business Studies Pages: 337-351 Issue: 4 Volume: 13 Year: 2015 Month: 11 X-DOI: 10.1080/14765284.2015.1090269 File-URL: http://hdl.handle.net/10.1080/14765284.2015.1090269 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:13:y:2015:i:4:p:337-351 Template-Type: ReDIF-Article 1.0 Author-Name: Zhou Hui Author-X-Name-First: Zhou Author-X-Name-Last: Hui Author-Name: Liu Canhui Author-X-Name-First: Liu Author-X-Name-Last: Canhui Author-Name: Long Liang Author-X-Name-First: Long Author-X-Name-Last: Liang Title: Early warning of Chinese financial risks: an empirical study based on an MSVAR model Abstract: This paper consolidates all the existing indexes in the published literature into three categories: currency crisis index, bank crisis index, and asset bubble crisis index, in order to reflect the crisis in the field of currency, banking, and asset. Taking these indexes for variables with the three assumptions of low risk, middle risk, and high risk, an MS (3)-VAR (1) model is used to test all the data from January 1998 to June 2011. It shows that the MS (3)-VAR (1) model may accurately and effectively provide early warnings for each crisis during the period. The implication of our findings is clear: policy-makers can be warned in advance about the risk of an economic crisis. Journal: Journal of Chinese Economic and Business Studies Pages: 353-367 Issue: 4 Volume: 13 Year: 2015 Month: 11 X-DOI: 10.1080/14765284.2015.1097055 File-URL: http://hdl.handle.net/10.1080/14765284.2015.1097055 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:13:y:2015:i:4:p:353-367 Template-Type: ReDIF-Article 1.0 Author-Name: Horace Yeung Author-X-Name-First: Horace Author-X-Name-Last: Yeung Title: A tale of two cities -- the development and reform experiences of Shenzhen and Shanghai Abstract: Following gaige kaifang, the twin strategy of reform and opening up, Shenzhen has been designated as a Special Economic Zone. The city appeared to have bright future and would serve as the growth engine in China. Despite having an impressive record of economic development since 1979, the prestige of Shenzhen as a commercial centre has always been overshadowed by Shanghai and Hong Kong. A breakthrough finally came when the State Council of China decided to develop Qianhai, a town near Shenzhen, into an international commercial centre. However, shortly after, the China (Shanghai) Pilot Free Trade Zone representing an unprecedented degree of openness in relation to foreign investment and international trade was launched. No one seems to remember the once-hopeful Qianhai area. The aim of this paper is to examine the path of development of the two leading commercial centres in China amidst the wider context of Chinese economic reform. A common issue facing both cities is, although the state generally has no problem in outlining a vision of reform, a translation of this vision into actual credible measures that could be implemented is often problematic. Journal: Journal of Chinese Economic and Business Studies Pages: 369-396 Issue: 4 Volume: 13 Year: 2015 Month: 11 X-DOI: 10.1080/14765284.2015.1090268 File-URL: http://hdl.handle.net/10.1080/14765284.2015.1090268 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:13:y:2015:i:4:p:369-396 Template-Type: ReDIF-Article 1.0 Author-Name: Yoichi Tsuchiya Author-X-Name-First: Yoichi Author-X-Name-Last: Tsuchiya Author-Name: Satoshi Suehara Author-X-Name-First: Satoshi Author-X-Name-Last: Suehara Title: Directional accuracy tests of Chinese renminbi forecasts Abstract: This study investigates the directional accuracy of Chinese renminbi exchange rate forecasts by professional forecasters. The forecast with a horizon of one year is useful, whereas the forecasts with forecast horizons of one and three months are not useful in predicting the direction of the exchange rate change. The results for the long-term forecasts suggest that forecasters believe that the government maintains its foreign exchange rate policy of renminbi appreciation. In contrast, short-term forecasts show consistent evidence of exchange rate unpredictability. Journal: Journal of Chinese Economic and Business Studies Pages: 397-406 Issue: 4 Volume: 13 Year: 2015 Month: 11 X-DOI: 10.1080/14765284.2015.1106755 File-URL: http://hdl.handle.net/10.1080/14765284.2015.1106755 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:13:y:2015:i:4:p:397-406 Template-Type: ReDIF-Article 1.0 Author-Name: Jinghai Zheng Author-X-Name-First: Jinghai Author-X-Name-Last: Zheng Author-Name: Liming Wang Author-X-Name-First: Liming Author-X-Name-Last: Wang Author-Name: Ke Tang Author-X-Name-First: Ke Author-X-Name-Last: Tang Title: China’s road to modernization Journal: Journal of Chinese Economic and Business Studies Pages: 1-8 Issue: 1 Volume: 14 Year: 2016 Month: 2 X-DOI: 10.1080/14765284.2015.1133988 File-URL: http://hdl.handle.net/10.1080/14765284.2015.1133988 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:14:y:2016:i:1:p:1-8 Template-Type: ReDIF-Article 1.0 Author-Name: Jane Golley Author-X-Name-First: Jane Author-X-Name-Last: Golley Title: A ‘socialist’ economy in a capitalist world Abstract: Contending views about the ‘threats’ and ‘opportunities’ relating to China’s economic rise reflect the complex and, for many, confusing role of the state in China’s reform and development process. This in turn relates to a marked difference between China’s official perception of ‘Socialism with Chinese characteristics’ and alternative views regarding the nature of its emerging capitalist system. This glaring gap in perceptions is problematic in an increasingly globalised world, complicating debates about what China should and will do to rebalance its domestic economy how other nations should and will react to the recent surge in Chinese investment overseas. This paper reflects on these debates in the context of China’s multifaceted and ever-evolving economic system. Journal: Journal of Chinese Economic and Business Studies Pages: 9-24 Issue: 1 Volume: 14 Year: 2016 Month: 2 X-DOI: 10.1080/14765284.2015.1132925 File-URL: http://hdl.handle.net/10.1080/14765284.2015.1132925 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:14:y:2016:i:1:p:9-24 Template-Type: ReDIF-Article 1.0 Author-Name: Kurt Lundgren Author-X-Name-First: Kurt Author-X-Name-Last: Lundgren Title: Culture, institutions and long-term development: the Swedish case and implications for China Abstract: Most social scientists agree that institutional analyses seem to be a promising tool to analyse long-term development. International comparisons are also necessary to understand what constitutes ‘good’ institutions and to which extent they can be created by conscious decisions. The most important aspect of studies of other countries and their institutional development is not what we learn about them but that we by comparison can develop a better understanding of the history of our own country. This article describes the peculiarities of the Swedish institutional framework in a historical perspective. Special attention has been given to aspects that are often discussed in analyses of the Chinese development. In many aspects, China and Sweden can be seen as representatives of two opposite paths of development for instance in the sequence of institutional building, in the development of checks and balances and in whether the orientation of the culture is family or society oriented. In spite of these differences, it is not difficult to find islands of cultural concordance which can facilitate mutual learning and understanding. Journal: Journal of Chinese Economic and Business Studies Pages: 25-49 Issue: 1 Volume: 14 Year: 2016 Month: 2 X-DOI: 10.1080/14765284.2015.1132926 File-URL: http://hdl.handle.net/10.1080/14765284.2015.1132926 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:14:y:2016:i:1:p:25-49 Template-Type: ReDIF-Article 1.0 Author-Name: John Ross Author-X-Name-First: John Author-X-Name-Last: Ross Author-Name: Jinghai Zheng Author-X-Name-First: Jinghai Author-X-Name-Last: Zheng Author-Name: Karla Simone Prime Author-X-Name-First: Karla Simone Author-X-Name-Last: Prime Title: What can be learned from China’s success? Abstract: Since 1978, China has experienced the most rapid economic growth of any country in world history, and the most rapid growth in living standards of any major economy. Following the latest international financial crisis, China outperformed any other major economy -- from the second quarter of 2007 to the second quarter of 2014, China’s economy grew by 78% and the USA by 8%. In a single generation, China has gone from a ‘low income economy’ to the verge of achieving ‘high income’ status by World Bank criteria. Achieving this would double the population living in ‘high income’ economies globally. This extremely rapid development is sometimes explained in terms of unique ‘Chinese characteristics’, but research over the last 30 years suggests it is rooted in universal economic processes. While the combination of global forces producing economic growth is unique in China and produces unique ‘Chinese characteristics’, they can operate throughout the world economy. If other developing economies could achieve the scale of China’s economic success, global problems of poverty and its consequences would be solved. China’s policy response to the international financial crisis was far more effective than that of other major economies. This paper examines the chief strategic lessons to be drawn from China’s success. Journal: Journal of Chinese Economic and Business Studies Pages: 51-68 Issue: 1 Volume: 14 Year: 2016 Month: 2 X-DOI: 10.1080/14765284.2015.1132932 File-URL: http://hdl.handle.net/10.1080/14765284.2015.1132932 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:14:y:2016:i:1:p:51-68 Template-Type: ReDIF-Article 1.0 Author-Name: Christian Ploberger Author-X-Name-First: Christian Author-X-Name-Last: Ploberger Title: China’s reform and opening process: a new model of political economy? Abstract: The reform and opening process has led to an impressive economic development which saw China becoming the second-largest economy in the world. This development resulted in an ongoing discussion about the nature of the Chinese state and reinvigorated the discussion of the role the state plays in national development. Addressing the challenges of how to interpret the contemporary Chinese state, it will be argued that a particular institutional setting has a strong impact on future developments, and China’s reform process provides an insightful example in this regard. Indeed, we should remember that in the aftermath of the Cultural Revolution the Communist Party of China faced both a fundamental political crisis and an economic crisis of underperformance. In order to develop a deeper insight into the political-economic changes, we can observe during the reform process, a comprehensive analysis is required, one which focuses on the changes in China’s political-economic regime. Journal: Journal of Chinese Economic and Business Studies Pages: 69-87 Issue: 1 Volume: 14 Year: 2016 Month: 2 X-DOI: 10.1080/14765284.2015.1132933 File-URL: http://hdl.handle.net/10.1080/14765284.2015.1132933 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:14:y:2016:i:1:p:69-87 Template-Type: ReDIF-Article 1.0 Author-Name: Guangzhen Guo Author-X-Name-First: Guangzhen Author-X-Name-Last: Guo Author-Name: Yuan Li Author-X-Name-First: Yuan Author-X-Name-Last: Li Author-Name: Jun Zhang Author-X-Name-First: Jun Author-X-Name-Last: Zhang Title: The power structure of revolutionary organizations and political transition Abstract: Does the internal power structure of revolutionary organizations influence the process of political transition? We extend Acemoglu and Robinson’s democratization model by considering the collective action problem and the heterogeneity of the revolutionaries. The collective action problem of the revolutionaries is modeled using a global game. We find that overconcentration of power in revolutionary organizations makes the transition to democracy more difficult. Because under overconcentration of power, even democratization is not enough to prevent revolutions, and a revolution is more likely to lead to a new authoritarian system. We offer a comparative case study by comparing China and Europe. The more centralized revolutionary process in China explains why democratization has not happened in China. Journal: Journal of Chinese Economic and Business Studies Pages: 89-106 Issue: 1 Volume: 14 Year: 2016 Month: 2 X-DOI: 10.1080/14765284.2015.1132913 File-URL: http://hdl.handle.net/10.1080/14765284.2015.1132913 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:14:y:2016:i:1:p:89-106 Template-Type: ReDIF-Article 1.0 Author-Name: Jörg Mayer Author-X-Name-First: Jörg Author-X-Name-Last: Mayer Title: Towards a ‘new normal’ growth strategy: China in comparative perspective Abstract: China’s move towards a new normal has been motivated by domestic factors and accelerated by the decline in export opportunities to developed countries. This decline, combined with the knock-on effects of China’s growth adjustments, is disrupting the favourable external environment that made developing countries’ export-led development strategies viable. This paper concentrates on a rebalancing of developing countries’ growth strategies towards a greater weight of household consumption as a potential alternative and discusses three challenges -- market size, domestic purchasing power and balance-of-payments constraints. Concentrating on the latter, it analyses changes in sectoral compositions of consumer demand and patterns of international trade. Results point to the risk that a shift in growth strategy causes an import surge. The paper’s findings indicate the scope and speed of required product innovation that would prevent a rebalancing of growth strategies towards a greater role of consumption from running into balance-of-payments constraints. Journal: Journal of Chinese Economic and Business Studies Pages: 107-128 Issue: 2 Volume: 14 Year: 2016 Month: 5 X-DOI: 10.1080/14765284.2016.1183109 File-URL: http://hdl.handle.net/10.1080/14765284.2016.1183109 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:14:y:2016:i:2:p:107-128 Template-Type: ReDIF-Article 1.0 Author-Name: Hezron Makundi Author-X-Name-First: Hezron Author-X-Name-Last: Makundi Author-Name: Huib Huyse Author-X-Name-First: Huib Author-X-Name-Last: Huyse Author-Name: Patrick Develtere Author-X-Name-First: Patrick Author-X-Name-Last: Develtere Title: Cooperation between China and Tanzania on ICT: fish, fishing tackle or fishing skills? Abstract: Tanzania has ambitions of moving from a mere consumer of information and communication technologies to a designing and manufacturing base. This paper aims to assess the role of public--private partnerships with Chinese institutions in the achievement of this goal. Through an in-depth case study, this paper examines the contributions of three Chinese multinationals in terms of technology transfer and technological capacity building in local firms in Tanzania. The analysis contrasts the organisation of improvements on the manner of technology transfer and capacity building in these partnerships with prior Sino-Tanzanian partnership efforts in technology and industry. The Chinese multinationals had a labour localisation rate of 60% on average, with some training services provided to Tanzanian nationals and supply of services and equipment to Tanzanian firms. However, the overall level of technology transfer continues to be weak. Observed barriers to technology transfer include weak incentives for collaboration between Chinese and Tanzanian firms and low-level technology embedded in activities offshored by the Chinese multinationals to Tanzania. Journal: Journal of Chinese Economic and Business Studies Pages: 129-149 Issue: 2 Volume: 14 Year: 2016 Month: 5 X-DOI: 10.1080/14765284.2016.1174459 File-URL: http://hdl.handle.net/10.1080/14765284.2016.1174459 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:14:y:2016:i:2:p:129-149 Template-Type: ReDIF-Article 1.0 Author-Name: Liming Zhou Author-X-Name-First: Liming Author-X-Name-Last: Zhou Author-Name: Shujie Yao Author-X-Name-First: Shujie Author-X-Name-Last: Yao Author-Name: Jinmin Wang Author-X-Name-First: Jinmin Author-X-Name-Last: Wang Author-Name: Jinghua Ou Author-X-Name-First: Jinghua Author-X-Name-Last: Ou Title: Global financial crisis and China’s pawnbroking industry Abstract: In most countries, pawnbroking is an intermediate financial instrument to help private households or individuals meet their short-term and urgent consumption needs. In China, due to market imperfection and institutional discrimination against the small- and medium-sized enterprises (SMEs) by commercial banks and other formal financial institutions, pawnbroking has been used as a supplementary financing source for SMEs and private entrepreneurs when they cannot get access to bank credits or other financial sources such as usury (underground money shops). This paper uses first-hand survey data in 2009 in Zhejiang Province, China’s pioneering region for pawn business, and secondary data for the whole country during 2004--12, to understand the special characteristics of the pawnbroking industry and explain why it has become a viable and useful financing instrument in China. It also explains the puzzle of a serious setback and widespread losses in the industry during the world financial crisis. A corporate financing model of SMEs is developed to explain the substitution relationship between formal bank credits and pawnbroking. It suggests that the stimulus plan implemented by the central government of China during the global financial crisis reduced the borrowing cost and lowered the access barrier of bank credits to SMEs, leading to a temporary setback of an otherwise rapidly growing pawnbroking business in 2008 and 2009. However, as quantitative easing is gradually phased out after the global financial crisis, pawnbroking activities recover rapidly, implying that the industry will continue to play an important role in China’s economic development given its current financial system which is still unfriendly to the SME sector. Journal: Journal of Chinese Economic and Business Studies Pages: 151-164 Issue: 2 Volume: 14 Year: 2016 Month: 5 X-DOI: 10.1080/14765284.2016.1173465 File-URL: http://hdl.handle.net/10.1080/14765284.2016.1173465 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:14:y:2016:i:2:p:151-164 Template-Type: ReDIF-Article 1.0 Author-Name: Paul G. Egan Author-X-Name-First: Paul G. Author-X-Name-Last: Egan Author-Name: Anthony J. Leddin Author-X-Name-First: Anthony J. Author-X-Name-Last: Leddin Title: Examining monetary policy reaction in the People’s Republic of China -- a Markov switching policy index approach Abstract: This paper estimates a monetary policy rule for the People’s Republic of China (PRC) using a standard OLS estimation and a Markov switching model. As the People’s Bank of China (PBOC) generally uses a battery of instruments in the conduct of its monetary policy, these models are estimated using a constructed monetary policy index (MPI) in place of the traditional interest rate. This allows for a better understanding of the role the PBOC has played in the PRC’s unprecedented economic growth and its relatively low inflation over the last twenty years. This paper will not only examine the unique characteristics of Chinese monetary policy but may also give a more general insight into the dynamics of monetary policy reactions in other emerging markets and economies in transition. Journal: Journal of Chinese Economic and Business Studies Pages: 165-191 Issue: 2 Volume: 14 Year: 2016 Month: 5 X-DOI: 10.1080/14765284.2016.1173464 File-URL: http://hdl.handle.net/10.1080/14765284.2016.1173464 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:14:y:2016:i:2:p:165-191 Template-Type: ReDIF-Article 1.0 Author-Name: Siming Liu Author-X-Name-First: Siming Author-X-Name-Last: Liu Author-Name: Len Skerratt Author-X-Name-First: Len Author-X-Name-Last: Skerratt Author-Name: Shaomeng Li Author-X-Name-First: Shaomeng Author-X-Name-Last: Li Title: The impact of the 2007 reforms in China on the quality of earnings Abstract: Prior to 2007, in order to encourage international investment, China operated two parallel financial reporting systems, one based on Chinese GAAP for domestic investors and the other based on IFRS for international investors. In 2007, after a series of reforms to harmonise Chinese GAAP with IFRS, this system was replaced by a single set of standards for both classes of investor. We evaluate the impact of this significant change on earnings quality for stocks quoted on the Shanghai and Shenzhen stock exchanges for the period 2003--2013. Using tests of earnings smoothing and early loss recognition, we identify three key features. Firstly, earnings quality improved consistently over the period. Secondly, prior to the reforms of 2007, IFRS earnings were of superior quality to Chinese GAAP earnings. A third and important finding is that earnings quality under Chinese GAAP after the 2007 reforms is comparable to that under pre-2007 IFRS. Journal: Journal of Chinese Economic and Business Studies Pages: 193-209 Issue: 2 Volume: 14 Year: 2016 Month: 5 X-DOI: 10.1080/14765284.2016.1163003 File-URL: http://hdl.handle.net/10.1080/14765284.2016.1163003 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:14:y:2016:i:2:p:193-209 Template-Type: ReDIF-Article 1.0 Author-Name: Christian Ploberger Author-X-Name-First: Christian Author-X-Name-Last: Ploberger Title: One Belt, One Road – China’s new grand strategy Abstract: Does the ‘One Belt, One Road (OBOR) initiative’ represent a mere nostalgic rhetoric, summing up a wider range of policy initiatives, based on two different regional levels, or is it a bold statement of China’s new geopolitical grand strategy? In its geographic focus the ‘OBOR initiative’ comprises locations which are already within the Chinese government’s focus of interest – Central Asia and Southeast Asia with an extension to Europe, as a primary destination for its exports. Consequently, the ‘OBOR initiative’ can be viewed as a framework of existing political-economic interests of the Chinese government that are aligned to a wide range of different policy proposals. Following such a line of argument one may understand OBOR as the emergence of various processes of regional and sub-regional integration dynamics in which the Chinese leadership will take a more active role. Conversely, one may emphasise the qualitative and explicit adaptions within the ‘OBOR initiative’ that constitutes China’s contemporary geopolitical grand strategy. A final salient point that is demonstrated here, is that this initiative shows that geography continues to shape geopolitics even though we are living in a supposed globalised world. Journal: Journal of Chinese Economic and Business Studies Pages: 289-305 Issue: 3 Volume: 15 Year: 2017 Month: 7 X-DOI: 10.1080/14765284.2017.1346922 File-URL: http://hdl.handle.net/10.1080/14765284.2017.1346922 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:15:y:2017:i:3:p:289-305 Template-Type: ReDIF-Article 1.0 Author-Name: Phouphet Kyophilavong Author-X-Name-First: Phouphet Author-X-Name-Last: Kyophilavong Author-Name: Michael C. S. Wong Author-X-Name-First: Michael C. S. Author-X-Name-Last: Wong Author-Name: Somchith Souksavath Author-X-Name-First: Somchith Author-X-Name-Last: Souksavath Author-Name: Bin Xiong Author-X-Name-First: Bin Author-X-Name-Last: Xiong Title: Impacts of trade liberalization with China and Chinese FDI on Laos: evidence from the CGE model Abstract: The Lao-Chinese railway will be completed by 2020. It is a strategic route of China’s One-Belt-One-Road policy to reach out to South-East Asia, linking Kunming and Vientiane. Surrounded by Thailand, Myanmar, Cambodia, Vietnam, and China; Laos is small economy with a population of 6.90 million in 2014. It has been one of least developed economies in the world for several decades. With increased trade liberalization and FDI, Laos has robust GDP growth in the past two decades. In particular, the amount of FDI in Laos quickly jumps by more than 100% in 2014, because of massive increases in Chinese FDI. This paper summarizes major policies in Laos on trade liberalization and FDI and applies Computable General Equilibrium model to estimate how trade liberalization with China and Chinese FDI would affect Laos in terms of economic performance, outputs on various sectors, and poverty reduction. Our results show the following interesting findings: (a) both have positive impacts on overall economic performance; (b) some sectors in Laos have their outputs declined by trade liberalization with China; (c) both have positive impacts on reducing poverty in Laos but Chinese FDI is more able to narrow income gap in the country. Journal: Journal of Chinese Economic and Business Studies Pages: 215-228 Issue: 3 Volume: 15 Year: 2017 Month: 7 X-DOI: 10.1080/14765284.2017.1346923 File-URL: http://hdl.handle.net/10.1080/14765284.2017.1346923 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:15:y:2017:i:3:p:215-228 Template-Type: ReDIF-Article 1.0 Author-Name: Mariia L. Gorbunova Author-X-Name-First: Mariia L. Author-X-Name-Last: Gorbunova Author-Name: Igor D. Komarov Author-X-Name-First: Igor D. Author-X-Name-Last: Komarov Title: Emerging integration projects in Eurasia: a search for new cooperation formats? Abstract: The paper focuses on a series of integration projects and initiatives emerging across the Eurasian continent. China’s One Belt, One Road (OBOR) or New Silk Road initiative, the ASEAN’s Regional Comprehensive Economic Partnership (RCEP), the Trans-Pacific Partnership (TTP) previously led by the U.S., and the Eurasian Economic Union (EEU) promoted by Russia seem to be unsettling the existing balance of economic and political power between the members and the other indirectly involved countries. The emerging regional initiatives challenge the model established by B. Balassa. The TTP tries to promote new principles of international trade policy by debating with the WTO’s rules and focusing additionally on the protection of foreign direct investment, labour and environmental standards. The OBOR has a clear developmental purpose of industrialization in the countries with a lack of infrastructure. The EEU and the RCEP seemingly follow the traditional European model of integration. The authors compare the potential and sustainability of these initiatives through an analysis of economic indicators. The research realized shows that the RCEP has the best potential among the integration initiatives considered. The associations with the Russian Federation’s participation need to be enlarged by other countries’ neighbouring trading partners to increase their economic consolidation. Journal: Journal of Chinese Economic and Business Studies Pages: 229-247 Issue: 3 Volume: 15 Year: 2017 Month: 7 X-DOI: 10.1080/14765284.2017.1346924 File-URL: http://hdl.handle.net/10.1080/14765284.2017.1346924 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:15:y:2017:i:3:p:229-247 Template-Type: ReDIF-Article 1.0 Author-Name: Michael Murach Author-X-Name-First: Michael Author-X-Name-Last: Murach Author-Name: Helmut Wagner Author-X-Name-First: Helmut Author-X-Name-Last: Wagner Title: How severe will the growth slowdown in China caused by the structural change be? An evaluation based on experiences from Japan and South Korea Abstract: China’s economy has been growing at a high rate for the past three decades. However, the current process of rebalancing from an investment- and manufacturing-led growth model toward a consumption- and service-led model is associated with decreasing growth rates. We show that China’s current state of structural change in terms of sectoral employment share is similar to the historical developments in Japan and South Korea. We derive plausible scenarios for future growth rates in China and (by isolating the allocation effect, i.e. the pure effect of structural change) look at the effects of tertiarization on economic growth in China for the period 2014−2030 by applying a simple simulation study. Journal: Journal of Chinese Economic and Business Studies Pages: 269-287 Issue: 3 Volume: 15 Year: 2017 Month: 7 X-DOI: 10.1080/14765284.2017.1346930 File-URL: http://hdl.handle.net/10.1080/14765284.2017.1346930 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:15:y:2017:i:3:p:269-287 Template-Type: ReDIF-Article 1.0 Author-Name: Yuan Li Author-X-Name-First: Yuan Author-X-Name-Last: Li Author-Name: Hans-Jörg Schmerer Author-X-Name-First: Hans-Jörg Author-X-Name-Last: Schmerer Title: Trade and the New Silk Road: opportunities, challenges, and solutions Abstract: More than 2000 years ago, the ancient Silk Road was a major trade link between the East and West. However, technological change and dramatic declines in transportation costs have since made it obsolete as container shipping and the advent of cargo flights have shifted trade from the surface to the sea or air. Nevertheless, China recently announced a new initiative that aims at establishing new connections between Europe and Asia, which are bypassing more modern transport routes in favor of railway connections. This special issue is dedicated to research related to this new initiative. Journal: Journal of Chinese Economic and Business Studies Pages: 205-213 Issue: 3 Volume: 15 Year: 2017 Month: 7 X-DOI: 10.1080/14765284.2017.1347473 File-URL: http://hdl.handle.net/10.1080/14765284.2017.1347473 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:15:y:2017:i:3:p:205-213 Template-Type: ReDIF-Article 1.0 Author-Name: Antonia Reinecke Author-X-Name-First: Antonia Author-X-Name-Last: Reinecke Author-Name: Hans-Jörg Schmerer Author-X-Name-First: Hans-Jörg Author-X-Name-Last: Schmerer Title: Government efficiency and exports in China Abstract: This paper investigates the role of local governments’ efficiency on exports in China. We argue that firms located in provinces characterized by high governmental efficiency export more due to a positive productivity effect that lowers transaction costs. The analysis builds on NBS firm-level data that covers a representative sample of Chinese establishments. We find a positive correlation between provincial governments’ efficiency and Chinese firm’s exports. Moreover, we are able to show that the positive link between firm size and exports is magnified by governmental efficiency. Larger firms export more and this relationship is much stronger in provinces with more efficient provincial governments. Journal: Journal of Chinese Economic and Business Studies Pages: 249-268 Issue: 3 Volume: 15 Year: 2017 Month: 7 X-DOI: 10.1080/14765284.2017.1356593 File-URL: http://hdl.handle.net/10.1080/14765284.2017.1356593 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:15:y:2017:i:3:p:249-268 Template-Type: ReDIF-Article 1.0 Author-Name: Shaofei Jiang Author-X-Name-First: Shaofei Author-X-Name-Last: Jiang Author-Name: Xuezheng Qin Author-X-Name-First: Xuezheng Author-X-Name-Last: Qin Title: The inequality of nutrition intake among adults in China Abstract: This paper constructs a multidimensional Theil Index to estimate and decompose the inequality of nutrition intake among the adult population in China. Using 1991–2009 China Health and Nutrition Surveys (CHNS), this paper features two major findings. First, we show that the nutrition inequality has remained small in contrast to the large and increasing inequality in population income. Second, using Theil decompositions and Oaxaca–Blinder (O-B) decompositions, we find that, unlike income inequality, nature factors (such as age and gender) and regional factors play a more important role than socioeconomic factors in nutrition inequality. This finding provides a plausible explanation to the different time trends of nutrition inequality and income inequality. Moreover, it suggests that policies that aim to reduce the socioeconomic disparities may not automatically transfer to closing the gap in nutrition intake, which in turn is a potentially important determinant of population health and the long-term economic development. Journal: Journal of Chinese Economic and Business Studies Pages: 65-89 Issue: 1 Volume: 17 Year: 2019 Month: 1 X-DOI: 10.1080/14765284.2018.1512818 File-URL: http://hdl.handle.net/10.1080/14765284.2018.1512818 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:17:y:2019:i:1:p:65-89 Template-Type: ReDIF-Article 1.0 Author-Name: Tian Tian Author-X-Name-First: Tian Author-X-Name-Last: Tian Author-Name: Stijn Speelman Author-X-Name-First: Stijn Author-X-Name-Last: Speelman Author-Name: Ting Zuo Author-X-Name-First: Ting Author-X-Name-Last: Zuo Title: From elite capture to marginalization of the poorest: a new social exclusion in anti-poverty programmes in China Abstract: Based on a case study of state-directed aid resources in anti-poverty programmes, we detected a new phenomenon of social exclusion in China. In a period of several years, a shift is observed from elite capture to marginalization of the poorest. This phenomenon occurs under the administrative pressure from the authoritarian state and the morbid democratic mechanism. Contemporary structural changes in economic and social culture also make it difficult for marginal people to escape from this predicament. From a social structural transformation point of view, we suggest that the marginalization of the poorest should be seriously taken into consideration in rural development programmes and policies. Journal: Journal of Chinese Economic and Business Studies Pages: 91-102 Issue: 1 Volume: 17 Year: 2019 Month: 1 X-DOI: 10.1080/14765284.2018.1521594 File-URL: http://hdl.handle.net/10.1080/14765284.2018.1521594 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:17:y:2019:i:1:p:91-102 Template-Type: ReDIF-Article 1.0 Author-Name: Yi Wen Author-X-Name-First: Yi Author-X-Name-Last: Wen Author-Name: George E. Fortier Author-X-Name-First: George E. Author-X-Name-Last: Fortier Title: The visible hand: the role of government in China’s long-awaited industrial revolution Abstract: China is undergoing its long-awaited industrial revolution. There is no shortage of commentary and opinion on this dramatic period, but few have attempted to provide a coherent, in-depth, political-economic framework that explains the fundamental mechanisms behind China’s rapid industrialization. This article reviews the Embryonic Economic Development theory put forth by Wen (2016a). This article reviews the Embryonic Economic Development theory put forth by Wen . It illuminates the critical sequence of developmental stages since the reforms enacted by Deng Xiaoping in 1978: namely, small-scale commercialized agricultural production, proto-industrialization in the countryside, a formal industrial revolution based on mass production of labor-intensive light consumer goods, a sustainable ‘industrial trinity’ boom in energy/motive power/infrastructure, and a second industrial revolution involving the mass production of heavy industrial goods. This developmental sequence follows essentially the same pattern as Great Britain’s Industrial Revolution, despite sharp differences in political and institutional conditions. One of the key conclusions exemplified by China’s economic rise is that the extent of industrialization is limited by the extent of the market. One of the key strategies behind the creation and nurturing of a continually growing market in China is based on this premise: The free market is a public good that is very costly for nations to create and support. Market creation requires a powerful ‘mercantilist’ state and the correct sequence of developmental stages; China has been successfully accomplishing its industrialization through these stages, backed by measured, targeted reforms and direct participation from its central and local governments. Journal: Journal of Chinese Economic and Business Studies Pages: 9-45 Issue: 1 Volume: 17 Year: 2019 Month: 1 X-DOI: 10.1080/14765284.2019.1582224 File-URL: http://hdl.handle.net/10.1080/14765284.2019.1582224 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:17:y:2019:i:1:p:9-45 Template-Type: ReDIF-Article 1.0 Author-Name: Xiaobing Wang Author-X-Name-First: Xiaobing Author-X-Name-Last: Wang Author-Name: Nick Weaver Author-X-Name-First: Nick Author-X-Name-Last: Weaver Author-Name: Ning Xue Author-X-Name-First: Ning Author-X-Name-Last: Xue Title: Challenges for the Chinese economy in the new era of development Journal: Journal of Chinese Economic and Business Studies Pages: 1-7 Issue: 1 Volume: 17 Year: 2019 Month: 1 X-DOI: 10.1080/14765284.2019.1582225 File-URL: http://hdl.handle.net/10.1080/14765284.2019.1582225 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:17:y:2019:i:1:p:1-7 Template-Type: ReDIF-Article 1.0 Author-Name: Xiaobing Wang Author-X-Name-First: Xiaobing Author-X-Name-Last: Wang Title: Regulation and corruption in transitional China Abstract: This paper addresses the relationship between institutional change, regulation, and corruption by examining two possible positive effects of government discretion on growth in transitional economies, such as China. Firstly, economic reform depends on the support of those who have economic power. Allowing government departments and officials to divert resources and to be involved in private businesses make them a driving force for reform by giving up some of their power to the market. Secondly, because there existed large amounts of inefficient or out-of-date regulations in transitional economies, certain types of government discretion can actually circumvent inefficient policies and regulations and thus support growth. They enable people to break the status quo when regulations are lagging behind the reform. Although China had many laws and regulations which did not particularly promote growth, positive effects of government discretionary behaviour may have offset the negative effects of these laws and regulations on growth. Journal: Journal of Chinese Economic and Business Studies Pages: 47-64 Issue: 1 Volume: 17 Year: 2019 Month: 1 X-DOI: 10.1080/14765284.2019.1588594 File-URL: http://hdl.handle.net/10.1080/14765284.2019.1588594 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:17:y:2019:i:1:p:47-64 Template-Type: ReDIF-Article 1.0 Author-Name: Masayuki Shimizu Author-X-Name-First: Masayuki Author-X-Name-Last: Shimizu Title: Pollution abatement efforts: a regional analysis of the Chinese industrial sector Abstract: Although China has had rapid economic growth, it has borne a more significant economic burden or loss because of environmental pollution. However, the country has addressed this problem with various pollution abatement efforts. Some prior studies analysed the relationship between such efforts and pollution emissions, but did not show how these efforts affect pollution reduction. This study investigates the effects of pollution abatement efforts on industrial SOX, NOX and CO2 emissions in the context of pollution reduction in China by panel data for 29 provinces from 1995 to 2010. The empirical results are as follows. First, emissions have increased rapidly in the 2000s. Second, rapid income growth has led to a greater increase in emissions. Third, pollution abatement would assist improvements in environmental quality. Further, this study reveals that abatement efforts affect emissions through the adoption of pollution removal measures. Journal: Journal of Chinese Economic and Business Studies Pages: 103-125 Issue: 2 Volume: 15 Year: 2017 Month: 4 X-DOI: 10.1080/14765284.2016.1237698 File-URL: http://hdl.handle.net/10.1080/14765284.2016.1237698 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:15:y:2017:i:2:p:103-125 Template-Type: ReDIF-Article 1.0 Author-Name: Xiuping Hua Author-X-Name-First: Xiuping Author-X-Name-Last: Hua Author-Name: Anders C. Johansson Author-X-Name-First: Anders C. Author-X-Name-Last: Johansson Author-Name: Xun Wang Author-X-Name-First: Xun Author-X-Name-Last: Wang Title: National and regional financial openness in China Abstract: While China’s economy has been subject to a wide range of economic reforms since 1978, its capital account is still restricted. The issue of capital account convertibility is widely debated both in China and by foreign observers. This study contributes to the understanding of China’s capital account by constructing new indices for China’s financial openness. First, we construct alternative indices, both of which suggest that China has experienced significant increases in its financial openness, albeit beginning at very low levels in the late 1970s. Then, we construct an index for financial openness at the provincial level from 2000. As expected, the eastern provinces exhibit much higher levels of financial openness than the provinces located in the central and western parts of the country. Taken together, these indices enable a clear overview of national and regional financial openness across time and are well suited for future studies on determinants and effects of financial openness in China. Journal: Journal of Chinese Economic and Business Studies Pages: 127-140 Issue: 2 Volume: 15 Year: 2017 Month: 4 X-DOI: 10.1080/14765284.2016.1261490 File-URL: http://hdl.handle.net/10.1080/14765284.2016.1261490 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:15:y:2017:i:2:p:127-140 Template-Type: ReDIF-Article 1.0 Author-Name: Fengliang Liu Author-X-Name-First: Fengliang Author-X-Name-Last: Liu Author-Name: Xin Yi Author-X-Name-First: Xin Author-X-Name-Last: Yi Author-Name: Ze Yu Author-X-Name-First: Ze Author-X-Name-Last: Yu Title: Structural change in China: the role of factor market distortions Abstract: This paper proposes a systematic accounting framework to decompose the reallocation of labour out of agriculture into factor market distortions and market-driven forces. The findings are twofold. First, the removal of factor market distortions is a dominant driving force of the structural change in China in the last decades, which contributes 50.52%, and market-driven forces account for the rest 49.48%. Second, the contribution of market-driven forces has been increasing with the deepening of market-oriented reforms, while the impact of the removal of factor market distortions has been decreasing especially along with the slowdown of labour market reforms after China joined the WTO in 2001. The results imply that further reforms that aim at correcting factor market distortions could still be an important impetus of structural change in the future. Journal: Journal of Chinese Economic and Business Studies Pages: 185-204 Issue: 2 Volume: 15 Year: 2017 Month: 4 X-DOI: 10.1080/14765284.2016.1266848 File-URL: http://hdl.handle.net/10.1080/14765284.2016.1266848 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:15:y:2017:i:2:p:185-204 Template-Type: ReDIF-Article 1.0 Author-Name: Henry Chun Kwok Lei Author-X-Name-First: Henry Chun Kwok Author-X-Name-Last: Lei Title: The Closer Economic Partnership Arrangement (CEPA) and its impacts on the export efficiency of Hong Kong and Macao Abstract: The Closer Economic Partnership Arrangement (CEPA) is a bilateral preferential agreement signed among China, Hong Kong, and Macao which opens up the China market by providing zero tariff after accession. This paper sheds light to the impacts of the CEPA on merchandise trade with an in-depth analysis on export efficiency. Despite that merchandise trade has already been fully liberalized, the estimation results indicate that the efficiency of exports to China has been on the decline since 2000. This implies that the actual value of exports to China has departed from its full potential, and confirms our suspicions on the incapability of the CEPA to boost the exports of Hong Kong and Macao to China. There is also no evidence to support that the CEPA has successfully attracted foreign investment to Hong Kong and Macao for tariff free exports to China. Journal: Journal of Chinese Economic and Business Studies Pages: 141-163 Issue: 2 Volume: 15 Year: 2017 Month: 4 X-DOI: 10.1080/14765284.2017.1281082 File-URL: http://hdl.handle.net/10.1080/14765284.2017.1281082 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:15:y:2017:i:2:p:141-163 Template-Type: ReDIF-Article 1.0 Author-Name: Paul G. Egan Author-X-Name-First: Paul G. Author-X-Name-Last: Egan Author-Name: Anthony J. Leddin Author-X-Name-First: Anthony J. Author-X-Name-Last: Leddin Title: The Chinese Phillips curve – inflation dynamics in the presence of structural change Abstract: This paper models inflation dynamics in China from 1987 to 2014 using a Phillips curve framework. The Phillips curve is generally estimated under the assumption of linearity and parameter constancy. The existence of structural breaks in China’s inflation dynamics make standard linear models inappropriate tools for analysis however. Our results find that the Chinese Phillips curve is characterised by a non-linear relationship. The inflation/output relationship takes the form of a concave curve. This suggests that changes in the level of output effect inflation in China more strongly in periods when output is operating below its potential but the relationship is weaker when output is operating at or above potential. Based on these findings, the People’s Bank of China (PBC) could consider output cost and policy response on a case-by-case basis depending on the level of output in relation to potential. Journal: Journal of Chinese Economic and Business Studies Pages: 165-184 Issue: 2 Volume: 15 Year: 2017 Month: 4 X-DOI: 10.1080/14765284.2017.1325597 File-URL: http://hdl.handle.net/10.1080/14765284.2017.1325597 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:15:y:2017:i:2:p:165-184 Template-Type: ReDIF-Article 1.0 Author-Name: Yi Qu Author-X-Name-First: Yi Author-X-Name-Last: Qu Author-Name: Yingqi Wei Author-X-Name-First: Yingqi Author-X-Name-Last: Wei Author-Name: Tao Jiang Author-X-Name-First: Tao Author-X-Name-Last: Jiang Author-Name: Nan Zheng Author-X-Name-First: Nan Author-X-Name-Last: Zheng Title: Linking R&D strategy, national innovation system and FDI to firm performance Abstract: This paper investigates the role of R&D strategy, national innovation system (NIS) and foreign direct investment (FDI) in firm performance. Drawing on an institution-based view and the FDI spillover literature, we argue that firm performance is directly affected by R&D strategy, NIS and FDI spillovers. NIS also moderates FDI spillover effects on firm performance. Data analysis based on the World Bank Enterprise Survey of manufacturing firms in China in 2003 shows that the findings reinforce the hypotheses. Journal: Journal of Chinese Economic and Business Studies Pages: 41-58 Issue: 1 Volume: 15 Year: 2017 Month: 1 X-DOI: 10.1080/14765284.2016.1242310 File-URL: http://hdl.handle.net/10.1080/14765284.2016.1242310 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:15:y:2017:i:1:p:41-58 Template-Type: ReDIF-Article 1.0 Author-Name: Wenjin Long Author-X-Name-First: Wenjin Author-X-Name-Last: Long Author-Name: Simon Appleton Author-X-Name-First: Simon Author-X-Name-Last: Appleton Author-Name: Lina Song Author-X-Name-First: Lina Author-X-Name-Last: Song Title: The impact of job contact networks on wages of rural–urban migrants in China: a switching regression approach Abstract: In nationally representative household data from the 2008 Chinese Rural to Urban Migration Survey, nearly two thirds of rural–urban migrants found their employment through family members, relatives, friends or acquaintances. This paper investigates why the use of social network to find jobs is so prevalent among rural–urban migrants in China, and whether migrants face a wage penalty as a result of adopting this job search method. Using a switch regression approach, we find evidence of positive selection effects of the use of networks on wages. Users of networks tend to be older, to have migrated longer ago and to be less educated. In addition, married workers and those from villages with more out-migrant are more likely to use networks, while those without local residential registration status are less likely. Controlling for selectivity, we find a large negative impact of network use on wages. Using job contacts brings access to urban employment, but at the cost of markedly lower wages. Journal: Journal of Chinese Economic and Business Studies Pages: 81-101 Issue: 1 Volume: 15 Year: 2017 Month: 1 X-DOI: 10.1080/14765284.2017.1287538 File-URL: http://hdl.handle.net/10.1080/14765284.2017.1287538 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:15:y:2017:i:1:p:81-101 Template-Type: ReDIF-Article 1.0 Author-Name: Justin Yifu Lin Author-X-Name-First: Justin Yifu Author-X-Name-Last: Lin Title: Industrial policies for avoiding the middle-income trap: a new structural economics perspective Abstract: Economic development is a process of structural transformation with continuous technological innovation and industrial upgrading, which increases labor productivity, and accompanied improvements in infrastructure and institution, which reduces transaction costs. The middle-income trap is a result of a middle-income country’s failure to have a faster labor productivity growth through technological innovation and industrial upgrading than high-income countries. Industrial policy is essential for the government of a middle-income country to prioritize the use of its limited resources to facilitate technological innovation and industrial upgrading by overcoming inherent externality and coordination issues in structural transformation. The industries in a middle-income country may be classified into five different types, depending on their distance to the global technology frontier: catching-up industries, leading-edge industries, comparative advantage-losing industries, short innovation cycle industries, and comparative advantage-defying strategic industries. Industrial policy should be designed accordingly. Journal: Journal of Chinese Economic and Business Studies Pages: 5-18 Issue: 1 Volume: 15 Year: 2017 Month: 1 X-DOI: 10.1080/14765284.2017.1287539 File-URL: http://hdl.handle.net/10.1080/14765284.2017.1287539 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:15:y:2017:i:1:p:5-18 Template-Type: ReDIF-Article 1.0 Author-Name: Weiying Zhang Author-X-Name-First: Weiying Author-X-Name-Last: Zhang Title: China’s future growth depends on innovation entrepreneurs Abstract: The last 30 years of high growth rates were primarily China’s latecomer advantage unleashed by reform and opening. This latecomer advantage provided entrepreneurs with tremendous opportunities for arbitrage. It is the arbitrage activities of entrepreneurs (both Chinese and foreign) that caused a gradual increase in the efficiency of resource allocation, and thus drove high rates of economic growth. However, as the gap between China and developed countries has decreased, the room for arbitrage is shrinking. Solely relying on arbitrage entrepreneurs will no longer sustain high rates of economic growth. Future growth primarily relies on entrepreneurial innovation. Innovation is more institutionally demanding and sensitive. China must deepen reforms of the economic system, political system, legal system, and other aspects to eliminate the systems and policies that obstruct innovation. Journal: Journal of Chinese Economic and Business Studies Pages: 19-40 Issue: 1 Volume: 15 Year: 2017 Month: 1 X-DOI: 10.1080/14765284.2017.1287540 File-URL: http://hdl.handle.net/10.1080/14765284.2017.1287540 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:15:y:2017:i:1:p:19-40 Template-Type: ReDIF-Article 1.0 Author-Name: Duan Liu Author-X-Name-First: Duan Author-X-Name-Last: Liu Author-Name: Shengyong Li Author-X-Name-First: Shengyong Author-X-Name-Last: Li Author-Name: Hongbo He Author-X-Name-First: Hongbo Author-X-Name-Last: He Author-Name: Shujie Yao Author-X-Name-First: Shujie Author-X-Name-Last: Yao Title: Financial constraints and product market competition across business cycles: evidence from China’s manufacturing industry Abstract: This paper examines the impact of financial constraints across business cycles on production market competition using firm-level data from China’s manufacturing industry during 1998–2012. This study constructs a theoretical model with respect to financial constraints and product market competition and conducts a hierarchically multivariate regression analysis to examine the effects of financial constraints in economic recessions and expansions. Financial constraints are generally found to hamper the firm’s competitive performance in its product market, especially in economic recession. Meanwhile, the mediating effect of product pricing is identified in this study as a channel through which a firm’s financial constraints negatively affect its competitive performance. The mediating effect is remarkably salient in economic recessions but not significant in economic expansions. A financially constrained firm is more likely to raise its product price in economic recession, which in turn curbs its competitive capacity in product market. Journal: Journal of Chinese Economic and Business Studies Pages: 59-80 Issue: 1 Volume: 15 Year: 2017 Month: 1 X-DOI: 10.1080/14765284.2017.1287541 File-URL: http://hdl.handle.net/10.1080/14765284.2017.1287541 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:15:y:2017:i:1:p:59-80 Template-Type: ReDIF-Article 1.0 Author-Name: Jing Zhang Author-X-Name-First: Jing Author-X-Name-Last: Zhang Author-Name: Jian Chen Author-X-Name-First: Jian Author-X-Name-Last: Chen Title: Introduction to China’s new normal economy Abstract: China’s economic reform has been successful, making it become a major economic power. Largely relied on low-cost investment, cheap and abundant labour and use of natural resources to support growth, China has faced a number of challenges including high debt to GDP, demographic changes and environmental degradation, along with income inequality, corruption and rent-seeking activities. In recent years, China’s economic growth rate has fallen from the historic double-digit rate to 6–7%. Chinese Government has attempted to rebalance its economy to achieve a “new normal” of slower but more sustainable economic development. This special issue aims to raise discussions concerning the ways in which further reform of the Chinese economy can be conducted in the context of challenges and opportunities of the new normal. The issue comprises five papers that exhibit special insights of interest, including the discussions on drivers of economic growth, the role of government policy played in economic growth in the coming decades, the importance of innovation and government institutions in firm performance, the impact of capital structural on firm competitiveness, as well as the relationship between the use of social networks and wages of rural–urban migrant workers. Journal: Journal of Chinese Economic and Business Studies Pages: 1-4 Issue: 1 Volume: 15 Year: 2017 Month: 1 X-DOI: 10.1080/14765284.2017.1289454 File-URL: http://hdl.handle.net/10.1080/14765284.2017.1289454 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:15:y:2017:i:1:p:1-4 Template-Type: ReDIF-Article 1.0 Author-Name: Su Dinh Thanh Author-X-Name-First: Su Author-X-Name-Last: Dinh Thanh Author-Name: Nguyen Phuc Canh Author-X-Name-First: Nguyen Phuc Author-X-Name-Last: Canh Title: Dynamics between government spending and economic growth in China: an analysis of productivity growth Abstract: This study investigates the dynamics between government spending and economic growth in China through influencing the productivity growth of human capital byapplying Markov switching estimates for the annual time series data of China over the period 1952–2014. Firstly, we found that the Chinese economy exists in two states including state one with low growth and state two with high growth. Secondly, the consumption spending has significantly positive effect both states, while the military spending has only positive effect in state two. Interestingly, the growth effect level of consumption spending in state two is smaller than that in state one, implying a reducing effect of total factor productivity in state two. Thirdly, the combined effects of consumption spending and military spending with human capital are state dependent. This combined effect is reduced in both states, suggesting that government spending does not improve the productivity growth effect of human capital. Journal: Journal of Chinese Economic and Business Studies Pages: 189-212 Issue: 2 Volume: 17 Year: 2019 Month: 4 X-DOI: 10.1080/14765284.2019.1567069 File-URL: http://hdl.handle.net/10.1080/14765284.2019.1567069 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:17:y:2019:i:2:p:189-212 Template-Type: ReDIF-Article 1.0 Author-Name: Agya Atabani Adi Author-X-Name-First: Agya Author-X-Name-Last: Atabani Adi Title: Modeling exchange rate return volatility of RMB/USD using GARCH family models Abstract: The paper examines volatility of RMB exchange rate return of onshore and offshore markets. The onshore rate covered 4/01/2008–5/09/2016 while offshore spanned 31/12/2008-22/09/2016, the returns were not normally distributed and were integrated of order zero I(0). The Ljung-Box Q statistics depicts the presence of autocorrelation in return series and Ljung-Box Q2 statistics of power transformed for conditional heteroscedasticity for lags of 6, 12 and 20 all indicated the presence of conditional heteroscedascity. The exchange rates volatility was persistent in both markets. However, offshore return was more persistent while leverage effects exist in both markets. Asymmetry power Autoregressive conditional Heteroscedastic (APARCH) model was the best model for forecasting purposes in both markets while Glosten, Jogannathan and Rankle, Generalized Autoregressive conditional Heteroscedastic (GJR-GARCH) model and Integrated Generalized Autoregressive conditional Heteroscedastic (I-GARCH) were the worst models in onshore and offshore return markets respectively. APARCH model should be adopted for future studies. Journal: Journal of Chinese Economic and Business Studies Pages: 169-187 Issue: 2 Volume: 17 Year: 2019 Month: 4 X-DOI: 10.1080/14765284.2019.1600933 File-URL: http://hdl.handle.net/10.1080/14765284.2019.1600933 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:17:y:2019:i:2:p:169-187 Template-Type: ReDIF-Article 1.0 Author-Name: Sihong Wu Author-X-Name-First: Sihong Author-X-Name-Last: Wu Title: Debt financing structure, ownership concentration and firm performance: a comparison of the listed state-owned and non-state-owned CMNEs Abstract: This paper examines the impact of debt financing and ownership concentration on internationalization performance by using a sample of 217 Chinese multinational enterprises (CMNEs) from 2009 to 2016. Through fixed-effect regression and dynamic threshold analysis, this paper finds that increasing short-term debts is positively associated with the internationalization performance of non-state-owned CMNEs, while increasing short-term debts by state-owned CMNEs will harm their performance. Ownership concentration affects CMNEs’ risk preference and thus affecting their internationalization performance in different degrees. This paper finds that the threshold for the impact of CMNEs’ largest shareholder’s ownership concentration on its internationalization performance is 0.18, the thresholds for the impact of CMNEs’ top 10 shareholders’ ownership concentration on its internationalization performance are 0.346 and 0.433. When state-owned CMNEs’ top 10 shareholders’ ownership concentration exceeds 0.337 and 0.347, their internationalization performance will have significant positive changes. Overall, this study is expected to contribute to the literature of internationalization of emerging market companies. Journal: Journal of Chinese Economic and Business Studies Pages: 147-168 Issue: 2 Volume: 17 Year: 2019 Month: 4 X-DOI: 10.1080/14765284.2019.1615243 File-URL: http://hdl.handle.net/10.1080/14765284.2019.1615243 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:17:y:2019:i:2:p:147-168 Template-Type: ReDIF-Article 1.0 Author-Name: Jinghai Zheng Author-X-Name-First: Jinghai Author-X-Name-Last: Zheng Title: The fallacy of Washington consensus and the role of the Government: interpreting some Chinese contributions to development policy from aspects of Chang’e 4 Abstract: Students of economics may have heard of that economics, especially the kind of mainstream neoclassical economics taught in most universities on earth today, is an imitation of physical science in some fundamental fashion. However, few economists would imagine that economics can be as effective as physical science, not even in the remote future. China’s Chang’e 4 mission to the far side of the Moon provides a golden opportunity for economists to explore this fascinating possibility from the aspect of astrodynamics.This article, inspired by thoughts of Justin Yifu Lin and Angang Hu among others regarding China’s economic reform, demonstrates that physics explaining the Three-Body Problem of classical mechanics may as well be understood as guiding principles when dealing with issues in development economics. Several aspects of ‘Washington consensus’ are examined in relation to the concerns raised by Chinese scholars. The study concludes that neoliberal interpretations of modern economics are basically inconsistent with the neoclassical framework outlined in standard economics textbooks. Journal: Journal of Chinese Economic and Business Studies Pages: 103-122 Issue: 2 Volume: 17 Year: 2019 Month: 4 X-DOI: 10.1080/14765284.2019.1623470 File-URL: http://hdl.handle.net/10.1080/14765284.2019.1623470 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:17:y:2019:i:2:p:103-122 Template-Type: ReDIF-Article 1.0 Author-Name: Jiaofeng Pan Author-X-Name-First: Jiaofeng Author-X-Name-Last: Pan Author-Name: Yidong Liu Author-X-Name-First: Yidong Author-X-Name-Last: Liu Author-Name: Guanghua Chen Author-X-Name-First: Guanghua Author-X-Name-Last: Chen Author-Name: Qiuju Zhang Author-X-Name-First: Qiuju Author-X-Name-Last: Zhang Title: Diamond model for the transfer of world science and technology centres Abstract: Since the end of the Middle Ages, Italy, the United Kingdom, France, Germany and the United States, has successively become the world’s science and technology centre. The combination of societal factors, such as economic prosperity, ideological emancipation, education development, and government’s strong support, and timely appearance of scientific achievements, jointly lead to the formation, evolution and transfer of the centre whilst a diamond model composed of these five elements can be utilized to analyse of this process. The innovation of global science and technology has entered an unprecedented period featured by its intensity, providing a perfect "window of opportunity" for China to become a world science and technology centre. It is vital for china to emancipate the mind, improve the personnel system, create an innovation-friendly environment, speed up the establishment of a world education centre, enhance government’s support, solve problems occurring during development, preemptive frontier research and subversive technological innovation. Journal: Journal of Chinese Economic and Business Studies Pages: 129-145 Issue: 2 Volume: 17 Year: 2019 Month: 4 X-DOI: 10.1080/14765284.2019.1623486 File-URL: http://hdl.handle.net/10.1080/14765284.2019.1623486 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:17:y:2019:i:2:p:129-145 Template-Type: ReDIF-Article 1.0 Author-Name: Kurt Lundgren Author-X-Name-First: Kurt Author-X-Name-Last: Lundgren Title: Comments on “interpreting Chinese contributions to development policy from aspects of Chang'e 4” Abstract: This article is a comment on The Fallacy of Washington Consensus and the Role of the Government: Interpreting Some Chinese Contributions to Development Policy from Aspects of Chang'e 4 by Jinghai Zheng.The comparison between how equilibrium concepts are used in economics and natural sciences is extended to areas such as biology, chemistry and convex optimization in mathematics and is discussed on the basis of the state's role in economics and general equilibrium theory. Journal: Journal of Chinese Economic and Business Studies Pages: 123-128 Issue: 2 Volume: 17 Year: 2019 Month: 4 X-DOI: 10.1080/14765284.2019.1624010 File-URL: http://hdl.handle.net/10.1080/14765284.2019.1624010 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:17:y:2019:i:2:p:123-128 Template-Type: ReDIF-Article 1.0 Author-Name: Xinxin Ma Author-X-Name-First: Xinxin Author-X-Name-Last: Ma Title: Economic transition and the determinants of self-employment in urban China: 2007–2013 Abstract: Why was there a large growth in self-employment in urban China during the economic transition period? There are two hypotheses proposed to answer this: the disguised unemployment hypothesis that there is no opportunity to access the formal sector to gain better work, and the business creation hypothesis that successful business owners create new jobs for others, new business opportunities, and many innovative new products for society, as pointed out in previous studies. Using CHIP2007 and CHIP2013, this paper tests the two hypotheses. The main conclusions are as follows: First, generally, utilizing the imputed wage premiums, which were used in previous studies, the business creation hypothesis is rejected; the disguised unemployment hypothesis is supported for both the local urban resident and the migrant groups in 2007 and 2013. Second, the results that utilized the new wage premiums based on the imputed employee wages in the private sector show that the business creation hypothesis is supported when a worker chose to become an employer for both the migrant group and the local urban resident group in 2013. Third, the business creation hypothesis is relevant for the older generation group of local urban residents in 2013. Journal: Journal of Chinese Economic and Business Studies Pages: 279-307 Issue: 3 Volume: 14 Year: 2016 Month: 7 X-DOI: 10.1080/14765284.2016.1219297 File-URL: http://hdl.handle.net/10.1080/14765284.2016.1219297 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:14:y:2016:i:3:p:279-307 Template-Type: ReDIF-Article 1.0 Author-Name: Kai Kajitani Author-X-Name-First: Kai Author-X-Name-Last: Kajitani Author-Name: Daisuke Fujii Author-X-Name-First: Daisuke Author-X-Name-Last: Fujii Title: Spatial analysis of competition among local governments and the price of land: the case of Zhejiang Province Abstract: This empirical study focuses on competition between local governments as they strive to attract companies through the auction of land use rights. In the literature on competition between local governments, the focus has tended to be toward growth rates based on performance evaluation or tax rate-based competition for attracting companies. In China, the property tax system is still underdeveloped and local governments cannot independently set tax rates. Therefore, this study focuses on a type of ‘dumping’ activity by which local governments auction land use rights to attract industrial companies and empirically test this hypothesis using the spatial lag model. Journal: Journal of Chinese Economic and Business Studies Pages: 229-242 Issue: 3 Volume: 14 Year: 2016 Month: 7 X-DOI: 10.1080/14765284.2016.1221268 File-URL: http://hdl.handle.net/10.1080/14765284.2016.1221268 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:14:y:2016:i:3:p:229-242 Template-Type: ReDIF-Article 1.0 Author-Name: Fang Liu Author-X-Name-First: Fang Author-X-Name-Last: Liu Author-Name: Jun Zhang Author-X-Name-First: Jun Author-X-Name-Last: Zhang Author-Name: Tian Zhu Author-X-Name-First: Tian Author-X-Name-Last: Zhu Title: How much can we trust China’s investment statistics? Abstract: Building upon recent research into the underestimation of China’s official final consumption expenditure, this paper investigates the quality of China’s investment data. We strictly follow the official method to estimate the annual gross fixed capital formation (GFCF) expenditure from 2004 to 2012, and the resulting figures are significantly different from the official statistics. This implies that the ‘total investment in fixed assets’ data, which are the primary source for the estimation of GFCF, grossly exaggerate actual investments, and that the official GFCF figures are not, strictly speaking, independently estimated, as they are purported to be. We deduce that the official gross capital formation figure is more or less a residual item obtained by subtracting final consumption and net exports from the official GDP figure that is calculated based on the production-cum-income approach. As a result, the underestimation of China’s consumption expenditure automatically translates into overestimation of investment expenditure. We conclude that China’s official consumption and investment statistics cannot be trusted as the basis for policy discussions and academic research. Journal: Journal of Chinese Economic and Business Studies Pages: 215-228 Issue: 3 Volume: 14 Year: 2016 Month: 7 X-DOI: 10.1080/14765284.2016.1221606 File-URL: http://hdl.handle.net/10.1080/14765284.2016.1221606 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:14:y:2016:i:3:p:215-228 Template-Type: ReDIF-Article 1.0 Author-Name: Wen Xiao Author-X-Name-First: Wen Author-X-Name-Last: Xiao Author-Name: Jiadong Pan Author-X-Name-First: Jiadong Author-X-Name-Last: Pan Author-Name: Jiangang Jiang Author-X-Name-First: Jiangang Author-X-Name-Last: Jiang Title: Subnational institutional environment, scale competition and MNEs’ ownership levels in transition economy: evidence from China Abstract: This paper shows that the effect of market scale competition on the ownership levels of foreign-funded enterprises is conditioned on sub-national institutional environment in China. Analysis is based on the idea that multinational enterprises subject to the dual pressures of institutional isomorphism and competition in the host country. The provincial panel data from 2001 to 2012 is used for empirical tests. This study indicates that the weaker the legal property rights protection and legal enforcement of contracts, and the higher the opening up, the more the large foreign-funded enterprises decrease their ownership levels, whereas the negative moderating effect incurred by the reduction to government intervention in business is limited significant. Journal: Journal of Chinese Economic and Business Studies Pages: 243-261 Issue: 3 Volume: 14 Year: 2016 Month: 7 X-DOI: 10.1080/14765284.2016.1228300 File-URL: http://hdl.handle.net/10.1080/14765284.2016.1228300 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:14:y:2016:i:3:p:243-261 Template-Type: ReDIF-Article 1.0 Author-Name: Erbiao Dai Author-X-Name-First: Erbiao Author-X-Name-Last: Dai Title: China’s inclusive development strategy and its effect on regional disparity Abstract: In 2004, the Chinese Government declared an inclusive development strategy, ‘building a harmonious society’. This paper focuses on regional disparity issues and discusses three questions: (1) What are the background, goals and main tasks of China’s inclusive development strategy? (2) What changes have taken place in China’s regional development strategy under this inclusive development strategy? and (3) What is the recent impact of the regional development strategy on regional disparity in China? Our analysis’ results show that after the late 1970s, China’s regional disparity experienced three sub-periods: a period of decline from 1978 to the early 1990s, a period of increase from the early 1990s to the early 2000s and a period of significant decline after the early 2000s. If we divide China’s overall regional disparity into four components: disparity within the east, disparity within the centre, disparity within the west and disparity between the three regions, the first and the fourth dominated the changes of China’s regional disparity in the past three decades. After the early 2000s, both the reduction of disparity between the three regions and the reduction of disparity within the east have contributed to the significant reduction of China’s overall regional disparity. This result implies that under the China-style inclusive development strategy, the recent adjustment in regional development strategy has considerably reduced the regional disparity in this huge country. However, the recent high economic growth in the inland provinces is heavily dependent on a huge input of capital, which is driven by public investment and seems not to be sustainable. To achieve a more inclusive and sustainable development, the Chinese Government and policy-makers should pay more attention to the issues of the low growth of TFP (total factor productivity) and the low growth of labour input in less-developed provinces. Journal: Journal of Chinese Economic and Business Studies Pages: 263-278 Issue: 3 Volume: 14 Year: 2016 Month: 7 X-DOI: 10.1080/14765284.2016.1230696 File-URL: http://hdl.handle.net/10.1080/14765284.2016.1230696 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:14:y:2016:i:3:p:263-278 Template-Type: ReDIF-Article 1.0 Author-Name: Jun Zhang Author-X-Name-First: Jun Author-X-Name-Last: Zhang Author-Name: Xiaolan Fu Author-X-Name-First: Xiaolan Author-X-Name-Last: Fu Author-Name: Shanping Yan Author-X-Name-First: Shanping Author-X-Name-Last: Yan Title: Structural change, industrial upgrading and China’s economic transformation Abstract: After more than three decades of opening up and reforms, China has moved from a low to an emerging middle-income country. The main challenge facing the country is how to sustain this momentum and develop into a high-income country and avoid the middle-income trap. In order to achieve this, industrial upgrading and structural change is crucial. This is not an easy process given that very few countries in the world achieved this in the past 50 years. What are the challenges for this transformation? How can the innovation and technological capabilities be developed to upgrade Chinese industries into one of the world’s innovation leaders? These are important questions to address for policy-makers and academics, and are the main theme of an International Conference on Transition and Economic Development (TED), held at Fudan University in 2015. Journal: Journal of Chinese Economic and Business Studies Pages: 211-213 Issue: 3 Volume: 14 Year: 2016 Month: 7 X-DOI: 10.1080/14765284.2016.1237803 File-URL: http://hdl.handle.net/10.1080/14765284.2016.1237803 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:14:y:2016:i:3:p:211-213 Template-Type: ReDIF-Article 1.0 Author-Name: Wenxuan Hou Author-X-Name-First: Wenxuan Author-X-Name-Last: Hou Title: China’s path to the new era Journal: Journal of Chinese Economic and Business Studies Pages: 213-214 Issue: 3 Volume: 17 Year: 2019 Month: 7 X-DOI: 10.1080/14765284.2019.1672416 File-URL: http://hdl.handle.net/10.1080/14765284.2019.1672416 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:17:y:2019:i:3:p:213-214 Template-Type: ReDIF-Article 1.0 Author-Name: Huiyao Wang Author-X-Name-First: Huiyao Author-X-Name-Last: Wang Title: China and globalization: 40 years of Reform and Opening-up and globalization 4.0 Abstract: The story of China’s development over the four decades since Reform and Opening-Up was launched is deeply entwined with the process of globalization. China has benefited from and contributed to globalization through increasing cross-border flows of capital, goods and people. Following its development and rise on the international stage, China is now well-placed to play a constructive role in tackling new challenges associated with globalization 4.0. This includes by helping to update global governance mechanisms, acting as a catalyst for regional integration, and continuing to serve as an engine for the global economy. The Belt and Road Initiative will also be an important vector for globalization 4.0 as it helps to bring its enabling infrastructure and technologies to all corners of the globe. Journal: Journal of Chinese Economic and Business Studies Pages: 215-220 Issue: 3 Volume: 17 Year: 2019 Month: 7 X-DOI: 10.1080/14765284.2019.1667099 File-URL: http://hdl.handle.net/10.1080/14765284.2019.1667099 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:17:y:2019:i:3:p:215-220 Template-Type: ReDIF-Article 1.0 Author-Name: Fan Zhang Author-X-Name-First: Fan Author-X-Name-Last: Zhang Author-Name: Feng Wang Author-X-Name-First: Feng Author-X-Name-Last: Wang Author-Name: Jinghua Ou Author-X-Name-First: Jinghua Author-X-Name-Last: Ou Author-Name: Shujie Yao Author-X-Name-First: Shujie Author-X-Name-Last: Yao Title: Role of high-speed rail on social fixed assets investments in China Abstract: Rapid development of high-speed rail (HSR) in the past decade has a tremendous boosting effect on China’s economy and society. Under the ‘New normal’, HSR provides an important physical space for the steady expansion of the national economy. This paper uses a panel dataset comprising 285 prefecture-level cities in 2010–2016 to establish an investment measurement model and estimate the impact of HSR on social fixed assets investment. It also uses the difference-in-difference and propensity score matching tests to verify the results. Two important findings arise from the empirical analyses: (1) HSR development significantly stimulates China’s social fixed assets investment, foreign direct investment and real estate investment; and (2) HSR investment does not substitute for investments in other industries, instead, it supplements them. These findings provide strong theoretical and empirical support for China’s long-term HSR development strategy. Journal: Journal of Chinese Economic and Business Studies Pages: 221-244 Issue: 3 Volume: 17 Year: 2019 Month: 7 X-DOI: 10.1080/14765284.2019.1663697 File-URL: http://hdl.handle.net/10.1080/14765284.2019.1663697 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:17:y:2019:i:3:p:221-244 Template-Type: ReDIF-Article 1.0 Author-Name: Juwei Zhang Author-X-Name-First: Juwei Author-X-Name-Last: Zhang Author-Name: Wen Zhao Author-X-Name-First: Wen Author-X-Name-Last: Zhao Title: The unreported income and its impact on Gini coefficient in China Abstract: Unreported income is an important factor that distorts China’s household income accounting and Gini coefficient calculation. On the basis of comparing NBS household survey data and data from China’s Cash Flow Statement, this paper estimates the size and structure of unreported income in China over recent years. Our study found that about 20% of household disposable income has not been covered by existing household surveys in recent years. In 2015, the omission rate was 19.5%. Operating income and property income have the highest omission rates. Considering that unreported income is primarily owned by high-income people, China’s falling Gini coefficient since 2009 may have resulted from the statistical omission of partial incomes of high-income group. If unreported income is re-included, China’s Gini coefficient would increase by 10 percentage points rather than decrease. Journal: Journal of Chinese Economic and Business Studies Pages: 245-259 Issue: 3 Volume: 17 Year: 2019 Month: 7 X-DOI: 10.1080/14765284.2019.1668656 File-URL: http://hdl.handle.net/10.1080/14765284.2019.1668656 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:17:y:2019:i:3:p:245-259 Template-Type: ReDIF-Article 1.0 Author-Name: Jiandong Chen Author-X-Name-First: Jiandong Author-X-Name-Last: Chen Author-Name: Ming Pu Author-X-Name-First: Ming Author-X-Name-Last: Pu Author-Name: Wenxuan Hou Author-X-Name-First: Wenxuan Author-X-Name-Last: Hou Title: The trend of the Gini coefficient of China (1978–2010) Abstract: This study proposes a new approach to analyse the effects of an overlap term on the calculation of the overall Gini coefficient and estimates China’s Gini ratios since the adoption of the economic reform and open-door policies. A decomposition of the Chinese Gini coefficient for 1978–2010 reveals that the key factor contributing to income inequalities is the income disparity between rural and urban inhabitants. We further investigate the features of this income inequality between rural and urban areas and employ statistical approaches to evaluate the effects of urbanisation and rural-to-urban average income on nationwide income inequality. The results show that accelerating the pace of urbanisation is mainly responsible for decreasing China’s income disparity. Drawing on these results, we conclude with suggestions for related policies. Journal: Journal of Chinese Economic and Business Studies Pages: 261-285 Issue: 3 Volume: 17 Year: 2019 Month: 7 X-DOI: 10.1080/14765284.2019.1663695 File-URL: http://hdl.handle.net/10.1080/14765284.2019.1663695 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:17:y:2019:i:3:p:261-285 Template-Type: ReDIF-Article 1.0 Author-Name: Weiying Zhang Author-X-Name-First: Weiying Author-X-Name-Last: Zhang Title: The China model view is factually false Abstract: Using a cross-regional analysis of China, this article shows that the China model view is factually false and the universal model view is factually true. It is the marketization and development of non-state sectors, rather than the strong power of government and the state sector, that have driven the Chinese economy to grow fast and to be increasingly innovative. If China wants to sustain its economic performance, it must stay on the way to continuing marketization. Otherwise, China will fall into stagnation. Journal: Journal of Chinese Economic and Business Studies Pages: 287-311 Issue: 3 Volume: 17 Year: 2019 Month: 7 X-DOI: 10.1080/14765284.2019.1663696 File-URL: http://hdl.handle.net/10.1080/14765284.2019.1663696 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:17:y:2019:i:3:p:287-311 Template-Type: ReDIF-Article 1.0 Author-Name: Jiafu An Author-X-Name-First: Jiafu Author-X-Name-Last: An Author-Name: Wenxuan Hou Author-X-Name-First: Wenxuan Author-X-Name-Last: Hou Author-Name: Yun Zhang Author-X-Name-First: Yun Author-X-Name-Last: Zhang Title: China’s rule of law in New Era: the rise of regulation and formalism Abstract: China’s financial development and economic growth is achieved under weak legal institutions. The literature attributes this counterexample of law–finance–growth nexus to (a) alternative mechanisms in China such as incentives, reputation and relationships and (b) a well-functioning xinfang system with common law features. In recent years, China has made increasing efforts to strengthen its rule of law. The Communist Party of China (CPC) has taken the lead by launching a far-reaching campaign against corruption, establishing a system of inspection tours, and promulgating a large number of regulations. We argue that using regulations to complement laws is effective: CPC has enough bureaucratic prowess to crack down on corruption whereas the courts are subject to subversion by powerful interests. We also discuss the drawbacks of this approach: regulations aiming at ex ante control of corruption substantially increase procedural formalism and limit the discretion of local governments and state-owned enterprises. Journal: Journal of Chinese Economic and Business Studies Pages: 313-318 Issue: 3 Volume: 17 Year: 2019 Month: 7 X-DOI: 10.1080/14765284.2019.1672418 File-URL: http://hdl.handle.net/10.1080/14765284.2019.1672418 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:17:y:2019:i:3:p:313-318 Template-Type: ReDIF-Article 1.0 Author-Name: Yue Lin Author-X-Name-First: Yue Author-X-Name-Last: Lin Title: Post-crisis China impact on trade integration and manufacturing competitiveness between Argentina and Brazil Abstract: Considering the short-term and long-term global financial crisis effects on industrial and trade policies implemented in China, Argentina, and Brazil, this article empirically analyzes China’s impact on trade integration and manufacturing competitiveness between Argentina and Brazil during the post-crisis period. Under a trilateral trade framework, this paper conducts both standard and modified Constant Market Share analyses, using trade data disaggregated at HS 6-digit level between the 2009–2014 period provided by BACI database. The quantitative estimation of relative gains and losses of Argentina and Brazil facing China’s evolving import demand and export supply provides evidence for three main findings. First, it shows the persistence of China’s asymmetric trade pattern with Argentina and Brazil, but a decline in China’s weight in explaining the decreasing bilateral trade intensity between Argentina and Brazil; second, the divergent export performance between Argentina and Brazil to China, mainly attributed to the competitiveness shift in the soybean sector; and finally the enlargement of a competitiveness gap between Mercosur countries and China in the upstream of manufacturing supply chain. Journal: Journal of Chinese Economic and Business Studies Pages: 147-170 Issue: 2 Volume: 16 Year: 2018 Month: 4 X-DOI: 10.1080/14765284.2017.1423201 File-URL: http://hdl.handle.net/10.1080/14765284.2017.1423201 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:16:y:2018:i:2:p:147-170 Template-Type: ReDIF-Article 1.0 Author-Name: Saiful Alim Rosyadi Author-X-Name-First: Saiful Alim Author-X-Name-Last: Rosyadi Author-Name: Tri Widodo Author-X-Name-First: Tri Author-X-Name-Last: Widodo Title: Impact of Donald Trump’s tariff increase against Chinese imports on global economy: Global Trade Analysis Project (GTAP) model Abstract: Donald Trump’s presidential campaign contains several trade protectionism plans. This paper aims to analyze possible global impact of United States’ plan to impose import tariff increase against China. The GTAP model is implemented. The simulations present possible short-run effects of full-protection and manufacturing-only protection with appropriate retaliation response from China. The policy might lead to GDP, terms-of-trade, and welfare decline in United States and China; and an increase in trade balance for United States. Trade diversion pattern is observed in the simulation results, predicting shrinking bilateral trade between the two countries and increasing export toward their third trading partners. Journal: Journal of Chinese Economic and Business Studies Pages: 125-145 Issue: 2 Volume: 16 Year: 2018 Month: 4 X-DOI: 10.1080/14765284.2018.1427930 File-URL: http://hdl.handle.net/10.1080/14765284.2018.1427930 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:16:y:2018:i:2:p:125-145 Template-Type: ReDIF-Article 1.0 Author-Name: Peter J. Williamson Author-X-Name-First: Peter J. Author-X-Name-Last: Williamson Author-Name: Simon Hoenderop Author-X-Name-First: Simon Author-X-Name-Last: Hoenderop Author-Name: Jochem Hoenderop Author-X-Name-First: Jochem Author-X-Name-Last: Hoenderop Title: An alternative benchmark for the validity of China’s GDP growth statistics Abstract: The veracity of China’s official statistics on GDP growth rates is a matter of debate in both the popular media and academic literature. Given the level of institutional development, its size, complexity and fast pace of change as an emerging economy, there are good reasons to expect that producing reliable and consistent estimates for GDP is difficult. An alternative benchmark would therefore be useful. We propose a benchmark index for the nominal GDP growth constructed bottom-up from publically available and audited total Revenue numbers of 150 major Chinese listed companies covering 19 industry sectors. This benchmark index closely tracks the official statistics, but with some interesting deviations. Validation by using Gross Margin numbers for our Chinese sample and US data produced similar results. The methodology also allowed us to produce estimates of growth at the industry level, which highlights some important changes underway in the structure growth patterns of the Chinese economy. Journal: Journal of Chinese Economic and Business Studies Pages: 171-191 Issue: 2 Volume: 16 Year: 2018 Month: 4 X-DOI: 10.1080/14765284.2018.1438867 File-URL: http://hdl.handle.net/10.1080/14765284.2018.1438867 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:16:y:2018:i:2:p:171-191 Template-Type: ReDIF-Article 1.0 Author-Name: Xinjun Lyu Author-X-Name-First: Xinjun Author-X-Name-Last: Lyu Author-Name: Christopher Decker Author-X-Name-First: Christopher Author-X-Name-Last: Decker Author-Name: Jinlan Ni Author-X-Name-First: Jinlan Author-X-Name-Last: Ni Title: Compensation negotiation and corporate governance: the evidence from China Abstract: This paper examines CEO pay dispersion for the listed companies in China. We apply a two-tier stochastic frontier model to the CEO compensation framework where asymmetric information generates a surplus between the minimum wage that CEOs accept and the maximum payment that firms offer. This surplus leads to CEO pay dispersion coming from the negotiation power between the CEO and the firm. We generate the surplus extracted by each CEO-firm pair and analyze how corporate governance affects them. An empirical analysis finds that: (1) On average, CEOs are paid 23.26% more than the benchmark; (2) additionally, we examine the bargaining power in state-owned enterprises (SOEs) and non-state-owned enterprises (non-SOEs). We find that CEOs in SOEs have less bargaining power due to compensation regulations. We then examine compensation for new CEOs hired externally and find that CEOs hired externally have less bargaining power on average; and (3) corporate governance has a significant effect on the salary bargaining power of each agent. More specifically, the CEO-Chairman dummy has a significant positive effect on the bargaining power of firms and CEOs, but the latter is larger. Board size has a negative effect on both. Independent directors help improve the bargaining power of the firms and board meeting times help enhance the bargaining power of the CEOs. Equity concentration has a significant negative effect on both sides. Journal: Journal of Chinese Economic and Business Studies Pages: 193-213 Issue: 2 Volume: 16 Year: 2018 Month: 4 X-DOI: 10.1080/14765284.2018.1445081 File-URL: http://hdl.handle.net/10.1080/14765284.2018.1445081 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:16:y:2018:i:2:p:193-213 Template-Type: ReDIF-Article 1.0 Author-Name: Junhua Jiang Author-X-Name-First: Junhua Author-X-Name-Last: Jiang Author-Name: Janne Äijö Author-X-Name-First: Janne Author-X-Name-Last: Äijö Title: Equity volatility connectedness across China’s real estate firms and financial institutions Abstract: The study investigates the dynamic equity volatility connectedness across the major real estate firms, banks, and other financial institutions in China. Based on the relative level of equity volatility connectedness, the study also examines the systemic importance of real estate firms and banks. The study shows that despite widespread worries about potential real estate bubbles in China, total directional connectedness from real estate firms to banks has decreased over the sample period. In contrast, total directional connectedness from banks to the real estate firms and to the financial institutions has become stronger over the sample period, which implies stronger risk originating from the banking sector. The study also shows that size plays an important role in determining the systemic importance of a real estate firm to the banking sector. The largest real estate firm displays the highest average systemic importance ranking. However, size does not appear to be the determinant factor of the systemic importance of a bank to the financial system. The largest bank shows the lowest average systemic importance ranking and 70% probability of being the least or second least systemically important bank in the long run. Journal: Journal of Chinese Economic and Business Studies Pages: 215-231 Issue: 2 Volume: 16 Year: 2018 Month: 4 X-DOI: 10.1080/14765284.2018.1446237 File-URL: http://hdl.handle.net/10.1080/14765284.2018.1446237 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:16:y:2018:i:2:p:215-231 Template-Type: ReDIF-Article 1.0 Author-Name: V.N. Balasubramanyam Author-X-Name-First: V.N. Author-X-Name-Last: Balasubramanyam Title: China and India’s economic relations with African Countries – neo-colonialism eastern style? Abstract: A significant feature of globalisation is the advent of Chinese and Indian firms as overseas investors. Investments by these two countries though not large in volume have grown apace and given a new lease of life to writings on foreign direct investment. Most of these studies including the statistical studies on the determinants of these investments replicate the conclusions of studies on foreign investment in general. Although not large in volume investments of Chinese and Indian firms in natural resource extraction industries, including oil in African countries, have reignited the controversies on the contribution of foreign investment to development. This paper reviews the contribution of these studies and argues that a fresh perspective is required to analyse both the determinants and impact of foreign investment by China and India on the host economies. Their contribution to the development of the African countries may be much more substantial than that of investments by the developed countries mostly because of their experience and awareness of development issues. Journal: Journal of Chinese Economic and Business Studies Pages: 17-31 Issue: 1 Volume: 13 Year: 2015 Month: 1 X-DOI: 10.1080/14765284.2014.994844 File-URL: http://hdl.handle.net/10.1080/14765284.2014.994844 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:13:y:2015:i:1:p:17-31 Template-Type: ReDIF-Article 1.0 Author-Name: Nan Zheng Author-X-Name-First: Nan Author-X-Name-Last: Zheng Author-Name: Yi Qu Author-X-Name-First: Yi Author-X-Name-Last: Qu Title: What explains the performance of Chinese exporting firms? Abstract: Drawing on the entry mode (EM) literature and the strategic tripod framework, we examine whether firm performance is influenced by its outward foreign direct investment (OFDI) mode, controlling other firm-, industry- and institution-specific factors. It is found that employing OFDI does not improve an exporting firm’s performance. This is not surprising as anecdotal evidence shows that many Chinese firms with OFDI have been making loss in the host country. This may indicate exporting firms employ OFDI to seek complementary and strategic resources/assets, not to improve immediate firm performance. Furthermore, firm performance is influenced by strategic assets, including technology-based capabilities and brands, at the firm level, industry entry barriers at the industry level and the home and host country institutional support at the country level. Journal: Journal of Chinese Economic and Business Studies Pages: 51-70 Issue: 1 Volume: 13 Year: 2015 Month: 1 X-DOI: 10.1080/14765284.2014.994845 File-URL: http://hdl.handle.net/10.1080/14765284.2014.994845 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:13:y:2015:i:1:p:51-70 Template-Type: ReDIF-Article 1.0 Author-Name: Frank McDonald Author-X-Name-First: Frank Author-X-Name-Last: McDonald Title: Institutional systems and catch-up in China Abstract: This study examines the effects of institutional systems on the ability of firms to innovate and thereby contribute to the catch-up process in China. The most commonly used model of the effects of institutional systems on economic developed is summarised and employed to reveal that it does not sufficiently focus on the role of the interaction between firms and institutional systems and subsequent implications for the innovations necessary for emerging economies to catch up. A model centred on firms is constructed to enable an analysis of how institutional factors may affect important drivers of catch-up such as access to resource pools, support to help to use resources to develop competencies capable of sustaining innovation and the ability to engage in institutional entrepreneurship to help the evolution of effective institutional systems. The model highlights that innovation compatible with catch-up requires a large number of firms to be able to access appropriate resources. This requires institutional systems that permit and encourage the evolution of complex and extensive network links that can entrench many indigenous firms into foreign direct investment and trade flows and the means to access, at low cost and risk, from suitably developed national resources pools. Most importantly, institutional systems need to enable and support many indigenous and foreign firms (that have good potential to use resources effectively to create the competencies necessary to innovate) and thereby empower such firms so they can deliver innovation compatible with catch-up. Potential institutional impediments to these requirements are explored, especially problems arising from insiders and outsiders that emerge from the nature of informal institutional systems. The study concludes with some suggested research questions that may help to increase understanding of the effects of institutional systems on the ability of firms to innovate to contribute to the catch-up process. Journal: Journal of Chinese Economic and Business Studies Pages: 1-15 Issue: 1 Volume: 13 Year: 2015 Month: 1 X-DOI: 10.1080/14765284.2014.994846 File-URL: http://hdl.handle.net/10.1080/14765284.2014.994846 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:13:y:2015:i:1:p:1-15 Template-Type: ReDIF-Article 1.0 Author-Name: Jingjing Yang Author-X-Name-First: Jingjing Author-X-Name-Last: Yang Author-Name: Sana Khalil Author-X-Name-First: Sana Author-X-Name-Last: Khalil Title: Do innovation dimensions matter in China’s cross-regional income differences? Abstract: This paper studies the interlinks between innovation inputs and outputs and between innovation outputs and economic development. Using a panel data-set from 31 regions of China, we show that the difference in regional innovation output can be significantly explained by R&D manpower and expenditure, highly educated students, and public education spending, while GDP is linked to patent, high-tech export share, and new product sales. Our findings provide support for the use of government R&D subsidies and education rebate. Journal: Journal of Chinese Economic and Business Studies Pages: 71-85 Issue: 1 Volume: 13 Year: 2015 Month: 1 X-DOI: 10.1080/14765284.2014.994847 File-URL: http://hdl.handle.net/10.1080/14765284.2014.994847 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:13:y:2015:i:1:p:71-85 Template-Type: ReDIF-Article 1.0 Author-Name: Helian Xu Author-X-Name-First: Helian Author-X-Name-Last: Xu Author-Name: Jing Qin Author-X-Name-First: Jing Author-X-Name-Last: Qin Title: The structure and nodes’ role of the world coal trade network Abstract: This paper employs the network approach to study the structure and nodes’ role of the world coal trade network. Based on the bilateral coal trade data of 212 countries (or regions) over the period from 2001 to 2010, this study analyses the world coal trade network, the network’s directionality and heterogeneity, and the roles of network nodes. It is found that the size of the world coal trade network is relatively stable, while the trade links and volume have been growing overtime. Because of the buyer–seller dual structure between exporters and importers, the network shows strong directionality. It also exhibits heterogeneity because of the uneven distribution of trade among different countries. In general, most countries can be classified as the in-nodes, followed by the middleman-nodes, then the cycle-nodes and out-nodes. Finally, the web shows a remarkably significant core–periphery structure and core–half-an-edge–edge structure and the core layers of each model are quite stable. Journal: Journal of Chinese Economic and Business Studies Pages: 33-49 Issue: 1 Volume: 13 Year: 2015 Month: 1 X-DOI: 10.1080/14765284.2014.994848 File-URL: http://hdl.handle.net/10.1080/14765284.2014.994848 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:13:y:2015:i:1:p:33-49 Template-Type: ReDIF-Article 1.0 Author-Name: Shulin Wang Author-X-Name-First: Shulin Author-X-Name-Last: Wang Author-Name: Mahfuzul Haque Author-X-Name-First: Mahfuzul Author-X-Name-Last: Haque Author-Name: Steven Lamb Author-X-Name-First: Steven Author-X-Name-Last: Lamb Title: Does transfer of control rights and private benefits of control increase efficiency? Evidence from China’s privatization of the SOE’s Abstract: This study assesses China’s overall privatization efficiency from the perspective of private benefits of control. Results suggest that there is no statistically significant change in the firm’s performance after the transfer. However, ROE is negatively correlated with the magnitude of block premiums at the point of purchase. The research also finds that the average private benefit of a private controlling shareholder is significantly higher than that of a state-controlling shareholder. Obtaining private benefits of control is often the private buyers’ main acquisition motive. However, private benefit undermines the future corporate performance; therefore, lowering the private benefits may help improve the efficiency of privatization. As of now, privatization by means of controlling right transfer among listed companies is inefficient in China. Journal: Journal of Chinese Economic and Business Studies Pages: 329-346 Issue: 4 Volume: 14 Year: 2016 Month: 10 X-DOI: 10.1080/14765284.2016.1175766 File-URL: http://hdl.handle.net/10.1080/14765284.2016.1175766 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:14:y:2016:i:4:p:329-346 Template-Type: ReDIF-Article 1.0 Author-Name: Ryuhei Wakasugi Author-X-Name-First: Ryuhei Author-X-Name-Last: Wakasugi Author-Name: Hongyong Zhang Author-X-Name-First: Hongyong Author-X-Name-Last: Zhang Title: Impacts of the WTO accession on Chinese exports Abstract: Using firm-level panel data of the Chinese electrical machinery and communication equipment manufacturers, this paper reveals that, after the entry into the World Trade Organization (WTO, henceforth), the export of Chinese firms was accelerated by a rise of productivity, but was not uniform among ownership structures. Classifying the firms into private domestic firms, state-owned enterprises, and foreign-invested enterprises, our empirical estimation concludes that the entry into the WTO had a ‘productivity effect’ on Chinese exports, and an asymmetric ‘ownership effect,’ which was less favorable to the exports for state-owned enterprises. Journal: Journal of Chinese Economic and Business Studies Pages: 347-364 Issue: 4 Volume: 14 Year: 2016 Month: 10 X-DOI: 10.1080/14765284.2016.1178520 File-URL: http://hdl.handle.net/10.1080/14765284.2016.1178520 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:14:y:2016:i:4:p:347-364 Template-Type: ReDIF-Article 1.0 Author-Name: Yanqing Jiang Author-X-Name-First: Yanqing Author-X-Name-Last: Jiang Title: Trade integration and regional inequality: a theoretical framework with empirical implications for China Abstract: In this paper we present a theoretical framework for studying integration and inequality in China, followed by some empirical discussions of the Chinese regions. Employing the inframarginal methodology, we set up a theoretical framework based on transaction efficiency and comparative advantage in order to explain integration and inequality in developing economies. Our analyses imply that, among other findings, increases in domestic transaction efficiencies tend to reduce welfare inequalities in a developing economy while increases in international transaction efficiencies tend to raise the overall welfare level of a developing economy. These and other related results of this paper may have important implications for developing countries (China) in their policy-making. Journal: Journal of Chinese Economic and Business Studies Pages: 365-384 Issue: 4 Volume: 14 Year: 2016 Month: 10 X-DOI: 10.1080/14765284.2016.1208398 File-URL: http://hdl.handle.net/10.1080/14765284.2016.1208398 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:14:y:2016:i:4:p:365-384 Template-Type: ReDIF-Article 1.0 Author-Name: Maria Csanádi Author-X-Name-First: Maria Author-X-Name-Last: Csanádi Title: Varieties of communist system transformation and their common systemic grounds: a comparative study of China and East European countries Abstract: This paper analyzes the similarities and differences in the structure and dynamics of party–state systems and their different metamorphosis from a comparative perspective. This approach allows interpretation of the Chinese system specifics and its transformation within this framework. Theoretical findings are based on empirical research carried out in Hungary, Romania, and China by the author between 1975 and 2014. Empirical research revealed a politically monopolized interactive and intertwined network of dependency and interest promotion among actors in the party, the state, and the economy during decision-making. This network possesses similar elements and connecting and operating principles whatever the time, the space, and the level of its aggregation. It renders the structural background of power distribution and that of the politically rational behavior of economic actors in the selective distribution of resources and in the overall drive for growth, resulting in frequent investment overheating and overcapacity. The comparative framework also defines the structural varieties of power distribution in the network that are responsible for the differences in the operation and the sequence, speed, and conditions of system transformation. Journal: Journal of Chinese Economic and Business Studies Pages: 385-412 Issue: 4 Volume: 14 Year: 2016 Month: 10 X-DOI: 10.1080/14765284.2016.1210893 File-URL: http://hdl.handle.net/10.1080/14765284.2016.1210893 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:14:y:2016:i:4:p:385-412 Template-Type: ReDIF-Article 1.0 Author-Name: Gary H. Jefferson Author-X-Name-First: Gary H. Author-X-Name-Last: Jefferson Title: China’s new lost generation: the casualty of China’s economic transformation Abstract: China’s surge into global middle-income status over the space of three decades has been spectacular. However, a potentially large and burdensome cost has been imposed on a generation of adolescents and young adults who abandoned the countryside, and with it access to basic education, in order to seek the anticipated advantages of jobs in the country’s burgeoning urban-industrial sector. This large swath of off-farm migrants transformed China. It propelled China to the status of the ‘world’s factory’ and created the scale and accumulated learning-by-doing enabling China’s transition to a ‘knowledge economy’ that no longer depends on the labor of China’s new ‘Lost Generation.’ As the Lost Generation and its left-behind children, who suffer from a chronic lack of schooling, thicken the lower tail of China’s income distribution, it may be the rising, prosperous urban middle class that ultimately incurs the social, economic, and political challenges associated with China’s generation of off-farm migrant households once essential for launching China’s economic ascent. Journal: Journal of Chinese Economic and Business Studies Pages: 309-328 Issue: 4 Volume: 14 Year: 2016 Month: 10 X-DOI: 10.1080/14765284.2016.1221725 File-URL: http://hdl.handle.net/10.1080/14765284.2016.1221725 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:14:y:2016:i:4:p:309-328 Template-Type: ReDIF-Article 1.0 Author-Name: Yuan Li Author-X-Name-First: Yuan Author-X-Name-Last: Li Author-Name: Kierstin Bolton Author-X-Name-First: Kierstin Author-X-Name-Last: Bolton Author-Name: Theo Westphal Author-X-Name-First: Theo Author-X-Name-Last: Westphal Title: The effect of the New Silk Road railways on aggregate trade volumes between China and Europe Abstract: ‘One Belt One Road’ is an extensive and complex initiative whose potential effect and influence are still currently pending for answers. This paper addresses the following research question: What is the effect of the New Silk Road intercontinental railways on the trade between China and its trading partners in Central Asia and Europe? We focus on nine railway lines connecting Europe and China, which started operations between 2011 and 2015. The countries’ trade patterns with railway connections to China are then compared to the countries without railway connections to China. We find the intercontinental railways have a positive effect on China’s exports to its trading partners in Central Asia and Europe, especially concerning exports of manufactured goods, machinery and transport equipment and miscellaneous manufactured articles. Moreover, the intercontinental railways have a positive effect on China’s imports of food and live animals from its trading partners. Journal: Journal of Chinese Economic and Business Studies Pages: 275-292 Issue: 3 Volume: 16 Year: 2018 Month: 7 X-DOI: 10.1080/14765284.2018.1453720 File-URL: http://hdl.handle.net/10.1080/14765284.2018.1453720 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:16:y:2018:i:3:p:275-292 Template-Type: ReDIF-Article 1.0 Author-Name: Paul Cammack Author-X-Name-First: Paul Author-X-Name-Last: Cammack Title: Situating the Asian Infrastructure Investment Bank in the context of global economic governance Abstract: The creation of the Asian Infrastructure Investment Bank (AIIB)was welcomed by the World Bank but opposed by the Obamaadministration. The paper explains China’s positive relationshipwith the Bank and the Organization for Economic Cooperation andDevelopment (OECD) in terms of the mission of the Bank, sharedby the OECD, to develop and deepen the global economy. The AIIBand the related Belt and Road initiative promise to do this throughinvestment in infrastructure and connectivity in and around thepoorly integrated Eurasian landmass. But while the current Chineseleadership has supported an inclusive global economy based uponfree trade and supported by multilateral institutions, China’s controlof resources outside the multilateral framework and adherence topractices that challenge liberal principles prompt suspicions thatthese commitments are either disingenuous or anyway subjectto reversal. In itself, therefore, the AIIB provides no conclusiveevidence either way on China’s future course. Journal: Journal of Chinese Economic and Business Studies Pages: 241-258 Issue: 3 Volume: 16 Year: 2018 Month: 7 X-DOI: 10.1080/14765284.2018.1476082 File-URL: http://hdl.handle.net/10.1080/14765284.2018.1476082 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:16:y:2018:i:3:p:241-258 Template-Type: ReDIF-Article 1.0 Author-Name: Ling Fang Author-X-Name-First: Ling Author-X-Name-Last: Fang Author-Name: Shamim Shakur Author-X-Name-First: Shamim Author-X-Name-Last: Shakur Title: Impact of trade cost on China-EU agri-food trade Abstract: In this research, we investigate trade costs in relation to China-EU trade in agri-food products during 2001–2015. Major components of trade cost include transportation costs, border-related policy barriers such as tariffs, and local distribution costs. Our results indicate that trade costs between China and EU involving agri-food products, although falling, remain abnormally high. Consequently, we find that trade cost reductions contribute to over half of the overall China-EU trade growth. Our decomposition technique demonstrates that economic growth and trade cost reductions are the key drivers of China-EU trade expansion. Implementation of the Belt and Road Initiative (BRI) would reduce high trade costs to increase EU-China bilateral agricultural trade significantly. This is not fully captured in the gravity models where a static distance is usually used as a proxy to trade cost. The BRI will not reduce the distance, but it will cut transportation and other components of trade cost for China-EU trade. Journal: Journal of Chinese Economic and Business Studies Pages: 259-274 Issue: 3 Volume: 16 Year: 2018 Month: 7 X-DOI: 10.1080/14765284.2018.1482089 File-URL: http://hdl.handle.net/10.1080/14765284.2018.1482089 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:16:y:2018:i:3:p:259-274 Template-Type: ReDIF-Article 1.0 Author-Name: Maria Danilovich Author-X-Name-First: Maria Author-X-Name-Last: Danilovich Title: The ‘Belt and Road Initiative’ in the discourses of the Central Asian states: political rhetoric of growth and academic prognostication Abstract: As official discourses throughout Central Asia reflect, China’s ‘Belt and Road Initiative’ has become very attractive to the local regimes. They perceive it as corresponding to the urgent need to achieve social and economic growth and maintain alternatives for international cooperation. Political elites have incorporated the BRI-agenda into their rhetoric of growth and actively promote the idea of BRI’s ‘conjugation’ with local development plans. The success of the initiative, however, differs from state to state.The BRI-related narratives of local expert communities mainly correspond to the goals set by the officials. At the same time, local experts elucidate important issues, such as BRI’s impact on national security, Chinese migration, and public discontent. These elucidations may adjust the official stand towards the BRI. The possibility of such adjustments, varying in different Central Asian states, depends in each case on the openness of a regime to scholarly prognostications.Abbreviations: BRI - Belt and Road Initiative; CDA - Critical Discourse-Analysis; DHA - Discourse-Historical Approach; SCO - Shanghai Cooperation Organisation; EAEU - Eurasian Economic Union; TAPI -Turkmenistan-Afghanistan-Pakistan-India (pipeline) Journal: Journal of Chinese Economic and Business Studies Pages: 293-312 Issue: 3 Volume: 16 Year: 2018 Month: 7 X-DOI: 10.1080/14765284.2018.1482090 File-URL: http://hdl.handle.net/10.1080/14765284.2018.1482090 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:16:y:2018:i:3:p:293-312 Template-Type: ReDIF-Article 1.0 Author-Name: Yuan Li Author-X-Name-First: Yuan Author-X-Name-Last: Li Author-Name: Markus Taube Author-X-Name-First: Markus Author-X-Name-Last: Taube Title: The implications of the ‘Belt and Road Initiative’ on globalization and inclusive growth for the Eurasian continent Abstract: The ‘Belt and Road Initiative’ (BRI) and other emergent forms of transnational institution building raise new fundamental issues for economists and social scientists. Can BRI become a template for a new phase in the globalization process – a stage in which China takes a more proactive role? Can BRI help Central Asian economies that until now had been standing on the sidelines become fully integrated into the global division of labor? This article tries to analyze China’s potential of assuming a more central role in international economic governance and globalization process, which would also be in line with the size of its population and GDP. Further, the article analyzes the potential impacts of the BRI on inclusive growth for the poorly integrated Eurasian landmass by inspecting several direct and indirect channels. Journal: Journal of Chinese Economic and Business Studies Pages: 233-240 Issue: 3 Volume: 16 Year: 2018 Month: 7 X-DOI: 10.1080/14765284.2018.1491667 File-URL: http://hdl.handle.net/10.1080/14765284.2018.1491667 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:16:y:2018:i:3:p:233-240 Template-Type: ReDIF-Article 1.0 Author-Name: K.C. Fung Author-X-Name-First: K.C. Author-X-Name-Last: Fung Author-Name: Nathalie Aminian Author-X-Name-First: Nathalie Author-X-Name-Last: Aminian Author-Name: Xiaoqing (Maggie) Fu Author-X-Name-First: Xiaoqing (Maggie) Author-X-Name-Last: Fu Author-Name: Chris Y. Tung Author-X-Name-First: Chris Y. Author-X-Name-Last: Tung Title: Digital silk road, Silicon Valley and connectivity Abstract: In this article, we provide an up-to-date analysis of innovation and the Belt and Road Initiative (BRI). We argue here that the confluence of technology and the Silk Road is not new. During the Ancient Silk Road, China’s indigenous innovations diffused to other economies (the first process of diffusion). What is new this time is that much of the innovations may have originated in Silicon Valley, California. However, China adapted, metamorphosized some such inventions and at the same time independently created many technology business models. Through the New Silk Road, China may carry out a second diffusion process and spread innovations from Silicon Valley to other BRI countries. To enrich the study of the Digital Silk Road, we construct a formal, economic model of a connected region and show how this can affect Internet start-ups and their entrepreneurs.We are very grateful for many constructive comments provided by two anonymous referees and an editor. We have improved and revised our article according to their very useful suggestions. All errors, however, remain ours. Journal: Journal of Chinese Economic and Business Studies Pages: 313-336 Issue: 3 Volume: 16 Year: 2018 Month: 7 X-DOI: 10.1080/14765284.2018.1491679 File-URL: http://hdl.handle.net/10.1080/14765284.2018.1491679 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:16:y:2018:i:3:p:313-336 Template-Type: ReDIF-Article 1.0 Author-Name: John Knight Author-X-Name-First: John Author-X-Name-Last: Knight Title: China’s evolving inequality Abstract: China’s inequality is evolving. This paper brings the story up to date, drawing on recent research, much of it by the author. It begins with a brief account of rising inequality, and its causes, over the period of economic reform. It then examines the fall in the inequality of income in recent years and the reasons for this reversal of trend. Inequality of wealth, by contrast, has risen over the twenty-first century: its dimensions, components and causes are analysed. The final substantive section considers the evaluation of inequality in more depth and detail than is conventional, and provides pointers as to how value judgements about inequality might be made. Journal: Journal of Chinese Economic and Business Studies Pages: 307-323 Issue: 4 Volume: 15 Year: 2017 Month: 10 X-DOI: 10.1080/14765284.2017.1317171 File-URL: http://hdl.handle.net/10.1080/14765284.2017.1317171 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:15:y:2017:i:4:p:307-323 Template-Type: ReDIF-Article 1.0 Author-Name: Wenya Cheng Author-X-Name-First: Wenya Author-X-Name-Last: Cheng Title: The impact of parental education on children’s outcomes in China Abstract: This paper exploits the exogenous shock to basic education during the Chinese Cultural Revolution to estimate the causal relationship between parental schooling and children’s educational attainment in China. Using deviations of cohort graduation rates from predicted education trends as instruments for parents’ education, the results indicate that an additional year of parental education increases children’s probability of completing junior and senior high schools by 7.94 and 9.76%, respectively. Parental education not only has positive and significant effects on children’s schooling outcomes, its importance also increases with children’s education level. These findings suggest that public investment in education has important long-term effects on individual’s educational achievement. Journal: Journal of Chinese Economic and Business Studies Pages: 423-436 Issue: 4 Volume: 15 Year: 2017 Month: 10 X-DOI: 10.1080/14765284.2017.1318251 File-URL: http://hdl.handle.net/10.1080/14765284.2017.1318251 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:15:y:2017:i:4:p:423-436 Template-Type: ReDIF-Article 1.0 Author-Name: Qing-Ping Ma Author-X-Name-First: Qing-Ping Author-X-Name-Last: Ma Title: Contribution of interest rate control to China’s economic development Abstract: China’s economy has grown at an unprecedented pace since 1978, which has resulted in a sustained improvement in the average living standard in China. A theoretical model is developed in the present study to analyze the role of interest rate control in China’s economic growth, where investment is primarily determined by interest rates available to firms and entrepreneurs. When the central bank regulates the interest rates and makes them below the equilibrium rate, high-level investment activities boost economic growth and introduce new technologies into the economy, which in turn promotes growth in labour productivity. As the current marginal product of capital is much higher than the interest rate, the output growth is much faster than consumption growth and exports become an important part of the economy. To maintain competitiveness of exports over a longer period, it is necessary to keep exchange rates low, which results in large foreign exchange reserves. When the export sector is losing its competitiveness edge due to increased labour costs and exports cannot digest the difference between output growth and consumption plus investment growth, interest rate control may lose its positive impact on economic growth. Journal: Journal of Chinese Economic and Business Studies Pages: 325-352 Issue: 4 Volume: 15 Year: 2017 Month: 10 X-DOI: 10.1080/14765284.2017.1342057 File-URL: http://hdl.handle.net/10.1080/14765284.2017.1342057 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:15:y:2017:i:4:p:325-352 Template-Type: ReDIF-Article 1.0 Author-Name: Mariko Watanabe Author-X-Name-First: Mariko Author-X-Name-Last: Watanabe Author-Name: Kensuke Kubo Author-X-Name-First: Kensuke Author-X-Name-Last: Kubo Author-Name: Michikazu Kojima Author-X-Name-First: Michikazu Author-X-Name-Last: Kojima Title: Refining estimates of air conditioning energy consumption in Asian countries: stock volume and energy efficiency labeling and standard Abstract: In order to evaluate how the standard and labeling program for energy efficiency reduces energy demand in an economy, we must know how many appliances work and the total energy consumption capacity developed before and after the introduction of the program. This paper calculates the stock of air conditioners and its total electricity consumption capacity based on GfK market survey and collected data by authors. The results show that Japan has experienced a substantial reduction of electricity demand from air conditioning overall in the economy. However, Thailand and China maintain their average electricity consumption levels, but are unable to reduce total demand. A study of the energy efficiency standard-labeling mechanism development and market outcomes reveals that Thailand and China fail to continuously improve energy efficiency, although the mechanism curbed the increasing inefficiency. This implies that China’s and Thailand’s mechanisms need to raise the upper bound of the distribution of energy efficiency. Journal: Journal of Chinese Economic and Business Studies Pages: 407-421 Issue: 4 Volume: 15 Year: 2017 Month: 10 X-DOI: 10.1080/14765284.2017.1342058 File-URL: http://hdl.handle.net/10.1080/14765284.2017.1342058 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:15:y:2017:i:4:p:407-421 Template-Type: ReDIF-Article 1.0 Author-Name: Dongyang Zhang Author-X-Name-First: Dongyang Author-X-Name-Last: Zhang Title: Is working capital management value-enhancing through alleviating financial constraints? Evidence from Chinese non-listed firms Abstract: Financial factors have been found highly important in influencing firms’ real activities and in promoting aggregate growth. Yet, the linkage between finance and firm-level total factor productivity (TFP) has been overlooked in the literature. I fill this gap using 147,310 non-listed Chinese firms over the period 1999–2007 to estimate a TFP model augmented with working capital. I find that TFP is strongly and significantly associated with working capital for private and foreign firms, but not for SOEs. More specifically, an increase in working capital has a negative (positive) effect on TFP in firms with positive (negative) working capital. Furthermore, highly external financial constrained, highly internal financial constrained, under-developed institutional regions and small size private and foreign firms are more sensitive to working capital. Journal: Journal of Chinese Economic and Business Studies Pages: 373-406 Issue: 4 Volume: 15 Year: 2017 Month: 10 X-DOI: 10.1080/14765284.2017.1346929 File-URL: http://hdl.handle.net/10.1080/14765284.2017.1346929 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:15:y:2017:i:4:p:373-406 Template-Type: ReDIF-Article 1.0 Author-Name: Mohammad Shakil Wahed Author-X-Name-First: Mohammad Shakil Author-X-Name-Last: Wahed Title: How successfully China has applied the OECD principles of corporate governance: a critical assessment Abstract: This paper attempts to critically analyze how successful China has been in applying the OECD principles of corporate governance. In doing so, assessment has been made in light of the six core issues of the OECD principles. A satisfactory level of progress has been noted in China’s legal and regulatory framework since the 1990s. New laws, regulations, and rules have been enacted, existing ones have been amended, and all the required institutions have been built accordingly in order to ensure good corporate governance practices in the country. However, there are still bottlenecks in terms of the enforcement of these laws, regulations, and rules mainly due to the various structural limitations in the Chinese administration and judiciary. The paper argues that China should now move forward with an accelerated enforcement agenda in the area of corporate governance in order to make China Inc. more competitive and sustainable. Journal: Journal of Chinese Economic and Business Studies Pages: 353-372 Issue: 4 Volume: 15 Year: 2017 Month: 10 X-DOI: 10.1080/14765284.2017.1371562 File-URL: http://hdl.handle.net/10.1080/14765284.2017.1371562 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:15:y:2017:i:4:p:353-372 Template-Type: ReDIF-Article 1.0 Author-Name: Samuel A. Beatson Author-X-Name-First: Samuel A. Author-X-Name-Last: Beatson Author-Name: Jian Chen Author-X-Name-First: Jian Author-X-Name-Last: Chen Title: Foreign investment, corporate governance and performance in the Chinese listed A Share companies Abstract: We present a novel lens on the presence and impact of qualified foreign institutional investors (QFII) in top shareholdings of the non-financial domestically listed Chinese ‘A’ share firms. The initial results suggest that the presence of a QFII as a top shareholder in these companies is associated with their better performance, using both Tobin’s Q and ROA as the performance measures. Our models include variables representing corporate governance mechanisms, foreign legal person shares, a proxy for international affiliations and a number of time-variant firm characteristics. Economically, the coefficient of impact on the market measure is the more significant, while the effect of having a QFII in top shareholdings on both performance measures is empirically significant. Previously, studies have often ignored the potential for reverse causality beyond using lagged regressors. This is problematic. Therefore, we follow up with a 2SLS instrumental variables and system GMM model to further mitigate this potential and find the empirical relationship holds. Contrary to earlier work on QFIIs and governance post-implementation of the QFII scheme, the findings from our models suggest that the presence of a QFII top shareholder augments market performance holding equal existing corporate governance mechanisms and other controls. Journal: Journal of Chinese Economic and Business Studies Pages: 59-93 Issue: 1 Volume: 16 Year: 2018 Month: 1 X-DOI: 10.1080/14765284.2017.1346931 File-URL: http://hdl.handle.net/10.1080/14765284.2017.1346931 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:16:y:2018:i:1:p:59-93 Template-Type: ReDIF-Article 1.0 Author-Name: Yunfei Wang Author-X-Name-First: Yunfei Author-X-Name-Last: Wang Author-Name: Xiaozhou Li Author-X-Name-First: Xiaozhou Author-X-Name-Last: Li Author-Name: Zhichao Zhang Author-X-Name-First: Zhichao Author-X-Name-Last: Zhang Author-Name: Zhuang Zhang Author-X-Name-First: Zhuang Author-X-Name-Last: Zhang Title: Rise of the gold market in China: liberalisation and market development Abstract: The Chinese gold market is rapidly rising to global prominence in the recent decades. The paper reviews the history of the gold market in China and its liberalisation process amid the country’s opening to the outside world. Details of the current market structure and its main business are presented. Global impacts of the rise of the Chinese gold market are discussed. Journal: Journal of Chinese Economic and Business Studies Pages: 17-38 Issue: 1 Volume: 16 Year: 2018 Month: 1 X-DOI: 10.1080/14765284.2017.1378853 File-URL: http://hdl.handle.net/10.1080/14765284.2017.1378853 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:16:y:2018:i:1:p:17-38 Template-Type: ReDIF-Article 1.0 Author-Name: K. C. Fung Author-X-Name-First: K. C. Author-X-Name-Last: Fung Author-Name: Nathalie Aminian Author-X-Name-First: Nathalie Author-X-Name-Last: Aminian Author-Name: Xiaoqing (Maggie) Fu Author-X-Name-First: Xiaoqing (Maggie) Author-X-Name-Last: Fu Author-Name: Iikka Kornhohen Author-X-Name-First: Iikka Author-X-Name-Last: Kornhohen Title: Internationalization of the use of Chinese currency: perspectives from the New and the Ancient Silk Roads Abstract: In this paper, we provide an up-to-date analysis of issues and perspectives related to the potential international and regional use of the Chinese currency, with a special focus on the New Silk Road (or One Belt, One Road OBOR) initiative as well as an examination of the use of various forms of Chinese money along the Ancient Silk Road. From the perspectives of China, the OBOR project fulfills several national objectives, with the internationalization of the RMB being one potential aim. We adopt and extend an agglomeration-geography model and apply the model to the OBOR initiative and the resulting increased use of the Chinese currency. Our paper also provides a discussion of the experiences of using various forms of Chinese money along the Ancient Silk Road. Journal: Journal of Chinese Economic and Business Studies Pages: 1-16 Issue: 1 Volume: 16 Year: 2018 Month: 1 X-DOI: 10.1080/14765284.2017.1408255 File-URL: http://hdl.handle.net/10.1080/14765284.2017.1408255 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:16:y:2018:i:1:p:1-16 Template-Type: ReDIF-Article 1.0 Author-Name: Wilfred Dolfsma Author-X-Name-First: Wilfred Author-X-Name-Last: Dolfsma Author-Name: Killian McCarthy Author-X-Name-First: Killian Author-X-Name-Last: McCarthy Title: The emergence and performance of the Chinese merger market and the impact of partner location Abstract: Chinese acquirers spent $38 million on mergers and acquisitions in 1990, and $666.1 billion on mergers and acquisitions in 2016. As the Chinese merger market has grown, so too has the literature on its performance. Little is known, however, about with whom Chinese firms can best do business. We aim to fill this gap. We suggest that because the liabilities of distance, foreignness, and outsideness complicate acquisition performance, targets in countries and regions which add fewer of these liabilities will outperform those that add more. We plot the overseas expansion of Chinese acquirers, and compare the performance of Chinese acquisitions, within the Greater China region, within the Confucian cultural sphere, and between Asian and the West. In each case, we predict that increasing cultural distance decreases performance. Then, because the Continental European governance system is institutionally more familiar to the Chinese system than it is to the Anglo-Saxon system, we consider the Chinese experience in each of these two systems. Our results largely support our hypotheses built on the partner location performance hierarchy argument, but we also point to the limits of the generalizability of existing literature in understanding the Chinese market. Journal: Journal of Chinese Economic and Business Studies Pages: 39-58 Issue: 1 Volume: 16 Year: 2018 Month: 1 X-DOI: 10.1080/14765284.2017.1410377 File-URL: http://hdl.handle.net/10.1080/14765284.2017.1410377 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:16:y:2018:i:1:p:39-58 Template-Type: ReDIF-Article 1.0 Author-Name: Xu Tian Author-X-Name-First: Xu Author-X-Name-Last: Tian Author-Name: Xiaohua Yu Author-X-Name-First: Xiaohua Author-X-Name-Last: Yu Author-Name: Stephan Klasen Author-X-Name-First: Stephan Author-X-Name-Last: Klasen Title: Gender discrimination in China revisited: a perspective from family welfare Abstract: The strong son preference tradition in China has been weakened by the rapid development in the cultural, economic, political, and social environment, which leads to a rather ambiguous picture regarding the situation of women and girls. This article revisits this issue by comparing two approaches inspired from Engel’s method to identify equivalence scales, and directly measures and tests gender bias using household expenditure and food consumption data. Using both parametric and semiparametric estimates, we find that households need a higher compensation for the arrival of a boy than the arrival of a girl, implying that gender inequality still exists in China, particularly in rural China. We find no evidence that education reduces gender inequality in China, and the results are quite robust to using different methods. Our study indicates that gender inequality does not only extend to sex-selective abortions but still affects living children. To reduce this inequality, more attention and efforts are needed to reduce son preference. More generally, the method developed in this study can also be used to proxy welfare changes in household. Journal: Journal of Chinese Economic and Business Studies Pages: 95-115 Issue: 1 Volume: 16 Year: 2018 Month: 1 X-DOI: 10.1080/14765284.2017.1410378 File-URL: http://hdl.handle.net/10.1080/14765284.2017.1410378 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:16:y:2018:i:1:p:95-115 Template-Type: ReDIF-Article 1.0 Author-Name: Jinglian Wu Author-X-Name-First: Jinglian Author-X-Name-Last: Wu Title: China’s macroeconomy: main challenges and countermeasures Abstract: At the turn of the twenty-first century, the Chinese economy has become a leader from a complete follower in some industries. Thus, without innovation, it will be difficult for China to keep improving its technology further in the twenty-first century. Under the situation that ‘cash is of paramount importance’, the expansionary monetary policy leads to an increasing liquidity. People, with more money at hand, are prone to invest in stocks rather than in industries because it could be harder to withdraw their money from long-term investments. This phenomenon leads to bubbles in stocks and real estates in China. Based on the current situations, Professor Wu advocates an inclusive tax cut policy, as one of the biggest problems many Chinese entrepreneurs face is a lack confidence in the future. The main function of the government is to provide public goods, not to manipulate the market, intervene in the micro economy or ‘adjust the structure’ directly. Journal: Journal of Chinese Economic and Business Studies Pages: 117-123 Issue: 1 Volume: 16 Year: 2018 Month: 1 X-DOI: 10.1080/14765284.2017.1419022 File-URL: http://hdl.handle.net/10.1080/14765284.2017.1419022 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:16:y:2018:i:1:p:117-123 Template-Type: ReDIF-Article 1.0 Author-Name: K. C. Fung Author-X-Name-First: K. C. Author-X-Name-Last: Fung Author-Name: Xiaolan Fu Author-X-Name-First: Xiaolan Author-X-Name-Last: Fu Author-Name: Jinghai Zheng Author-X-Name-First: Jinghai Author-X-Name-Last: Zheng Title: Introduction to the special issue on ‘global trading system and protectionism: China, the United States and Europe’ Abstract: In this Introduction to our Special Issue, we provide detailed and critical comments and summaries of the excellent papers. The papers are important contributions to the China-U.S. and China-Europe economic and trade issues in the context of the global trading environment, as shaped by the current unorthodox policies of the Trump Administration. The wonderful papers dealt with relevant issues related to international trade, investment, national security, trade laws, intellectual property rights laws, political science, business, etc. They constitute a must-read for academics, policy and business researchers, think tank fellows, experts in international organizations, as well as government-related researchers in various national capitals. The three Co-editors are all experienced and accomplished academics with vast experiences in public policies. As academics, they may hold different views but their unique and diverse perspectives provide an important background to the Special Issue. They jointly contributed major efforts to this timely and important Special Issue. Journal: Journal of Chinese Economic and Business Studies Pages: 319-325 Issue: 4 Volume: 17 Year: 2019 Month: 10 X-DOI: 10.1080/14765284.2020.1742477 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1742477 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:17:y:2019:i:4:p:319-325 Template-Type: ReDIF-Article 1.0 Author-Name: Lawrence J. Lau Author-X-Name-First: Lawrence J. Author-X-Name-Last: Lau Title: Economic relations between China and the U.S Abstract: First, we summarise the chronology of the China-U.S. trade war. We then show that the China-U.S. trade surplus, correctly measured, is not as large as it is made out to be, but is nevertheless still a large number. In terms of the total domestic value-added generated by the exports of goods to each other, the China-U.S. bilateral gap is even smaller. Next, we analyse both the immediate and real impacts of the mutual tariffs on the two economies. Third, we discuss economic and technological competition between China and the U.S. and present long-term projections of the two economies to 2050. Fourth, we identify the economic complementarities between China and the U.S. We then discuss the possibility of coordinated expansion of trade. Fifth, we also discuss the thorny bilateral issues in the economic relations between the two countries. Journal: Journal of Chinese Economic and Business Studies Pages: 327-363 Issue: 4 Volume: 17 Year: 2019 Month: 10 X-DOI: 10.1080/14765284.2020.1712887 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1712887 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:17:y:2019:i:4:p:327-363 Template-Type: ReDIF-Article 1.0 Author-Name: Leonard K. Cheng Author-X-Name-First: Leonard K. Author-X-Name-Last: Cheng Author-Name: Gregory W. Whitten Author-X-Name-First: Gregory W. Author-X-Name-Last: Whitten Author-Name: Jingbo Hua Author-X-Name-First: Jingbo Author-X-Name-Last: Hua Title: The national security argument for protection of domestic industries Abstract: Tracing the origin of the national security argument for protection of domestic industries to Adam Smith, Alexander Hamilton, and Friedrich List, we study its post-GATT applications with reference to Article XXI of the WTO and highlight some recent abuses. We compare the use of tariff, production/input subsidy, and government procurement as alternative instruments of protection from the perspective of economic efficiency and study the disapproval of inward FDI to gain insights into the underlying national security concerns. The case studies of a) the US tariffs on aluminum and steel, b) German disapproval of the acquisition of a technology firm Leifeld Metal Spinning by a Chinese firm, and c) US’ all out global effort to cripple China’s telecom equipment giant Huawei are presented for illustration. Journal: Journal of Chinese Economic and Business Studies Pages: 365-388 Issue: 4 Volume: 17 Year: 2019 Month: 10 X-DOI: 10.1080/14765284.2020.1732091 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1732091 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:17:y:2019:i:4:p:365-388 Template-Type: ReDIF-Article 1.0 Author-Name: Xinru Li Author-X-Name-First: Xinru Author-X-Name-Last: Li Author-Name: Xikang Chen Author-X-Name-First: Xikang Author-X-Name-Last: Chen Title: Sino-US trade balance from national income perspective and global income chains Abstract: Trade volume biases trade benefits under the background of economic globalization. Employing the input-output technique, important progress has been made in research on trade in value-added. It is noteworthy that capital globalization is one of the important manifestations of economic globalization. Owing to the ever-increasing transnational flow of capital, mainly by foreign direct investment (FDI), production of exports shows great dependence on foreign capital. A large part of value-added in exports are obtained by foreign factors owners, since foreign-invested enterprises account for a large proportion in host country’s total exports, which is foreign income. The ultimate goal of trade is to boost national income. We propose to study trade benefits and trade balance from national income perspective, and further introduce the concept of global income chains to reveal economic benefits distribution within international specialization. Journal: Journal of Chinese Economic and Business Studies Pages: 389-402 Issue: 4 Volume: 17 Year: 2019 Month: 10 X-DOI: 10.1080/14765284.2020.1712885 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1712885 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:17:y:2019:i:4:p:389-402 Template-Type: ReDIF-Article 1.0 Author-Name: Alicia Garcia Herrero Author-X-Name-First: Alicia Author-X-Name-Last: Garcia Herrero Title: Europe in the midst of China–US strategic economic competition: what are the European Union’s options? Abstract: Despite President Trump’s announcement of a partial deal on October 11, the prolonged economic competition between the two superpowers does not bode well for the future. Within this context, the European Union faces an urgent question: how to position itself in the US–China competition. This paper aims at addressing this question after reviewing the milestones of the trade war and the consequences for China, the US and EU. This paper concludes that European companies are to suffer from the trade war but some sectors could experience gains. Also, a trade deal which pushes China to reform and open up would also be beneficial. Against this background, this paper reviews the EU’s options in dealing with the two hegemons in the light of their growing strategic confrontation. These options are safeguarding multilateralism, relying on the Transatlantic Alliance and remaining neutral which implies relative more engagement with China on economic matters. Journal: Journal of Chinese Economic and Business Studies Pages: 403-423 Issue: 4 Volume: 17 Year: 2019 Month: 10 X-DOI: 10.1080/14765284.2019.1706292 File-URL: http://hdl.handle.net/10.1080/14765284.2019.1706292 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:17:y:2019:i:4:p:403-423 Template-Type: ReDIF-Article 1.0 Author-Name: Ge Chen Author-X-Name-First: Ge Author-X-Name-Last: Chen Author-Name: Max J. Zenglein Author-X-Name-First: Max J. Author-X-Name-Last: Zenglein Title: The global faces of China’s incomplete reforms: a perspective from China’s new intellectual property regime Abstract: The paper probes into an antithetical aspect of China’s economic reforms in the global context by focusing on the recent developments of China’s intellectual property regime. By analyzing this cutting-edge legal system, it highlights China’s political divergence against its economic convergence in its decade-long reforms, in particular, its state-oriented innovation system as against the world’s neo-liberal economic order. The last decade witnessed China’s preeminent transformation from a passive follower to a proactive advocator of IP standards. However, certain entrenched limits characterizing China’s state-oriented economy and cultural systems such as information blockade and coercive technology transfer serve as catalysts that are apt to provoke acrimonious confrontation between China and major economies. In this sense, China’s incomplete reforms have taken on a new form: as China’s influence on the global economy grows, conflicts of diverse national priorities become more palpable than simple-minded economic cooperation. Journal: Journal of Chinese Economic and Business Studies Pages: 425-443 Issue: 4 Volume: 17 Year: 2019 Month: 10 X-DOI: 10.1080/14765284.2020.1712886 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1712886 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:17:y:2019:i:4:p:425-443 Template-Type: ReDIF-Article 1.0 Author-Name: Lucía Morales Author-X-Name-First: Lucía Author-X-Name-Last: Morales Author-Name: Bernadette Andreosso-O’Callaghan Author-X-Name-First: Bernadette Author-X-Name-Last: Andreosso-O’Callaghan Title: Lessons from the global financial crisis – the case of Mainland China and Hong Kong Abstract: The analysis of the intertwined reactions of Hong Kong and Mainland China to the 2008 Global Financial Crisis is considered in this study through the lenses of their stock markets. The GARCH-based analysis of stock market performance over the period December 2011–December 2014 shows that trade and equity sectors were the sectors most affected by the global recession; volatility was prevalent on the Shanghai stock market, whereas volatility persistence characterised the Hong Kong stock market. The results also show that the two stock markets recovered quite quickly. Tight controls applied by the financial authorities helped ensure some stability during the crisis. Journal: Journal of Chinese Economic and Business Studies Pages: 375-392 Issue: 4 Volume: 16 Year: 2018 Month: 10 X-DOI: 10.1080/14765284.2018.1470416 File-URL: http://hdl.handle.net/10.1080/14765284.2018.1470416 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:16:y:2018:i:4:p:375-392 Template-Type: ReDIF-Article 1.0 Author-Name: Yuning Gao Author-X-Name-First: Yuning Author-X-Name-Last: Gao Author-Name: Wenyin Cheng Author-X-Name-First: Wenyin Author-X-Name-Last: Cheng Author-Name: Quanxi Yuan Author-X-Name-First: Quanxi Author-X-Name-Last: Yuan Title: Understanding the global imbalance from the perspective of processing trade value added of China Abstract: The paper first exams the overall global imbalance by using the Net International Investment Position and then extracts its change with current account balance and merchandise trade deficit between China and the US. The research goes beyond the traditional interpretation of the phenomenon through the analysis of these outsourcing activities to the network method of redistributing the value added of products through the trade balance among partners. The estimation result of the paper shows that the US–China trade deficit is just about half of the value under the traditional statistics and only contribute to 23.8 per cent, not the 46.2 per cent originally, of the cumulative current account balance growth of the US from 2000. The external imbalance is the result of international division of labour and its elimination relies on the effort of both China and the US to rebalance their domestic economies. Journal: Journal of Chinese Economic and Business Studies Pages: 337-356 Issue: 4 Volume: 16 Year: 2018 Month: 10 X-DOI: 10.1080/14765284.2018.1504529 File-URL: http://hdl.handle.net/10.1080/14765284.2018.1504529 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:16:y:2018:i:4:p:337-356 Template-Type: ReDIF-Article 1.0 Author-Name: Thomas Geissmann Author-X-Name-First: Thomas Author-X-Name-Last: Geissmann Author-Name: Lin Zhang Author-X-Name-First: Lin Author-X-Name-Last: Zhang Title: Knowledge economy and industry performance in China: a provincial level analysis Abstract: We construct a framework for investigating the effects of knowledge on industry performance. Using Chinese provincial industry data from 2000 to 2012, we decompose total factor productivity (TFP) change into the four components of embodied technical change, disembodied technical change, scale efficiency change, and technical efficiency change. Our results show a considerably stronger positive effect of advanced knowledge on production technology than of basic knowledge. International knowledge spillovers, particularly trade-induced spillovers, are more effective in inducing TFP growth than domestic spillovers. Our analysis further illustrates a discrepancy in TFP growth rates between regions, and we find TFP of the Central and West Region to be catching-up with the East Region. On average, scale efficiency change is the major contributing factor to regional disparities in TFP change. We discuss several policy implications of our results.Abbreviation: Advanced knowledge (ADV); Share of agriculture (AGR); Basic knowledge (BAS); Chinese Industrial Census (CIC); Data envelopment analysis (DEA); Disembodied technical change (DTC); Embodied technical change (ETC); Foreign direct investment (FDI); Gross domestic product (GDP); Population density (POD); Scale efficiency change (SEC); Stochastic frontier analysis (SFA); International spillovers from foreign countries (SPF); Cross-sectoral external knowledge spillovers within China (SPH); Neutral technical change (TC); Technical efficiency (TE); Technical efficiency change (TEC); Total factor productivity (TFP); International trade (TRD); Degree of urbanization (URB) Journal: Journal of Chinese Economic and Business Studies Pages: 393-415 Issue: 4 Volume: 16 Year: 2018 Month: 10 X-DOI: 10.1080/14765284.2018.1507980 File-URL: http://hdl.handle.net/10.1080/14765284.2018.1507980 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:16:y:2018:i:4:p:393-415 Template-Type: ReDIF-Article 1.0 Author-Name: Ning Ma Author-X-Name-First: Ning Author-X-Name-Last: Ma Author-Name: Yanrui Wu Author-X-Name-First: Yanrui Author-X-Name-Last: Wu Author-Name: Jianxin Wu Author-X-Name-First: Jianxin Author-X-Name-Last: Wu Title: Environmental efficiency and its distribution dynamics in Chinese cities Abstract: This paper investigates environmental efficiency and its distribution dynamics in Chinese cities. The analyses are applied the meta-frontier data envelopment analysis and the continuous dynamic distribution approach together with panel data of 286 Chinese cities at the prefecture and above-prefecture levels. The results show that during the period of 2002–2011, the average environmental efficiency in Chinese cities is well below the production frontier. The coastal cities show better performance than the central and western cities; large and extra-large cities are more efficient than small and medium cities; and the environmental efficiency for the ‘key’ cities is slightly better than that for the ‘non-key’ cities. The spatial dynamic distribution analyses indicate that the environmental efficiency of Chinese cities tends to converge. To improve environmental efficiency in the future, the government should pay more attention to the central cities, medium and large size cities in western China, and the non-key cities.Abbreviations: CPI- Consumer price index; DEA- Date envelopment analysis; DMU- Decision making unit; GDP- Gross domestic product; GMI -Group- frontier managerial inefficiency; IPCC- Intergovernmental Panel on Climate Change; MTR- Meta- technology gap ratio; NTP- Net transition probability; PAA- Prefecture and above-prefecture levels; PIM Perpetual inventory method; SFA Stochastic frontier analysis; TGI Technology gap inefficiency Journal: Journal of Chinese Economic and Business Studies Pages: 417-445 Issue: 4 Volume: 16 Year: 2018 Month: 10 X-DOI: 10.1080/14765284.2018.1512817 File-URL: http://hdl.handle.net/10.1080/14765284.2018.1512817 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:16:y:2018:i:4:p:417-445 Template-Type: ReDIF-Article 1.0 Author-Name: Amsalu K. Addis Author-X-Name-First: Amsalu K. Author-X-Name-Last: Addis Author-Name: Zhu Zuping Author-X-Name-First: Zhu Author-X-Name-Last: Zuping Title: Criticism of neo-colonialism: clarification of Sino-African cooperation and its implication to the west Abstract: This paper examines whether the claims regarding the nature of the Sino-African relations can be qualified or categorised as a neo-colonialism approach. Additionally, the paper analyses the Western perception and implication towards the Sino-African geopolitical cooperation and clarifies whether China is taking advantage of the weak African states in the name of South–South cooperation or playing the role of a contemporary proxy of the old colonial system and re-partitioning Africa. The relation between China and Africa simultaneously presents both challenges and opportunities for either of them. This study argues that the criticism that China is invading the continent and practicing neo-colonialism is just a speculation or Sino-phobia. In fact, the Chinese have no gene in their blood to invade Africa and it is crystal clear that unlike China, the Western world has had an influential history in the African continent. The African government and their societies have the ability to address the issues of Sino-African relations. This paper additionally provides a theoretical analysis of China’s enthusiastic involvement and contribution to the international aid operations and its presence and contribution in Africa. Journal: Journal of Chinese Economic and Business Studies Pages: 357-373 Issue: 4 Volume: 16 Year: 2018 Month: 10 X-DOI: 10.1080/14765284.2018.1521593 File-URL: http://hdl.handle.net/10.1080/14765284.2018.1521593 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:16:y:2018:i:4:p:357-373 Template-Type: ReDIF-Article 1.0 Author-Name: Mammo Muchie Author-X-Name-First: Mammo Author-X-Name-Last: Muchie Author-Name: Swapan Kumar Patra Author-X-Name-First: Swapan Kumar Author-X-Name-Last: Patra Title: China–Africa science and technology collaboration: evidence from collaborative research papers and patents Abstract: This research paper explores how the China–Africa Science and Technology (S&T) relationship has evolved over the years based on two specific outputs: research publications and patents. China–Africa S&T collaborations have evolved after China engaged actively with African countries. China has collaborated with a number of African countries in both publications and patents more than the current inter-African collaborations. However, Chinese collaborations are limited with very few African countries (For example, South Africa, Egypt, Morocco) that are comparatively stronger in S&T infrastructure than many other African countries. This research demonstrates that the China–Africa collaboration is increasing and is likely to grow in the coming years as China is emerging as a leading global research hub in the world. Journal: Journal of Chinese Economic and Business Studies Pages: 1-27 Issue: 1 Volume: 18 Year: 2020 Month: 7 X-DOI: 10.1080/14765284.2019.1647004 File-URL: http://hdl.handle.net/10.1080/14765284.2019.1647004 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:18:y:2020:i:1:p:1-27 Template-Type: ReDIF-Article 1.0 Author-Name: K. C. Fung Author-X-Name-First: K. C. Author-X-Name-Last: Fung Author-Name: Nathalie Aminian Author-X-Name-First: Nathalie Author-X-Name-Last: Aminian Author-Name: Xiaoqing (Maggie) Fu Author-X-Name-First: Xiaoqing (Maggie) Author-X-Name-Last: Fu Author-Name: Jung Ho Rhee Author-X-Name-First: Jung Ho Author-X-Name-Last: Rhee Author-Name: Chris Y. Tung Author-X-Name-First: Chris Y. Author-X-Name-Last: Tung Title: “Silicon trade policies” and a comparative analysis of China-U.S. and Japan-U.S. trade conflicts Abstract: In this paper, we first compare the U.S.-Japan trade conflicts of the 1980s and 1990s with the current 21st century Trump Administration U.S.-China trade wars. Topics to be compared include complaints of bilateral trade imbalances, ‘unique’ economic or business organizations and exchange rate manipulations. Relevant contemporaneous research and policy lessons are drawn from the management of previous U.S.-Japan trade disputes and their potential applicability to the ongoing U.S.-China trade rivalry. Since one of the major differences between the periods of the two major trade conflicts is the emergence and prevalence of digital companies, we provide here a formal model of digital firm and see how some ‘Silicon trade policies’ such as being put on an ‘Entity List’, being blocked from European technology market and exchange rate depreciation can affect these networked companies. Journal: Journal of Chinese Economic and Business Studies Pages: 29-50 Issue: 1 Volume: 18 Year: 2020 Month: 7 X-DOI: 10.1080/14765284.2020.1731785 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1731785 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:18:y:2020:i:1:p:29-50 Template-Type: ReDIF-Article 1.0 Author-Name: Xinxin Ma Author-X-Name-First: Xinxin Author-X-Name-Last: Ma Title: The impact of the New Rural Pension Scheme on labor supply of intra-household prime-age adults in rural China Abstract: Does the New Rural Pension Scheme (NRPS) affect labor supply of intra-household prime-age adults in China?  This study provides evidence using the natural experiment model (DID model) and Chinese Health and Nutrition Survey (CHNS) longitudinal survey data from 2000 to 2011. Four major conclusions emerge. First, the influence of the NRPS on labor supply of intra-household prime-age adults is not statistically significant. Second, the effects of the NRPS on labor supply differ for various groups. For example, the negative effect of NRPS on the probability of entering regular work is greater for women; the effect of NRPS the probability of becoming irregular workers is positive for the group aged 25 to 34, whereas they are negative for other age groups. Third, for the mechanisms, both the household income hypothesis and child care support hypothesis are supported, but the household income effect is small. Journal: Journal of Chinese Economic and Business Studies Pages: 51-72 Issue: 1 Volume: 18 Year: 2020 Month: 7 X-DOI: 10.1080/14765284.2019.1663694 File-URL: http://hdl.handle.net/10.1080/14765284.2019.1663694 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:18:y:2020:i:1:p:51-72 Template-Type: ReDIF-Article 1.0 Author-Name: Wei Chen Author-X-Name-First: Wei Author-X-Name-Last: Chen Author-Name: Ying Zhang Author-X-Name-First: Ying Author-X-Name-Last: Zhang Title: Population urbanization competition among prefecture-level cities in china based on two-regime spatial econometrics Abstract: This study investigates the intensity of spatial competition for population urbanization among China’s municipal governments and examines the asymmetry of competition intensity under different conditions, with particular attention paid to the unbalanced development of urbanization and the mechanism of urbanization competition in China. Therefore, based on panel data on 283 prefecture-level cities in China from 2006 to 2016, a two-regime spatial econometric model is firstly used to estimate the intensity of urbanization competition. Policy recommendations are proposed to improve population urbanization competitiveness among small and medium-sized cities and to promote healthy competition and coordinated spatial development of population urbanization. Journal: Journal of Chinese Economic and Business Studies Pages: 73-89 Issue: 1 Volume: 18 Year: 2020 Month: 7 X-DOI: 10.1080/14765284.2020.1759911 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1759911 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:18:y:2020:i:1:p:73-89 Template-Type: ReDIF-Article 1.0 Author-Name: Yue Lin Author-X-Name-First: Yue Author-X-Name-Last: Lin Title: ‘Made in China 2025’ and China’s cross-border strategic M&As in OECD countries Abstract: This article focuses on the highly debated ‘Made in China 2025’ program and its effects on Chinese M&As in OECD countries. Difference-in-differences as well as difference-in-difference-in-differences statistical techniques are employed to calculate to what extent ‘Made in China 2025’ has shaped both sector composition and location choice of Chinese M&As in the OECD, and to estimate effects and limits of national policies on cross-border M&As. Based on statistical results we can argue that ‘Made in China 2025’ has induced a new ‘troika’ model, of which the significance is moderated by firm-specific characteristics, such as ownership structure, and the firm’s home country embeddedness level. However, while we observe location diversification of Chinese M&As in the OECD at the aggregate level, hosting countries’ FDI screening mechanisms have no significant impact on containing China’s M&As that target more sensitive sectors. Journal: Journal of Chinese Economic and Business Studies Pages: 91-114 Issue: 2 Volume: 18 Year: 2020 Month: 04 X-DOI: 10.1080/14765284.2020.1759360 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1759360 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:18:y:2020:i:2:p:91-114 Template-Type: ReDIF-Article 1.0 Author-Name: Bryane Michael Author-X-Name-First: Bryane Author-X-Name-Last: Michael Author-Name: Simon Zhao Author-X-Name-First: Simon Author-X-Name-Last: Zhao Author-Name: Dariusz Wojick Author-X-Name-First: Dariusz Author-X-Name-Last: Wojick Title: The geography of M&A financial and legal advisors: international financial centres, legal complexity and the differentiation Abstract: Why do companies engaged in cross-border M&A activities choose legal and financial advisors from international financial centres – rather than those in their same city? In this paper, we look at two factors driving the location decision of investment banks and law firms (and their client’s decision about which cities to look for advisors in). We find that these advisors balance two forces – ‘a legal complexity externality’ which comes from their jurisdiction’s law and their own decisions to differentiate from their competitors. We show how competition for M&A mandates has changed over time – particularly around China’s Going Out Policy. The policy has led to very large M&A flows, which provide the variation needed for econometric analysis. Journal: Journal of Chinese Economic and Business Studies Pages: 115-133 Issue: 2 Volume: 18 Year: 2020 Month: 04 X-DOI: 10.1080/14765284.2020.1780557 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1780557 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:18:y:2020:i:2:p:115-133 Template-Type: ReDIF-Article 1.0 Author-Name: Qihu Wang Author-X-Name-First: Qihu Author-X-Name-Last: Wang Author-Name: Kang Zhang Author-X-Name-First: Kang Author-X-Name-Last: Zhang Title: Supranational institutions and location choice of outward direct investment: evidence from China’s Yangtze River Delta region Abstract: Existing international business researches mainly focus on the influences of unilateral institutional factors of host country or home country, as well as the institutional distance factors on location choice of outward direct investment, but the effects of bilateral relations as supranational institutions are largely neglected. Based on institutional theory, this paper explores the impacts of bilateral economic and political relations on location choice of China firms’ outward direct investment, the interaction effect between the two, and the moderating effect of ownership. Using data of Chinese-listed firms from 2002 to 2012 in the Yangtze River Delta, we find that: firstly, bilateral economic and political relations both have positive impact on location choice; secondly, bilateral economic and political relations have substitution effect on location choice; thirdly, firms’ state ownership has no significant moderating effect on bilateral relations and location choice. Journal: Journal of Chinese Economic and Business Studies Pages: 135-159 Issue: 2 Volume: 18 Year: 2020 Month: 04 X-DOI: 10.1080/14765284.2020.1796410 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1796410 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:18:y:2020:i:2:p:135-159 Template-Type: ReDIF-Article 1.0 Author-Name: Guoxiang Song Author-X-Name-First: Guoxiang Author-X-Name-Last: Song Title: The drivers of the great bull stock market of 2015 in China: evidence and policy implications Abstract: This paper investigates what drove the great bull stock market of 2015 in China. Multiple regression models based on the Arbitrage Pricing Theory (APT) theory are developed to describe the variation in stock returns using economic fundamentals. The results indicate that during the normal period, the Chinese stock market was sensitive to economic conditions. However, during the bull market, fundamentals could not justify the variation in the stock returns which are significantly different from the conditional predictions based on the multiple regression model which is robust for the normal period. Margin trading was the main driver of the speculative bubble during the bull market from May 2014 to June 2015. As commercial banks are becoming more exposed to the stock market, the volatility of stock prices may have the potential to increase the risk of the financial system and limit the freedom of China to use monetary policy to deal with economic fundamentals. Journal: Journal of Chinese Economic and Business Studies Pages: 161-181 Issue: 2 Volume: 18 Year: 2020 Month: 04 X-DOI: 10.1080/14765284.2020.1796409 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1796409 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:18:y:2020:i:2:p:161-181 Template-Type: ReDIF-Article 1.0 Author-Name: Manxi Cheng Author-X-Name-First: Manxi Author-X-Name-Last: Cheng Title: Are people happier with larger green space? A study of greenness and happiness in urban China Abstract: Shreds of evidence from some developed countries have shown that green space has a significant positive effect on happiness, while few related studies have been done in developing countries. Based on panel data from Chinese Family Panel Studies (CFPS) and the Chinese National Bureau of Statistics, this paper provides an empirical analysis of the impact of green space on Chinese urban residents’ happiness levels by using the ordered probit model. The results show that per capita greenness has a significant negative effect on urban residents’ happiness in China and the effect weakens and turns into positive as residents’ income levels increase. Meanwhile, the relationships can vary among people of different educational levels and from different areas. Journal: Journal of Chinese Economic and Business Studies Pages: 183-201 Issue: 2 Volume: 18 Year: 2020 Month: 04 X-DOI: 10.1080/14765284.2020.1798639 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1798639 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:18:y:2020:i:2:p:183-201 Template-Type: ReDIF-Article 1.0 Author-Name: Ding Lu Author-X-Name-First: Ding Author-X-Name-Last: Lu Title: China’s tough battles to achieve the centenary goals Abstract: The so-called Two Centenary Goals underwrite all China’s long-term economic planning programs and contemporary macroeconomic policy agendas. In recent years, the Party-State has made great efforts to achieve the first Centenary Goal, i.e. ‘building a moderately prosperous society in all respects’ by 2021. These efforts include endeavors to win the ‘three tough battles’: to forestall and defuse major (financial) risks, to carry out targeted poverty alleviation, and to prevent and control pollution. In this backdrop, the 2019 Annual Conference of China Economic Association (UK/Europe) was held in China in July 2019 under the theme ‘China’s Tough Battles: Reform, Stability and Development.’ Inspired by that theme, this special issue comprises four papers, covering topics including the role of local government debts in regional growth, relative importance of institutional quality and human capital in economic development, values of environmental amenities to personal happiness, and understanding of what account for China’s sustainable fast growth. Journal: Journal of Chinese Economic and Business Studies Pages: 203-207 Issue: 3 Volume: 18 Year: 2020 Month: 07 X-DOI: 10.1080/14765284.2020.1822723 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1822723 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:18:y:2020:i:3:p:203-207 Template-Type: ReDIF-Article 1.0 Author-Name: Linda Glawe Author-X-Name-First: Linda Author-X-Name-Last: Glawe Author-Name: Helmut Wagner Author-X-Name-First: Helmut Author-X-Name-Last: Wagner Title: The role of institutional quality and human capital for economic growth across Chinese provinces – a dynamic panel data approach Abstract: There is an ongoing debate within the economic growth and development literature whether institutions or human capital are more important for economic growth. We add further arguments to this discussion by focusing on a particular country, namely China. China is an interesting case study since it is often regarded as an exception by having achieved miraculous growth for more than three decades despite relatively low institutional quality. We employ a dynamic panel data model to analyze the role of improvements in institutional quality and human capital accumulation for the economic success of a province in China over the period 2003 to 2007. Using system GMM estimation, we find that while growth in human capital fosters economic growth all over China, only coastal provinces record a positive effect of institutional improvements on the growth rate of per capita income. Journal: Journal of Chinese Economic and Business Studies Pages: 209-227 Issue: 3 Volume: 18 Year: 2020 Month: 07 X-DOI: 10.1080/14765284.2020.1755140 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1755140 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:18:y:2020:i:3:p:209-227 Template-Type: ReDIF-Article 1.0 Author-Name: Yanrui Wu Author-X-Name-First: Yanrui Author-X-Name-Last: Wu Title: LOCAL GOVERNMENT DEBT AND ECONOMIC GROWTH IN CHINA Abstract: China’s local government debt (LGD) has recently become the focus of economic policy debates. However, information about LGD and its impact on economic growth in the Chinese economy is scarce. This paper attempts to present an empirical investigation of the impact of China’s LGD on economic growth. It is probably the first of its kind to focus on China and thus contributes to the general literature on the relationship between government debt and economic growth. The paper first provides an assessment of LGD in China’s regional economies, using recently released auditing statistics and other available secondary information. It then applies conventional growth analysis methods to examine the impact of LGD on regional growth in China. Various scenario and sensitivity analyses are also conducted, to accommodate the inadequacy and potentially poor quality of debt statistics. Journal: Journal of Chinese Economic and Business Studies Pages: 229-242 Issue: 3 Volume: 18 Year: 2020 Month: 07 X-DOI: 10.1080/14765284.2020.1774733 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1774733 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:18:y:2020:i:3:p:229-242 Template-Type: ReDIF-Article 1.0 Author-Name: Geraint Johnes Author-X-Name-First: Geraint Author-X-Name-Last: Johnes Title: Valuing the impact on wellbeing of urban amenities in Beijing Abstract: Survey data for a sample of respondents in Beijing are used to evaluate the determinants of subjective wellbeing. The data are rich and allow the impact on wellbeing of amenities associated with housing to be evaluated alongside the impact of household income, thus enabling us to attach a value to characteristics such as neighbourhood tranquility, air quality, and access to infrastructure. The evidence suggests that the value of such amenities is high, and this has clear implications for urban design. Journal: Journal of Chinese Economic and Business Studies Pages: 243-252 Issue: 3 Volume: 18 Year: 2020 Month: 07 X-DOI: 10.1080/14765284.2020.1813003 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1813003 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:18:y:2020:i:3:p:243-252 Template-Type: ReDIF-Article 1.0 Author-Name: Qing-Ping Ma Author-X-Name-First: Qing-Ping Author-X-Name-Last: Ma Title: The China Miracle in a technological and socio-political framework—The role of institutions Abstract: China’s economy has grown at an average annual rate of around 9.5% in the past four decades, which is often hailed as the China Miracle. This paper proposes a new theoretical model to analyse the causes of China’s phenomenal growth in a technological and socio-political framework. In our new framework, the contemporary technology (T) determines what an economy can achieve; the objective (O) of the society has a fundamental impact on its economic growth; the performance (P) in implementing the social objective largely determines the growth rate of the economy; and the stability (S) of the society determines the sustainability of the economic growth. China’s institutions have played key roles in the TOPS framework to initiate and sustain China’s rapid growth in the past four decades. Socio-political changes caused by economic growth might affect the capacity of these institutions to promote economic growth in future. Journal: Journal of Chinese Economic and Business Studies Pages: 253-272 Issue: 3 Volume: 18 Year: 2020 Month: 07 X-DOI: 10.1080/14765284.2020.1823146 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1823146 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:18:y:2020:i:3:p:253-272 Template-Type: ReDIF-Article 1.0 Author-Name: Peter Nolan Author-X-Name-First: Peter Author-X-Name-Last: Nolan Title: China and the West: crossroads of civilisation Abstract: Human civilisation stands at crossroads. There are urgent global challenges that need to be confronted, including destruction of the natural environment; climate change; inequality of income, wealth and life chances; industrial concentration and regulation of the financial system. Looming above all of these is the issue of how to avoid a ‘Clash of Civilisations’ and a New Peloponnesian War. Only by looking deep into the past can one better understand the possible direction that the long-term evolution of world civilisation might take. The relationship between China and the West will play a central role in the path that humanity follows in the decades and centuries ahead. Journal: Journal of Chinese Economic and Business Studies Pages: 273-287 Issue: 4 Volume: 18 Year: 2020 Month: 10 X-DOI: 10.1080/14765284.2020.1833283 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1833283 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:18:y:2020:i:4:p:273-287 Template-Type: ReDIF-Article 1.0 Author-Name: Marco Mele Author-X-Name-First: Marco Author-X-Name-Last: Mele Author-Name: Luana Randazzo Author-X-Name-First: Luana Author-X-Name-Last: Randazzo Title: On the Chinese’ health expenditure: from Toda-Yamamoto to machine learning approach Abstract: This study aims to demonstrate, through an econometric and Machine Learning approach, the health expenditure-economic growth nexus in China over the period 1980–2017. Describing the situation of the Chinese health system through the economic literature, we apply different econometric tests. The Toda and Yamamoto approach is crucial in our analysis: It highlights the existence of a bidirectional causal flow, running from health expenditure renew to GDP per capita and vice versa. This scenario respects the economic growth theory and hypothesis. Finally, in order to validate our results, as required by scientific models, we chose to test the econometric results obtained through a D2C algorithm in Machine Learning. At present, there is no evidence of other studies using this kind of approach in order to explain the health expenditure-economic growth nexus in China over this period. Journal: Journal of Chinese Economic and Business Studies Pages: 289-309 Issue: 4 Volume: 18 Year: 2020 Month: 10 X-DOI: 10.1080/14765284.2020.1827482 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1827482 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:18:y:2020:i:4:p:289-309 Template-Type: ReDIF-Article 1.0 Author-Name: Xiaolan Fu Author-X-Name-First: Xiaolan Author-X-Name-Last: Fu Author-Name: Jing Zhang Author-X-Name-First: Jing Author-X-Name-Last: Zhang Author-Name: Liming Wang Author-X-Name-First: Liming Author-X-Name-Last: Wang Title: Introduction to the special section: the impact of Covid-19 and post-pandemic recovery: China and the world economy Abstract: It is indisputable that the Covid-19 pandemic has shaken the world economy and indeed panglobal society in many dimensions. In this Introduction to our Special Section, we examine the dynamics involved, particularly in relation to China and the world economy, and the response policies utilised for post-pandemic recovery based on detailed and critical comments and summaries of the excellent papers collected in this volume. We highlight the impact of the pandemic on global supply chains with a particular focus on China’s trade, foreign direct investment, digitalisation and innovation, its cooperation with its major trade partners, as well as the economic outlook of the Chinese economy against the backlock of the pandemic and US-China tensions. How other countries responded to the pandemic is also brought in so as to understand China’s response in a broad context and the role of culture and institutions in the process. Journal: Journal of Chinese Economic and Business Studies Pages: 311-319 Issue: 4 Volume: 18 Year: 2020 Month: 10 X-DOI: 10.1080/14765284.2020.1855939 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1855939 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:18:y:2020:i:4:p:311-319 Template-Type: ReDIF-Article 1.0 Author-Name: Beata Javorcik Author-X-Name-First: Beata Author-X-Name-Last: Javorcik Title: Reshaping of global supply chains will take place, but it will not happen fast Abstract: The COVID-19 pandemic has drawn attention to high dependence of industrialized countries on Chinese suppliers and led to calls for increasing resilience through diversification of supply sources. This article argues that geographic reshaping of global value chains will require substantial flows of foreign direct investment. As such flows are projected to remain subdued in the next few years, reshaping of global value chains will not happen very fast. Journal: Journal of Chinese Economic and Business Studies Pages: 321-325 Issue: 4 Volume: 18 Year: 2020 Month: 10 X-DOI: 10.1080/14765284.2020.1855051 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1855051 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:18:y:2020:i:4:p:321-325 Template-Type: ReDIF-Article 1.0 Author-Name: Justin Yifu Lin Author-X-Name-First: Justin Yifu Author-X-Name-Last: Lin Title: China’s economic outlook against the backdrop of the COVID-19 pandemic and US-China tensions Abstract: China is being tested by the COVID-19 pandemic and US-China tensions in 2020. China’s swift and effective response to the pandemic has brought a ‘V-shaped’ rebound but the US-China tensions and the accompanying adverse effects will linger. China will inevitably confront other natural and geopolitical challenges in the coming years amid the profound changes unseen in a century. However, as long as China stays calm, pursues smart, forward-looking policies with continuous reform and opening up, taps into its potential, and maintains stability, China will continue to grow dynamically. A growing China will be beneficial not only to itself but to the rest of the world. Journal: Journal of Chinese Economic and Business Studies Pages: 327-331 Issue: 4 Volume: 18 Year: 2020 Month: 10 X-DOI: 10.1080/14765284.2020.1854024 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1854024 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:18:y:2020:i:4:p:327-331 Template-Type: ReDIF-Article 1.0 Author-Name: Xiaojuan Jiang Author-X-Name-First: Xiaojuan Author-X-Name-Last: Jiang Title: Digital economy in the post-pandemic era Abstract: This article reviews the role of digital technology in the fight against COVID-19 from the outbreak to the resumption of a ‘normal’ way of life, and the development of the digital economy heading toward long-term growth in China. It finds that digital technology empowered the pandemic response strategy in the short term. In the long term, digital technology will serve as a technological foundation for the Industrial Internet of Things and Consumer Internet, and the integrated development of the manufacturing industry and the service sector. New technologies can also offer opportunities for further demand growth and technological innovation. With the support of the government’s ‘digital economy policy’, the long-term development of the digital economy has shown a positive trend. Journal: Journal of Chinese Economic and Business Studies Pages: 333-339 Issue: 4 Volume: 18 Year: 2020 Month: 10 X-DOI: 10.1080/14765284.2020.1855066 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1855066 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:18:y:2020:i:4:p:333-339 Template-Type: ReDIF-Article 1.0 Author-Name: Shusong Ba Author-X-Name-First: Shusong Author-X-Name-Last: Ba Author-Name: Haifeng Bai Author-X-Name-First: Haifeng Author-X-Name-Last: Bai Title: Covid-19 pandemic as an accelerator of economic transition and financial innovation in China Abstract: The Covid-19 pandemic has had a significant impact on the financial sector and real economy around the world. China’s economy has recovered rapidly from Covid-19. The main reasons are that China has an ample policy toolbox and paid more attention to the recovery supply-side. The Covid-19 pandemic has been an accelerator of China’s digital economy and has established a ‘dual circulation’ development pattern. Digital technology-supported inclusive finance and supply chain finance were the key to a rapid recovery. Financial innovation has ensured that the companies quickly resumed production. China still insists on the reform and opening up of its financial sector. In a word, the Covid-19 pandemic has been an accelerator of economic transition and financial innovation in China. Journal: Journal of Chinese Economic and Business Studies Pages: 341-348 Issue: 4 Volume: 18 Year: 2020 Month: 10 X-DOI: 10.1080/14765284.2020.1855394 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1855394 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:18:y:2020:i:4:p:341-348 Template-Type: ReDIF-Article 1.0 Author-Name: Fuquan Sun Author-X-Name-First: Fuquan Author-X-Name-Last: Sun Title: Sino–UK science and technology collaboration in field of people’s livelihood Abstract: Science, technology and innovation collaboration is very important for global responses to the pandemic. This paper discusses the importance of science and technology collaboration in people’s livelihood and examines the areas for collaboration between the UK and China. Finally, it proposes policy recommendations for future collaboration in people’s livelihood between the UK and China. Journal: Journal of Chinese Economic and Business Studies Pages: 349-354 Issue: 4 Volume: 18 Year: 2020 Month: 10 X-DOI: 10.1080/14765284.2020.1855857 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1855857 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:18:y:2020:i:4:p:349-354 Template-Type: ReDIF-Article 1.0 Author-Name: Wenjing Duan Author-X-Name-First: Wenjing Author-X-Name-Last: Duan Author-Name: Shujin Zhu Author-X-Name-First: Shujin Author-X-Name-Last: Zhu Author-Name: Mingyong Lai Author-X-Name-First: Mingyong Author-X-Name-Last: Lai Title: The impact of COVID-19 on China’s trade and outward FDI and related countermeasures Abstract: This paper analyzes the development trend and characteristics of China’s foreign trade and outward FDI amid the epidemic from the overall trend of change, the structure of domestic regions, the structure of overseas markets, the structure of import and export products, the industrial distribution of overseas investment and the situation between countries along the Belt and Road. Further, we proposed some countermeasures to promote China’s trade and OFDI, such as establishing an early-warning system for overseas risks, adhering to innovation drive, fostering a new, dual-cycle development architecture with domestic and international development reinforcing each other, promoting the construction of cross-border e-commerce facilities and technologies and so on. Journal: Journal of Chinese Economic and Business Studies Pages: 355-364 Issue: 4 Volume: 18 Year: 2020 Month: 10 X-DOI: 10.1080/14765284.2020.1855395 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1855395 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:18:y:2020:i:4:p:355-364 Template-Type: ReDIF-Article 1.0 Author-Name: Liming Wang Author-X-Name-First: Liming Author-X-Name-Last: Wang Author-Name: Yuan Li Author-X-Name-First: Yuan Author-X-Name-Last: Li Title: The negotiation of EU–China comprehensive agreement on investment and its potential impact in the post-pandemic era Abstract: The negotiation of the Comprehensive Agreement on Investment (CAI) between the EU and China has convened over 34 rounds in the last seven years. The CAI, when finally established, will constitute a historical first, unprecedented in being the most detailed and important agreement between the EU and China ever. It is expected that both parties will bring negotiations to a close with the signing of the agreement either by the end of 2020 or not long thereafter. This paper presents an overview of these negotiations, with an assessment of its potential impact on bilateral investment and economic cooperation between the two parties. Consequentially, the further elimination of investment and trade barriers between China and Europe should lead to the steady recovery and growth of the global economy in the post-pandemic era. Journal: Journal of Chinese Economic and Business Studies Pages: 365-372 Issue: 4 Volume: 18 Year: 2020 Month: 10 X-DOI: 10.1080/14765284.2020.1855846 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1855846 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:18:y:2020:i:4:p:365-372 Template-Type: ReDIF-Article 1.0 Author-Name: Jianhua Zhang Author-X-Name-First: Jianhua Author-X-Name-Last: Zhang Author-Name: Fengyi Zheng Author-X-Name-First: Fengyi Author-X-Name-Last: Zheng Title: Economic recovery in the early epicentre: the case of Hubei Province in China Abstract: Taking Hubei as a typical case, this article reviews China’s response approaches and effectiveness during the entire epidemic period. In the short term, the government is able to effectively control the spread of the epidemic by adopting coercive measures, which is inevitably at the expense of production and consumption activities, thereafter bringing serious losses to the economy. However, the negative impact on the macro-economy is short-lived. In the long term, the economy can achieve rapid recovery, with precise policies on resuming work and production as the prerequisite. Journal: Journal of Chinese Economic and Business Studies Pages: 373-378 Issue: 4 Volume: 18 Year: 2020 Month: 10 X-DOI: 10.1080/14765284.2020.1854601 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1854601 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:18:y:2020:i:4:p:373-378 Template-Type: ReDIF-Article 1.0 Author-Name: Derek Qi Ren Kok Author-X-Name-First: Derek Qi Ren Author-X-Name-Last: Kok Author-Name: Wing Thye Woo Author-X-Name-First: Wing Thye Author-X-Name-Last: Woo Title: The wide range of national reactions to the common COVID-19 shock: observations on causes and effects Abstract: Most countries adjusted their methods of management of the disease in light of experiences at home and abroad. When the COVID-19 pandemic broke out in Wuhan in January 2020, China locked down the entire city. But when it broke out again in June 2020, China switched to localized lockdowns, complemented by comprehensive testing and tracking. Sweden had started with the herd immunity solution to COVID-19, but the enormously higher death rate than in other Nordic countries and the absence of a superior economic performance brought about a reversal in its public health policy in mid-November. The continued American exceptionalism of Trump reflects the drivers of his political movement: the tribalist backlash against the multiculturalism in US society; and national security anxieties about the multipolar word order. The irony is that Trump’s nostalgic policies caused a disastrous economic free fall that shifted the political middle ground in the 2020 elections toward Joseph Biden. Journal: Journal of Chinese Economic and Business Studies Pages: 379-383 Issue: 4 Volume: 18 Year: 2020 Month: 10 X-DOI: 10.1080/14765284.2020.1855928 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1855928 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:18:y:2020:i:4:p:379-383 Template-Type: ReDIF-Article 1.0 Author-Name: Wenxuan Hou Author-X-Name-First: Wenxuan Author-X-Name-Last: Hou Author-Name: Brian Main Author-X-Name-First: Brian Author-X-Name-Last: Main Author-Name: Xianda Liu Author-X-Name-First: Xianda Author-X-Name-Last: Liu Title: Covid-19 and development: lessons from historical pandemics Abstract: Disease does not only affect development through its contemporaneous impact on health, but also through its enduring historical effect through its shaping of culture and institutions. By drawing on the experience of historical pandemics, we argue that some of the current stringent approaches adopted in combating COVID-19 come at the expense of social capital (trust) and institutions (checks on government power), which hold back long-run development. We review the evidence that the Black Death intensified witchcraft beliefs and antisemitism, which, in turn, developed mistrust and exerted an adverse influence on present-day development. Finally, we demonstrate that institutions and culture have greater explanatory power in terms of cross-country infection rates and fatality rates than does health care quality. Journal: Journal of Chinese Economic and Business Studies Pages: 385-397 Issue: 4 Volume: 18 Year: 2020 Month: 10 X-DOI: 10.1080/14765284.2020.1855937 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1855937 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:18:y:2020:i:4:p:385-397 Template-Type: ReDIF-Article 1.0 Author-Name: Maho Shiraishi Author-X-Name-First: Maho Author-X-Name-Last: Shiraishi Author-Name: Go Yano Author-X-Name-First: Go Author-X-Name-Last: Yano Title: Do ‘zombie firms’ emerge among private firms in China? A survival analysis approach that pays attention to the reception of trade credit Abstract: We investigated whether ‘zombie firms’ emerged among private firms in China, by using the survival analysis of private firms. We found that receiving trade credit allowed poor-performing private firms to survive in markets in China. This type of survival of private firms was more pronounced for large-sized private firms. There was evidence of the existence of zombie firms among private firms in China, which were generated from unsound trade credit finance, an informal type of finance. Poor-performing private firms in China avoided exiting the market with access to an informal debt finance in non-negligible cases. Journal: Journal of Chinese Economic and Business Studies Pages: 1-34 Issue: 1 Volume: 19 Year: 2021 Month: 01 X-DOI: 10.1080/14765284.2021.1884796 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1884796 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:19:y:2021:i:1:p:1-34 Template-Type: ReDIF-Article 1.0 Author-Name: Junhua Jiang Author-X-Name-First: Junhua Author-X-Name-Last: Jiang Title: Can real estate regulatory policies constrain real estate risks to banks? Evidence from China Abstract: This study investigates the effects of real estate regulatory policies on the real estate risks to banks in China. The study shows that real estate control policies issued by the policy makers in China cannot constrain the risks of the real estate market to banks. Real estate stimulating policies, however, could raise the risks of the real estate market to banks, which mainly results from the effects of tax-related stimulating policies. The study also shows that real estate control policies affect the discount rate risks of the real estate firms to banks, while both the real estate control policies and the real estate stimulating policies show some effects on the overall risks of the real estate firms to banks. Journal: Journal of Chinese Economic and Business Studies Pages: 35-53 Issue: 1 Volume: 19 Year: 2021 Month: 01 X-DOI: 10.1080/14765284.2020.1868932 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1868932 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:19:y:2021:i:1:p:35-53 Template-Type: ReDIF-Article 1.0 Author-Name: Xinxin Ma Author-X-Name-First: Xinxin Author-X-Name-Last: Ma Author-Name: Ichiro Iwasaki Author-X-Name-First: Ichiro Author-X-Name-Last: Iwasaki Title: Does communist party membership bring a wage premium in China? a meta-analysis Abstract: In China, despite the drastic economic transition from a planned system to a market economy, the influences of the Communist Party of China (CPC)’s organization on firm management in both the public and private sectors are still remarkable. This study performs a meta-analysis to examine the impact of CPC membership on wage levels in China using 622 estimates extracted from 71 English and Chinese papers. The results of meta-synthesis suggest that CPC membership positively affects wage levels. They also reveal that the effect size of CPC membership is greater for state-owned enterprises, urban regions, female workers, and regular wages, as compared with privately owned enterprises, rural regions, male workers, and performance pay. The test results of publication selection bias based on the FAT-PET-PEESE approach indicate that the collected estimates contain genuine evidence of the wage premium of CPC membership, and its true impact takes a value within a range of 0.0414 to 0.0431 in terms of the partial correlation coefficient. Journal: Journal of Chinese Economic and Business Studies Pages: 55-94 Issue: 1 Volume: 19 Year: 2021 Month: 01 X-DOI: 10.1080/14765284.2020.1842987 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1842987 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:19:y:2021:i:1:p:55-94 Template-Type: ReDIF-Article 1.0 Author-Name: Muhammad Shahin Miah Author-X-Name-First: Muhammad Shahin Author-X-Name-Last: Miah Title: Does IFRS convergence bring improvement in firm performance? An empirical analysis Abstract: This paper investigates the impact of IFRS adoption on Chinese listed companies. More specifically, this study shows the empirical evidence of the effect of a new set of Chinese accounting standards (CAS) introduced in 2007 on firms’ performance. Analyzing 7020 firm-year observations, this study finds that, compared to pre-IFRS adoption regime, firms’ performance significantly improves after IFRS adoption. A set of sensitivity analysis provides consistent findings about the impact of new CAS on firms’ profitability. As for the implication of international accounting standards, these findings suggest that adoption of global accounting standards is bringing positive change in the capital market through firms’ development in terms of profitability. Journal: Journal of Chinese Economic and Business Studies Pages: 95-107 Issue: 1 Volume: 19 Year: 2021 Month: 01 X-DOI: 10.1080/14765284.2020.1846010 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1846010 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:19:y:2021:i:1:p:95-107 Template-Type: ReDIF-Article 1.0 Author-Name: Jiandong Chen Author-X-Name-First: Jiandong Author-X-Name-Last: Chen Author-Name: Ming Gao Author-X-Name-First: Ming Author-X-Name-Last: Gao Author-Name: Shasha Huang Author-X-Name-First: Shasha Author-X-Name-Last: Huang Author-Name: Wenxuan Hou Author-X-Name-First: Wenxuan Author-X-Name-Last: Hou Title: Application of remote sensing satellite data for carbon emissions reduction Abstract: There is a global consensus that carbon dioxide and other greenhouse gas emissions must be reduced as a response to global climate change. Remote sensing satellite data have become an important means of monitoring carbon emission due to its unique advantages such as availability, high resolution, and wide coverage, and remote sensing data are playing an increasingly important role in carbon monitoring and fixation. This article summarizes the main applications of remote sensing satellite data in reducing carbon emissions and prospects for future research. Journal: Journal of Chinese Economic and Business Studies Pages: 109-117 Issue: 2 Volume: 19 Year: 2021 Month: 04 X-DOI: 10.1080/14765284.2021.1920329 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1920329 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:19:y:2021:i:2:p:109-117 Template-Type: ReDIF-Article 1.0 Author-Name: Siyang Li Author-X-Name-First: Siyang Author-X-Name-Last: Li Author-Name: Christer Ljungwall Author-X-Name-First: Christer Author-X-Name-Last: Ljungwall Title: Access to knowledge and knowledge production: the case of China Abstract: This paper estimates knowledge production functions for the Chinese economy using provincial-level data over the years 2008 through 2016. First, the number of R&D personnel, funding, and the accessibility to global knowledge stock all have positive and significant effects on both general patent application, and invention patent application. Second, the knowledge accumulation effect on knowledge production efficiency is substantial. Third, the state-owned sector has an important role in fundamental innovation. Most importantly, accessibility to knowledge is important in realizing the benefit of the non-rivalry of knowledge. Hence, it is pivotal that the Chinese government adopt an open innovation approach and keep moving along its plan of reform and opening up [All sources are published on-line except for NSO, which is available upon request]. Journal: Journal of Chinese Economic and Business Studies Pages: 163-172 Issue: 2 Volume: 19 Year: 2021 Month: 04 X-DOI: 10.1080/14765284.2021.1905481 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1905481 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:19:y:2021:i:2:p:163-172 Template-Type: ReDIF-Article 1.0 Author-Name: Ying Zhang Author-X-Name-First: Ying Author-X-Name-Last: Zhang Author-Name: Marcel Ausloos Author-X-Name-First: Marcel Author-X-Name-Last: Ausloos Title: Financial pre-factors for post-performance of cross-border mergers & acquisitions Abstract: We study mergers and acquisitions (M&A) when one company is Chinese and another company is outside China. Previous studies are still much lacking considerations on financial factors affecting subsequent performance of such multinational (or ‘cross-border’) M&A. Here, a few (5) influencing factors are tested through a multiple linear regression model for 100 listed companies over [2016–2018]. We examine the role of (i) the mode of payment, (ii) cultural differences, (iii) industry differences, (iv) company scale and (v) the shareholding ratio. The research denotes that the payment method and the shareholding ratio of the largest shareholder have both a positive correlation with the performance in the year of the M&A and in the following one, – whatever the industries differences and companies sizes. Journal: Journal of Chinese Economic and Business Studies Pages: 147-161 Issue: 2 Volume: 19 Year: 2021 Month: 04 X-DOI: 10.1080/14765284.2021.1905480 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1905480 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:19:y:2021:i:2:p:147-161 Template-Type: ReDIF-Article 1.0 Author-Name: Christopher Culver Author-X-Name-First: Christopher Author-X-Name-Last: Culver Title: Chinese investment and corruption in Africa Abstract: Chinese investment in Africa has rapidly expanded in recent years and garnered significant attention. There has been considerable concern that this investment will increase corruption in African states. However, there has been little academic scrutiny or examination of these claims. This paper proposes and tests the theory that the effect of FDI on corruption is dependent on the source country, specifically proposing and testing the hypothesis that Chinese FDI has a more detrimental effect on corruption than FDI from developed economies. By analyzing a random effects model with pooled cross-sectional, time-series data on corruption and foreign direct investment from 52 African countries from 2002 to 2012 I show that, contrary to the theoretical prediction, investment from Chinese sources does not have a significantly different effect on corruption than foreign investment from developed countries. Though Chinese investors are less deterred by high levels of corruption, their investment in more corrupt countries does not increase overall corruption levels. Journal: Journal of Chinese Economic and Business Studies Pages: 119-145 Issue: 2 Volume: 19 Year: 2021 Month: 04 X-DOI: 10.1080/14765284.2021.1925822 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1925822 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:19:y:2021:i:2:p:119-145 Template-Type: ReDIF-Article 1.0 Author-Name: Henry Gao Author-X-Name-First: Henry Author-X-Name-Last: Gao Author-Name: Gregory Shaffer Author-X-Name-First: Gregory Author-X-Name-Last: Shaffer Title: The role of law in Chinese value chains Abstract: Since starting its economic reform four decades ago, China has been highly successful in integrating its economy into regional and global value chains (GVCs). This started with simple assembly and processing, then expanded to low-end labor-intensive manufacturing, and gradually moved up to technology-intensive and capital-intensive industries. This article analyzes the development of Chinese law, legal institutions, and international and transnational legal initiatives to support the development of GVCs, which we divide into five phases. The article does not idealize law in terms of ‘commitment’ or ‘rule of law,’ but rather, in the legal realist tradition, views law as an important, contributing factor in economic change. It presents law as a signalling and coordinative device that serves to channel private conduct for business planning and coordination. The article provides insights for understanding current developments in the trading system and their implications for regional and global value chains. Journal: Journal of Chinese Economic and Business Studies Pages: 197-220 Issue: 3 Volume: 19 Year: 2021 Month: 07 X-DOI: 10.1080/14765284.2021.1943183 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1943183 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:19:y:2021:i:3:p:197-220 Template-Type: ReDIF-Article 1.0 Author-Name: Guanzhong James Wen Author-X-Name-First: Guanzhong James Author-X-Name-Last: Wen Title: Virtuous globalization, the three-zeros policy, and China’s choice Abstract: Economic globalization is generally desirable and beneficial to a great extent, but not necessarily virtuous. Modern history has proven time and again that economic globalization may go astray if rivalry among big powers are not coordinated and regulated in a timely manner. Thorny issues arise inevitably when globalization involves big economies such as China, whose resource allocation mechanisms deviate significantly from that of a typical market economy. This paper will focus on: 1) What is virtuous globalization? 2) Why should big powers adopt the goal of three-zeros (zero tariff, zero barrier, and zero subsidy) as a necessary condition for achieving the goal of virtuous globalization? 3) Why should China in particular set a leading example to adopt and implement this policy to make a real contribution to the building of global institutions that are conducive to virtuous globalization as well as its domestic economic reforms. Journal: Journal of Chinese Economic and Business Studies Pages: 221-237 Issue: 3 Volume: 19 Year: 2021 Month: 07 X-DOI: 10.1080/14765284.2020.1862637 File-URL: http://hdl.handle.net/10.1080/14765284.2020.1862637 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:19:y:2021:i:3:p:221-237 Template-Type: ReDIF-Article 1.0 Author-Name: K. C. Fung Author-X-Name-First: K. C. Author-X-Name-Last: Fung Title: Introduction to special section on global trading system with the New American administration: China, United States and Europe Abstract: In this Introduction to the Special IIssue on Global trading system with the New American Administration: China, United States and Europe, three excellent papers are presented. The first paper highlights the central and eastern European countries’ views on their relationships with China in the era of the pandemic. The second paper by Gao and Shaffer (forthcoming) presents a detailed legal discussion on the global value chains, including new development in intellectual property rights laws in China. The third paper by Wen (forthcoming) proposes that China should continue to participate in the global trading system and further reduce unnecessary government interventions in trade, investment and innovation. Finally, the Introduction highlights various important papers published by this Journal that are relevant to the theme. For example, Fung, Aminian, Fu and Tung (2018) and Fung, Amininian, Fu, Rhee and Tung (2020) are the first to introduce a formal, analytical digital firm model in the discussions of U.S.-China relations. Other outstanding papers include Lau (2019a), Cheng, hitten and Hua (2019), Garcia Herrero (2019) and Lin and Wang (forthcoming), all published in this Journal. Journal: Journal of Chinese Economic and Business Studies Pages: 173-179 Issue: 3 Volume: 19 Year: 2021 Month: 07 X-DOI: 10.1080/14765284.2021.1960138 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1960138 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:19:y:2021:i:3:p:173-179 Template-Type: ReDIF-Article 1.0 Author-Name: Xi Chen Author-X-Name-First: Xi Author-X-Name-Last: Chen Author-Name: Annie Fan Author-X-Name-First: Annie Author-X-Name-Last: Fan Title: The COVID-19 pandemic and the transformation of health policy: a syndemic perspective Abstract: The Coronavirus Disease 2019 (COVID-19) pandemic is bringing about once-in-a-century changes to human society. Three key properties escalate the COVID-19 pandemic into a syndemic. To address this triple crisis, we discuss the importance of integrating early, targeted and coordinated public health measures with more equitable social policy and with a health-care policy that realigns incentives of the major players in the health-care market. Drawing on evidence from past and present epidemics as well as comparing variations in response to the current health emergency between China, the US and beyond, we navigate long-awaited health policy transformation in areas that help us better prepare for the next pandemic. Journal: Journal of Chinese Economic and Business Studies Pages: 239-255 Issue: 3 Volume: 19 Year: 2021 Month: 07 X-DOI: 10.1080/14765284.2021.1940453 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1940453 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:19:y:2021:i:3:p:239-255 Template-Type: ReDIF-Article 1.0 Author-Name: Rudolf Furst Author-X-Name-First: Rudolf Author-X-Name-Last: Furst Title: China and Central Europe: cooperation in difficult times during the Covid-19 outbreak Abstract: The four Central and Eastern European (CEE) states, namely Poland, the Czech Republic, Hungary, and Slovakia, known as the Visegrad Group (V4), belong to the multilateral China-led 17 + 1 subregional platform that seeks to upgrade its members’ mutual economic and transportation infrastructure ties. This comparative case study traces the V4 states’ relations with China since the outbreak of the Covid-19 pandemic in Europe and explores how far the existing multilateral format 17 + 1 was able to utilize its potential for strengthening China’s presence through healthcare cooperation to work together in fighting the pandemic. The findings reveal the prevailing bilateral ties being preferred over the institutionalized multilateral platform 17 + 1, a sustained ambiguity in the CEE states’ relations with China, and a poor coherence of the 17 + 1 format. Journal: Journal of Chinese Economic and Business Studies Pages: 181-196 Issue: 3 Volume: 19 Year: 2021 Month: 07 X-DOI: 10.1080/14765284.2021.1913549 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1913549 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:19:y:2021:i:3:p:181-196 Template-Type: ReDIF-Article 1.0 Author-Name: Yoon Jung Park Author-X-Name-First: Yoon Jung Author-X-Name-Last: Park Author-Name: Xiaoyang Tang Author-X-Name-First: Xiaoyang Author-X-Name-Last: Tang Title: Chinese FDI and impacts on technology transfer, linkages, and learning in Africa: evidence from the field Abstract: Based on a brief review of the existing literature on knowledge transfer between Chinese and Africans, this introductory essay sheds light on the purpose, methodologies, and main findings of this special issue. Aiming to investigate the impacts of Chinese FDI projects on technology learning in Africa, a team of SAIS-CARI researchers conducted field research in six African countries. To our knowledge, this is the first time such a comprehensive analysis on China-Africa knowledge transfer has been carried out. Our research finds that the majority of investments in agricultural and manufacturing comes from private small-to-medium sized companies that are driven by market factors and operate outside the Chinese government. The research suggests that Chinese investments in Africa have contributed to hiring and training local employees, demonstrated advanced technologies, and cooperated with local enterprises; however,  the effectiveness and sustainability of the knowledge transfer varies across different sectors and countries. Journal: Journal of Chinese Economic and Business Studies Pages: 257-268 Issue: 4 Volume: 19 Year: 2021 Month: 10 X-DOI: 10.1080/14765284.2021.1996191 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1996191 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:19:y:2021:i:4:p:257-268 Template-Type: ReDIF-Article 1.0 Author-Name: Yunnan Chen Author-X-Name-First: Yunnan Author-X-Name-Last: Chen Title: ‘Africa’s China’: Chinese manufacturing investment in Nigeria and channels for technology transfer Abstract: Nigeria has been one of the primary destinations for Chinese foreign direct investment (FDI) in Africa, with emerging clusters in manufacturing sectors. FDI holds potential for technology transfer processes that can foster wider industrialization and structural transformation, but this depends on the development of local linkages that can foster positive spillovers. Through fieldwork and structured survey methods, this paper examines drivers of Chinese outward investment in Nigeria, particularly from 2014 to 2017, highlighting linkages and mechanisms of technology transfer that may catalyze transformation processes and taking a critical view of their potential. I find that, while cases of technology and skills transfer exist, investing firms face challenges of poor infrastructure, lack of skills, and low social trust, which hinder the development of linkages and industrial supply chains. In the wake of the 2014 economic recession, firms cited political and exchange rate instability as challenging; however, greater localization and building local linkages make firms better prepared to weather such challenges. Journal: Journal of Chinese Economic and Business Studies Pages: 335-358 Issue: 4 Volume: 19 Year: 2021 Month: 10 X-DOI: 10.1080/14765284.2021.1943184 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1943184 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:19:y:2021:i:4:p:335-358 Template-Type: ReDIF-Article 1.0 Author-Name: David Landry Author-X-Name-First: David Author-X-Name-Last: Landry Author-Name: Yunnan Chen Author-X-Name-First: Yunnan Author-X-Name-Last: Chen Title: Can Chinese investment lead to knowledge and technology transfers? The case of Madagascar Abstract: Madagascar’s geographic location, large long-established Chinese diaspora, low labor costs, and abundant arable land and natural resources have made it an attractive destination for Chinese outward investment over the past two decades, as rising wages in China and domestic competition drove firms to ‘go out.’ Chinese investors have been particularly active in the Malagasy agricultural, manufacturing, and mining sectors. China generated its own economic boom with the help of foreign investment, which raised the question whether Chinese investors could play a similar role – through the fostering of skills and technology upgrading – in other low-income countries. Focusing on agriculture and manufacturing, this paper uncovers some evidence of limited skills and technology transfers occurring through Chinese firms operating in Madagascar. However, Chinese investment in Madagascar remains limited in scope and has been challenged by a problematic policy environment. Journal: Journal of Chinese Economic and Business Studies Pages: 315-334 Issue: 4 Volume: 19 Year: 2021 Month: 10 X-DOI: 10.1080/14765284.2021.1940452 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1940452 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:19:y:2021:i:4:p:315-334 Template-Type: ReDIF-Article 1.0 Author-Name: Ying Xia Author-X-Name-First: Ying Author-X-Name-Last: Xia Title: Chinese investment in East Africa: History, status, and impacts Abstract: This paper investigates the development trajectory of Chinese investments in two East African countries and their implications for technology transfer. It traces the transformation of Chinese economic engagements with Africa since the early independence era. Most Chinese investments were established in the past decade, except for a few aid-driven investments created in the 1970s and those made by the first wave of Chinese expatriate entrepreneurs to East Africa in the 1990s. These recent investments have concentrated in construction-related industries, export-oriented garments industry, plastic recycling and reprocessing, and agro-business. In terms of technology transfer, there are local training efforts and signs for intra-industry spillovers. Large-scale Chinese investments or development projects have established formal training programs with explicit localization targets and are more likely to collaborate with government agencies or vocational training institutes. Moreover, horizontal and vertical spillovers have also taken the form of the development of sub-contracting, local supply, distribution networks, and imitation by local firms. Nevertheless, those industry-level spillovers are less systematic due to the limitations of local investors’ financial and technological capacity. Journal: Journal of Chinese Economic and Business Studies Pages: 269-293 Issue: 4 Volume: 19 Year: 2021 Month: 10 X-DOI: 10.1080/14765284.2021.1966733 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1966733 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:19:y:2021:i:4:p:269-293 Template-Type: ReDIF-Article 1.0 Author-Name: Henry Tugendhat Author-X-Name-First: Henry Author-X-Name-Last: Tugendhat Title: Connection issues: a study on the limitations of knowledge transfer in Huawei’s African training centres Abstract: Huawei has built several training centres across Africa. This study establishes the purpose of these centres in Kenya and Nigeria and presents original data on their success based on their objectives. Fieldwork was conducted in 2018 and follow-up interviews continued by phone until 2021. I find that Huawe’s investments offer no significant opportunities for knowledge transfers that could foster technological or industrial upgrading in Kenya or Nigeria’s telecommunications sectors. In part, this is due to domestic obstacles in the host countries. But, like other international equipment vendors operating in the region, knowledge transfers are also hindered by the limited scope of Huawei’s investments and the boundaries on the knowledge it is willing to share with domestic employees. I conclude that Kenya and Nigeria’s governments may underestimate the leverage they have over international equipment vendors to induce more meaningful opportunities for knowledge transfer. Journal: Journal of Chinese Economic and Business Studies Pages: 359-385 Issue: 4 Volume: 19 Year: 2021 Month: 10 X-DOI: 10.1080/14765284.2021.1943194 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1943194 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:19:y:2021:i:4:p:359-385 Template-Type: ReDIF-Article 1.0 Author-Name: Xiaoyang Tang Author-X-Name-First: Xiaoyang Author-X-Name-Last: Tang Title: Adaptation, innovation, and industrialization: the impact of Chinese investments on skill development in the Zambian and Malawian cotton sectors Abstract: This paper examines Chinese firms’ operations in the Zambian and Malawian cotton sectors with emphasis on the manner and effects of knowledge transfer. As new players in the arena, Chinese investors have adopted business models and management styles that differ from those of previous foreign investors in the region. Their low-cost and low-risk approaches have helped them grow quickly in these two countries and seize considerable market share from the established Western investors. Through an in-depth case study and comparison with Western companies, the author reveals that the Chinese investors flexibly modify conventional knowledge transfer channels like labor training, demonstration, and forward and backward linkages to fit their business models and local socio-economic contexts. Simultaneously, they take advantage of China’s strength in manufacturing and experiment with synergistic development in the industrial sector to overcome growth constraints. Journal: Journal of Chinese Economic and Business Studies Pages: 295-313 Issue: 4 Volume: 19 Year: 2021 Month: 10 X-DOI: 10.1080/14765284.2021.1943734 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1943734 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:19:y:2021:i:4:p:295-313 Template-Type: ReDIF-Article 1.0 Author-Name: Jiandong Chen Author-X-Name-First: Jiandong Author-X-Name-Last: Chen Author-Name: Ping Wang Author-X-Name-First: Ping Author-X-Name-Last: Wang Author-Name: Ming Gao Author-X-Name-First: Ming Author-X-Name-Last: Gao Author-Name: Wenxuan Hou Author-X-Name-First: Wenxuan Author-X-Name-Last: Hou Author-Name: Haiming Liao Author-X-Name-First: Haiming Author-X-Name-Last: Liao Title: Carbon sequestration capacity of terrestrial vegetation in China based on satellite data Abstract: Achieving carbon neutrality depends on carbon emission reduction and sequestration. However, research on vegetative carbon sequestration in China remains preliminary. In this study, we calculated the total carbon sequestration of terrestrial vegetation and that of different vegetation types in China from 2001–2019 using satellite data. Total vegetative carbon sequestration slowly increased but its increase was significantly lower than that of carbon emissions over the same period. Provinces with the strongest carbon sequestration capacity were mainly distributed in the south, whereas those with the lowest capacity were mainly in the west of Heihe-Tengchong Line. Woody grassland achieved the largest amount of carbon sequestration and grassland experienced the fastest growth. As sequestration ability varies by vegetation type and region, we suggest adopting a holistic regional approach that optimizes local vegetation growth environments, improves ecological compensation protection mechanisms (especially in urban areas) and develops other carbon sequestration pathways. Journal: Journal of Chinese Economic and Business Studies Pages: 109-124 Issue: 1 Volume: 20 Year: 2022 Month: 01 X-DOI: 10.1080/14765284.2021.2021488 File-URL: http://hdl.handle.net/10.1080/14765284.2021.2021488 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:20:y:2022:i:1:p:109-124 Template-Type: ReDIF-Article 1.0 Author-Name: Minghui Li Author-X-Name-First: Minghui Author-X-Name-Last: Li Author-Name: Chong Liu Author-X-Name-First: Chong Author-X-Name-Last: Liu Author-Name: Fang Zhang Author-X-Name-First: Fang Author-X-Name-Last: Zhang Title: The effects of government political visits on sustainability of energy enterprises: evidence from rare earth companies in China Abstract: Against the backdrop of Sino-US trade friction, we use Chinese President Xi Jinping’s visit to rare earth companies as an exogenous event to investigate market investors’ pursuit effect, on 11 rare earth companies. We find that (1) Xi’s visit had an important signal effect, causing abnormal fluctuations in the stock prices and a significantly positive cumulative average abnormal return (CAAR) of the 11 companies . (2) After government political visits (GPV), firms located in developing regions, younger firms, firms with poor historical performance, and firms with high ownership concentration can generate higher cumulative excess returns than those in developed regions, more established firms, firms with better financial performance, and firms with lower ownership concentration. (3) Our findings can be interpreted from two perspectives: the information asymmetry between market investors and enterprises and the signal effects of GPV. Finally, we discuss policy recommendations from the perspective of information transfer and securities analysts. Journal: Journal of Chinese Economic and Business Studies Pages: 39-63 Issue: 1 Volume: 20 Year: 2022 Month: 01 X-DOI: 10.1080/14765284.2021.2019446 File-URL: http://hdl.handle.net/10.1080/14765284.2021.2019446 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:20:y:2022:i:1:p:39-63 Template-Type: ReDIF-Article 1.0 Author-Name: Yaman Omer Erzurumlu Author-X-Name-First: Yaman Omer Author-X-Name-Last: Erzurumlu Author-Name: Giray Gozgor Author-X-Name-First: Giray Author-X-Name-Last: Gozgor Title: Effects of economic policy uncertainty on energy demand: evidence from 72 countries Abstract: This paper examines the effects of economic policy uncertainty on final energy consumption per capita in the panel dataset of 72 countries from 1960 to 2016. Economic policy uncertainty is captured by the World Uncertainty Indices (WUI). We firstly utilize the panel unit root tests with cross-sectional dependence to confirm the stationarity of the series. Secondly, we run various estimation techniques, such as fixed-effects, random-effects, and feasible generalized least squares. The results indicate that income is positively related to energy demand. However, a higher energy price decreases energy consumption, and the WUI is also negatively associated with energy consumption. These findings are robust to exclude the oil-exporter and the Organisation for Economic Co-operation and Development countries from the panel dataset. Finally, the Machado-Santos Silva quantile regression estimations show that the related effects of the income, energy price and the WUI on energy demand are valid at the different quantiles. Journal: Journal of Chinese Economic and Business Studies Pages: 23-38 Issue: 1 Volume: 20 Year: 2022 Month: 01 X-DOI: 10.1080/14765284.2021.2009999 File-URL: http://hdl.handle.net/10.1080/14765284.2021.2009999 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:20:y:2022:i:1:p:23-38 Template-Type: ReDIF-Article 1.0 Author-Name: Abdulrasheed Zakari Author-X-Name-First: Abdulrasheed Author-X-Name-Last: Zakari Author-Name: Irfan Khan Author-X-Name-First: Irfan Author-X-Name-Last: Khan Title: Boosting economic growth through energy in Africa: the role of Chinese investment and institutional quality Abstract: In 2019, Chinese investment rose to $110 billion across all sectors in Africa. However, there are many criticisms that the Chinese presence is a curse to the development of Africa. Hence, we direct our attention to unravel the truth about these allegations by examining the underlying effect of institutional quality and Chinese investment in Africa on energy consumption (EC) and its impact on economic growth. We applied a panel corrected standard error (PCSE) econometric procedure for a selected 21 sub-Saharan African countries. Our results show that energy consumption promotes economic growth. Similarly, the study revealed that the institutional quality and Chinese investment in Africa were the underlying factors for the positive effect of energy consumption and economic growth. Therefore, our results expand the economic growth literature and inform policymakers of the need to pay attention to bilateral trade and investment with China. Journal: Journal of Chinese Economic and Business Studies Pages: 1-21 Issue: 1 Volume: 20 Year: 2022 Month: 01 X-DOI: 10.1080/14765284.2021.1968709 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1968709 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:20:y:2022:i:1:p:1-21 Template-Type: ReDIF-Article 1.0 Author-Name: Kang Jia Author-X-Name-First: Kang Author-X-Name-Last: Jia Title: Goals on the road: institutional innovations in carbon peak and carbon neutrality Abstract: A low-carbon economy is not only vital to human survival but also to national energy security. The dual goals of carbon emission include those of a carbon peak and carbon neutrality, which are necessary for realizing new development patterns and promoting high-quality development in China. This study is focused on the innovation mechanism as applied to the dual goals of carbon emission, and two issues are considered – the overall carbon peak and carbon neutrality situation from resource tax and power reform perspective and the construction of a long-term mechanism to address environmental threats, such as smog. The continuous use of endogenous mechanisms to regulate the production and consumption behaviors of enterprises and people, as well as the means by which China may fully use its economic power to promote green, low-carbon, sustainable development are emphasized and analyzed. Journal: Journal of Chinese Economic and Business Studies Pages: 95-107 Issue: 1 Volume: 20 Year: 2022 Month: 01 X-DOI: 10.1080/14765284.2021.1985934 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1985934 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:20:y:2022:i:1:p:95-107 Template-Type: ReDIF-Article 1.0 Author-Name: Yingqi Wei Author-X-Name-First: Yingqi Author-X-Name-Last: Wei Author-Name: Sasa Ding Author-X-Name-First: Sasa Author-X-Name-Last: Ding Author-Name: Ziko Konwar Author-X-Name-First: Ziko Author-X-Name-Last: Konwar Title: The two faces of FDI in environmental performance: a meta-analysis of empirical evidence in China Abstract: The extant literature has raised debates concerning environmental performance of foreign direct investment (FDI) in China. We applied meta-analysis of 121 estimates reported in 40 studies to quantitatively synthesize our knowledge and understanding of the topic. Our findings indicate that FDI leads to better environmental performance through a pollution abatement effect, but not through enhancements in green total factor productivity. The meta-regression analysis reveals that the degree of environmental pollution abatement effects is moderated by environmental regulations, FDI measurement, and the consideration of endogeneity in empirical estimations. The results are discussed with references to scholarly and practical implications. Journal: Journal of Chinese Economic and Business Studies Pages: 65-94 Issue: 1 Volume: 20 Year: 2022 Month: 01 X-DOI: 10.1080/14765284.2021.1943735 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1943735 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:20:y:2022:i:1:p:65-94 Template-Type: ReDIF-Article 1.0 Author-Name: Moosa Yousuf Author-X-Name-First: Moosa Author-X-Name-Last: Yousuf Author-Name: Jia Zhai Author-X-Name-First: Jia Author-X-Name-Last: Zhai Title: The financial interconnectedness between global equity markets and crude oil: evidence from the GCC Abstract: This paper investigates the interconnectedness between the GCC region, crude oil prices, and global equity markets of the US, Europe, and China. We use DCC-GARCH models and the Diebold and Yilmaz (2012) approach to examine the dynamic connectedness and the net directional flow of spillovers. Consistent with previous studies, we find that the US and European markets are net global contributors of return and volatility shocks, whilst the Chinese equity markets are gradually becoming influential. Meanwhile, the GCC equity markets have been anet recipient of shocks from oil prices. Our empirical results provide some important insights. Firstly, the net transmission of shocks from oil prices to the GCC markets has been reducing over time. Secondly, the total connectedness nearly doubled in response to the global pandemic. Thirdly, the Chinese stock markets are gradually transforming into net transmitters of spillovers to other global equity markets. Journal: Journal of Chinese Economic and Business Studies Pages: 183-206 Issue: 2 Volume: 20 Year: 2022 Month: 04 X-DOI: 10.1080/14765284.2021.1989884 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1989884 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:20:y:2022:i:2:p:183-206 Template-Type: ReDIF-Article 1.0 Author-Name: Yi Cao Author-X-Name-First: Yi Author-X-Name-Last: Cao Author-Name: Jia Zhai Author-X-Name-First: Jia Author-X-Name-Last: Zhai Title: A survey of AI in finance Abstract: In recent years, the dramatically fast development of financial technology (fintech) has played an important role in the production, delivery and consumption of financial products and services. In this survey, we sum up the primary research discoveries in fintech area, which include the possible evolution of fintech’s effect on customer protection, prosperity and the discovery of the asset prices and returns, and the design of digital frameworks in the era of the fintech. Journal: Journal of Chinese Economic and Business Studies Pages: 125-137 Issue: 2 Volume: 20 Year: 2022 Month: 04 X-DOI: 10.1080/14765284.2022.2077632 File-URL: http://hdl.handle.net/10.1080/14765284.2022.2077632 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:20:y:2022:i:2:p:125-137 Template-Type: ReDIF-Article 1.0 Author-Name: Akim M. Rahman Author-X-Name-First: Akim M. Author-X-Name-Last: Rahman Author-Name: Saadi Islam Author-X-Name-First: Saadi Author-X-Name-Last: Islam Title: Can Voluntary Insurance ensure risk-free digital-banking in Chinese-economy: seeking attentions? Abstract: In today’s business-world, services are carried out in a competitive manner country-wise such as China. Banking services are no different, which has resulted digital-banking. Bank Laws regulated by Central-Bank of China are characterized by evolving many factors that are often unpredictable. It faces serious pitfalls being it riskiness. Most cases, customers don’t read terms & conditions of services. Customers don’t save contract-copy. These weaknesses cause abuses. Customer faces perceived-risk. Dealing with challenges in Chinese-economy, application of Akim’s model - Voluntary Insurance (VI) can be impetus for policy-design, which can increase number of users. Welfare Analyses are used for guidance on setting insurance-price ensuring customer’s efficiency-cost so that the VI becomes appealing to parties involved. It can lead to higher number-of-users. In scenario, bank itself is an insurance-seller, the existence of adverse-selection is detected. Here estimated welfare-cost associated with inefficient-pricing created by adverse-selection is quantitatively small; however, advantageous-selection results opposite. Welfare assessment under alternative policy intervention in Chinese-economy will be vital for future-study. Journal: Journal of Chinese Economic and Business Studies Pages: 139-158 Issue: 2 Volume: 20 Year: 2022 Month: 04 X-DOI: 10.1080/14765284.2021.1929792 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1929792 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:20:y:2022:i:2:p:139-158 Template-Type: ReDIF-Article 1.0 Author-Name: Edward P.K. Tsang Author-X-Name-First: Edward P.K. Author-X-Name-Last: Tsang Title: Directional change for handling tick-to-tick data Abstract: Time Series (TS) records transactions in a market at fixed intervals. Directional Change (DC) is an alternative way to record transactions: it only records transactions that represent significant price changes in the opposite direction in a trend, where ‘significance’ is observer-defined. In this paper, we argue that DC is particularly suitable for recording and analysing tick-to-tick data. Firstly, significant data points and high activities between sampling points that may not be recorded in a TS will always be recorded in DC. Secondly, as transactions take place at irregular times, but TS records transactions at fixed intervals, adjustments are required in the recording process, which may distort the records; no adjustments are required in DC. Thirdly, as DC is data-driven: every new transaction could potentially provide us with new information on the pulse of the market. For these reasons, DC is more suitable than TS for tracking tick-to-tick data for signals. Journal: Journal of Chinese Economic and Business Studies Pages: 171-182 Issue: 2 Volume: 20 Year: 2022 Month: 04 X-DOI: 10.1080/14765284.2021.1989883 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1989883 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:20:y:2022:i:2:p:171-182 Template-Type: ReDIF-Article 1.0 Author-Name: Zhiyi Liu Author-X-Name-First: Zhiyi Author-X-Name-Last: Liu Author-Name: Yejie Zheng Author-X-Name-First: Yejie Author-X-Name-Last: Zheng Title: Development paradigm of artificial intelligence in China from the perspective of digital economics Abstract: This paper mainly discusses three issues: How Artificial Intelligence (AI) influences China’s economy and shape the production factors. How to realize the network economy effect in China. What is the difference between the value of digital economy and that of traditional economy. On the basis of fully discussing the above problems, the author constructs a new AI economic growth model, and summarizes the research paradigm of digital economy based on value, network, and consensus. Journal: Journal of Chinese Economic and Business Studies Pages: 207-217 Issue: 2 Volume: 20 Year: 2022 Month: 04 X-DOI: 10.1080/14765284.2022.2081485 File-URL: http://hdl.handle.net/10.1080/14765284.2022.2081485 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:20:y:2022:i:2:p:207-217 Template-Type: ReDIF-Article 1.0 Author-Name: Conghua Wen Author-X-Name-First: Conghua Author-X-Name-Last: Wen Author-Name: Zixi Yang Author-X-Name-First: Zixi Author-X-Name-Last: Yang Author-Name: Rui Jiang Author-X-Name-First: Rui Author-X-Name-Last: Jiang Title: Herding behavior in Hong Kong stock market during the COVID-19 period: a systematic detection approach Abstract: The study intends to conduct a systematic mechanism for herding detection in the Hong Kong stock market. We take stocks from three market sectors as samples and investigate the existence of herding in the two periods: before and during the outbreak of COVID-19 in Hong Kong, from August 2019 to July 2020. We adopt CCK model-based OLS and quantile regression to examine herding in each observed period and employ HS model to measure the magnitude of herding during the time. The empirical results indicate the emergence of mild herding from August 2019 to January 2020, and the herding phenomenon is generally weakened between February and July 2020. Our study confirms the implication of the systematic herding detection mechanism that can improve the sensitivity of detection and capture the magnitude and variation of herding. Journal: Journal of Chinese Economic and Business Studies Pages: 159-170 Issue: 2 Volume: 20 Year: 2022 Month: 04 X-DOI: 10.1080/14765284.2021.1948320 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1948320 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:20:y:2022:i:2:p:159-170 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_1968708_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188 Author-Name: Yinshan Tang Author-X-Name-First: Yinshan Author-X-Name-Last: Tang Title: Gengzi reflections: how did Chinese culture evolve in the last 180 years Abstract: In its history, Chinese culture has experienced three big waves of developments. The first one was in the Warring State Period, instigated by a large number of philosophers who laid the foundations of Chinese culture. The second was the introduction of Buddhism and its final integration with Confucianism and Daoism in Southern Song dynasty (1127–1279). The third was represented by the introduction of science and social beliefs from the West (from 1840 onwards). This paper focuses on the cultural changes since 1840, from the Opium war to COVID-19 expands three Gengzi cycles. During the past 180 years, China has experienced one the most turbulent eras of its history, associated with immense culture changes. . In the recent 60 years, China has focused on economic development. The fast economic development and their response to COVID-19 have demonstrated that a system with Chinese characteristics will become the de facto system for China. Journal: Journal of Chinese Economic and Business Studies Pages: 245-251 Issue: 3 Volume: 20 Year: 2022 Month: 07 X-DOI: 10.1080/14765284.2021.1968708 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1968708 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:20:y:2022:i:3:p:245-251 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2056380_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188 Author-Name: Lei Zhao Author-X-Name-First: Lei Author-X-Name-Last: Zhao Author-Name: Bing Wang Author-X-Name-First: Bing Author-X-Name-Last: Wang Title: China’s public health diplomacy in the post Covid-19 era Abstract: Public health diplomacy is a diplomatic practice that focuses on addressing public health crises, such as infectious diseases. It is mainly implemented by sovereign states and relies on the joint efforts of health and foreign affairs departments, under the leadership and coordination of international organizations such as the WHO. The purpose is to safeguard national interests and promote global health governance through international medical cooperation. Public health diplomacy has presented new characteristics in the 21st century: health and diplomacy are more and more deeply integrated, involving an increasing number of players; Competition, which co-exists with cooperation on public health, is intensifying in this century; Countries endow this diplomacy with their own characteristics by leveraging their advantages. Compared with that of European countries and America, China’s public health diplomacy started late, but has shown its unique characteristics. Journal: Journal of Chinese Economic and Business Studies Pages: 235-244 Issue: 3 Volume: 20 Year: 2022 Month: 07 X-DOI: 10.1080/14765284.2022.2056380 File-URL: http://hdl.handle.net/10.1080/14765284.2022.2056380 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:20:y:2022:i:3:p:235-244 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2081486_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188 Author-Name: Thomas Hoerber Author-X-Name-First: Thomas Author-X-Name-Last: Hoerber Title: From fragmented space to the Space University Institute Abstract: Starting from the origin of European space policy and its institutions since WW2, this paper discusses the inconsistency of current institutional settings between the European Space Agency (ESA) and EU space policy. It points out the historical cause of this problematic situation and elaborates how it undermines potential synergies that were envisaged initially. Based on its analysis, it is proposed to open ESA up internationally, embodied in re-naming ESA to the Space University Institute (SUI), if one wants to take a parallel development to the European University Institute (EUI), or even entertaining the name International Space Agency. It would build on ESA strength in fostering research, training, and innovation while leaving the utilitarian side of downstream usage of space application to the EU. This opening up of ESA to a wider international constituency could create partnerships as they already exist within ESA with Canadafor example, and with which ESA has substantial experience. Journal: Journal of Chinese Economic and Business Studies Pages: 287-293 Issue: 3 Volume: 20 Year: 2022 Month: 07 X-DOI: 10.1080/14765284.2022.2081486 File-URL: http://hdl.handle.net/10.1080/14765284.2022.2081486 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:20:y:2022:i:3:p:287-293 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_1989885_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188 Author-Name: Ajit Bhalla Author-X-Name-First: Ajit Author-X-Name-Last: Bhalla Author-Name: Jing Fang Author-X-Name-First: Jing Author-X-Name-Last: Fang Title: Leaders, institutions and people during Covid-19 : Secret of Asian success Abstract: The three key actors in the current fight against the Coronavirus pandemic are as follows: (1) Leaders (political, scientific, industry, academic), (2) agents (public health departments, centres for disease control, educational and scientific institutions, multilateral organizations) and (3) followers (citizens, public, local community). All three need to be in sync to attain success, but the condition is fulfilled in only a very few countries mostly in Asia. Many political leaders were in denial about the pandemic and failed to provide any incentives to agents and followers to comply with public health rules and guidelines. A brief country review to test the above institutional framework offers several policy lessons for the future notably, need for global cooperation, greater role for government, strengthening of public health care and safety nets, and global sharing of Covid-19 data and vaccines, besides a change in human behaviour, working habits and lifestyles. Journal: Journal of Chinese Economic and Business Studies Pages: 253-273 Issue: 3 Volume: 20 Year: 2022 Month: 07 X-DOI: 10.1080/14765284.2021.1989885 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1989885 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:20:y:2022:i:3:p:253-273 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2056387_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188 Author-Name: Zhigao He Author-X-Name-First: Zhigao Author-X-Name-Last: He Author-Name: Yuan Li Author-X-Name-First: Yuan Author-X-Name-Last: Li Title: A new type of engagement between China and Europe amidst the COVID pandemic Abstract: The impact of the pandemic on the international economic and normative order has accelerated power struggles between the East and the West. Especially, the intensification of conflicts between China and Europe in terms of values may even affect the existing cooperation in the fields of economics, trade, and multilateralism. Despite divergences between China and Europe, including queries over the so-called mask diplomacy and cultural discrimination, as well as pressures from the US, some in Europe hope to strengthen engagement with China and keep the door open for cooperation and dialogue, thereby committing to the fundamentals of win-win cooperation. Cooperation is the backbone of a new type of engagement between China and Europe, which should not be affected by some occasional discord. Based on this new type of engagement, China and Europe build mutual trust, strengthen communication and coordination on global issues in a positive and pragmatic manner. Journal: Journal of Chinese Economic and Business Studies Pages: 295-301 Issue: 3 Volume: 20 Year: 2022 Month: 07 X-DOI: 10.1080/14765284.2022.2056387 File-URL: http://hdl.handle.net/10.1080/14765284.2022.2056387 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:20:y:2022:i:3:p:295-301 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2024486_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188 Author-Name: Amelia Hadfield Author-X-Name-First: Amelia Author-X-Name-Last: Hadfield Title: From pandemic to endemic? Learning lessons from a global contagion Abstract: Covid-19 has had the most profound impact at all levels: globally, nationally, and individually, across every sector imaginable. The ‘spectrum of responses’ represents an emerging structure that decision-makers have created and implanted, to help control the unpredictable nature of the pandemic. From shut down to lock down, from time and location-based unlocking, and back to full release, local and national communities alike have struggled – and some have succeeded – in their responses to Covid’s epidemiological impacts. Every state, every individual has been propelled back and forth along this spectrum, and the spectrum itself has been swiftly made, and overhauled by governments attempting to stay one step ahead of the spread, in lockstep with the swiftest developments in immunology and virology yet seen this century. But the spectrum cannot capture everything, including the tremendous economic and social impacts that Covid has had on societies, and indeed the most appropriate steps to take next. Journal: Journal of Chinese Economic and Business Studies Pages: 225-233 Issue: 3 Volume: 20 Year: 2022 Month: 07 X-DOI: 10.1080/14765284.2021.2024486 File-URL: http://hdl.handle.net/10.1080/14765284.2021.2024486 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:20:y:2022:i:3:p:225-233 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2077631_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188 Author-Name: Yuan Li Author-X-Name-First: Yuan Author-X-Name-Last: Li Author-Name: Amelia Hadfield Author-X-Name-First: Amelia Author-X-Name-Last: Hadfield Title: East meets West: challenges and responses in pandemic times Abstract: The COVID-19 pandemic has few recent parallels in terms of its scale and scope in contemporary human history. Its after-effects are ongoing, many of which include a devastating impact on economies and societies the world over. Within this Special Issue, we reflect on the major impacts, trends and consequences that have arisen from spread of the Covid-19 pandemic in the past two years. In doing so, we highlight the varying responses of national governments and international institutions, explore the causes behind the choice of different models to suppress the pandemic, and evaluate the way in which those choices have had material impacts on communities, economies and governments. We also focus on some of the specific interactions between China and the outside world, including its relationship and cooperation with Asia and Europe, amidst US-China rivalry. Journal: Journal of Chinese Economic and Business Studies Pages: 219-224 Issue: 3 Volume: 20 Year: 2022 Month: 07 X-DOI: 10.1080/14765284.2022.2077631 File-URL: http://hdl.handle.net/10.1080/14765284.2022.2077631 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:20:y:2022:i:3:p:219-224 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2046439_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220804T044749 git hash: 24b08f8188 Author-Name: Yunling Zhang Author-X-Name-First: Yunling Author-X-Name-Last: Zhang Title: China’s rise and peace building in Asia Abstract: China needs a long-time peaceful and cooperative environment, and it has no intention to overthrow the existing basic international system. China supports a multiple world with different cultures, political systems and social structures based on the principle of mutual respect and peaceful coexistence. The relationship between China and the United States seems enter into a sensitive and dangerous time. We need new mind set and wisdom to handle such a complex and important relationship. China’s rise is a significant event in our world. The quick rise of China changes China itself and also changes the region and the world. Due to these changes, the relations between China and the outside world are undergoing significant restructuring. It is crucial to manage the changes smoothly so as to realize a peaceful age. Journal: Journal of Chinese Economic and Business Studies Pages: 275-285 Issue: 3 Volume: 20 Year: 2022 Month: 07 X-DOI: 10.1080/14765284.2022.2046439 File-URL: http://hdl.handle.net/10.1080/14765284.2022.2046439 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:20:y:2022:i:3:p:275-285 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_1943193_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Hazwan Haini Author-X-Name-First: Hazwan Author-X-Name-Last: Haini Title: Examining the nonlinear impact of the banking sector on economic growth: evidence from China’s Provinces Abstract: This study examines the nonlinear impact of banking sector development on economic growth in China’s provinces from 1990 to 2017 using dynamic panel estimators. China has experienced rapid economic growth since its reforms; however, China has a repressed financial system as its banking sector reforms have lagged behind other reforms. Meanwhile, the finance-growth literature traditionally posits a positive relationship between the two. Consequently, China presents an interesting case study on the relationship between banking sector development and economic growth. This study investigates whether the relationship is nonlinear, and identifies whether a threshold level exists, where the impact of the banking sector becomes insignificant or negative. The results show that the relationship between banking sector development and growth is nonlinear, suggesting that there is an optimal level. Furthermore, the results show that high levels of banking sector development crowd out the positive impact of private investment. Policy implications are discussed. Journal: Journal of Chinese Economic and Business Studies Pages: 397-414 Issue: 4 Volume: 20 Year: 2022 Month: 10 X-DOI: 10.1080/14765284.2021.1943193 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1943193 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:20:y:2022:i:4:p:397-414 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_1985933_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Dinggen Zhou Author-X-Name-First: Dinggen Author-X-Name-Last: Zhou Author-Name: Yanguang Liu Author-X-Name-First: Yanguang Author-X-Name-Last: Liu Author-Name: Xiaohang Ren Author-X-Name-First: Xiaohang Author-X-Name-Last: Ren Author-Name: Cheng Yan Author-X-Name-First: Cheng Author-X-Name-Last: Yan Author-Name: Yukun Shi Author-X-Name-First: Yukun Author-X-Name-Last: Shi Title: Economic agglomeration and product quality upgrading: evidence from China Abstract: Based on merged custom import and export data and Chinese industrial enterprise data, this paper studies the influence of economic agglomeration incurred by urbanization in China on the products’ quality upgrading. We find that economic agglomeration can improve the product quality of Chinese enterprises. We further show that in the context of deepening trade liberalization, economic agglomeration leads enterprises to import more various intermediate products, thus helping to upgrade the quality of final products. The increase in the proportion of intermediate products imported from high-income countries will strengthen the role of economic agglomeration in upgrading the quality of products. Journal: Journal of Chinese Economic and Business Studies Pages: 377-395 Issue: 4 Volume: 20 Year: 2022 Month: 10 X-DOI: 10.1080/14765284.2021.1985933 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1985933 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:20:y:2022:i:4:p:377-395 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_1977081_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Dan Li Author-X-Name-First: Dan Author-X-Name-Last: Li Author-Name: Hong Li Author-X-Name-First: Hong Author-X-Name-Last: Li Title: The impact of governance improvement of institutional shareholders on firm value Abstract: In this study, we investigate whether the measures to improve corporate governance of financial institutions promoted by the Chinese authorities in 2013 have contributed to the positive growth of the values of institutional investments in firms. Given the regulatory changes about financial institutions in 2013, we hypothesise that the improvement of corporate governance of financial institutions has a spillover effect and increases the performance of the companies that the institutions invest in. Our results are robust in supporting the hypothesis, even after we address for reverse causality issue. In particular, we verify that the spillover of governance, arising from the improvement of corporate governance in financial institutions, can strengthen the positive association between institutional ownership and firm value. Journal: Journal of Chinese Economic and Business Studies Pages: 437-460 Issue: 4 Volume: 20 Year: 2022 Month: 10 X-DOI: 10.1080/14765284.2021.1977081 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1977081 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:20:y:2022:i:4:p:437-460 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_1929793_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Lin Justin Yifu Author-X-Name-First: Lin Justin Author-X-Name-Last: Yifu Author-Name: Xiaobing Wang Author-X-Name-First: Xiaobing Author-X-Name-Last: Wang Title: Dual Circulation: a New Structural Economics view of development Abstract: This paper provides a detailed account of China’s Dual Circulation Development Paradigm and examines its theoretical foundation from the perspective of the New Structural Economics approach. The purpose of this Paradigm is to shift the focus from foreign to domestic circulation as the major driving force for China’s sustainable development, and to emphasize the importance of a positive reciprocal relationship between domestic and international economic circulations. This paper argues that aim of the Paradigm is to facilitate a qualitative leap in industrial upgrading to achieve both a higher-quality domestic circulation and a higher-level of international circulation. By explaining the development thinking from the Chinese policy-makers’ perspective, this paper also casts light on growth and development issues facing other countries. Journal: Journal of Chinese Economic and Business Studies Pages: 303-322 Issue: 4 Volume: 20 Year: 2022 Month: 10 X-DOI: 10.1080/14765284.2021.1929793 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1929793 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:20:y:2022:i:4:p:303-322 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2004350_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Weiying Zhang Author-X-Name-First: Weiying Author-X-Name-Last: Zhang Title: Market economy and China’s “common prosperity” campaign Abstract: It is commonly believed that market economy and common prosperity are conflict and that the income redistribution policy is needed to achieve common prosperity. This article shows that this common belief is wrong. I argue that market economy is the only way for common prosperity. China’s future development depends on our beliefs. If we lose our faith in the market and introduce more and more government intervention in the name of common prosperity, China can only move towards common poverty. Journal: Journal of Chinese Economic and Business Studies Pages: 323-337 Issue: 4 Volume: 20 Year: 2022 Month: 10 X-DOI: 10.1080/14765284.2021.2004350 File-URL: http://hdl.handle.net/10.1080/14765284.2021.2004350 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:20:y:2022:i:4:p:323-337 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2036577_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Koichiro Kimura Author-X-Name-First: Koichiro Author-X-Name-Last: Kimura Title: How do firms specialize? The technological positions of Chinese robotics firms Abstract: This study analyses how firms sharpen technological specialization as they develop technologies. We investigate the technological positions of firms in the Chinese robotics industry, which has been rapidly growing in recent years. Using patent information for technological fields that firms focus on, firstly, we show that the technological positions of Chinese firms have been getting close to that of a Japanese first-mover firm in the same industry. Secondly, we examine the characteristics of the technological positions of Chinese firms and show that specialization consists of technologies which realize the basic functions of robots and those which improve the sophistication of products. Specialization generally means a strength rooting in narrower technological fields, but it is established as an expansive structure that straddles various technological fields. Therefore, to evaluate the strength of each firm, it is necessary to compare the commonalities and differences of technological positions. Journal: Journal of Chinese Economic and Business Studies Pages: 339-353 Issue: 4 Volume: 20 Year: 2022 Month: 10 X-DOI: 10.1080/14765284.2022.2036577 File-URL: http://hdl.handle.net/10.1080/14765284.2022.2036577 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:20:y:2022:i:4:p:339-353 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2138161_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Yizhi Wang Author-X-Name-First: Yizhi Author-X-Name-Last: Wang Author-Name: Florian Horky Author-X-Name-First: Florian Author-X-Name-Last: Horky Author-Name: Lennart J. Baals Author-X-Name-First: Lennart J. Author-X-Name-Last: Baals Author-Name: Brian M. Lucey Author-X-Name-First: Brian M. Author-X-Name-Last: Lucey Author-Name: Samuel A. Vigne Author-X-Name-First: Samuel A. Author-X-Name-Last: Vigne Title: Bubbles all the way down? Detecting and date-stamping bubble behaviours in NFT and DeFi markets Abstract: Amid surging market values and widespread regulatory discussion, NFT and DeFi markets are widely perceived as being simply speculative in nature. This paper detects the existence and dates of price bubbles in the NFT and DeFi markets by applying SADF and GSADF tests. We document that NFT and DeFi markets both exhibit speculative bubbles, with NFT bubbles being more recurrent and having higher average explosive magnitudes than DeFi bubbles. The price bubbles in the NFT and DeFi markets are highly correlated with market hype and with more general cryptocurrency market uncertainty. We do find periods where bubbles are not detected, suggesting that these markets do have some intrinsic value and should not be dismissed as simply bubbles. Journal: Journal of Chinese Economic and Business Studies Pages: 415-436 Issue: 4 Volume: 20 Year: 2022 Month: 10 X-DOI: 10.1080/14765284.2022.2138161 File-URL: http://hdl.handle.net/10.1080/14765284.2022.2138161 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:20:y:2022:i:4:p:415-436 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_1996190_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Cheng Tang Author-X-Name-First: Cheng Author-X-Name-Last: Tang Author-Name: Cheng Zhang Author-X-Name-First: Cheng Author-X-Name-Last: Zhang Author-Name: Huaxia Yang Author-X-Name-First: Huaxia Author-X-Name-Last: Yang Title: Bequest motives and the Chinese household saving puzzle Abstract: This study analyses the phenomenon of the high saving rate of China’s households from the perspective of bequest motives based on the data of China Household Finance Survey (CHFS). The result shows that, like Japan, the bequest motives of China’s households have a significant positive effect on the family saving rate, especially on rural household savings, middle-wealth and low-wealth households, those whose children work outside of the government system and those whose children with low education, indicating that the bequest motives of China’s households are more altruistic. This provides a new understanding of the high savings of households in China and can provide a reference for future policy making. Journal: Journal of Chinese Economic and Business Studies Pages: 355-376 Issue: 4 Volume: 20 Year: 2022 Month: 10 X-DOI: 10.1080/14765284.2021.1996190 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1996190 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:20:y:2022:i:4:p:355-376 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_1953352_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: V. N. Balasubramanyam Author-X-Name-First: V. N. Author-X-Name-Last: Balasubramanyam Title: Resurgent Asia; diversity in development Journal: Journal of Chinese Economic and Business Studies Pages: 461-468 Issue: 4 Volume: 20 Year: 2022 Month: 10 X-DOI: 10.1080/14765284.2021.1953352 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1953352 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:20:y:2022:i:4:p:461-468 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2073172_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Nicholas Stern Author-X-Name-First: Nicholas Author-X-Name-Last: Stern Author-Name: Chunping Xie Author-X-Name-First: Chunping Author-X-Name-Last: Xie Title: China’s new growth story: linking the 14th Five-Year Plan with the 2060 carbon neutrality pledge Abstract: China has announced its commitment to achieving carbon neutrality by 2060, and for this challenging goal to be reached within just four decades, there is a real urgency of shaping the low-carbon agenda in its 14th Five-Year Plan and to ratchet up ambition on climate policy in the near term to peak emissions early. This paper argues that China will have to change the way of development by take a sustainable pathway to growth. And this new approach does not mean sacrificing economic growth; quite the opposite, it can boost growth by providing great opportunities in terms of jobs, efficiency, demand, and many other aspects, while reducing carbon emissions and enabling great benefits with regards to pollution, ecological restoration, biodiversity and well-beings. The COVID-19 pandemic has provided a window of opportunity for China and other countries to cooperate to link the post-pandemic economic recovery with the fight against climate change. Journal: Journal of Chinese Economic and Business Studies Pages: 5-25 Issue: 1 Volume: 21 Year: 2023 Month: 01 X-DOI: 10.1080/14765284.2022.2073172 File-URL: http://hdl.handle.net/10.1080/14765284.2022.2073172 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:21:y:2023:i:1:p:5-25 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2167413_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Hui Li Author-X-Name-First: Hui Author-X-Name-Last: Li Author-Name: Ruining Zhang Author-X-Name-First: Ruining Author-X-Name-Last: Zhang Author-Name: Lingyue Zhang Author-X-Name-First: Lingyue Author-X-Name-Last: Zhang Author-Name: Yu Qin Author-X-Name-First: Yu Author-X-Name-Last: Qin Author-Name: Hua Liao Author-X-Name-First: Hua Author-X-Name-Last: Liao Title: Energy production revolution in China during 2015–2019: progress and challenges Abstract: Since the release of the Energy Supply and Consumption Revolution Strategy (2016–2030), China has made remarkable advancements. This paper establishes an evaluation system to analyze the progress of the energy production revolution in China during 2016–2019. The results report that more than three-fourths of the indicators fulfill the process schedule by more than 80% in 2019. Specifically, the clean development and efficient utilization of coal is carried out significantly among the five major areas of the energy production revolution. However, China’s energy production revolution still faces challenges, such as insufficient technology innovation of power generation, weak consumption and storage capacity of clean energy, the outdated transaction management system of the energy market, the limited emergency capacity of the energy system, and the backward construction of an energy production intelligent system. Finally, policy implications for accelerating the energy production revolution are proposed. Journal: Journal of Chinese Economic and Business Studies Pages: 85-109 Issue: 1 Volume: 21 Year: 2023 Month: 01 X-DOI: 10.1080/14765284.2023.2167413 File-URL: http://hdl.handle.net/10.1080/14765284.2023.2167413 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:21:y:2023:i:1:p:85-109 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2116203_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jing-Li Fan Author-X-Name-First: Jing-Li Author-X-Name-Last: Fan Author-Name: Zixia Ding Author-X-Name-First: Zixia Author-X-Name-Last: Ding Author-Name: Kai Li Author-X-Name-First: Kai Author-X-Name-Last: Li Author-Name: Qian Wang Author-X-Name-First: Qian Author-X-Name-Last: Wang Author-Name: Xian Zhang Author-X-Name-First: Xian Author-X-Name-Last: Zhang Title: Research on carbon neutrality from the past to the future: a bibliometric analysis Abstract: Many countries have made carbon neutrality pledges in response to climate change. In this study, we collected 2,918 publications related to carbon neutrality from the Web of Science and conducted a bibliometric analysis. In this field, we discovered: (1) The number of publications has gone through three phases, with 66.6% of total publications during 2015–2021; research was dominated by the US, with four of the ten most influential institutions coming from it. In 2016, China exceeded the UK in terms of annual publications and ranked second. (2) Academic collaboration among the Top 20 productive countries was extensive, with co-authors from 12 of the 20 countries publishing more than 50% of the total. (3) Co-word analysis indicated that during 2000–2007, researchers focused mainly on ecological carbon sinks; during 2008–2014, carbon markets, bioenergy, and bio-based products attracted attention; during 2015–2021, carbon sequestration technologies, hydrogen, and fuel cells were the focus. Journal: Journal of Chinese Economic and Business Studies Pages: 27-48 Issue: 1 Volume: 21 Year: 2023 Month: 01 X-DOI: 10.1080/14765284.2022.2116203 File-URL: http://hdl.handle.net/10.1080/14765284.2022.2116203 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:21:y:2023:i:1:p:27-48 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2161171_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xinyi Xie Author-X-Name-First: Xinyi Author-X-Name-Last: Xie Author-Name: Jianan Lu Author-X-Name-First: Jianan Author-X-Name-Last: Lu Author-Name: Mao Li Author-X-Name-First: Mao Author-X-Name-Last: Li Author-Name: Jiang Dai Author-X-Name-First: Jiang Author-X-Name-Last: Dai Title: Does carbon neutrality commitment enhance firm value? Abstract: This study discusses the stock market reaction to the firm’s carbon neutrality commitments. By hand-collecting firm-level news and stock data, we conduct event studies as well as regression modelling studies. The results show that firms experience losses in market value from committing to being carbon neutral, and the decline in cumulative abnormal returns ranges from −2.09% to −1.21% across different event windows. However, we find better previous ESG performance and a higher level of carbon disclosure could mitigate adverse market reactions. This study innovatively links the ‘trade-off theory’ and ‘resource-based view’ to the discussion of CSR/ESG on firm value from the lens of carbon neutrality commitments. Journal: Journal of Chinese Economic and Business Studies Pages: 49-83 Issue: 1 Volume: 21 Year: 2023 Month: 01 X-DOI: 10.1080/14765284.2022.2161171 File-URL: http://hdl.handle.net/10.1080/14765284.2022.2161171 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:21:y:2023:i:1:p:49-83 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2127397_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Chen Lin Author-X-Name-First: Chen Author-X-Name-Last: Lin Author-Name: Sibo Liu Author-X-Name-First: Sibo Author-X-Name-Last: Liu Author-Name: Lai Wei Author-X-Name-First: Lai Author-X-Name-Last: Wei Title: Banking and innovation: a review Abstract: We summarize the major findings of empirical studies that examine the effect of banking development on innovation and highlight their relative contributions to our understanding of the various roles the banking sector plays in determining innovation. We reassess the effect of banking development and innovation, extending the scope of analysis to more granular dimensions of innovation and to Asian economies where financial markets are less developed. We find that while theoretical implications are generally indefinite about the effect of banking development on innovation, empirical findings are less ambiguous given their distinct focus of sample firms and the underlying channels investigated. The development conditions of financial markets also matter in drawing implications for the effect of financial institutions on innovation. Specifically, when the stock market is relatively less developed, as in most Asian economies, banks play a significant role in financing and promoting innovation. Therefore, it seems plausible for policy makers in these regions to strengthen the development of the banking sector and to improve the depth of the credit market.In this survey, we will summarize the major findings of the empirical studies that examine the effect of banking development on innovation and highlight their relative contributions to our understanding. Journal: Journal of Chinese Economic and Business Studies Pages: 143-176 Issue: 1 Volume: 21 Year: 2023 Month: 01 X-DOI: 10.1080/14765284.2022.2127397 File-URL: http://hdl.handle.net/10.1080/14765284.2022.2127397 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:21:y:2023:i:1:p:143-176 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2182013_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zhifu Mi Author-X-Name-First: Zhifu Author-X-Name-Last: Mi Author-Name: Yuning Gao Author-X-Name-First: Yuning Author-X-Name-Last: Gao Author-Name: Hua Liao Author-X-Name-First: Hua Author-X-Name-Last: Liao Title: Carbon neutrality and socio-economic development Journal: Journal of Chinese Economic and Business Studies Pages: 1-3 Issue: 1 Volume: 21 Year: 2023 Month: 01 X-DOI: 10.1080/14765284.2023.2182013 File-URL: http://hdl.handle.net/10.1080/14765284.2023.2182013 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:21:y:2023:i:1:p:1-3 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2106539_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Kangyin Dong Author-X-Name-First: Kangyin Author-X-Name-Last: Dong Author-Name: Jun Zhao Author-X-Name-First: Jun Author-X-Name-Last: Zhao Author-Name: Xiaohang Ren Author-X-Name-First: Xiaohang Author-X-Name-Last: Ren Author-Name: Yukun Shi Author-X-Name-First: Yukun Author-X-Name-Last: Shi Title: Environmental regulation, human capital, and pollutant emissions: the case of SO2 emissions for China Abstract: This study aims to explore whether the impact of environmental regulation on pollution emissions varies across China’s regions under different human capital levels. And whether environmental regulation will affect sulfur emissions through human capital is also examined. The empirical results conclude that: (1) environmental protection investment cannot effectively contribute to sulfur emission reduction for the full sample; (2) environmental regulation can aggravate pollution emissions when human capital is low, while human capital is in a high-level, enhanced regulation can help reduce pollution emissions; and (3) environmental regulation can help strengthen sulfur reduction through human capital accumulation; however, the reduction of sulfur emissions by human capital cannot offset the direct positive effect of environmental regulation on sulfur emissions. Journal: Journal of Chinese Economic and Business Studies Pages: 111-135 Issue: 1 Volume: 21 Year: 2023 Month: 01 X-DOI: 10.1080/14765284.2022.2106539 File-URL: http://hdl.handle.net/10.1080/14765284.2022.2106539 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:21:y:2023:i:1:p:111-135 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2162246_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: B. Baesens Author-X-Name-First: Author-X-Name-Last: B. Baesens Title: Fraud analytics: a research Abstract: Fraud is as old as humankind and appears in many types and forms. Popular examples are credit card fraud, tax evasion, identity theft, insurance fraud, counterfeit, click fraud, anti-money laundering, and payment transaction fraud. In earlier research we defined fraud as an uncommon, well-considered, imperceptibly concealed, time-evolving, and carefully organized crime. Nowadays, fraud is typically tackled using state-of-the-art analytical techniques with many accompanying challenges. It is the purpose of this article to highlight twelve research topics (RTs) that we believe prioritize high on the agenda of contemporary fraud analytics models. We do this by reviewing fraud analytics from a data, model, performance, and deployment perspective. Journal: Journal of Chinese Economic and Business Studies Pages: 137-141 Issue: 1 Volume: 21 Year: 2023 Month: 01 X-DOI: 10.1080/14765284.2022.2162246 File-URL: http://hdl.handle.net/10.1080/14765284.2022.2162246 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:21:y:2023:i:1:p:137-141 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2136933_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Hong Bo Author-X-Name-First: Hong Author-X-Name-Last: Bo Title: Implications of the Ukraine war for China: can China survive secondary sanctions? Abstract: In this short article, I provide a preliminary assessment of the economic consequences of possible secondary sanctions on China. Considering the interdependence of China with the rest of the world, I analyse challenges and opportunities China would face in the scenario of secondary sanctions. My analysis covers China’s real economy, domestic financial system, role in international finance, and Belt and Road Initiative (BRI). Overall, China can survive secondary sanctions, but its ambitions for the advancement of technology would face mounting difficulties. Journal: Journal of Chinese Economic and Business Studies Pages: 311-322 Issue: 2 Volume: 21 Year: 2023 Month: 04 X-DOI: 10.1080/14765284.2022.2136933 File-URL: http://hdl.handle.net/10.1080/14765284.2022.2136933 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:21:y:2023:i:2:p:311-322 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2024485_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Majid Lateef Author-X-Name-First: Majid Author-X-Name-Last: Lateef Author-Name: Muhammad Usman Riaz Author-X-Name-First: Muhammad Usman Author-X-Name-Last: Riaz Title: Influence of CPEC–Flagship of Belt and Road Initiative on the agricultural trade of China Abstract: This study investigates the potential impact of China’s Belt and Road Initiative (BRI) on its agricultural exports. A gravity model was formulated to find the determinants of China’s agricultural exports. This model uses two measures of distance: Model 1A uses the great-circle measure of distance and Model 1B uses the existing real distance used between China and its trade partners. The determinants of both models are then used to simulate China’s pre-CPEC export potential in agricultural products. The results of Model 1B are then simulated, using the proposed real distance values to calculate China’s post-CPEC agricultural export potential. The findings for pre-CPEC exports show that a strong potential for agricultural exports exists for African, Middle Eastern, and other countries. The findings for post-CPEC trade show that there will be a tremendous increase in the export potential for African and Middle Eastern countries that can be attributed to BRI. Journal: Journal of Chinese Economic and Business Studies Pages: 263-280 Issue: 2 Volume: 21 Year: 2023 Month: 04 X-DOI: 10.1080/14765284.2021.2024485 File-URL: http://hdl.handle.net/10.1080/14765284.2021.2024485 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:21:y:2023:i:2:p:263-280 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2021489_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Syed Zulfiqar Ali Shah Author-X-Name-First: Syed Zulfiqar Ali Author-X-Name-Last: Shah Author-Name: Ch. Mazhar Hussain Author-X-Name-First: Ch. Mazhar Author-X-Name-Last: Hussain Author-Name: Muhammad Anwar Author-X-Name-First: Muhammad Author-X-Name-Last: Anwar Title: Does entrepreneurial orientation encourage Pakistani SMEs to participate in China-Pakistan economic corridor? Abstract: Small and Medium Enterprises (SMEs) operating in China and Pakistan have shown great interest to participate in China-Pakistan Economic Corridor (CPEC). However, there is a dearth of reliable evidence on how SMEs can easily participate and get maximum benefits of the corridor. This research fills the gap by examining the influence of entrepreneurial orientation on the participation of CPEC through a sample of 211 Pakistani SMEs. The emphasis is placed on entrepreneurial orientation, rather than statutory regulations and governmental invention, to meet the desired objectives of CPEC. The results indicate that innovativeness, pro-activeness and risk-taking significantly facilitate SMEs towards CPEC while autonomy and competitive aggressiveness do not influence the perception of top managers/owners about CPEC. Our research recommends SMEs create entrepreneurial culture (specifically innovative, proactive and risk-taking) to gain benefits from export/imports arising CPEC. The findings also recommend policymakers initiate entrepreneurship programs and minimize regulations on internationalization among the SMEs.. Journal: Journal of Chinese Economic and Business Studies Pages: 281-299 Issue: 2 Volume: 21 Year: 2023 Month: 04 X-DOI: 10.1080/14765284.2021.2021489 File-URL: http://hdl.handle.net/10.1080/14765284.2021.2021489 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:21:y:2023:i:2:p:281-299 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2012387_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Alvar Castello Esquerdo Author-X-Name-First: Alvar Author-X-Name-Last: Castello Esquerdo Title: Determinants of technology investment from China into Latin America Abstract: This research aims to study the determinant of Chinese technology FDI into Latin America, to identify the role of macroeconomic and institutional environment in their investment location choice, and to reveal the influence of key country-level effects. The results indicate that the host country’s economic development and the China-host country trade agreements positively influence Chinese technology investments, while the home economic growth of China might hinder them. These findings suggest a market-seeking motivation rather than the traditional resource-seeking one, whereas the institutional and cultural distance seems not deter Chinese technology investment into the region. Our findings suggest that Chinese OFDI toward Latin America is strongly driven by state-owned enterprises (SOEs) and thanks to the support of their government, maybe less concerned by the host country's institutional environment. This research contributes to a better understanding of the location decision-making of MNEs from emerging markets carrying out investments in others emerging economies. Journal: Journal of Chinese Economic and Business Studies Pages: 213-238 Issue: 2 Volume: 21 Year: 2023 Month: 04 X-DOI: 10.1080/14765284.2021.2012387 File-URL: http://hdl.handle.net/10.1080/14765284.2021.2012387 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:21:y:2023:i:2:p:213-238 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2210482_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Harjit Singh Author-X-Name-First: Harjit Author-X-Name-Last: Singh Author-Name: Avneet Singh Author-X-Name-First: Avneet Author-X-Name-Last: Singh Title: ChatGPT: Systematic Review, Applications, and Agenda for Multidisciplinary Research Abstract: With the launch of text-based artificial Intelligence (AI) powered ChatGPT by OpenAI, the natural language processing method of communicating has been captivating the business world. Since its launch in November 2022, ChatGPT has been making waves in diverse areas ranging from customer care to healthcare, education to automobiles, and the financial world to communication technology. This study presents the theoretical background, use of technology, and its applications in various business areas. The study aims to organize much talked about but less understood technological aspects from a modern technological disruption perspective and lays the agenda for multidisciplinary research. Furthermore, we present AI-powered chatbot applications and business use cases vis-à-vis the uncertainties of using technology. Finally, we conclude by stating our thoughts regarding the direction of technology so that ChatGPT could benefit the business world. Journal: Journal of Chinese Economic and Business Studies Pages: 193-212 Issue: 2 Volume: 21 Year: 2023 Month: 04 X-DOI: 10.1080/14765284.2023.2210482 File-URL: http://hdl.handle.net/10.1080/14765284.2023.2210482 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:21:y:2023:i:2:p:193-212 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2212434_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yi Cao Author-X-Name-First: Yi Author-X-Name-Last: Cao Author-Name: Jia Zhai Author-X-Name-First: Jia Author-X-Name-Last: Zhai Title: Bridging the gap – the impact of ChatGPT on financial research Abstract: In March 2023, the release of GPT-4 and its application, Copilot, astounds the world and thrusts AI into the spotlight in industry, and academia. The incredible superiority of GPT-4 is demonstrated by its ability to achieve high scores on almost all mainstream academic and professional standard exams, Copilot’s capability to accomplish nearly all repetitive office work, and the rapid spread of its applications across massive areas of human society within weeks of its launch. These changes lead to the belief on the emergence of GPT-4 having a significant impact on academic research in the finance and accounting fields by establishing a consensus on the psychological acceptance of AI and rapidly eliminating technical barriers of using it. This paper presents practical examples to demonstrate GPT-4’s effectiveness in sentiment analysis, ESG analysis, corporate culture analysis, and Federal Reserve opinion analysis, and provides instructive recommendations for applying it in these subject areas. Journal: Journal of Chinese Economic and Business Studies Pages: 177-191 Issue: 2 Volume: 21 Year: 2023 Month: 04 X-DOI: 10.1080/14765284.2023.2212434 File-URL: http://hdl.handle.net/10.1080/14765284.2023.2212434 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:21:y:2023:i:2:p:177-191 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_1977082_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Nicholas Apergis Author-X-Name-First: Nicholas Author-X-Name-Last: Apergis Author-Name: Marco Chi Keung Lau Author-X-Name-First: Marco Chi Keung Author-X-Name-Last: Lau Author-Name: Zezeng Li Author-X-Name-First: Zezeng Author-X-Name-Last: Li Title: Challenges for sustainable productivity in developing economies: shortage of energy and corruption Abstract: Developing countries suffer from shortages of electricity, posing a severe problem for industrial firms and giving them considerable incentives to access electricity resources through bribery. We investigate how firms’ revenues, sales and productivity are affected by payments of bribes to obtain electricity connections. We use ordinary least squares (OLS), quantile and instrumental variable (IV) quantile regression analysis. OLS estimates reveal a negative effect on sales and productivity and a positive impact on profitability, while quantile regression suggests a negative effect on sales across all quantiles and a positive effect on productivity at the lower quantile. Since this research shows that bribery may negatively influence productivity, it informs shareholders that bribery may be detrimental to their long-term benefits. Journal: Journal of Chinese Economic and Business Studies Pages: 239-261 Issue: 2 Volume: 21 Year: 2023 Month: 04 X-DOI: 10.1080/14765284.2021.1977082 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1977082 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:21:y:2023:i:2:p:239-261 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_1929785_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Kang Jia Author-X-Name-First: Kang Author-X-Name-Last: Jia Title: Accelerating the construction of a new development pattern with the domestic circulation as the mainstay and mutual promotion of dual circulation Abstract: This study examines China’s new dual circulation development pattern, which requires the pursuit of upgraded development to emphasize domestic circulation as the mainstay, in line with expanding the domestic demand. Furthermore, dual circulation is regarded as the mutual promotion of domestic and international circulation, which aims for high quality in domestic and international circulation. The key to building this new development pattern is an unimpeded economic circulation. Accordingly, this study identifies five essential considerations for China to accelerate the construction of the new development pattern, with domestic circulation as its mainstay. This is because a deep understanding of the Chinese government’s policy objectives is required to guide the efforts toward modernization effectively. Journal: Journal of Chinese Economic and Business Studies Pages: 301-309 Issue: 2 Volume: 21 Year: 2023 Month: 04 X-DOI: 10.1080/14765284.2021.1929785 File-URL: http://hdl.handle.net/10.1080/14765284.2021.1929785 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:21:y:2023:i:2:p:301-309 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2206897_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Moses Nyangu Author-X-Name-First: Moses Author-X-Name-Last: Nyangu Author-Name: Nyankomo Marwa Author-X-Name-First: Nyankomo Author-X-Name-Last: Marwa Author-Name: Ashenafi Fanta Author-X-Name-First: Ashenafi Author-X-Name-Last: Fanta Title: What drives financial stability? the nexus between market power and bank efficiency within the East African Community Abstract: The paper examines the joint effect of market power and different types of bank efficiency on financial stability across 5 countries within the East African Community. Unlike existing studies which have employed efficiency in a broad way, it is decomposed into five different types, that is, technical, pure technical, scale, cost and revenue efficiency. Using a two-step system GMM on 149 banks with 1,805 observations over the period 2001–2018, empirical findings reveal that the joint effect of market power and bank efficiency is critical on financial stability and the effect varies with the specific type of efficiency being explored. Increased market power is observed to have a direct positive effect on bank stability. With respect to bank efficiency, cost and revenue efficiency have a positive significant effect with bank stability while the effect of technical, pure technical and scale efficiency is insignificant. In overall, concentrated banks with higher cost and revenue efficiency are more stable compared to the inefficient banks. The findings highlight that an eclectic policy to ensure a trade-off between bank concentration and competition should be ensured by the bank regulators. Journal: Journal of Chinese Economic and Business Studies Pages: 403-428 Issue: 3 Volume: 21 Year: 2023 Month: 07 X-DOI: 10.1080/14765284.2023.2206897 File-URL: http://hdl.handle.net/10.1080/14765284.2023.2206897 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:21:y:2023:i:3:p:403-428 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2036571_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jiayin Meng Author-X-Name-First: Jiayin Author-X-Name-Last: Meng Author-Name: Yite Zhu Author-X-Name-First: Yite Author-X-Name-Last: Zhu Author-Name: Yang Han Author-X-Name-First: Yang Author-X-Name-Last: Han Title: Can ‘new’ infrastructure become an engine of growth for the Chinese economy? Abstract: This paper explores the effect of new infrastructure on economic growth from the aspects of tangible and intangible assets. According to empirical analysis, we conclude that traditional infrastructure directly contributes to the Chinese economic growth via fixed asset formation, while new infrastructure has overall insignificant direct effect on growth, i.e. it is unrealistic for new infrastructure to become an engine of growth for the Chinese economy in the short run. But it is also worth noting that new infrastructure does have the potential to promote the upgrade of industry structure and therefore boost economy in the long run. Based on the modelling results as well as the nature of new infrastructure, it is suggested that new infrastructure investment is not suitable to act as a short-term stimulation especially under Covid-19 pandemic despite its great potential in the long term. Journal: Journal of Chinese Economic and Business Studies Pages: 341-362 Issue: 3 Volume: 21 Year: 2023 Month: 07 X-DOI: 10.1080/14765284.2022.2036571 File-URL: http://hdl.handle.net/10.1080/14765284.2022.2036571 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:21:y:2023:i:3:p:341-362 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2219439_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Alex Edmans Author-X-Name-First: Alex Author-X-Name-Last: Edmans Title: How great companies deliver both purpose and profit Abstract: Critics of capitalism argue that companies need to be heavily regulated, to reduce their profits and redistribute value to society. Defenders of capitalism reply that profits are essential to a well-functioning economy; they fund future investment by companies and provide returns to shareholders, such as households and pension funds. Both views are based on the pie-splitting mentality, that the value created by a company is a fixed pie that shareholders and society fight over. This article describes the pie-growing mentality, that shareholders and society are not in conflict. By having a purpose – being driven by the desire to create value for society – companies grow the pie, increasing shareholders as well as stakeholder value. It discusses how companies can put purpose into practice and how citizens can play their part. Journal: Journal of Chinese Economic and Business Studies Pages: 465-469 Issue: 3 Volume: 21 Year: 2023 Month: 07 X-DOI: 10.1080/14765284.2023.2219439 File-URL: http://hdl.handle.net/10.1080/14765284.2023.2219439 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:21:y:2023:i:3:p:465-469 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2181619_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Wilson X. B. Li Author-X-Name-First: Wilson X. B. Author-X-Name-Last: Li Author-Name: Tina He Author-X-Name-First: Tina Author-X-Name-Last: He Title: Banking structure and government policies regarding SMEs financing Abstract: This study adopts the view that at the current stage of economic development in China, the factor endowment structure is characterized as abundant labor and scarce capital, which determines that the viable industrial structure should be dominated by small- and medium-sized enterprises and the optimal banking structure should be dominated by labor-intensive banks. Using bank assets per employee to measure labor intensity of banks and investigating the data from various sources, we find that in China, major commercial banks and rural financial institutions are labor-intensive banks providing two thirds of the total bank loans to small enterprises. Furthermore, the cross-region investigation reveals that on average small-sized enterprises are positively associated with labor-intensive banks, and labor-intensive banks contribute significantly more to the SMEs business incomes than capital-intensive banks. This study also discusses some implications to researchers and policy makers. Journal: Journal of Chinese Economic and Business Studies Pages: 387-402 Issue: 3 Volume: 21 Year: 2023 Month: 07 X-DOI: 10.1080/14765284.2023.2181619 File-URL: http://hdl.handle.net/10.1080/14765284.2023.2181619 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:21:y:2023:i:3:p:387-402 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2161175_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zhongchen Song Author-X-Name-First: Zhongchen Author-X-Name-Last: Song Author-Name: Tom Coupé Author-X-Name-First: Tom Author-X-Name-Last: Coupé Title: Predicting Chinese consumption series with Baidu Abstract: There is a substantial literature that suggests that search behavior data from Google Trends can be used for both private and public sector decision-making. In this paper, we use search behavior data from Baidu, the internet search engine most popular in China, to analyze whether these can improve nowcasts and forecasts of the Chinese economy. Using a wide variety of estimation and variable selection procedures, we find that Baidu’s search data can improve nowcast and forecast performance of the sales of automobiles and mobile phones reducing forecast errors by more than 10%, as well as reducing forecast errors of total retail sales of consumptions goods in China by more than 40%. Google Trends data, in contrast, do not improve performance. Journal: Journal of Chinese Economic and Business Studies Pages: 429-463 Issue: 3 Volume: 21 Year: 2023 Month: 07 X-DOI: 10.1080/14765284.2022.2161175 File-URL: http://hdl.handle.net/10.1080/14765284.2022.2161175 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:21:y:2023:i:3:p:429-463 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2040074_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zhi Liu Author-X-Name-First: Zhi Author-X-Name-Last: Liu Author-Name: Xiuying Liu Author-X-Name-First: Xiuying Author-X-Name-Last: Liu Title: Is China’s infrastructure development experience unique? Abstract: The rapid development of infrastructure in China over the last four decades has drawn not only considerable international media coverage, but also research interest from the academic world. Few studies, however, ask the question if China’s infrastructure development experience is extraordinary. By comparing the level and pace of infrastructure development between China and other countries, we find that the case of China is not unique at the country level. What is unique is the heavy use of infrastructure investment as a policy instrument to stimulate the economy, both at the upturns and downturns. The paper further identifies the key weaknesses of China’s infrastructure sector, and highlights the effects of economic, technological, demographic, and climate trends on the future of infrastructure, and discusses the directions of infrastructure development in the next 20–30 years. Journal: Journal of Chinese Economic and Business Studies Pages: 323-340 Issue: 3 Volume: 21 Year: 2023 Month: 07 X-DOI: 10.1080/14765284.2022.2040074 File-URL: http://hdl.handle.net/10.1080/14765284.2022.2040074 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:21:y:2023:i:3:p:323-340 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2222567_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shuang Pan Author-X-Name-First: Shuang Author-X-Name-Last: Pan Author-Name: Hao-Nan Wang Author-X-Name-First: Hao-Nan Author-X-Name-Last: Wang Author-Name: Yangda Li Author-X-Name-First: Yangda Author-X-Name-Last: Li Author-Name: Li-Bo Chen Author-X-Name-First: Li-Bo Author-X-Name-Last: Chen Title: High-speed rail, economic agglomeration and urban innovation —— Analysis of Chinese evidence Abstract: By adjusting the spatial and temporal distance between small and medium-sized cities and provincial capital cities, high-speed rail has reshaped the distribution of innovation resources, and eventually significantly affected China’s economy. Employing data from 284 Chinese prefecture-level cities for the period of 2005 to 2015, this paper uses the propensity score matching model (PSM-DID) to analyze the relationship between the high-speed rail opening and urban innovation in China. Our empirical results show that: 1) the opening of high-speed rail significantly improves the overall level of urban innovation in China, but affected by “the distance from provincial capital” which present a “∽”-type structural feature 2) the mechanism of the effect of high-speed rail on urban innovation is mainly to promote economic agglomeration; and 3) the impact of high-speed rail opening on urban innovation has gradually declined characteristics based on opening time and regional economy heterogeneity. Journal: Journal of Chinese Economic and Business Studies Pages: 363-386 Issue: 3 Volume: 21 Year: 2023 Month: 07 X-DOI: 10.1080/14765284.2023.2222567 File-URL: http://hdl.handle.net/10.1080/14765284.2023.2222567 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:21:y:2023:i:3:p:363-386 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2245279_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Boyang Chen Author-X-Name-First: Boyang Author-X-Name-Last: Chen Author-Name: Zongxiao Wu Author-X-Name-First: Zongxiao Author-X-Name-Last: Wu Author-Name: Ruoran Zhao Author-X-Name-First: Ruoran Author-X-Name-Last: Zhao Title: From fiction to fact: the growing role of generative AI in business and finance Abstract: Generative Artificial Intelligence (AI), such as ChatGPT by OpenAI, has revolutionized the business world, with benefits including improved accessibility, efficiency, and cost reduction. This article reviews recent developments of generative AI in business and finance, summarizes its practical applications, provides examples of the latest generative AI tools, and demonstrates that generative AI can revolutionize data analysis in industry and academia. To test the ability of generative AI to support decision-making in financial markets, we use the ChatGPT to capture corporate sentiments towards environmental policy by inputting text extracted from corporate financial statements. Our results demonstrate that the sentiment scores generated by ChatGPT can predict firms’ risk-management capabilities and stock return performance. This study also highlights the potential challenges and limitations associated with generative AI. Finally, we propose several questions for future research at the intersection of generative AI with business and finance. Journal: Journal of Chinese Economic and Business Studies Pages: 471-496 Issue: 4 Volume: 21 Year: 2023 Month: 10 X-DOI: 10.1080/14765284.2023.2245279 File-URL: http://hdl.handle.net/10.1080/14765284.2023.2245279 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:21:y:2023:i:4:p:471-496 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2103629_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yibo Mao Author-X-Name-First: Yibo Author-X-Name-Last: Mao Author-Name: Xinxin Ma Author-X-Name-First: Xinxin Author-X-Name-Last: Ma Author-Name: Peng Zhan Author-X-Name-First: Peng Author-X-Name-Last: Zhan Title: Health capacity to work of the older adults in China: evidence from CHIPs Abstract: This study attempts to estimate how much older adults would work if they were to work as much as middle-aged adults with the same health status in China. Using data from the China Household Income Project survey in 2013 and 2018, and based on the Milligan–Wise and CMR models, three main findings emerge: first, an untapped additional work capacity exists for those in the group aged 60–69, which comprises 29.8–65.8% of urban residents and 4.4–22.4% of rural residents. Second, additional work capacity is higher for urban residents with higher levels of education than for their counterparts, and the educational disparity in work capacity is greater for urban residents than for rural residents. Third, the decomposition results indicate that changes in health status contributed to increased potential work capacity for urban residents while decreasing that of rural residents. Journal: Journal of Chinese Economic and Business Studies Pages: 563-590 Issue: 4 Volume: 21 Year: 2023 Month: 10 X-DOI: 10.1080/14765284.2022.2103629 File-URL: http://hdl.handle.net/10.1080/14765284.2022.2103629 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:21:y:2023:i:4:p:563-590 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2161173_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xinhui Zhou Author-X-Name-First: Xinhui Author-X-Name-Last: Zhou Author-Name: Yuzhe Li Author-X-Name-First: Yuzhe Author-X-Name-Last: Li Author-Name: Bing Chen Author-X-Name-First: Bing Author-X-Name-Last: Chen Author-Name: Huadong Jiang Author-X-Name-First: Huadong Author-X-Name-Last: Jiang Title: Research on spillover effect of foreign market risk on Chinese capital market from perspective of full financial opening-up Abstract: Starting from document research, this paper analyzes the mechanism of the risk spillover effect from developed capital markets to the Chinese capital market. After that, this paper conducts an empirical study on the risk spillover effect of developed capital markets on the Chinese capital market by using the DCC-GARCH model. Then the impact degree of global major stock market fluctuations on the Chinese stock market is measured. The analysis shows that there exists a significant risk spillover effect of developed capital markets on the Chinese capital market, but the effect began to weaken after the financial crisis and the size of the spillover effect can be affected by macro factors such as geographical locations, foreign trade, and foreign investment. Journal: Journal of Chinese Economic and Business Studies Pages: 517-538 Issue: 4 Volume: 21 Year: 2023 Month: 10 X-DOI: 10.1080/14765284.2022.2161173 File-URL: http://hdl.handle.net/10.1080/14765284.2022.2161173 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:21:y:2023:i:4:p:517-538 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2137723_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Kai Liu Author-X-Name-First: Kai Author-X-Name-Last: Liu Author-Name: Xin Yue Author-X-Name-First: Xin Author-X-Name-Last: Yue Author-Name: Yan Yu Author-X-Name-First: Yan Author-X-Name-Last: Yu Title: FDI, indirect horizontal spillover and firm productivity in China’s manufacturing industry Abstract: The indirect spillover effects of manufacturing foreign direct investment (FDI) through upstream suppliers are often ignored by academia. This paper first explains theoretically the mechanism of indirect horizontal spillovers from foreign-funded firms and matches China Industry Business Performance Data and the China Customs Dataset, then empirically analyzes the indirect horizontal spillover effects of China’s manufacturing FDI through upstream suppliers. The results show that China’s manufacturing FDI generates significant positive technology spillovers to local firms through an indirect horizontal mechanism; the vertical spillover effects of China’s manufacturing FDI are asymmetric; the indirect spillover effects are influenced by firm ownership, whether it trades or not, and firm size; and the indirect spillovers generated by FDI restrain the quality of products for exports by local firms in the intra-industry but significantly improve the quality of products for export of upstream suppliers through backward linkages. Journal: Journal of Chinese Economic and Business Studies Pages: 539-562 Issue: 4 Volume: 21 Year: 2023 Month: 10 X-DOI: 10.1080/14765284.2022.2137723 File-URL: http://hdl.handle.net/10.1080/14765284.2022.2137723 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:21:y:2023:i:4:p:539-562 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2245275_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Feyyaz Zeren Author-X-Name-First: Feyyaz Author-X-Name-Last: Zeren Author-Name: Mustafa Kevser Author-X-Name-First: Mustafa Author-X-Name-Last: Kevser Author-Name: Samet Gürsoy Author-X-Name-First: Samet Author-X-Name-Last: Gürsoy Title: The impact of covid-19 vaccination on stock markets: a comparative analysis of the USA and China Abstract: This study aimed to reveal the emergence of the vaccine against COVID-19 and its influence on the stock markets. In line with this purpose, this study seeks answers to some questions, whether vaccination supports the recovery of financial markets or not, and in which direction the effect is similar in the context of developed and developing countries, considering the United States and China samples. Fourier-based cointegration and causality tests were used to reveal the effect of COVID-19 vaccination on stock markets in the paper, which used daily data between March-2021 and September-2022. According to the results vaccination rates triggered the stock market prices in the U.S.A.. Moreover obtained findings show that the Chinese stock market and COVID-19 vaccination act together in the long term during the data range examined. Finally, it seems possible to state that it would be beneficial for investors investing in both the U.S.A. and China markets. Journal: Journal of Chinese Economic and Business Studies Pages: 497-515 Issue: 4 Volume: 21 Year: 2023 Month: 10 X-DOI: 10.1080/14765284.2023.2245275 File-URL: http://hdl.handle.net/10.1080/14765284.2023.2245275 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:21:y:2023:i:4:p:497-515 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2245277_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Rachana Jaiswal Author-X-Name-First: Rachana Author-X-Name-Last: Jaiswal Author-Name: Shashank Gupta Author-X-Name-First: Shashank Author-X-Name-Last: Gupta Title: Money talks, happiness walks: dissecting the secrets of global bliss with machine learning Abstract: This study endeavors to construct a model for prognosticating happiness by integrating an encompassing theoretical framework and scrutinizing various happiness constructs. The findings reveal that the Random Forest outperforms its counterparts, exhibiting an astounding accuracy rate of 92.2709. Furthermore, the results uncover a conspicuous and pronounced divergence between joyful and despondent nations concerning their GDP per capita. The former exhibits a remarkable ascendency in this economic indicator relative to their less contented counterparts. The research posits far-reaching policy, managerial, and social implications. It underscores its significance in steering the realization of the United Nations’ Sustainable Development Goals (SDGs), including Goals 3, 4, 8, and 10. The study recommends that SDG-driven efforts should be bolstered to hasten the attainment of happiness in developing countries while promoting the adoption of data-driven decision-making approaches in policy formulation and the development of efficacious policies. Journal: Journal of Chinese Economic and Business Studies Pages: 111-158 Issue: 1 Volume: 22 Year: 2024 Month: 01 X-DOI: 10.1080/14765284.2023.2245277 File-URL: http://hdl.handle.net/10.1080/14765284.2023.2245277 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:22:y:2024:i:1:p:111-158 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2210014_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Nengzhi(chris) Yao Author-X-Name-First: Nengzhi(chris) Author-X-Name-Last: Yao Author-Name: Karena Yan Author-X-Name-First: Karena Author-X-Name-Last: Yan Author-Name: Christos Tsinopoulos Author-X-Name-First: Christos Author-X-Name-Last: Tsinopoulos Author-Name: Junhong Bai Author-X-Name-First: Junhong Author-X-Name-Last: Bai Title: The organizational determinants of open innovation: a literature framework and future research directions Abstract: This paper aims to explore the organizational determinants of open innovation (OI). A review of 154 publications taken from management and innovation journals makes us identify four dimensions of ‘resource-related’ organizational factors that can determine OI: resource investment (what or how many resources are being invested), organizational structure (where resources are being attributed), human capital (who or what individual-level characteristics are) and the attitudes of individuals (how resources are being treated). We also identify core theoretical lenses and propose moderating and mediating mechanisms that can explain the relationship between the dimensions and OI. Based on this, we generate a literature framework and propose that the effects of organizational factors on the implementation of OI can be achieved by influencing firms’ dynamic abilities, and that these effects vary across costs-related contingencies. We also suggest several directions for addressing relevant unexplored questions within the framework. Journal: Journal of Chinese Economic and Business Studies Pages: 1-29 Issue: 1 Volume: 22 Year: 2024 Month: 01 X-DOI: 10.1080/14765284.2023.2210014 File-URL: http://hdl.handle.net/10.1080/14765284.2023.2210014 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:22:y:2024:i:1:p:1-29 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2210481_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Hajer KRATOU Author-X-Name-First: Hajer Author-X-Name-Last: KRATOU Author-Name: Rekha Pillai Author-X-Name-First: Rekha Author-X-Name-Last: Pillai Author-Name: Taimur Sharif Author-X-Name-First: Taimur Author-X-Name-Last: Sharif Title: Do low-skilled migrant remittances help achieve SDG 10? Abstract: In this paper we explore the role migrant skill composition plays in remittances and income inequality’ relationships, using a panel study of 53 African countries over the period 1990–2020 and referring to two strands of literature that demonstrate that (1) highly skilled migrants widen the income gap in the home country; and (2) they have fewer incentives to remit compared to their less-skilled compatriots. The instrumental variable technique was employed to estimate a dynamic panel data model whilst rectifying endogeneity issues. The findings reveal that a policy that shifts the migrant skill composition toward the less-skilled workers could channel more remittance funds to poor households, resulting in diminishing the income disparity in the home country. Migration policies attempting to mitigate the brain drain and facilitate the migration of low-skilled workers would enable the attenuation of the income inequality gap. Journal: Journal of Chinese Economic and Business Studies Pages: 31-60 Issue: 1 Volume: 22 Year: 2024 Month: 01 X-DOI: 10.1080/14765284.2023.2210481 File-URL: http://hdl.handle.net/10.1080/14765284.2023.2210481 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:22:y:2024:i:1:p:31-60 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2167415_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Jiguang Wang Author-X-Name-First: Jiguang Author-X-Name-Last: Wang Author-Name: Yushang Hu Author-X-Name-First: Yushang Author-X-Name-Last: Hu Title: Corporate governance in Ming & Qing China: evidence from Shanxi (Jin) merchants Abstract: Shanxi (Jin) merchants are widely recognized as one of the most successful commercial groups in the Ming & Qing dynasties of China. They gradually built a unified and complete multi-level financial market which promoted the rapid development of early modern China’s finance sector and economy, and they hosted China’s premier financial center. Most accounts suggest their practices were of purely Chinese origin, and represent a remarkable case of parallel economic evolution with the West. This study argues that Shanxi merchants’ success is shown not only in their economic prosperity but also their impressive achievements in management. The success of Shanxi merchants should be attributed to their unique corporate governance model; specifically, their separation of ownership and management, professional manager system, use of personal shares, and joint shareholding system. We argue that their distinguished business ethics still have an extensive influence on China today. Journal: Journal of Chinese Economic and Business Studies Pages: 87-110 Issue: 1 Volume: 22 Year: 2024 Month: 01 X-DOI: 10.1080/14765284.2023.2167415 File-URL: http://hdl.handle.net/10.1080/14765284.2023.2167415 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:22:y:2024:i:1:p:87-110 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2270846_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Ngo Thai Hung Author-X-Name-First: Ngo Author-X-Name-Last: Thai Hung Title: Time-frequency nexus between COVID-19, economic policy uncertainty and China’s stock market during the COVID-19 period Abstract: It is acknowledged that COVID-19 sentiment influences economic policy uncertainty, which is subsequently reflected in stock market investment decisions, resulting in stock price variations. In this scenario, we attempt to explore the influence of COVID-19 and economic policy uncertainty on China’s stock market using wavelet analysis. The findings of novel wavelet frameworks uncover a bi-directional lead-lag association between COVID-19 sentiment, economic policy uncertainty, and stock market returns in China. In addition, the most pronounced degree of causal associations for the concerned couples occurred in the short and medium-run horizons. Specifically, our results unveil that economic uncertainty and COVID-19 sentiment are the main transmitter of shocks, while the stock market is the recipients of shock spillovers. Our research provides policymakers and market participants with critical insights into the behavior of Chinese stock markets during the COVID-19 crisis. Journal: Journal of Chinese Economic and Business Studies Pages: 61-85 Issue: 1 Volume: 22 Year: 2024 Month: 01 X-DOI: 10.1080/14765284.2023.2270846 File-URL: http://hdl.handle.net/10.1080/14765284.2023.2270846 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:22:y:2024:i:1:p:61-85 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2220271_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Amelie F. Constant Author-X-Name-First: Amelie F. Author-X-Name-Last: Constant Author-Name: Simone Schüller Author-X-Name-First: Simone Author-X-Name-Last: Schüller Author-Name: Klaus F. Zimmermann Author-X-Name-First: Klaus F. Author-X-Name-Last: Zimmermann Title: Ethnic spatial dispersion and immigrant identity* Abstract: The role of ethnic clustering in ethnic identity formation has remained unexplored, mainly due to missing detailed data. This study closes the knowledge gap for Germany by employing a unique combination of datasets, the survey data from the German Socio-Economic Panel and disaggregated information at low geographical levels from the last two but still unexploited full German censuses, 1970 and 1987. Utilizing the exogenous placement of immigrants during the recruitment era in the 1960s and 1970s we find that local co-ethnic concentration affects immigrants’ ethnic identity. While residential ethnic clustering strengthens immigrants’ retention of an affiliation with their origin (minority identity), it weakens identification with the host society (majority identity). The effects are nonlinear and become significant only at relatively high levels of co-ethnic concentration for the minority identity and at very low levels of local concentration for the majority identity. The findings are robust to an instrumental variable approach. Journal: Journal of Chinese Economic and Business Studies Pages: 205-230 Issue: 2 Volume: 22 Year: 2024 Month: 04 X-DOI: 10.1080/14765284.2023.2220271 File-URL: http://hdl.handle.net/10.1080/14765284.2023.2220271 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:22:y:2024:i:2:p:205-230 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2270848_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Ding Chen Author-X-Name-First: Ding Author-X-Name-Last: Chen Author-Name: Umar Muhammad Gummi Author-X-Name-First: Umar Author-X-Name-Last: Muhammad Gummi Title: The role of Renminbi internationalization in China’s petroleum security: a causal analysis amidst global uncertainties Abstract: China’s import of petroleum resources increases in recent years despite structural reforms to the Chinese economy. Primary energy demand increased significantly amidst global uncertainties, and this is a premise for energy security concerns for the country. In this paper, we rely on monthly data spanning from January 2011 to December 2022 and incorporate the role of global economic uncertainty to examine the causal relationship between Renminbi internationalization (RMBI) and petroleum security in China. Based on the recent VAR-based time-varying Granger causality procedure, we found a significant bi-directional causality between RMBI and petroleum security. The findings imply that increasing acceptance of the Renminbi (RMB) in trade settlements and petroleum invoicing will promote China’s drive to achieve a sustainable and reliable supply of petroleum. However, we proffer some policy suggestions based on the empirical findings. Journal: Journal of Chinese Economic and Business Studies Pages: 253-273 Issue: 2 Volume: 22 Year: 2024 Month: 04 X-DOI: 10.1080/14765284.2023.2270848 File-URL: http://hdl.handle.net/10.1080/14765284.2023.2270848 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:22:y:2024:i:2:p:253-273 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2206785_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Son T. Nguyen Author-X-Name-First: Son T. Author-X-Name-Last: Nguyen Author-Name: Yanrui Wu Author-X-Name-First: Yanrui Author-X-Name-Last: Wu Title: Vietnam’s bilateral trade intensity: the role of China Abstract: This paper aims to study the intensity of trade between Vietnam and its trading partners. Vietnam’s revealed trade preference with a country was found to be negatively correlated with distance, but positively correlated with contiguity, colonial linkages and having a free trade agreement between the pair. At the disaggregate level, contiguity leads to higher revealed export preferences in labour-intensive goods for Vietnam, but this effect on revealed import preferences is less significant. The revealed trade preference indices show that among major trading partners, China’s role is important for Vietnam’s trade, but this role is less dominant than what traditional trade share analysis shows. Journal: Journal of Chinese Economic and Business Studies Pages: 183-204 Issue: 2 Volume: 22 Year: 2024 Month: 04 X-DOI: 10.1080/14765284.2023.2206785 File-URL: http://hdl.handle.net/10.1080/14765284.2023.2206785 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:22:y:2024:i:2:p:183-204 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2210016_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: John Knight Author-X-Name-First: John Author-X-Name-Last: Knight Author-Name: Haiyuan Wan Author-X-Name-First: Haiyuan Author-X-Name-Last: Wan Title: The receding housing ladder: house price inflation, parental support, and the intergenerational distribution of housing wealth in China Abstract: China has experienced very rapid house price inflation in recent years – by some 10% per annum relative to consumer price inflation. Existing house-owners have benefited from capital gain and have been able to climb the housing ladder. Young household heads – wanting to own a house and facing rising house prices relative to their incomes – have found it increasingly difficult to get onto the housing ladder. However, their difficulty is eased by the strength of family support and the developing market for housing loans. The China Household Income Project (CHIP) surveys of 2002 and 2013 are analysed to test the hypothesis that the age distributions of house ownership and of housing wealth have moved against the young. Probits, tobits, and difference-in-difference analyses measure these effects. There is indeed evidence indicating a receding housing ladder, and evidence that waiting longer to own a house is positively associated with house price inflation. Journal: Journal of Chinese Economic and Business Studies Pages: 159-181 Issue: 2 Volume: 22 Year: 2024 Month: 04 X-DOI: 10.1080/14765284.2023.2210016 File-URL: http://hdl.handle.net/10.1080/14765284.2023.2210016 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:22:y:2024:i:2:p:159-181 Template-Type: ReDIF-Article 1.0 # input file: RCEA_A_2278012_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Tanzeela Yaqoob Author-X-Name-First: Tanzeela Author-X-Name-Last: Yaqoob Author-Name: Arfa Maqsood Author-X-Name-First: Arfa Author-X-Name-Last: Maqsood Title: Do methods of estimation matter in detecting outliers and forecasting macroeconomic variables? Abstract: Outliers in time-series data are crucial in model estimation and forecasting. Understanding the importance of false detection of outliers in various autoregressive processes, the present study aims to evaluate test statistics’ performance by utilizing multiple models through robust estimation of errors. In this study, numerous data-generating techniques have been employed via simulation at different values of the estimates, location, and size of an outlier, sample sizes, and classical cutoff to access the power of the test statistics for false detection of outlier type. The findings of the simulation reveal that the location and size of outliers, parameter values, and, to some extent, the size of the series influence the behavior of test statistics in detecting the type of outliers. Overall, the estimation method of residual standard deviation influences the sampling behavior of the test statistics. Outliers also affect the forecasting performance in the model. All results are also validated empirically. Journal: Journal of Chinese Economic and Business Studies Pages: 231-252 Issue: 2 Volume: 22 Year: 2024 Month: 04 X-DOI: 10.1080/14765284.2023.2278012 File-URL: http://hdl.handle.net/10.1080/14765284.2023.2278012 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:jocebs:v:22:y:2024:i:2:p:231-252