Template-Type: ReDIF-Article 1.0 Author-Name: Christian Krijnen Author-X-Name-First: Christian Author-X-Name-Last: Krijnen Title: Values – limits of economic rationality and imperialism of culture Abstract: In European politics, the issue of neo-liberalism is both dominant and contested. This political position has a foundation in an influential economic theory. This economic variant of a universal theory of human behaviour is known as ‘economic imperialism’. It is very influential in the other social sciences as well. The ‘rational-choice-model’ (RCM) is frequently employed to explain social phenomena. The RCM, formally speaking, is the approach of neo-classical economic theory. By scrutinising some presuppositions of economic imperialism, it becomes clear, however, that this approach cannot offer a universal theory of human behaviour. These considerations are not a criticism of economic rationality as such but of a specific interpretation of this rationality, namely that of economic imperialism. Although basic ideas of the RCM are criticised within the discourse of economics itself, such criticism has a primarily empirical nature. By contrast, this article develops a reflexive argument that concerns the framework of the RCM itself. RCM starts from assumptions that it does not justify, or is even unable to justify. Two of these assumptions are discussed in-depth: the givenness of preferences and the quantifiability of utility. It turns out that preferences of rational beings are not merely given but continuously evaluated. Moreover, preferences qua goals of action have a non-quantitative character: they are constituted by values. Values make up the foundation of (quantifiable) goods or preferences in the economic sense. Journal: Economic and Political Studies Pages: 101-121 Issue: 2 Volume: 4 Year: 2016 Month: 4 X-DOI: 10.1080/20954816.2016.1180764 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1180764 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:4:y:2016:i:2:p:101-121 Template-Type: ReDIF-Article 1.0 Author-Name: Xuecun Liang Author-X-Name-First: Xuecun Author-X-Name-Last: Liang Title: Nationalism inside out: an ethical review Abstract: The roles that nationalism has played in modern history are highly controversial. While the growing literature on the subject has offered refined empirical analyses, it leaves major ethical inquiries out of the picture. This paper fills the void by examining the prevalence of nationalism through the lens of a fundamental philosophical divide between communal particularity and human universality. I first discuss the tension between moral/cultural relativism and liberal internationalism to understand the crux of the ‘nationalism problem’; and then I move to consider the bright and dark sides of nationalism with reference to its historical manifestations so as to explore its potentials as a constructive force in future political life. I argue that nationalism is a response to the ambiguous normative underpinnings of the world system. It seeks to come to terms with the fragmentation of politics caused by the diversification of social values. As a living concept, nationalism continues to evolve with new trends of modern life. This research looks beyond the scope of national politics to examine the ‘nationalism problem’. To reify nationalism as a fixed set of extremist doctrines and practices risks undermining the international society’s capabilities to engage nationalistic events wisely and creatively. Journal: Economic and Political Studies Pages: 122-136 Issue: 2 Volume: 4 Year: 2016 Month: 4 X-DOI: 10.1080/20954816.2016.1180765 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1180765 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:4:y:2016:i:2:p:122-136 Template-Type: ReDIF-Article 1.0 Author-Name: Laijun Luo Author-X-Name-First: Laijun Author-X-Name-Last: Luo Author-Name: Yang Yang Author-X-Name-First: Yang Author-X-Name-Last: Yang Author-Name: Yuze Luo Author-X-Name-First: Yuze Author-X-Name-Last: Luo Author-Name: Chang Liu Author-X-Name-First: Chang Author-X-Name-Last: Liu Title: Export, subsidy and innovation: China’s state-owned enterprises versus privately-owned enterprises Abstract: In this study, we advance the literature on export and government subsidy by examining their effects in the context of China, a fast-growing emerging economy, and comparing the effects across ownership of enterprises. We examine the relationship among export, government support and firms’ innovation capability, and how these relationships differ between state-owned and private owned enterprises, by using a large data sample of Chinese firms (2003–2007). First, we find that there exists an inverted U-shaped relationship between export and innovation in state-owned enterprises, but not in private owned enterprises. Second, there is a positive effect of government subsidy on firms’ innovation capability. Finally, from the sub-sample analyses, we identify differences in the impact of government support between SOEs and POEs. This study will inspire future research into these issues in the disciplines of marketing, management and international business. Journal: Economic and Political Studies Pages: 137-155 Issue: 2 Volume: 4 Year: 2016 Month: 4 X-DOI: 10.1080/20954816.2016.1180766 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1180766 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:4:y:2016:i:2:p:137-155 Template-Type: ReDIF-Article 1.0 Author-Name: Junxue Jia Author-X-Name-First: Junxue Author-X-Name-Last: Jia Author-Name: Yunxia Chao Author-X-Name-First: Yunxia Author-X-Name-Last: Chao Title: Growth strategy and TFP growth: comparing China and four Asian tigers Abstract: This paper compares the total factor productivity (TFP) growth performance of the Chinese mainland and the Four Asian Tigers during their high-growth period and examines the effect of growth strategies pursued by these economies on TFP growth using a state-space model. Our research results show that TFP growth is quite limited in these economies, which is mainly attributed to their growth strategy. No significant productivity gains arise from the rapid growth of investments, trade openness, and an undervalued currency in these economies. The TFP growth is even found negatively related to trade openness for South Korea, the exchange rate undervaluation for Chinese Taiwan and Singapore, and the falling relative price of capital for the Chinese mainland, Singapore and South Korea. Government interventions encourage long-term TFP growth for the Chinese mainland and Taiwan, but hinder it in other economies. Higher inflation reduces TFP growth in Chinese Taiwan and Singapore. Journal: Economic and Political Studies Pages: 156-170 Issue: 2 Volume: 4 Year: 2016 Month: 4 X-DOI: 10.1080/20954816.2016.1180767 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1180767 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:4:y:2016:i:2:p:156-170 Template-Type: ReDIF-Article 1.0 Author-Name: Jingyu Sun Author-X-Name-First: Jingyu Author-X-Name-Last: Sun Title: Economic governance and marketisation: understanding the institutional roots of China’s achievements and challenges Abstract: As an institutional infrastructure for market economy, law is crucial in underpinning market transaction enforcement. However, it is imperative to recognise the gap between legislative reform and marketisation in China. This paper attempts to explain why China has experienced astonishing marketisation without satisfactory legislative building. It is aimed to explore institutional roots of marketisation by arguing that lawlessness creates challenges to further development while it goes along with the achievement of marketisation in China. Additionally, this research focuses on promoting China’s economic governance. It argues that law is not the only governance mechanism to ensure market transaction enforcement. There are other governance mechanisms such as relational governance and private third-party governance enforcement. Relational governance plays an important role in China’s transition. However, relational governance alone is inadequate in supporting China’s long-term development. Private third-party enforcement can link relational governance with formal governance mechanism. While focusing on the development of institutional infrastructure, it is important to build a governance framework in which the governance mechanism based on formal institution, such as law and government regulations, private third-party enforcement and relational governance are coordinated and complementary. Journal: Economic and Political Studies Pages: 171-186 Issue: 2 Volume: 4 Year: 2016 Month: 4 X-DOI: 10.1080/20954816.2016.1180768 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1180768 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:4:y:2016:i:2:p:171-186 Template-Type: ReDIF-Article 1.0 Author-Name: Khairy Tourk Author-X-Name-First: Khairy Author-X-Name-Last: Tourk Author-Name: Peter Marsh Author-X-Name-First: Peter Author-X-Name-Last: Marsh Title: The new industrial revolution and industrial upgrading in China: achievements and challenges Abstract: One recent development in the area of manufacturing is the New Industrial Revolution (NIR). This paper examines the contours shaping the NIR, and analyses the challenges facing China in its pursuit to achieve technological parity with advanced nations. China’s economic rise is strongly associated with its ascending the technology ladder. The country is now the world’s workshop. As the labour-intensive strategy based on cheap labour has run up against its limits, policy makers have devised plans that focus on industrial upgrading, promote indigenous innovations and establish national brands. This way China would avoid the middle-income trap and eventually become an innovative powerhouse. Journal: Economic and Political Studies Pages: 187-209 Issue: 2 Volume: 4 Year: 2016 Month: 4 X-DOI: 10.1080/20954816.2016.1180769 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1180769 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:4:y:2016:i:2:p:187-209 Template-Type: ReDIF-Article 1.0 Author-Name: Yu Luo Author-X-Name-First: Yu Author-X-Name-Last: Luo Title: Editorial Journal: Economic and Political Studies Pages: 1-4 Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/20954816.2016.1274519 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1274519 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:5:y:2017:i:1:p:1-4 Template-Type: ReDIF-Article 1.0 Author-Name: Malcolm Sawyer Author-X-Name-First: Malcolm Author-X-Name-Last: Sawyer Title: The processes of financialisation and economic performance Abstract: The paper considers the relationships between financialisation and economic performance. Financialisation is a persistent feature of industrialised capitalism, the nature of which differs over time and space. The present era of financialisation (since circa 1980) has been a world-wide phenomenon proceeding from different starting points and developing at different speeds, and can be viewed through the lens of variegated financialisation. The major features of the present era of financialisation are outlined. The increased scale of the financial sector leads to the issue of the relationship between financialisation and economic performance, and whether the additional resources used in the financial sector have been socially beneficial. The paper is completed by some brief remarks on the possibilities of de-financialisation. Journal: Economic and Political Studies Pages: 5-20 Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/20954816.2016.1274523 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1274523 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:5:y:2017:i:1:p:5-20 Template-Type: ReDIF-Article 1.0 Author-Name: Bruno Bonizzi Author-X-Name-First: Bruno Author-X-Name-Last: Bonizzi Title: International financialisation, developing countries and the contradictions of privatised Keynesianism Abstract: This paper contributes to the understanding of the impact of international financialisation on developing countries. It is generally understood that developing economies are part of the global financialisation process, as exporters of goods to ‘debt-led’ economies and as recipient of foreign capital inflows. This paper argues that a key process connecting these two aspects has been ‘privatised Keynesianism’, the policy regime that sustained financialisation in advanced economies by promoting low interest rates and asset appreciation. A consequence of this regime is to induce pressure on global financial institutions to look for returns and profits in the developing world. Such a mechanism represents a fundamental connection between the developing countries and financialisation at the global level, beside the spread of financial liberalisation. In the post-crisis environment, this connection remains strong and has become even more dangerous for developing countries. Journal: Economic and Political Studies Pages: 21-40 Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/20954816.2016.1274517 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1274517 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:5:y:2017:i:1:p:21-40 Template-Type: ReDIF-Article 1.0 Author-Name: Yu Luo Author-X-Name-First: Yu Author-X-Name-Last: Luo Title: The monetary root of financialisation Abstract: Marxism has a strong influence on Western left-wing economists’ understanding of financialisation, in that they regard financialisation as the consequence of the transformation of capitalism. Neoclassical economics and finance scholars tend to think of financialisation (financial development) as not exclusively occurring within the economic system of capitalism but as existing throughout an entire human history filled with numerous financial innovations. The unprecedented change of the monetary system ascribed to the collapse of the Bretton Woods System, among all historical and systemic changes, is the strongest underlying impetus to financialisation. Financialisation is the unintended consequence of a change in the monetary system from commodity money to credit money. Taking a more in-depth point of view, financialisation is philosophically a means for human beings to cope with the advent of a risk society, reflecting the advance of instrumental rationality, and hence is the embodiment of late modernity. Journal: Economic and Political Studies Pages: 41-59 Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/20954816.2016.1274522 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1274522 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:5:y:2017:i:1:p:41-59 Template-Type: ReDIF-Article 1.0 Author-Name: Ewa Karwowski Author-X-Name-First: Ewa Author-X-Name-Last: Karwowski Author-Name: Engelbert Stockhammer Author-X-Name-First: Engelbert Author-X-Name-Last: Stockhammer Title: Financialisation in emerging economies: a systematic overview and comparison with Anglo-Saxon economies Abstract: Financialisation research has originally focussed on the US experience, but the concept is now increasingly applied to emerging economies (EMEs). There is a rich literature stressing peculiarities of individual country experiences, but little systematic comparison across EMEs. This paper fills this gap, providing an overview of the debate and identifying six financialisation interpretations for EMEs. These different interpretations stress (1) financial deregulation, (2) foreign financial inflows, (3) asset price volatility, (4) the shift from bank-based to market-based finance, (5) business debt, and (6) household indebtedness. We construct and compare measures of the six financialisation interpretations across a sample of 17 EMEs from Latin America, emerging Europe, Africa and Asia, contrasting them with the US and UK, two financialised economies. We find considerable variation in financialisation experiences of EMEs. Asset price volatility is found across the continents. Asia has been more exposed to capital inflows, stock markets have gained importance and private sector debt has risen. In emerging Europe financial deregulation has been more pronounced with lower levels but strong increases in household debt. The picture is similar in South Africa, the African EME in the sample, where household debt is comparatively high. Financialisation in Latin America is weaker according to our measures. Journal: Economic and Political Studies Pages: 60-86 Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/20954816.2016.1274520 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1274520 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:5:y:2017:i:1:p:60-86 Template-Type: ReDIF-Article 1.0 Author-Name: Zehao Liu Author-X-Name-First: Zehao Author-X-Name-Last: Liu Title: Financialisation of goods in China Abstract: This paper analyses price fluctuations of common goods in China. There are two types of fluctuation patterns in the underlying prices: the pattern of persistent and modest rises and the pattern of abrupt rises followed by dramatic falls. The analysis reveals that these two fluctuation patterns are related to a growing phenomenon of goods financialisation in China. This paper uses time series data to show that goods financialisation in China is indeed under its way to various levels, which renders different dynamic effects on consumer price inflation. The findings also have implications for making macroeconomic policies. Journal: Economic and Political Studies Pages: 87-105 Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/20954816.2016.1274521 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1274521 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:5:y:2017:i:1:p:87-105 Template-Type: ReDIF-Article 1.0 Author-Name: Yang Ge Author-X-Name-First: Yang Author-X-Name-Last: Ge Author-Name: Ting Wang Author-X-Name-First: Ting Author-X-Name-Last: Wang Title: Wealth concentration among residents under the economic financialisation in China Abstract: Income distribution has always been a public concern. However, there is little research that seeks to explore the relationship between economic financialisation and wealth concentration. Thomas Piketty, the author of Capital in the Twenty-first Century, reviews the history of wealth distribution since the Industrial Revolution and attempts to probe into the law between capital development and wealth distribution inequality with bulk data. Enlightened by Piketty’s research, this article looks into the ways in which capitalisation affects wealth distribution under the rapid development of economic financialisation in contemporary China. In doing so, it applies econometric methods with a rigorous analysis. Journal: Economic and Political Studies Pages: 106-125 Issue: 1 Volume: 5 Year: 2017 Month: 1 X-DOI: 10.1080/20954816.2016.1274518 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1274518 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:5:y:2017:i:1:p:106-125 Template-Type: ReDIF-Article 1.0 Author-Name: Tao Tao Author-X-Name-First: Tao Author-X-Name-Last: Tao Author-Name: Byron Y. Lee Author-X-Name-First: Byron Y. Author-X-Name-Last: Lee Author-Name: Lynda Jiwen Song Author-X-Name-First: Lynda Jiwen Author-X-Name-Last: Song Author-Name: Xiangdong Liu Author-X-Name-First: Xiangdong Author-X-Name-Last: Liu Title: Gender differences in the impact on subjective well-being in China Abstract: This article examines the relationship among subjective well-being (SWB), income and education in China through self-perceived social status. Men and women appear to use different socioeconomic markers to determine their self-perceived social status, which ultimately affects their subjective reports of well-being. By using the data from the 2010 China General Social Survey (CGSS), this study finds a positive association between income and SWB for women. The result also shows a positive association between education and SWB for men. Moreover, for women self-perceived social status is a strong mediator of income and happiness; while for men, self-perceived social status mediates the relationship between education and SWB. This study highlights the importance of the cultural influence in understanding the differences in self-perceived social status outcomes by gender and how these differences ultimately influence the subjective measures of well-being in China. Journal: Economic and Political Studies Pages: 349-367 Issue: 4 Volume: 6 Year: 2018 Month: 10 X-DOI: 10.1080/20954816.2018.1535756 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1535756 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:6:y:2018:i:4:p:349-367 Template-Type: ReDIF-Article 1.0 Author-Name: Seid Y. Hassan Author-X-Name-First: Seid Y. Author-X-Name-Last: Hassan Title: Corruption, state capture, and the effectiveness of anticorruption agency in post-communist Ethiopia Abstract: In 2001, Ethiopia established a centralised anti-corruption agency (ACA), the Federal Ethics and Anti-corruption Commission (FEACC), purportedly to be used for curbing the rampant corruption. By the government’s repeated admissions, corruption continues to engulf the country, indicating the failure of the FEACC to curb corruption. Various researchers attribute the FEACC’s failures to curb corruption to a host of reasons. This article follows a different route to show why the FEACC was doomed to fail from the outset. We show that the war against corruption in Ethiopia collapsed mainly because of mischaracterisation of the nature of corruption in the country and how the FEACC was established – a conventional anti-corruption agency for a nonconventional problem of corruption. We deploy some testable hypotheses to explore the scenarios under which an anticorruption agency would be effective. Drawing from the corruption literature of post-communist countries, the article shows that corrupt Ethiopian practices can easily be subsumed under an extreme version of the highest form of corruption known as state capture. The article then moves onto unpacking the systemic and predatory nature of the Ethiopian corruption conundrum and how the FEACC approached in tackling it. Doing so allows us to illustrate the endogenous nature of the country’s corruption patterns and why a traditional ACA is incapable of tackling a state-driven patronage. It also lays out the flawed structures and practices of the FEACC showing why, under a state-crafted corruption conundrum, the FEACC was doomed to fail from the start. The article concludes by illustrating the detrimental effects of using the agency as a political weapon to neutralise the ruling party’s political opponents as well as the failure of the war against corruption. It calls for a different approach in combating the Ethiopian systemic corruption, a governance regime change being one of them. Journal: Economic and Political Studies Pages: 368-416 Issue: 4 Volume: 6 Year: 2018 Month: 10 X-DOI: 10.1080/20954816.2018.1535757 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1535757 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:6:y:2018:i:4:p:368-416 Template-Type: ReDIF-Article 1.0 Author-Name: Zhiyong Fan Author-X-Name-First: Zhiyong Author-X-Name-Last: Fan Author-Name: Jiayin Song Author-X-Name-First: Jiayin Author-X-Name-Last: Song Title: Estimation of the True Cost of Living Index of food consumption for Chinese urban consumers Abstract: This paper studies the True Cost of Living Index (TCLI) of food consumption for all income groups of urban households in China from 1997 to 2012. Based on the Generalised Fechner-Thurstone direct utility function, this paper estimates the TCLI under variable preference assumptions, and also decomposes the total bias of the traditional Laspeyres Price Index (LPI) estimation of TCLI into substitution bias and preference variation bias. For all income group households, the estimated preference variation bias is found to be quite substantial. According to the finding, when it is necessary to apply the cost of living adjustment clause in any public welfare programmes, the TCLI calculation compatible with preference variation may be more appropriate than the usual Laspeyres Consumer Price Index estimation. Journal: Economic and Political Studies Pages: 417-430 Issue: 4 Volume: 6 Year: 2018 Month: 10 X-DOI: 10.1080/20954816.2018.1540286 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1540286 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:6:y:2018:i:4:p:417-430 Template-Type: ReDIF-Article 1.0 Author-Name: Hanrui Zeng Author-X-Name-First: Hanrui Author-X-Name-Last: Zeng Author-Name: Terence Tai-Leung Chong Author-X-Name-First: Terence Tai-Leung Author-X-Name-Last: Chong Title: Does studying in Hong Kong affect the ideological preferences of Chinese mainland undergraduates? Abstract: This article investigates the ideological preferences of Chinese undergraduate students in relation to where they attend university. A total of 101 survey responses are collected, and propensity score matching is used to filter the raw data. Regression results of ideological preferences on different dimensions using the ordinary least squares method reveal suggestive evidence that studying in Hong Kong SAR will significantly liberalise the ideological preferences of Chinese mainland students in the political, economic, and cultural dimensions. Journal: Economic and Political Studies Pages: 431-444 Issue: 4 Volume: 6 Year: 2018 Month: 10 X-DOI: 10.1080/20954816.2018.1535759 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1535759 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:6:y:2018:i:4:p:431-444 Template-Type: ReDIF-Article 1.0 Author-Name: Santa Stopniece Author-X-Name-First: Santa Author-X-Name-Last: Stopniece Title: Finnish–Chinese investment negotiation: power positioning and search for common ground Abstract: This article explores what kind of a role ‘the rise of China’ plays in negotiation and searches for common ground between Finnish and Chinese representatives in the context of Chinese investment, trade and cooperation facilitation initiatives in Finland. The study predominantly builds on the positioning theory, and the data collection methods of this study are interviewing and observation. Five styles of positioning regarding power and common ground are found – adjustment, use of existing common ground, autonomy, ‘soft’ power and pressure/hedging, the character of which corresponds to phases of Chinese five elements theory (wu xing). While data suggest that both Finnish and Chinese representatives use all these strategies, the trend is that Finnish representatives use active responses such as adjustment and pressure/hedging more, while Chinese representatives more often resort to autonomy stance. A variety of both external and internal factors influencing positioning could also be traced, such as organisational roles in situation, place of meeting, discourses about countries and considerations of ‘face’. Journal: Economic and Political Studies Pages: 445-468 Issue: 4 Volume: 6 Year: 2018 Month: 10 X-DOI: 10.1080/20954816.2018.1535760 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1535760 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:6:y:2018:i:4:p:445-468 Template-Type: ReDIF-Article 1.0 Author-Name: Abdol S. Soofi Author-X-Name-First: Abdol S. Author-X-Name-Last: Soofi Title: China’s Foreign Direct Investments: Challenges of Due Diligence and Organizational Integration Abstract: This paper critically reviews Chinese companies’ foreign direct investment practices of recent years. Using case studies involving overseas Greenfield as well as merger and acquisition (M&A) of Chinese enterprises, we aim to draw lessons from these experiences. However, because of increasing importance of outbound acquisitions by Chinese companies, this paper focuses on Chinese M&A activities. After presenting the theoretical discussions of post-acquisition organizational integration, this paper identifies factors that have contributed to less than expected performances of Chinese foreign investments. Three main factors are identified as the plausible causes of the less than satisfactory outcomes: inadequate due diligence, not considering political and country risks, and cultural differences. In all cases, inexperience of Chinese enterprises in foreign direct investment, either in Greenfield form or M&A, has attributed to the problems. Therefore, summing the experiences of the Chinese enterprises that have foreign direct investment is essential for those Chinese investors that intend to invest overseas. Conduct of meaningful, in-depth due diligence before serious negotiations for investment or acquisition, inclusion of risk premium for political risk in cash flow analysis, and early post-merger integration planning are essential for avoidances of bitter outcomes many Chinese investors experienced overseas. Journal: Economic and Political Studies Pages: 112-143 Issue: 2 Volume: 3 Year: 2015 Month: 7 X-DOI: 10.1080/20954816.2015.11673833 File-URL: http://hdl.handle.net/10.1080/20954816.2015.11673833 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:3:y:2015:i:2:p:112-143 Template-Type: ReDIF-Article 1.0 Author-Name: Jianbo Song Author-X-Name-First: Jianbo Author-X-Name-Last: Song Author-Name: Sean Mackinnon Author-X-Name-First: Sean Author-X-Name-Last: Mackinnon Author-Name: Songtao Tan Author-X-Name-First: Songtao Author-X-Name-Last: Tan Title: The Renminbi Exchange Rate Reform and the Rebalancing of China’s Growth Model Abstract: This paper posits that a proper way to estimate the Renminbi (RMB) exchange rate is to base the evaluation on the Balassa-Samuelson effect, and that the optimal way to facilitate China’s growth model transformation is gradual RMB internationalization and capital account liberalization. Regression estimates show that the gross domestic product per capita growth rate, or the productivity growth rate, has strong explanatory validity when estimating the RMB exchange rate. The findings further assert that, as the growth of gross fixed capital formation slows, and the growth of household consumption speeds up, China’s economic growth will be sustained. The RMB exchange rate regime is one in which gradual reforms must yield to interest rates levels and hence should only be revalued conditionally. Journal: Economic and Political Studies Pages: 144-169 Issue: 2 Volume: 3 Year: 2015 Month: 7 X-DOI: 10.1080/20954816.2015.11673834 File-URL: http://hdl.handle.net/10.1080/20954816.2015.11673834 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:3:y:2015:i:2:p:144-169 Template-Type: ReDIF-Article 1.0 Author-Name: Tianbiao Zhu Author-X-Name-First: Tianbiao Author-X-Name-Last: Zhu Title: International Context and China’s Government-Business Relations Abstract: This paper investigates China’s government-business relations in an international context. In general, it argues that since China was incorporated into the European international system in the mid-19th century, the motive of survival and competition has gradually come to dominate the political practices of the Chinese elites, and this isespecially the case since 1949 when an autonomous state was finally created. Furthermore, a particular international context often induces a corresponding state reaction. The Cold War structure and conditions of late development pressed theChinese state to centralize its power and engage in forceful industrialization through a central planning system. This then created an extreme form of government-business relations, with overwhelming power residing with the former. Later on, after China moved closer to the United States in terms of world politics, and when the Cold War structure was replacedby a multi-polar structure characterized by American hegemony, coinciding with the rapid expansion of the world market and the change of development conditions to compressed development, the Chinese state engaged in economic liberalization and decentralization. This resulted in a substantial modification of the power balance between the state and business, and gave rise to various forms of government-business relations. Journal: Economic and Political Studies Pages: 3-29 Issue: 2 Volume: 3 Year: 2015 Month: 7 X-DOI: 10.1080/20954816.2015.11673829 File-URL: http://hdl.handle.net/10.1080/20954816.2015.11673829 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:3:y:2015:i:2:p:3-29 Template-Type: ReDIF-Article 1.0 Author-Name: Stephen Tay Author-X-Name-First: Stephen Author-X-Name-Last: Tay Title: Who Supports Redistribution? Subjective Income Inequality in Japan and China Abstract: Governments reduce income inequality with redistribution policies. These policies are often contentious because people who live in the same country have different preferences for redistribution. Some prefer the government to do more while others prefer the government to do less. Hence what explains the difference in preferences? Using the methodologically suitable cases of Japan and China, this paper contributes to the redistributive preference literature by proposing an alternative theory of how a person’s subjective evaluation of and experiences with income inequality—subjective income inequality—affect his/her redistributive preferences. Specifically, a person who feels that his/her country’s level of income inequality is too high is more likely to support government redistribution. But contrary to extant studies, this paper finds that a spatial locality’s level of objective income inequality does not systematically affect its citizens’ preference for redistribution. This finding has implications for redistribution policies because government policies in Japan and China—as with other countries—narrowly frame income inequality in the objective dimensions by pegging it to “objective” income inequality indices (e.g., Gini ratio), thereby ignoring the more important subjective dimensions of income inequality. Journal: Economic and Political Studies Pages: 30-59 Issue: 2 Volume: 3 Year: 2015 Month: 7 X-DOI: 10.1080/20954816.2015.11673830 File-URL: http://hdl.handle.net/10.1080/20954816.2015.11673830 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:3:y:2015:i:2:p:30-59 Template-Type: ReDIF-Article 1.0 Author-Name: Giacomo Corneo Author-X-Name-First: Giacomo Author-X-Name-Last: Corneo Title: Earnings Inequality in Germany and Its Implications Abstract: The current paper discusses the evolution of earnings inequality in Germany with an eye to its potential lessons for China. Inequality is assessed from two different perspectives: the distribution of annual earnings, and the distributionof lifetime earnings. This paper proposes to implement closer monitoring of lifetime earnings and take a proactive stance in the formation of the wage-bargaining regime. Journal: Economic and Political Studies Pages: 60-84 Issue: 2 Volume: 3 Year: 2015 Month: 7 X-DOI: 10.1080/20954816.2015.11673831 File-URL: http://hdl.handle.net/10.1080/20954816.2015.11673831 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:3:y:2015:i:2:p:60-84 Template-Type: ReDIF-Article 1.0 Author-Name: Fang Wang Author-X-Name-First: Fang Author-X-Name-Last: Wang Title: South China Sea Territorial Disputes and Sino-Philippine Trade Abstract: As political factors affect trade activities greatly, this paper considers whether a series of political events have had a negative impact on Sino-Philippine trade relations. Of particular concern is the influence on bilateral relations and the Philippines’ domestic economy from political and diplomatic tensions between China and the Philippines caused by territorial disputes in the South China Sea. Political events are divided into two levels, general conflicts and serious conflicts, which are analyzed from the perspectives of both overall level and product level to present their final impact on trade. This research finds that territorial disputes between the two countries deteriorated trade, as the volume of trade usually decreased distinctly after conflicts. The negative impact on trade generated by serious conflicts usually occurred more rapidly and on a larger scale. The effect of trade deterioration caused by political events weakened over time. Furthermore, after serious conflicts, although the volume of trade of certain products decreased temporarily, it rebounded quickly or even increased soon. However, industrial equipment or industrial raw materials trade activities between the two countries were basically independent of the conflicts’ impact. Journal: Economic and Political Studies Pages: 85-111 Issue: 2 Volume: 3 Year: 2015 Month: 7 X-DOI: 10.1080/20954816.2015.11673832 File-URL: http://hdl.handle.net/10.1080/20954816.2015.11673832 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:3:y:2015:i:2:p:85-111 Template-Type: ReDIF-Article 1.0 Author-Name: Scott Wilson Author-X-Name-First: Scott Author-X-Name-Last: Wilson Title: Environmental participation in the shadow of the Chinese state Abstract: China’s environmental governance reforms are simultaneously strengthening state enforcement measures and encouraging citizen participation in monitoring and enforcement processes. State control over environmental protection and citizen participation appear to be in tension with each other. In discussing environmental governance under democracies, Börzel and Riesse, however, theorise that opportunities for citizen participation increase as a state increases its enforcement capacity, at least until the state becomes very strong. This article analyses changes in the regulatory field that have strengthened state coercive capacity to enforce environmental law, and two aspects of citizen participation: civil society monitoring of polluters and participation in environmental public interest lawsuits. The early evidence on citizen participation since the revised Environmental Protection Law took effect on 1 January 2015 is mixed. Civil society organisations have been allowed to serve as plaintiffs in a small number of high-profile environmental public interest lawsuits, but that domain remains dominated by state-backed organisations and local procuratorates. Finally, in reaction to the threat of new fines and penalties on illegal emissions, some grassroots civil society organisations are finding new opportunities to advise and monitor polluters. Journal: Economic and Political Studies Pages: 211-237 Issue: 3 Volume: 4 Year: 2016 Month: 7 X-DOI: 10.1080/20954816.2016.1218662 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1218662 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:4:y:2016:i:3:p:211-237 Template-Type: ReDIF-Article 1.0 Author-Name: Shihong Guo Author-X-Name-First: Shihong Author-X-Name-Last: Guo Title: Environmental options of local governments for regional air pollution joint control: application of evolutionary game theory Abstract: Apanage management is currently the main method used to control air pollution in China, but it has proved to be inefficient for controlling transboundary air pollution. As a result, China’s central government is demanding joint control of regional air pollution. From the perspective of cooperation benefits, we adopt the evolutionary game theory (EGT) to analyse evolutionary trends of regional authorities’ behaviours and their stable strategy in the campaign for joint control of regional air pollution. A case study, the intergovernmental cooperation management for ‘APEC Blue’, is taken to illustrate the intergovernmental game. The result shows that an evolutionarily stable strategy (ESS) of ‘joint control’ for local governments depends on individual region’s benefits and collaboration revenues. Local governments should be encouraged in collaborating with their neighbouring governments, because a certain amount of transaction costs will not undermine their cooperation. With regards to the case study, joint control through executive orders is unpractical in the Beijing–Tianjin–Hebei region. ‘APEC Blue’ can only be temporary and the failure of such collaboration for long-term regional air pollution control is inevitable because of its high control costs, economic loss, transaction costs and low common profits. Journal: Economic and Political Studies Pages: 238-257 Issue: 3 Volume: 4 Year: 2016 Month: 7 X-DOI: 10.1080/20954816.2016.1218691 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1218691 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:4:y:2016:i:3:p:238-257 Template-Type: ReDIF-Article 1.0 Author-Name: Bo Miao Author-X-Name-First: Bo Author-X-Name-Last: Miao Author-Name: Yu-wai Vic Li Author-X-Name-First: Yu-wai Vic Author-X-Name-Last: Li Title: Local interests meet global regime: China’s subnational politics in clean development mechanism of Kyoto Protocol Abstract: As the Kyoto Protocol enters its second commitment phase, local states are adapting to the new reality. An analysis of the responses of three provincial authorities (Guangdong, Zhejiang and Shanghai) demonstrates that local authorities of China have sought project development that offers capital and technological transfers from Annexe 1 parties made possible by the Clean Development Mechanism (CDM), one of the flexibility mechanisms of the global climate regime. Apart from offering technical advisory and assistance to interested firms, extending fiscal incentives and regulatory supports and leveraging their connections with central counterparts and international partners to facilitate the local market development, Guangdong and Shanghai have also been proactively responding to the changing market and policy outlook of the CDM framework, piloting carbon emissions reduction strategies at the local level to foster their interests. These affirm the relevance of local interests and help complete our understanding of the subnational dynamics underlying the global climate regime. Journal: Economic and Political Studies Pages: 258-277 Issue: 3 Volume: 4 Year: 2016 Month: 7 X-DOI: 10.1080/20954816.2016.1218668 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1218668 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:4:y:2016:i:3:p:258-277 Template-Type: ReDIF-Article 1.0 Author-Name: Judith Alazraque-Cherni Author-X-Name-First: Judith Author-X-Name-Last: Alazraque-Cherni Author-Name: Jiayi He Author-X-Name-First: Jiayi Author-X-Name-Last: He Author-Name: Frank Rosillo-Calle Author-X-Name-First: Frank Author-X-Name-Last: Rosillo-Calle Title: Renewable energy investment in China: the impact of low oil prices Abstract: The promotion of renewable energy (RE) technology in China has been paramount in the country’s policy to reinforce energy security, reduce air pollution from coal, oil and gas, and tackle climate change. This study examines whether the RE sector in China (primarily solar and wind) might suffer an immediate or long-term backlash as the result of cuts in oil import costs. The demand for oil in China has increased at an astounding rate since the 1980s. In the face of its burgeoning economy and multiplying vehicle fleet, energy security has become a significant preoccupation for policy makers. The rapid fall in oil prices on the international market since June 2014 is likely to improve security of supply and positively impact the nation’s economy. However, the fate of another energy sector, RE technology is less predictable. The article proposes a quantitative model to compare oil demand and prices over recent years with the impact on investment in RE, taking into account that the main competitor of RE is coal rather than oil. How energy policy has evolved and adapted over this period is also discussed. It is observed that lower oil prices decrease RE investments but reduce concerns over energy security. But, the strength of the impact depends on the duration of low oil prices and its volatility. The commitment of the government to reduce global CO2 emissions may not be overlooked. Journal: Economic and Political Studies Pages: 278-298 Issue: 3 Volume: 4 Year: 2016 Month: 7 X-DOI: 10.1080/20954816.2016.1218688 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1218688 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:4:y:2016:i:3:p:278-298 Template-Type: ReDIF-Article 1.0 Author-Name: Shipei Zeng Author-X-Name-First: Shipei Author-X-Name-Last: Zeng Author-Name: Zhanming Chen Author-X-Name-First: Zhanming Author-X-Name-Last: Chen Title: Impact of fossil fuel subsidy reform in China: estimations of household welfare effects based on 2007–2012 data Abstract: Changing the energy subsidy mechanism is a priority of China’s ongoing market-based energy reform. Using the 2007–2012 empirical data, this paper applies an input–output model to evaluate the welfare effects, that is, the expenditure increments of five income groups in 28 provinces, associated with the possible policy scenario of removing the subsidies for fossil fuels. The key findings of this study include, first, that the total indirect welfare effects (i.e. the additional money spent on non-energy commodities) are two-to-three times as large as the direct ones (i.e. the additional money spent on energy). Second, removing the oil subsidy leads to an additional expenditure of 19.74 CNY annually for each resident, which is much larger than the effect of removing the natural gas and coal subsidies. Third, the composition of the indirect effect varies significantly among income groups, because food expenditure contributes to approximately two-thirds of the total indirect effect on average. Finally, the welfare effect is very sensitive to the income level. To promote the smooth reform of the fossil fuel subsidies, we suggest that the government should deal with the coal industry initially, pay special attention to the indirect expense increase, and compensate low-income households for the welfare losses. Journal: Economic and Political Studies Pages: 299-318 Issue: 3 Volume: 4 Year: 2016 Month: 7 X-DOI: 10.1080/20954816.2016.1218669 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1218669 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:4:y:2016:i:3:p:299-318 Template-Type: ReDIF-Article 1.0 Author-Name: Yihua Yu Author-X-Name-First: Yihua Author-X-Name-Last: Yu Author-Name: Li Zhang Author-X-Name-First: Li Author-X-Name-Last: Zhang Author-Name: Xinye Zheng Author-X-Name-First: Xinye Author-X-Name-Last: Zheng Title: On the nexus of environmental quality and public spending on health care in China: a panel cointegration analysis Abstract: Does pollution drive up public spending on health care? This paper aims to answer such a crucial question empirically using a panel data set of 31 Chinese provinces during the period 1997–2014. In particular, this paper explores the non-stationarity and cointegration properties between health care expenditure and environmental indicators in a panel cointegration framework; in doing so, it examines both the long-run and the short-run impacts of the per capita provincial GDP, waste gas emissions, dust and smog emissions, and waste water emissions on the per capita public health expenditure. We apply panel unit root tests, heterogeneous panel cointegration tests, FMOLS techniques, and a panel-based error-correction model. The conclusion is that, both in the long run and in the short run, public health care expenditure is positively affected not only by the provincial economy but also by the environmental quality. Journal: Economic and Political Studies Pages: 319-331 Issue: 3 Volume: 4 Year: 2016 Month: 7 X-DOI: 10.1080/20954816.2016.1218670 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1218670 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:4:y:2016:i:3:p:319-331 Template-Type: ReDIF-Article 1.0 Author-Name: Yan Zhang Author-X-Name-First: Yan Author-X-Name-Last: Zhang Author-Name: Aiping He Author-X-Name-First: Aiping Author-X-Name-Last: He Title: Chinese research on disaster economics: situation and characteristics Abstract: This study employs the bibliometric method to analyse a sample of 936 core journal articles obtained from Chinese Social Sciences Citation Index (CSSCI) during the period 1998–2014, with a view to outlining the situation, characteristics and trends of Chinese research on disaster economics. Our analysis shows that Chinese research on disaster economics is characterised by marked short-term fluctuations, non-mainstream tendency, localisation and non-collaboration. In terms of content, the major concerns of Chinese scholars are post-disaster construction, agricultural natural disasters, as well as disaster insurance and securitisation. In terms of methodology, these researches have entered into a quantitative phase of establishing the evaluation index system, and mathematical model analysis. With regard to the path, researches in the Chinese language have expanded from analyses of causes and natures of disasters to those of institutional response to disasters (e.g. disaster insurance and finance). Journal: Economic and Political Studies Pages: 332-341 Issue: 3 Volume: 4 Year: 2016 Month: 7 X-DOI: 10.1080/20954816.2016.1218689 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1218689 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:4:y:2016:i:3:p:332-341 Template-Type: ReDIF-Article 1.0 Author-Name: Tingyang Zhao Author-X-Name-First: Tingyang Author-X-Name-Last: Zhao Title: The “China Dream” in Question Abstract: This paper discusses the historical changes of China’s dream with an analysis of the methodological China that has provided China both flexibility in its imitations of the Western modernization and the potential ability to participate in the innovations of new rules of the global game. The author believes that the methodological China is a better concept to understand China as it always goes. Journal: Economic and Political Studies Pages: 127-142 Issue: 1 Volume: 2 Year: 2014 Month: 1 X-DOI: 10.1080/20954816.2014.11673854 File-URL: http://hdl.handle.net/10.1080/20954816.2014.11673854 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:2:y:2014:i:1:p:127-142 Template-Type: ReDIF-Article 1.0 Author-Name: William A. Callahan Author-X-Name-First: William A. Author-X-Name-Last: Callahan Title: The China Dream and the American Dream Abstract: Since Xi Jinping invoked “The China Dream” as a key concept in November 2012, this phrase has come to dominate discussions of China’s future. This paper will examine the China dream phenomenon first by placing it in the context of debates that have been raging in Chinese civil society over the past few years. It will analyze the works of 20 prominent “China dreamers” in terms of debates over the proper relationship between (1) politics and economics, (2) equality and hierarchy, (3) civilization and civility, and (4) nationalism and statism. The other main context for the China dream concept is the American dream. While it is common to dismiss the American dream as crass materialism, this essay will examine how it stresses the complementary ideals of freedom and equality. More importantly, it will examine how the American dream has been used as a critical tool to comment on problems in the United States, and relate this to examples in the PRC where the China dream is being used as a critical tool as well. Journal: Economic and Political Studies Pages: 143-160 Issue: 1 Volume: 2 Year: 2014 Month: 1 X-DOI: 10.1080/20954816.2014.11673855 File-URL: http://hdl.handle.net/10.1080/20954816.2014.11673855 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:2:y:2014:i:1:p:143-160 Template-Type: ReDIF-Article 1.0 Author-Name: Shaoguang Wang Author-X-Name-First: Shaoguang Author-X-Name-Last: Wang Title: Toward Shared Prosperity: China’s New Leap Forward in Social Protection Abstract: The foundation of the People’s Republic of China in 1949 marked the realization of a dream strived for by millions of Chinese people over the preceding hundred years, i.e., the dream of liberation. Since 1949, China has gone through two stages of historical development, in which it realized the dream of self-reliance and the dream of freedom from poverty, respectively. Having entered the third stage of its contemporary history, China is now striving to achieve a new dream of shared prosperity for all. Supported by statistical data, this paper argues that China has made a great leap forward in the field of social protection over the past 10-plus years. This new leap forward has quietly brought about enormous changes to the Chinese society. On one hand, it has stopped inequality from further deteriorating; on the other hand, it has created a benign environment for lessening human insecurity. Journal: Economic and Political Studies Pages: 161-196 Issue: 1 Volume: 2 Year: 2014 Month: 1 X-DOI: 10.1080/20954816.2014.11673856 File-URL: http://hdl.handle.net/10.1080/20954816.2014.11673856 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:2:y:2014:i:1:p:161-196 Template-Type: ReDIF-Article 1.0 Author-Name: Jiandong Ju Author-X-Name-First: Jiandong Author-X-Name-Last: Ju Author-Name: Shang-Jin Wei Author-X-Name-First: Shang-Jin Author-X-Name-Last: Wei Title: A Solution to Two Paradoxes of International Capital Flows Abstract: International capital flows from rich to poor countries can be regarded as either too small (the Lucas paradox in a one-sector model) or too large (when compared with the logic of factor price equalization in a two-sector model). To resolve the paradoxes, we introduce a non-neoclassical model which features financial contracts and firm heterogeneity. In our model, free trade in goods does not imply equal returns to capital across countries. In addition, rich patterns of gross capital flows emerge as a function of financial and property rights institutions. A poor country with an inefficient financial system may simultaneously experience an outflow of financial capital but an inflow of FDI, resulting in a small net flow. In comparison, a country with a low capital-to-labor ratio but a high risk of expropriation may experience an outflow of financial capital without a compensating inflow of FDI. Journal: Economic and Political Studies Pages: 3-43 Issue: 1 Volume: 2 Year: 2014 Month: 1 X-DOI: 10.1080/20954816.2014.11673850 File-URL: http://hdl.handle.net/10.1080/20954816.2014.11673850 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:2:y:2014:i:1:p:3-43 Template-Type: ReDIF-Article 1.0 Author-Name: Xiaojin Liu Author-X-Name-First: Xiaojin Author-X-Name-Last: Liu Author-Name: Terence T.L. Chong Author-X-Name-First: Terence T.L. Author-X-Name-Last: Chong Title: The Private Benefits of Corporate Control: Evidence from China Abstract: By analyzing block share transfers in China during 1999-2006, this study provides estimates of the private benefits of corporate control in China. We find that those controlling blocks are usually priced at a significant positive premium compared to those comparable non-controlling blocks. The benefits of corporate control vary with shareholders structure, firm characteristics and institutional variables. In particular, targets with a high intangible asset ratio have less benefits of control, cross-listing in B or H shares curbs the extract of private benefits and companies acquired by private firms are associated with higher private benefits. Moreover, it is found that benefits of control are negatively associated with market economy and factor market development index. We argue that firms with higher private benefits experience more tunneling activities by their controlling shareholders. Journal: Economic and Political Studies Pages: 44-64 Issue: 1 Volume: 2 Year: 2014 Month: 1 X-DOI: 10.1080/20954816.2014.11673851 File-URL: http://hdl.handle.net/10.1080/20954816.2014.11673851 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:2:y:2014:i:1:p:44-64 Template-Type: ReDIF-Article 1.0 Author-Name: Yihua Ju Author-X-Name-First: Yihua Author-X-Name-Last: Ju Author-Name: Xiang Wei Author-X-Name-First: Xiang Author-X-Name-Last: Wei Title: Estimating Regional Technical Efficiency and Its Determinants: Evidence from China’s Provincial Panel Data Abstract: This paper applies a stochastic translog production function to examine the underlying causes of technical inefficiency for 28 provinces in the Chinese mainland over the period 1970-2011. We find that inefficiency was present in production and several relevant explanatory variables contributed to it. Specifically, we find that the provinces with higher level of human capital, higher engagement in international trade, a further relaxation of the household registration (hukou) system and a smaller government size tended to lie closer to the national frontier. In addition, public infrastructure was not productive and we find no evidence to support the general view that state-owned enterprises (SOEs) were operating relatively inefficiently when compared to non-SOEs. Journal: Economic and Political Studies Pages: 65-87 Issue: 1 Volume: 2 Year: 2014 Month: 1 X-DOI: 10.1080/20954816.2014.11673852 File-URL: http://hdl.handle.net/10.1080/20954816.2014.11673852 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:2:y:2014:i:1:p:65-87 Template-Type: ReDIF-Article 1.0 Author-Name: Dehong Wang Author-X-Name-First: Dehong Author-X-Name-Last: Wang Author-Name: Jianbo Song Author-X-Name-First: Jianbo Author-X-Name-Last: Song Title: The Timing of Annual Report Disclosure: Characteristics and Economic Consequences—Evidence from Two Stock Exchanges in China Abstract: This paper analyzes the annual reports (from 1997 to 2011) of firms listed on two stock exchanges in China and reveals four significant characteristics of disclosure timing. These characteristics have significant economic implications for stock market movement, including positive contributions to stock price, trading volume and abnormal return. It thereby demonstrates that the CSRC’s “balanced disclosure” policy has not been working as expected and needs further review and improvement. Journal: Economic and Political Studies Pages: 88-126 Issue: 1 Volume: 2 Year: 2014 Month: 1 X-DOI: 10.1080/20954816.2014.11673853 File-URL: http://hdl.handle.net/10.1080/20954816.2014.11673853 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:2:y:2014:i:1:p:88-126 Template-Type: ReDIF-Article 1.0 Author-Name: Shi Li Author-X-Name-First: Shi Author-X-Name-Last: Li Author-Name: Ximing Yue Author-X-Name-First: Ximing Author-X-Name-Last: Yue Title: Editorial Journal: Economic and Political Studies Pages: 253-255 Issue: 3 Volume: 5 Year: 2017 Month: 7 X-DOI: 10.1080/20954816.2017.1345150 File-URL: http://hdl.handle.net/10.1080/20954816.2017.1345150 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:5:y:2017:i:3:p:253-255 Template-Type: ReDIF-Article 1.0 Author-Name: John Knight Author-X-Name-First: John Author-X-Name-Last: Knight Title: Fair and unfair inequality in China Abstract: The paper questions the normative value in the Chinese case of standard measures of aggregate income inequality such as the Gini coefficient. Evidence is adduced that people have narrow frames of reference and that they distinguish between income inequalities that they perceive to be fair and those that they perceive to be unfair. It is suggested that value judgements about what is fair or unfair can be guided by people’s own perceptions. People’s perceptions of unfairness can also be important to a government concerned to avoid social instability. The estimation of happiness functions can help to make the relevant distinctions. Examples are given of how fair and unfair inequalities might be identified, using either a criterion of people’s perceptions or one of informed judgements. Unfairness might be more strongly felt in inequalities of economic power than in inequalities of income, although the former can in turn result in inequalities of income. An argument is made for China researchers to extend inequality research and research instruments towards an economics of fairness and unfairness. Journal: Economic and Political Studies Pages: 256-265 Issue: 3 Volume: 5 Year: 2017 Month: 7 X-DOI: 10.1080/20954816.2017.1345152 File-URL: http://hdl.handle.net/10.1080/20954816.2017.1345152 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:5:y:2017:i:3:p:256-265 Template-Type: ReDIF-Article 1.0 Author-Name: Chuliang Luo Author-X-Name-First: Chuliang Author-X-Name-Last: Luo Title: Income growth and happiness growth in China Abstract: Using household surveys conducted by the China Household Income Project (CHIP) in 2002 and 2013, changes in happiness are examined within rural, urban and migrant populations. During the survey period, happiness increased for urban and migrant groups but decreased for the rural population, accompanying dramatic income growth for all. Personal income positively and significantly affected happiness, but the effects of comparison income were different among the three groups. The income-happiness correlations declined from 2002 to 2013. Declining happiness in rural China can be primarily explained by weakened income-happiness relations and worsening health conditions. The happiness growth in urban areas mainly resulted from income growth, although the personal income effect on happiness was partly offset by the comparison income effect. The increasing happiness in migrants was mainly derived from income growth. Journal: Economic and Political Studies Pages: 266-284 Issue: 3 Volume: 5 Year: 2017 Month: 7 X-DOI: 10.1080/20954816.2017.1345153 File-URL: http://hdl.handle.net/10.1080/20954816.2017.1345153 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:5:y:2017:i:3:p:266-284 Template-Type: ReDIF-Article 1.0 Author-Name: Qin Gao Author-X-Name-First: Qin Author-X-Name-Last: Gao Author-Name: Sui Yang Author-X-Name-First: Sui Author-X-Name-Last: Yang Author-Name: Shi Li Author-X-Name-First: Shi Author-X-Name-Last: Li Title: Social insurance for migrant workers in China: impact of the 2008 Labour Contract Law Abstract: Using the China Household Income Project (CHIP) 2007, 2008, and 2009 longitudinal migrant survey data, this article provides new evidence on the effects of China’s 2008 Labour Contract Law (LCL) on migrant workers’ social insurance participation, including in pensions, work injury insurance, unemployment insurance, medical insurance, and the housing provident fund. We find consistently strong evidence that migrant workers’ labour contract status was significantly associated with their participation in all five types of social insurance. In particular, having or gaining a long-term contract helped promote migrant workers’ social insurance participation, while losing one such contract decreased their chance of social insurance participation. Using a difference-in-differences (DID) method and focussing on the panel sample, we find that the implementation of the LCL helped boost migrant workers’ chance of social insurance participation consistently and significantly, especially for those who gained a long-term contract. These findings suggest that the LCL at least partly reached its intended policy goal of improving social protection for migrant workers, a disadvantaged group in the Chinese labour market. Future research should use longitudinal data and rigorous methods to track the long-term impact of this important law and help build a strong, unified social insurance system for all Chinese citizens. Journal: Economic and Political Studies Pages: 285-304 Issue: 3 Volume: 5 Year: 2017 Month: 7 X-DOI: 10.1080/20954816.2017.1345157 File-URL: http://hdl.handle.net/10.1080/20954816.2017.1345157 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:5:y:2017:i:3:p:285-304 Template-Type: ReDIF-Article 1.0 Author-Name: Xinxin Ma Author-X-Name-First: Xinxin Author-X-Name-Last: Ma Title: Labour market segmentation by ownership type and gender wage gap in urban China: evidence from CHIP2013 Abstract: This paper explores the labour market segmentation by ownership type and its impact on the gender wage gap in urban China. Using the latest data of the China Household Income Project (CHIP) survey conducted in 2014 (CHIP2013) and based on the Brown et al. model, I employ the decomposition analysis in this study. It is found that although both inter-sector differentials and intra-sector differentials affect the gender wage gap, the effect of intra-sector differentials is greater. In addition, in considering the effect of intra-sector differentials, the influence of unexplained differentials is greater than that of explained differentials. The results indicate that when other factors are held constantly, discrimination against female workers in a given sector is more serious, which is the main factor that causes the gender wage gap in urban China. Journal: Economic and Political Studies Pages: 305-325 Issue: 3 Volume: 5 Year: 2017 Month: 7 X-DOI: 10.1080/20954816.2017.1345167 File-URL: http://hdl.handle.net/10.1080/20954816.2017.1345167 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:5:y:2017:i:3:p:305-325 Template-Type: ReDIF-Article 1.0 Author-Name: Quheng Deng Author-X-Name-First: Quheng Author-X-Name-Last: Deng Title: Estimating the effect of minimum wage on firm profitability in China Abstract: Using the firm-level panel datasets and hand-collected data on county level minimum wage, this paper estimates the effect of minimum wage on firm profitability. As firms may take time to adjust in response to changes in minimum wage, this paper estimates a dynamic panel model with lagged minimum wage. To capture the heterogeneous effect of minimum wage on profitability, this paper further estimates quantile regression dynamic panel model. The estimation results suggest that the effect on firm profitability of minimum wage in the current year is negative across the whole conditional distribution of profitability and it exhibits an inverted-U shape across conditional quantiles. The effect on profitability of lagged minimum wage is positive at the 5th, 10th, 15th quantiles, negative at the 90th and 95th quantiles, and not significant at other quantiles. Turning to the overall effect on profitability of minimum wage, we find that minimum wage exerts significantly negative effect on profitability at the 5th quantile and quantiles higher than 40th and the absolute value of the effect of minimum wage increases with these quantiles. For other quantiles, the overall effect of minimum wage on profitability is negligible. Journal: Economic and Political Studies Pages: 326-341 Issue: 3 Volume: 5 Year: 2017 Month: 7 X-DOI: 10.1080/20954816.2017.1345168 File-URL: http://hdl.handle.net/10.1080/20954816.2017.1345168 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:5:y:2017:i:3:p:326-341 Template-Type: ReDIF-Article 1.0 Author-Name: Sui Yang Author-X-Name-First: Sui Author-X-Name-Last: Yang Author-Name: Shi Li Author-X-Name-First: Shi Author-X-Name-Last: Li Title: International financial crisis and wage inequality in urban China Abstract: The shock of the 2007/2008 international financial crisis had a negative impact on the Chinese economy at its early stage, but the immediate reaction of the Chinese government with a stimulus package of 4 trillion yuan has recovered this economy soon. Since the crisis and the governmental stimulus package have generated different impacts on unemployment and wage growth across regions and industries, it will lead to some changes in the pattern of wage inequality. This paper uses urban household data collected from RUMiC surveys during 2008–2010 to investigate changes in wage growth and inequality in urban China in this period. The findings indicate that the international financial crisis did not have significantly negative impact on wage growth and contributed to narrowing wage inequality in urban China, which was largely due to offsetting effects of the governmental stimulus policies. However, as the impact of the stimulus policies faded and the impact of the international financial crisis worsened, the wage growth experienced a downward trend and wage inequality rose in 2010. Journal: Economic and Political Studies Pages: 342-357 Issue: 3 Volume: 5 Year: 2017 Month: 7 X-DOI: 10.1080/20954816.2017.1345169 File-URL: http://hdl.handle.net/10.1080/20954816.2017.1345169 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:5:y:2017:i:3:p:342-357 Template-Type: ReDIF-Article 1.0 Author-Name: Binkai Chen Author-X-Name-First: Binkai Author-X-Name-Last: Chen Author-Name: Congshan Gao Author-X-Name-First: Congshan Author-X-Name-Last: Gao Title: Development strategy, economic transformation and income distribution Abstract: Income inequality will affect China’s economic growth over the long term. It is also one of the important factors determining whether China can avoid the middle-income trap. Different from the ‘equality of outcome’ perspective, this paper analyses the causes of China’s income distribution from the perspective of equality of opportunity. The inequality of opportunity in China is mainly caused by distorted institutional arrangements in the financial markets, labour markets, and product markets, involving e.g. restrictions on interest rates, the household registration (hukou) system, price controls on industrial and agricultural products, and privileges of state-owned enterprises. All of these distorted institutional arrangements are attributed to the heavy-industry-oriented development strategy in the recent history. Although this strategy was gradually abandoned, it has generated some institutions which have long-run impacts on the income distribution in China. Transforming government functions through institutional reforms is necessary to improve equality of opportunity and income distribution. Journal: Economic and Political Studies Pages: 358-379 Issue: 3 Volume: 5 Year: 2017 Month: 7 X-DOI: 10.1080/20954816.2017.1345176 File-URL: http://hdl.handle.net/10.1080/20954816.2017.1345176 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:5:y:2017:i:3:p:358-379 Template-Type: ReDIF-Article 1.0 Author-Name: Pan Wang Author-X-Name-First: Pan Author-X-Name-Last: Wang Author-Name: Zhihong Yu Author-X-Name-First: Zhihong Author-X-Name-Last: Yu Title: China’s Outward Foreign Direct Investment: The Role of Natural Resources and Technology Abstract: Using the data of China’s OFDI in more than 150 host countries or regions for the period of 1991-2009, in this paper we examine the underlying motivations and locational determinants of China’s OFDI, with a focus on the role of natural resources and technology. Our findings indicate that the host country’s natural resource abundance, interacted with its institutional quality, is a crucial determinant of China’s OFDI. There is strong evidence that in the recent period of 2003-2009, the host country’s overall natural resource abundance, oil abundance and metal abundance had a sizable positive effect on China’s OFDI. In particular, China’s OFDI was driven to resource-abundant countries with poor institutional quality and governance, and this pattern was strongest for oil but not metal resources. However, we find little evidence supporting the resource-seeking motivation in the pre-2003 period. Furthermore, we find strong evidence for the technology-exploiting motivation but not for the technology-seeking hypothesis. We show that, when the host is a low-income country, China’s OFDI increases if the host country’s technology is more backward, indicating that Chinese investors might be taking advantage of their technology gap relative to the local firms. Journal: Economic and Political Studies Pages: 89-120 Issue: 2 Volume: 2 Year: 2014 Month: 7 X-DOI: 10.1080/20954816.2014.11673846 File-URL: http://hdl.handle.net/10.1080/20954816.2014.11673846 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:2:y:2014:i:2:p:89-120 Template-Type: ReDIF-Article 1.0 Author-Name: Zhenya Liu Author-X-Name-First: Zhenya Author-X-Name-Last: Liu Author-Name: Wu Yang Author-X-Name-First: Wu Author-X-Name-Last: Yang Author-Name: David Dickinson Author-X-Name-First: David Author-X-Name-Last: Dickinson Title: Asymptotic Marginal Tax Rate of Individual Income Tax in China Abstract: This paper examines the asymptotic marginal rate of individual income tax which maximizes China’s social welfare through numerical simulation based on the elasticity of China’s labor supply, income distribution and the social objectives of redistribution in accordance with the optimal direct taxation theory. Taking advantage of the optimal direct taxation model with consideration of the income effect, it comes to the conclusion that combined with China’s reality, the asymptotic marginal rate of individual labor income tax in China should be between 35% and 40%. Journal: Economic and Political Studies Pages: 121-138 Issue: 2 Volume: 2 Year: 2014 Month: 7 X-DOI: 10.1080/20954816.2014.11673847 File-URL: http://hdl.handle.net/10.1080/20954816.2014.11673847 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:2:y:2014:i:2:p:121-138 Template-Type: ReDIF-Article 1.0 Author-Name: Bangxi Li Author-X-Name-First: Bangxi Author-X-Name-Last: Li Title: Marx’s Labor Theory of Value and Its Implications for Structural Problems in China’s Economy Abstract: This paper computes the values of commodities (including fixed capital) as well as production prices in China’s economy. In light of Marx’s transformation problem, the ratios of production prices to the values of 24 major commodities are computed. It is shown that the ratio of price to value in agriculture is the lowest, which indicates that agriculture is facing an unequal exchange of labor with other sectors. Journal: Economic and Political Studies Pages: 139-150 Issue: 2 Volume: 2 Year: 2014 Month: 7 X-DOI: 10.1080/20954816.2014.11673848 File-URL: http://hdl.handle.net/10.1080/20954816.2014.11673848 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:2:y:2014:i:2:p:139-150 Template-Type: ReDIF-Article 1.0 Author-Name: Weidong Wang Author-X-Name-First: Weidong Author-X-Name-Last: Wang Author-Name: Guihua Xie Author-X-Name-First: Guihua Author-X-Name-Last: Xie Author-Name: Lingxin Hao Author-X-Name-First: Lingxin Author-X-Name-Last: Hao Title: Rural Panel Surveys in Developing Countries: A Selective Review Abstract: Rural panel surveys are the most appropriate source of data for studying the unprecedented rapid migration and urbanization currently taking place in China and other developing countries. This paper provides a selective review, focusing on the panel survey methodologies of several studies, which are organized based on our proposed four key elements of panel surveys: representativeness, retrospect-prospect, multilevel tracking, and temporality. To maximize heterogeneity in urbanization and development over the last three decades, we select rural panel surveys from five Asian countries: India, Indonesia, Nepal, Thailand, and China. We analyze the strengths and weaknesses of the selected panel surveys to provide directions for designing future rural panel surveys in China and elsewhere in the developing world. Journal: Economic and Political Studies Pages: 151-177 Issue: 2 Volume: 2 Year: 2014 Month: 7 X-DOI: 10.1080/20954816.2014.11673849 File-URL: http://hdl.handle.net/10.1080/20954816.2014.11673849 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:2:y:2014:i:2:p:151-177 Template-Type: ReDIF-Article 1.0 Author-Name: Ronald I. McKinnon Author-X-Name-First: Ronald I. Author-X-Name-Last: McKinnon Title: Near-zero U.S. Interest Rates, Primary Commodity Prices, and Financial Control in Emerging Markets Abstract: The U.S. Federal Reserve’s monetary policy at the center of the world dollar standard has a first-order impact on global financial stability. However, except in moments of international crises, the Fed focuses inward on domestic American economic indicators and generally ignores collateral damage from its monetary policies in the rest of the world. But this makes the U.S. economy less stable. Currently, ultra-low interest rates on dollar assets ignite waves of hot money into emerging markets by carry traders that generate bubbles in international primary commodity prices and other assets. These bubbles burst when some accident at the center, such as a banking crisis, causes a reflux of the hot money. Ironically, these near-zero interest rates hold back investment in the American economy itself. Journal: Economic and Political Studies Pages: 3-25 Issue: 2 Volume: 2 Year: 2014 Month: 7 X-DOI: 10.1080/20954816.2014.11673842 File-URL: http://hdl.handle.net/10.1080/20954816.2014.11673842 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:2:y:2014:i:2:p:3-25 Template-Type: ReDIF-Article 1.0 Author-Name: Bin Zhang Author-X-Name-First: Bin Author-X-Name-Last: Zhang Title: Global Financial Regulations: An Antidote to Economic Predicament Abstract: Due to the lack of public order in the international financial arena, asset bubbles and resource misallocations persisted over a long period of time and resulted in global financial crisis in 2008. Global financial rules, which can take on a role like that of WTO in the international trade, are urgently needed for global economic recovery. They will balance the pressure of economic restructuring between large and small countries, and push forward some countries’ domestic reforms which may hardly be implemented due to domestic politics. Journal: Economic and Political Studies Pages: 26-45 Issue: 2 Volume: 2 Year: 2014 Month: 7 X-DOI: 10.1080/20954816.2014.11673843 File-URL: http://hdl.handle.net/10.1080/20954816.2014.11673843 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:2:y:2014:i:2:p:26-45 Template-Type: ReDIF-Article 1.0 Author-Name: Yu Luo Author-X-Name-First: Yu Author-X-Name-Last: Luo Author-Name: Frank Zhu Author-X-Name-First: Frank Author-X-Name-Last: Zhu Title: Financialization of the Economy and Income Inequality in China Abstract: The income gap between the financial sector and other sectors has been widening since the mid-1990s. Why do financiers in China earn more than others? We analyze this issue against the background of financialization of the economy. The year 1993 was a watershed year, in which China began the process of rapid financialization. Since 1993, the financial sector has become increasingly powerful, overshadowing other sectors. Evidence shows that the high income levels that exist in the financial sector are related to this process of financialization in China. Financialization influences income distribution in China through two channels: money issuance and liquidation of social capital. The labor market equilibrium of the financial sector and wage level determination are not naturally formed but constructed. The increasing income inequality between the financial sector and other sectors is a consequence of financialization of the economy in China. Journal: Economic and Political Studies Pages: 46-66 Issue: 2 Volume: 2 Year: 2014 Month: 7 X-DOI: 10.1080/20954816.2014.11673844 File-URL: http://hdl.handle.net/10.1080/20954816.2014.11673844 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:2:y:2014:i:2:p:46-66 Template-Type: ReDIF-Article 1.0 Author-Name: Chengyao Lei Author-X-Name-First: Chengyao Author-X-Name-Last: Lei Title: The Reform of State-owned Commercial Banks in China: A Political Economy Perspective Abstract: This paper analyzes the logic of the reform of state-owned commercial banks during 1997-2006 from a political economy perspective, mainly by discussing three fields of the reform: shareholding system reform, marketization, and financial restructuring. It also points out the existing problems in each field. The conclusion is that although the reform is heading in the right direction and has already made great progress, it has largely been conducted at the technical level and the Government has avoided dealing with the core issue of the reform. More importantly, the consequences of the Government’s policy—pursuing short-term objectives, like improving the short-term financial status of banks—puts the entire system in danger by accumulating long-term risks. This paper also provides some policy proposals and points out potential directions for further studies. Journal: Economic and Political Studies Pages: 67-88 Issue: 2 Volume: 2 Year: 2014 Month: 7 X-DOI: 10.1080/20954816.2014.11673845 File-URL: http://hdl.handle.net/10.1080/20954816.2014.11673845 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:2:y:2014:i:2:p:67-88 Template-Type: ReDIF-Article 1.0 Author-Name: Xiaoqiu Wu Author-X-Name-First: Xiaoqiu Author-X-Name-Last: Wu Title: Reform and evolution of finance in China: evidence from China’s reform and opening-up in the past 40 years Abstract: Over the past 40 years since the launch of reform and opening-up, China’s finance has undergone substantial and fundamental changes in terms of size, structure and pattern as well as function, competitiveness, and international influence. Therefore, an accurate and comprehensive understanding of the current situation of China’s finance and its history in the last four decades is a prerequisite for deepening the reform and opening-up of finance and a foundation for establishing a modern financial system in China. This paper reviews the historical evolution of China’s finance over the past 40 years, focussing on the volume and market share of different types of financial assets, financing tools and mechanisms, patterns in and functions of finance, the risk structure in the financial system, financial opening, and the financial regulation model. It further proposes that in the future, China should establish a modern financial system characterised by ‘large-economy finance’. Journal: Economic and Political Studies Pages: 377-412 Issue: 4 Volume: 7 Year: 2019 Month: 10 X-DOI: 10.1080/20954816.2019.1667603 File-URL: http://hdl.handle.net/10.1080/20954816.2019.1667603 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:7:y:2019:i:4:p:377-412 Template-Type: ReDIF-Article 1.0 Author-Name: Ying Li Author-X-Name-First: Ying Author-X-Name-Last: Li Title: RMB exchange rate reforms and exchange rate preferences of domestic interest groups in China Abstract: With balance of payments in China and the RMB exchange rate approaching the equilibrium level, political gaming of domestic interest groups rather than international political pressures plays a more important role in future bidirectional changes of the RMB exchange rate. From the perspective of political economics, this paper analyses the dynamics of exchange rate preferences of domestic interest groups and their role in the evolution of RMB exchange rate regimes. The findings show that interest groups and their exchange rate preferences do play a significant role in RMB exchange rate reforms, which implicates that it is necessary to take account of policy preferences and political gaming of interest groups in the determination and forecasts of the RMB exchange rate. Journal: Economic and Political Studies Pages: 413-432 Issue: 4 Volume: 7 Year: 2019 Month: 10 X-DOI: 10.1080/20954816.2019.1667601 File-URL: http://hdl.handle.net/10.1080/20954816.2019.1667601 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:7:y:2019:i:4:p:413-432 Template-Type: ReDIF-Article 1.0 Author-Name: Austin Murphy Author-X-Name-First: Austin Author-X-Name-Last: Murphy Title: A model of optimising political expenditures to buy government power Abstract: This research develops a model of optimal political expenditures and shows how money inevitably controls government leaders, subject only to a single constraint relating to negative public reaction. The paper demonstrates theoretically why many businesses do not make such investments despite abnormally high returns from the expended political capital. In particular, firms with less economic resources optimally recognise that they can successfully participate in the political process only in consortium with the dominant players of mutual interests to influence broader government policies. The largest corporations are therefore able to buy government power with a minimal political outlay. Journal: Economic and Political Studies Pages: 433-453 Issue: 4 Volume: 7 Year: 2019 Month: 10 X-DOI: 10.1080/20954816.2019.1667602 File-URL: http://hdl.handle.net/10.1080/20954816.2019.1667602 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:7:y:2019:i:4:p:433-453 Template-Type: ReDIF-Article 1.0 Author-Name: Jianbo Song Author-X-Name-First: Jianbo Author-X-Name-Last: Song Author-Name: Xin Wang Author-X-Name-First: Xin Author-X-Name-Last: Wang Title: Customer concentration and management earnings forecast Abstract: Customers are one of the key external stakeholders for a company. Using Chinese listed companies’ data from 2007 to 2015, this paper examines the impact of customer concentration on information disclosure from the perspective of management earnings forecast. Empirical results show that a more concentrated customer base induces companies to disclose more positive earnings forecast. In addition, the positive association between customer concentration and management earnings forecast is more pronounced with higher economic policy uncertainty. Further analyses reveal that companies issue more positive earnings forecast to reduce the financing risk and protect their relationship-specific investment. Also, customer concentration reduces the consistency of earnings forecast since the deviation of the forecast performance and the actual performance is greater. This paper enriches the literature on the determinants of management earnings forecast and the effects of stakeholders on corporate financial behaviour. Our findings also provide implications for investors, regulators, and various stakeholders to understand management earnings forecast decisions. Journal: Economic and Political Studies Pages: 454-479 Issue: 4 Volume: 7 Year: 2019 Month: 10 X-DOI: 10.1080/20954816.2019.1667600 File-URL: http://hdl.handle.net/10.1080/20954816.2019.1667600 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:7:y:2019:i:4:p:454-479 Template-Type: ReDIF-Article 1.0 Author-Name: Rong Xu Author-X-Name-First: Rong Author-X-Name-Last: Xu Author-Name: Jialu Chang Author-X-Name-First: Jialu Author-X-Name-Last: Chang Author-Name: Conggang Li Author-X-Name-First: Conggang Author-X-Name-Last: Li Author-Name: Wenlan Wang Author-X-Name-First: Wenlan Author-X-Name-Last: Wang Title: Research on the influence of equity pledge on stock price crash risk: based on financial shock of 2015 stock market crisis Abstract: The 2015 Chinese stock market crisis triggered liquidation because of equity pledge so that the leverage effect of the small probability event with severe results got intensive attention from investors. It is found that the effects of equity pledge on stock price crash risk reversed significantly before and after the 2015 stock market crisis. In the mechanism analysis, we further find that the equity pledge influenced the stock price crash risk by longer suspension and greater price fluctuation. The shareholding ratio of institutional investors and information environment also had a significant moderating effect on the influence of equity pledge on stock price crash risk. Alternative interpretation tests excluded the tunnel effect and pressure effect by shareholders and incentive effect by management. This study by analysing empirical data provides evidence on the change of investors’ risk recognition, which is caused by financial shock, in the Chinese capital market. Journal: Economic and Political Studies Pages: 480-505 Issue: 4 Volume: 7 Year: 2019 Month: 10 X-DOI: 10.1080/20954816.2019.1667599 File-URL: http://hdl.handle.net/10.1080/20954816.2019.1667599 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:7:y:2019:i:4:p:480-505 Template-Type: ReDIF-Article 1.0 Author-Name: Ataul Huq Pramanik Author-X-Name-First: Ataul Huq Author-X-Name-Last: Pramanik Title: Economic reform as a precursor to political reform for development – does China have a model for resource-rich African Muslim countries? Abstract: Having gone through colonial exploitation for centuries, most of the colonies after independence from the West were confronted with two models. Contrary to the free market capitalist system based on power-sharing, some of the newly independent countries opted for an authoritarian model and ended up with unjust/distorted development based on exclusivist institutions. Despite having rich-resource endowments with less pressure of population, these countries essentially failed to promote inclusive economic institutions to ensure private property and an unbiased system of law which, in turn, would unleash the immense potentials based on incentives, talent and skills highly required for enhancing productivity and prosperity. The authoritarian but good governance (GG) under state-led development of East Asian miracle economies, in general, and China, in particular, pursuing the goal of economic modernisation before political reform made spectacular achievements in less than quarter of a century. But some of the resource-rich African countries, being unable to remain immune from the vested interest/political lobby groups, failed to make economic reform being promoted by agriculture-led development to facilitate political reform subsequently. Based on the main research question of this paper, it will be argued that the massive economic reform as that of China in terms of agriculture-led development can gradually set the stage for subsequent political reform. Based on the historical evidence of successful authoritarian development model, this paper argues in favour of Chinese style of gradualist development using incentives through empowering the households as well as individuals in materialising their potentials. However, only the effective inclusive institutions as experienced by way of ensuring all sorts of public and private goods can help the resource-rich African Muslim countries to pursue economic prosperity with fair distribution of economic, political and socio-cultural power resources. This, in turn, can help restore a ‘feeling of togetherness’ or what one of the greatest scholars of Islam – Ibn Khaldun – terms as ‘Asabiya’ for achieving a comprehensive, inclusive and sustainable development made possible by GG as opposed to liberal democracy. Journal: Economic and Political Studies Pages: 127-157 Issue: 2 Volume: 5 Year: 2017 Month: 4 X-DOI: 10.1080/20954816.2017.1310790 File-URL: http://hdl.handle.net/10.1080/20954816.2017.1310790 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:5:y:2017:i:2:p:127-157 Template-Type: ReDIF-Article 1.0 Author-Name: Ye Tian Author-X-Name-First: Ye Author-X-Name-Last: Tian Author-Name: Min Xia Author-X-Name-First: Min Author-X-Name-Last: Xia Title: WTO, credible commitments, and China’s reform of state-owned enterprises Abstract: This study focusses on the relationship between China’s accession to the World Trade Organisation (WTO) and its reform of state-owned enterprises (SOEs) and suggests that the major incentive for the Chinese government to join the WTO is to promote economic reforms through overcoming domestic obstacles. After other options such as decentralisation, legalisation, and privatisation failed to enhance viability of SOEs, the Chinese government began to rely on international institutions to enhance its credibility and harden the budget constraints on SOEs. The WTO is one of the most important international organisations and has binding force for its member states. China’s participation in the WTO will effectively harden budget constraints on its SOEs and improve the efficiency of these enterprises through introducing competition into the domestic market. Historical data support our argument and indicate that China has effectively enhanced the credibility of government commitments and promoted the reform of its SOEs since its accession to the WTO. Journal: Economic and Political Studies Pages: 158-178 Issue: 2 Volume: 5 Year: 2017 Month: 4 X-DOI: 10.1080/20954816.2017.1310791 File-URL: http://hdl.handle.net/10.1080/20954816.2017.1310791 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:5:y:2017:i:2:p:158-178 Template-Type: ReDIF-Article 1.0 Author-Name: Bei Luo Author-X-Name-First: Bei Author-X-Name-Last: Luo Author-Name: Terence Tai-Leung Chong Author-X-Name-First: Terence Tai-Leung Author-X-Name-Last: Chong Title: Entrepreneurial activities and institutional environment in China Abstract: This article aims to examine the relationship between the quality of an institutional environment and the characteristics of entrepreneurial activities within the context of China. An event study was conducted to investigate the impacts of the announcement of the Forbes China Rich List on prices of the shares associated with entrepreneurs on the list. This article concludes that the quality of an institutional environment is greatly negatively related to unproductive entrepreneurial activities. Journal: Economic and Political Studies Pages: 179-194 Issue: 2 Volume: 5 Year: 2017 Month: 4 X-DOI: 10.1080/20954816.2017.1310792 File-URL: http://hdl.handle.net/10.1080/20954816.2017.1310792 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:5:y:2017:i:2:p:179-194 Template-Type: ReDIF-Article 1.0 Author-Name: Liang Ma Author-X-Name-First: Liang Author-X-Name-Last: Ma Title: Central government agencies in China: toward a research agenda Abstract: Central government agencies play key roles in making and implementing public policies in China, but the empirical studies on these organisations are disproportionally scarce. Scholars in political science and public administration predominantly focus their researches on local governments at various levels, while paying little, if any, attention to the central counterparts. This article discusses the phenomenon of strong local but weak central government research pattern (the so called ‘central–local research divide’), and identifies the driving forces behind this research gap. It also introduces the lessons and implications from the US and European research projects for developing, replicating, and extending central agency databases. The research further elaborates the existing variables and data sources on central agencies and develops the China Central Agency Database (CCAD) to advance the quantitative research of central agencies in China. Finally, a conclusion is drawn with a research agenda to encourage researchers to coproduce the CCAD and embrace the study of central agencies. Journal: Economic and Political Studies Pages: 195-214 Issue: 2 Volume: 5 Year: 2017 Month: 4 X-DOI: 10.1080/20954816.2017.1310793 File-URL: http://hdl.handle.net/10.1080/20954816.2017.1310793 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:5:y:2017:i:2:p:195-214 Template-Type: ReDIF-Article 1.0 Author-Name: Shilan Feng Author-X-Name-First: Shilan Author-X-Name-Last: Feng Author-Name: Ya Tan Author-X-Name-First: Ya Author-X-Name-Last: Tan Author-Name: Liutang Gong Author-X-Name-First: Liutang Author-X-Name-Last: Gong Title: Dynamics of occupational mobility: an empirical analysis based on headhunting data Abstract: This paper analyses occupational mobility in the labour market using survey data from a headhunting company. Four aspects of occupational mobility are discussed: the frequency of occupational mobility, cross-industry mobility, cross-ownership mobility and the influence of the macro economy on occupational mobility. The following are our findings: (1) educational level may insignificantly or negatively influence occupational mobility; (2) the younger generation is more active in the labour market; (3) although the public sector provides stable job opportunities, labour mobility in the first five years is not lower in the public sector than in the private sector; and (4) Party members are more frequently occupationally mobile. Journal: Economic and Political Studies Pages: 215-232 Issue: 2 Volume: 5 Year: 2017 Month: 4 X-DOI: 10.1080/20954816.2017.1310795 File-URL: http://hdl.handle.net/10.1080/20954816.2017.1310795 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:5:y:2017:i:2:p:215-232 Template-Type: ReDIF-Article 1.0 Author-Name: Naoyuki Yoshino Author-X-Name-First: Naoyuki Author-X-Name-Last: Yoshino Author-Name: Farhad Taghizadeh-Hesary Author-X-Name-First: Farhad Author-X-Name-Last: Taghizadeh-Hesary Author-Name: Nour Tawk Author-X-Name-First: Nour Author-X-Name-Last: Tawk Title: Decline of oil prices and the negative interest rate policy in Japan Abstract: In April 2013, the Bank of Japan (BOJ) introduced an inflation target of 2% with the aim of overcoming deflation and achieving sustainable economic growth. But due to lower international oil prices it was unable to achieve this target and was forced to take further measures. Hence, in February 2016, the BOJ adopted a negative interest rate policy by massively increasing the money supply through the purchase of long-term Japanese government bonds (JGB). The BOJ had previously only purchased short-term government bonds, a policy that flattened the yield curve of JGBs. On the one hand, banks reduced the number of government bonds they purchased because short-term bond yields had become negative. The interest rates of long-term government bond up to 15 years even became negative. On the other hand, bank loans to corporates did not increase, due to Japanese economy’s vertical investment–saving (IS) curve. The purpose of this paper is to show that the monetary policy through implementation of the zero interest rate and more recently through the negative interest rate could not help the Japanese economy to recover from the long-lasting recession and these are not the remedy. It is of key importance to make the IS curve downward rather than vertical. That means the rate of return on investment must be positive and companies must be willing to invest even if interest rates are set too low. Japan’s long-term recession is due to structural problems that cannot be solved by its current monetary policy. The paper also explains why the BOJ has to reduce its 2% inflation target in the present low oil price era. Journal: Economic and Political Studies Pages: 233-250 Issue: 2 Volume: 5 Year: 2017 Month: 4 X-DOI: 10.1080/20954816.2017.1310798 File-URL: http://hdl.handle.net/10.1080/20954816.2017.1310798 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:5:y:2017:i:2:p:233-250 Template-Type: ReDIF-Article 1.0 Author-Name: The Editors Title: Corrigendum Journal: Economic and Political Studies Pages: 251-251 Issue: 2 Volume: 5 Year: 2017 Month: 4 X-DOI: 10.1080/20954816.2017.1301848 File-URL: http://hdl.handle.net/10.1080/20954816.2017.1301848 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:5:y:2017:i:2:p:251-251 Template-Type: ReDIF-Article 1.0 Author-Name: Xiaohong Xu Author-X-Name-First: Xiaohong Author-X-Name-Last: Xu Title: Corruption and economic growth: an absolute obstacle or some efficient grease? Abstract: The relationship between bureaucratic corruption and economic growth has been a much debated topic in the studies of economics and political science in the past decades. However, no theoretical consensus has been reached in this field. Corresponding to the divergence in theoretical perspectives, empirical evidence is mixed as well. As a fundamental step to examine the correlation between corruption and economic growth, this review provides a systematic review of the existing theoretical and empirical research on corruption’s growth effects. Meanwhile, the definition and statistical measurement of corruption is also discussed. This review makes new contributions to the extant corruption literature since it not only incorporates the latest scholarship on the topic but highlights corruption’s differential growth effects in different organisational, institutional and geographical contexts. Journal: Economic and Political Studies Pages: 85-100 Issue: 1 Volume: 4 Year: 2016 Month: 1 X-DOI: 10.1080/20954816.2016.1152097 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1152097 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:4:y:2016:i:1:p:85-100 Template-Type: ReDIF-Article 1.0 Author-Name: Melanie Manion Author-X-Name-First: Melanie Author-X-Name-Last: Manion Title: Introduction Journal: Economic and Political Studies Pages: 1-2 Issue: 1 Volume: 4 Year: 2016 Month: 1 X-DOI: 10.1080/20954816.2016.1152677 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1152677 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:4:y:2016:i:1:p:1-2 Template-Type: ReDIF-Article 1.0 Author-Name: Li Dang Author-X-Name-First: Li Author-X-Name-Last: Dang Author-Name: Ruilong Yang Author-X-Name-First: Ruilong Author-X-Name-Last: Yang Title: Anti-corruption, marketisation and firm behaviours: evidence from firm innovation in China Abstract: China has launched an anti-corruption campaign since the Eighteenth CPC National Congress, which has exerted widespread influences on Chinese politics and economy. This paper examines the effect of the anti-corruption initiative on firm behaviours from the perspective of research and development (R&D) investments. It shows that pursuing political connections and improving innovation are two mutually exclusive alternatives for firm growth in China. The anti-corruption campaign raises the cost of seeking for political bond and strengthens the incentive for firm innovation. After anti-corruption policies and regulations were issued, R&D expenditure in politically connected firms increases significantly; the anti-corruption initiative has positive effects on firm innovation. Further research shows that the effects vary with different types of firms. For state-owned enterprises (SOEs), the anti-corruption initiative only increases the R&D investments of firms with senior executives who used to serve in the government; while for non-state-owned enterprises (non-SOEs), this campaign has all-around positive effects on their R&D investments. In the meantime, a heterogeneity at the provincial level is observed: R&D investments of firms with political connections increase more significantly in provinces with more intense anti-corruption efforts. Finally, marketisation also has a role to play. For regions with a more developed market economy, anti-corruption increases the innovation of firms with political connections; whereas in regions with a less developed market economy, this effect is insignificant. This paper provides evidence for the opinion that anti-corruption is favourable to economic growth in China. To solve the endogeneity problem, it uses data obtained from the anti-corruption policy experiment since the Eighteenth CPC National Congress and the difference-in-differences (DID) method to further test the hypotheses. Journal: Economic and Political Studies Pages: 39-61 Issue: 1 Volume: 4 Year: 2016 Month: 1 X-DOI: 10.1080/20954816.2016.1152093 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1152093 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:4:y:2016:i:1:p:39-61 Template-Type: ReDIF-Article 1.0 Author-Name: Melanie Manion Author-X-Name-First: Melanie Author-X-Name-Last: Manion Title: Taking China’s anticorruption campaign seriously Abstract: This article draws on a rich empirical literature on comparative corruption and rich theoretical literatures on the related topics of institutions and credible commitment to analyze China’s newest anticorruption campaign, ongoing today. It argues that the campaign differs notably from previous efforts. In addition to its most obvious features of longer duration and higher reach, the campaign has significantly changed the structure of Party and government incentives so as to reduce bureaucratic opportunities for corruption and structural obstacles to anticorruption enforcement. These features constitute important steps toward anticorruption institutionalisation and credible commitment to good governance. The article concludes by proposing some strategic policy choices to promote and protect anticorruption gains. Journal: Economic and Political Studies Pages: 3-18 Issue: 1 Volume: 4 Year: 2016 Month: 1 X-DOI: 10.1080/20954816.2016.1152094 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1152094 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:4:y:2016:i:1:p:3-18 Template-Type: ReDIF-Article 1.0 Author-Name: William Muhumuza Author-X-Name-First: William Author-X-Name-Last: Muhumuza Title: The politics of anti-corruption reforms and reversals in Uganda’s changing political terrain Abstract: The article discusses the increasing levels of public sector corruption despite the NRM government’s pursuing of accountability reforms and anti-corruption policy strategies. It asserts that having an impressive legal and institutional framework in place to enhance accountability and control corrupt tendencies may not be enough if political factors are ignored. In the absence of exemplary political leadership and support to institutions that enforce compliance, fighting corruption will remain a far cry. The article further argues that in circumstances where the political terrain ascribes to patron-client and neo-patrimonial instruments to consolidate and retain power, curbing public sector corruption will be elusive. The article insists that fighting public sector corruption largely depends on political commitment and less on the semblance of laws, institutions and technocrats. Journal: Economic and Political Studies Pages: 62-84 Issue: 1 Volume: 4 Year: 2016 Month: 1 X-DOI: 10.1080/20954816.2016.1152095 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1152095 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:4:y:2016:i:1:p:62-84 Template-Type: ReDIF-Article 1.0 Author-Name: Huihua Nie Author-X-Name-First: Huihua Author-X-Name-Last: Nie Author-Name: Mengqi Wang Author-X-Name-First: Mengqi Author-X-Name-Last: Wang Title: Are foreign monks better at chanting? The effect of ‘airborne’ SDICs on anti-corruption Abstract: The independence of supervision agency is of great importance for anti-corruption. After the leadership transition of the provincial Congress of the Chinese Communist Party in 2006, Secretaries of Discipline Inspection Commission (SDICs) were suddenly dispatched from the centre or transferred from another province in China (‘airborne’ SDICs) to enhance their independence in inspecting corruption cases. To investigate the effect of this policy reform, we collect data of SDICs and anti-corruption in 31 provinces from 2003 to 2014, and evaluate this policy using the difference-in-differences econometrics method. We find that there is no significant effect of these ‘airborne’ SDICs whether from the centre or another province on anti-corruption. This result is robust to different measurements of anti-corruption and subsamples. We argue that the dispatch of external SDICs is not enough to ensure the independence of supervision agency, because local discipline inspection commissions (DICs) are still subject to local Chinese Communist Party committees in terms of personnel, funds and property. This paper has important policy implications for the current anti-corruption campaign in China. Journal: Economic and Political Studies Pages: 19-38 Issue: 1 Volume: 4 Year: 2016 Month: 1 X-DOI: 10.1080/20954816.2016.1152096 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1152096 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:4:y:2016:i:1:p:19-38 Template-Type: ReDIF-Article 1.0 Author-Name: Meron Medzini Author-X-Name-First: Meron Author-X-Name-Last: Medzini Title: The Chinese Are Coming: The Political Implications of the Growing Sino-Israel Economic Ties Abstract: The relationship between the State of Israel and the People’s Republic of China offers a fascinating case in modern international relations. Ostensibly there is not much that unites the two countries so different in size and population, in regimes and politics, yet, over the past two decades, these relations have acquired a great deal of importance and significance for both. While it is easy to understand the attraction to China of Israel’s experience, innovation and its exemplary human capital, it is less evident what China is seeking to achieve in deepening its ties with Israel. This paper attempts to assess the state of Sino-Israel bilateral relations and their impact on the future of the two nations. Journal: Economic and Political Studies Pages: 114-128 Issue: 1 Volume: 3 Year: 2015 Month: 1 X-DOI: 10.1080/20954816.2015.11673840 File-URL: http://hdl.handle.net/10.1080/20954816.2015.11673840 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:3:y:2015:i:1:p:114-128 Template-Type: ReDIF-Article 1.0 Author-Name: Joe Thomas Karackattu Author-X-Name-First: Joe Thomas Author-X-Name-Last: Karackattu Title: Assessing Sino-Indian Economic Relations in an Interdependence Framework: 1992-2008 Abstract: This study situates Sino-Indian economic interaction under the interdependence framework. By mapping conflict behavior in this dyad against the trends in the economic interdependence, we find a discernible shift away from escalation (high-level conflict) towards bargaining (diplomatic contestation). This paper argues that interdependence has only recently emerged in the India-China dyad and that lingering strategic distrust, national security consideration, and protectionist tendency have prevented the deepening of economic interdependence. The findings challenge the direction of interdependence in this dyad normally gleaned from nominal trade data. This paper also highlights key issue-areas that inhibit strategic coupling in the bilateral economic interaction. Journal: Economic and Political Studies Pages: 129-159 Issue: 1 Volume: 3 Year: 2015 Month: 1 X-DOI: 10.1080/20954816.2015.11673841 File-URL: http://hdl.handle.net/10.1080/20954816.2015.11673841 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:3:y:2015:i:1:p:129-159 Template-Type: ReDIF-Article 1.0 Author-Name: George J. Bratsiotis Author-X-Name-First: George J. Author-X-Name-Last: Bratsiotis Author-Name: Jakob Madsen Author-X-Name-First: Jakob Author-X-Name-Last: Madsen Author-Name: Christopher Martin Author-X-Name-First: Christopher Author-X-Name-Last: Martin Title: Inflation Targeting and Inflation Persistence Abstract: This paper argues that the adoption of an inflation target reduces the persistence of inflation. We develop the theoretical literature on inflation persistence by introducing a Taylor Rule for monetary policy into a model of persistence and showing that inflation targets reduce inflation persistence. We investigate changes in the time series properties of inflation in seven countries that introduced inflation targets in the late 1980s or early 1990s. We find that the persistence of inflation is greatly reduced or eliminated following the introduction of inflation targets. Journal: Economic and Political Studies Pages: 3-17 Issue: 1 Volume: 3 Year: 2015 Month: 1 X-DOI: 10.1080/20954816.2015.11673835 File-URL: http://hdl.handle.net/10.1080/20954816.2015.11673835 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:3:y:2015:i:1:p:3-17 Template-Type: ReDIF-Article 1.0 Author-Name: Fuqian Fang Author-X-Name-First: Fuqian Author-X-Name-Last: Fang Author-Name: Xinyu Zhan Author-X-Name-First: Xinyu Author-X-Name-Last: Zhan Title: The Stabilizing Effect of Industrial Structure Upgrade on Economic Fluctuations in China Abstract: Empirical study using a time-varying parameter model indicates that since the reform and opening up of China, its industrial structure upgrade has had an increasingly significant stabilizing effect on the amplitude of economic fluctuations. A further analysis using a TGARCH model reveals that the three major industrial sectors have asymmetrical effects on the size of macroeconomic fluctuation: the primary industry (extraction) has little effect; the secondary industry (manufacturing) has a leverage effect mainly caused by heavy industry; the tertiary industry (services) has a clear stabilizing effect, with the effect of transportation, logistics, the postal industry, housing-catering services, and other service industries being most significant, and the effect of wholesale, retail, the finance industry and real estate being less significant due to their own large fluctuations. The policy implications of the findings are that to maintain stable growth in the economy, China should optimize the relations of the three major industrial sectors, and further push for the upgrading of the industrial structure, especially the development of the tertiary industry. Journal: Economic and Political Studies Pages: 18-41 Issue: 1 Volume: 3 Year: 2015 Month: 1 X-DOI: 10.1080/20954816.2015.11673836 File-URL: http://hdl.handle.net/10.1080/20954816.2015.11673836 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:3:y:2015:i:1:p:18-41 Template-Type: ReDIF-Article 1.0 Author-Name: Leslie Holmes Author-X-Name-First: Leslie Author-X-Name-Last: Holmes Title: Combating Corruption in China: The Role of the State and Other Agencies in Comparative Perspective Abstract: This paper is the first to compare China’s current anti-corruption approach with those of both post-communist and other Sinic states/regions. Its principal purpose is to compare anti-corruption in China with the situation in countries that constitute appropriate comparators—either systemically (post-communist transition states) or culturally(predominantly Sinic states/regions)—and suggest ways in which China could usefully learn from these comparators.A comparative public policy evaluative approach forms the core of the analysis. The study uses publicly available surveydata, both perceptual and experiential, for drawing inferences about the corruption levels in China and the other statesanalyzed. A neo-Weberian approach to system legitimacy and delegitimation is employed in analyzing the potential dangersof a radical anti-corruption approach, while Giddensian structuration theory is used to emphasize the interplay between structure and agency in anti-corruption. The findings and value of this research are primarily practical, in that it highlights potential lessons China could learn from Singapore and the Hong Kong SAR while also identifying the principal obstacles to the adoption of such measures. In particular, the establishment of a single and independent anti-corruption agency would almost certainly have a positive impact on the reduction of corruption levels. But this is politically difficult, since such a body could be perceived as constituting a threat to the Communist Party. Moreover, all comparisons between states are limited, since some features are unique to a given country. Journal: Economic and Political Studies Pages: 42-70 Issue: 1 Volume: 3 Year: 2015 Month: 1 X-DOI: 10.1080/20954816.2015.11673837 File-URL: http://hdl.handle.net/10.1080/20954816.2015.11673837 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:3:y:2015:i:1:p:42-70 Template-Type: ReDIF-Article 1.0 Author-Name: Xing Li Author-X-Name-First: Xing Author-X-Name-Last: Li Title: Conceptualizing the Nexus between Econocentric Capitalism and Logocentric Radicalism Abstract: The article intends to contribute a framework of understanding the dual rise of econocentric fundamentalism (referring to market capitalism) and logocentric radicalism (referring to counter-hegemonic political forces) as a process of mutual generation and destruction. “Mutual generation and destruction” implies a dialectical process in which the deification of the free market and the global expansion of market capitalism have unavoidably generated destructive contradictions leading to the resurgence of logo-centric counter-hegemonic socio-political forces. It is the analysis of this nexus that leads to a better understanding of the essence of worldwide religious/political radicalisms rather than their appearance. Islamic fundamentalism, for example, and other forms of political radicalism can be seen as a part of counter-hegemonic political movements representing an outlet for action and a force for change. Paradoxically, what we are witnessing today is a confrontation between two types of fundamentalist forces: econocentrism vis-à-vis logocentrism. Journal: Economic and Political Studies Pages: 71-97 Issue: 1 Volume: 3 Year: 2015 Month: 1 X-DOI: 10.1080/20954816.2015.11673838 File-URL: http://hdl.handle.net/10.1080/20954816.2015.11673838 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:3:y:2015:i:1:p:71-97 Template-Type: ReDIF-Article 1.0 Author-Name: Emil Kirchner Author-X-Name-First: Emil Author-X-Name-Last: Kirchner Title: China and the EU as Global Actors: Challenges and Opportunities for Joint Cooperation Abstract: This paper examines the level of cooperation which China and the EU undertake on global issues, especially with regard to the future roles of international organizations such as the UN, the IMF, the World Bank, the G20, the form and practice of multilateralism, the prospects and direction of a multipolar/core world, and whether the two tend to be partners rather than competitors on issues of climate change and energy policy. It applies the approach of international security cooperation and relies primarily on documentary evidence (e.g., communiqués on global or regional governance aspects, issued at EU-China summits or separately by each). This paper argues that the “misunderstanding” on principles between the EU and China is at odds with the growing economic interdependencies between the two sides. The EU and China, two of the pillars in the emerging multipolar order, have fundamentally opposed attitudes to key aspects of global politics, such as sovereignty and multilateralism, and these differences are bound to create further tensions in the development of global governance regimes in the future. The originality of this paper lies in that it moves beyond the traditional form of investigating on how each China and the EU perceive each other in cooperation terms by focusing instead on the level of cooperation both partners pursue with regard to multilateralism and within the activities of international organizations. Journal: Economic and Political Studies Pages: 98-113 Issue: 1 Volume: 3 Year: 2015 Month: 1 X-DOI: 10.1080/20954816.2015.11673839 File-URL: http://hdl.handle.net/10.1080/20954816.2015.11673839 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:3:y:2015:i:1:p:98-113 Template-Type: ReDIF-Article 1.0 Author-Name: Yuanchun Liu Author-X-Name-First: Yuanchun Author-X-Name-Last: Liu Author-Name: Xiaoguang Liu Author-X-Name-First: Xiaoguang Author-X-Name-Last: Liu Title: 2018-2019 China macroeconomic report: China’s macroeconomy in the new chapter of reform and opening-up Abstract: Since 2016, the scenario of stable macroeconomic performance with good momentum has changed due to shifts in global economic architecture, changes in market sentiment, variations in microeconomic bases and mismatched economic policies. Core macroeconomic indicators demonstrated ‘continuous slower growth’ as downward pressure continued to increase. The situation illustrates that China’s macroeconomy has neither stabilised nor entered a steady recovery cycle. A short-term policy may fail to stabilise growth and alleviate the continuous downturn pressure which emerged in 2018. Chinese economy needs comprehensive supply-side structural reforms and opening-up. This report shows that China’s internal and external pressures urged wide-range reforms in 2018 and in-depth opening-up in 2019. The year 2019 is crucial for China as it transitions from the dismal ‘new normal’ phase to a high-quality development mode. Journal: Economic and Political Studies Pages: 233-280 Issue: 3 Volume: 7 Year: 2019 Month: 7 X-DOI: 10.1080/20954816.2019.1633826 File-URL: http://hdl.handle.net/10.1080/20954816.2019.1633826 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:7:y:2019:i:3:p:233-280 Template-Type: ReDIF-Article 1.0 Author-Name: Yutaka Suzuki Author-X-Name-First: Yutaka Author-X-Name-Last: Suzuki Title: A contract theory analysis to fiscal relations between the central and local governments in China Abstract: We use a contract theory/mechanism design framework to analyse the fiscal relations and reforms between the central and local governments in China, which are said to have made great contributions to economic growth since the ‘economic reform’. First, we present the mechanism (a fiscal incentive contract model), which has created incentives for the development agent (local government), and clarify theoretically how the concept of bao (contract) works. We then comprehend the concept of bisai (contest) within the framework of the yardstick competition between local governments, and review the mechanism which encourages proper information revelation through intergovernmental comparison and competition. Lastly, we make a theoretical comparative analysis on the fiscal system reform (from the fiscal contracting system to the tax sharing system), from the perspective of how much room was left for the ‘ratchet effect’ in the dynamic relation between the central and local governments, and how it was solved (or mitigated) in the two fiscal systems. Journal: Economic and Political Studies Pages: 281-313 Issue: 3 Volume: 7 Year: 2019 Month: 7 X-DOI: 10.1080/20954816.2019.1633822 File-URL: http://hdl.handle.net/10.1080/20954816.2019.1633822 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:7:y:2019:i:3:p:281-313 Template-Type: ReDIF-Article 1.0 Author-Name: Jinghan Cai Author-X-Name-First: Jinghan Author-X-Name-Last: Cai Author-Name: Alicia García-Herrero Author-X-Name-First: Alicia Author-X-Name-Last: García-Herrero Author-Name: Fengyun Li Author-X-Name-First: Fengyun Author-X-Name-Last: Li Author-Name: Xia Le Author-X-Name-First: Xia Author-X-Name-Last: Le Title: The regulatory arbitrage and window dressing in shadow banking: the example of Chinese wealth management product Abstract: We document that in China the maturity dates of bank-issued wealth management products (WMPs) cluster toward the end of a month and then decrease significantly at the beginning of the following month. Our empirical work detects a negative relationship between a bank’s loan-to-deposit ratio (LDR) at month-ends and the number of its issued WMPs expiring within several days of the month-end. Moreover, this WMP clustering and the negative relationship disappear after the reform in which regulators bring up measures for banks with a high deposit deviation degree in 2014. We also document that the banks tend to arrange the high-return WMPs to expire around month-ends to attract customers, and this clustering of high-return WMPs also disappears after the reform. Our findings suggest that banks actively, rather than passively, use WMPs as vehicles for their regulatory arbitrage or window dressing behaviours. Journal: Economic and Political Studies Pages: 314-336 Issue: 3 Volume: 7 Year: 2019 Month: 7 X-DOI: 10.1080/20954816.2019.1633825 File-URL: http://hdl.handle.net/10.1080/20954816.2019.1633825 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:7:y:2019:i:3:p:314-336 Template-Type: ReDIF-Article 1.0 Author-Name: Abdul Ganiyu Iddrisu Author-X-Name-First: Abdul Ganiyu Author-X-Name-Last: Iddrisu Author-Name: Jabir Ibrahim Mohammed Author-X-Name-First: Jabir Ibrahim Author-X-Name-Last: Mohammed Title: Is political business cycle an enemy to human development? Empirical evidence from Africa Abstract: Extant literature has argued that, with major extension of democracy since the 1990s, political business cycle has become more intense and has made African political systems more fragile. In light of this, this paper examines both the existence of African political business cycles and their impact on human development. It confirms the existence of political business cycles in Africa. Estimates of a panel fixed effects and system-GMM regression techniques for 38 African countries from 1990 to 2015 also suggest that such cycles worsen human development in African countries. This finding is consistent if we limit our analysis to various sub-regions of Africa, and also at two different income levels. Journal: Economic and Political Studies Pages: 337-351 Issue: 3 Volume: 7 Year: 2019 Month: 7 X-DOI: 10.1080/20954816.2019.1633821 File-URL: http://hdl.handle.net/10.1080/20954816.2019.1633821 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:7:y:2019:i:3:p:337-351 Template-Type: ReDIF-Article 1.0 Author-Name: Jianhua Gang Author-X-Name-First: Jianhua Author-X-Name-Last: Gang Author-Name: Yang Zhao Author-X-Name-First: Yang Author-X-Name-Last: Zhao Author-Name: Xinchen Ma Author-X-Name-First: Xinchen Author-X-Name-Last: Ma Title: Put-call ratio predictability of the 50ETF option Abstract: This article investigates the predictive power of the put-call ratios (PCRs) implied by China’s 50ETF option on the 50ETF return and its variance. By using simple partitional regressions, the relationship between the PCR and the 50ETF return is tested. This study conducts tests on their robustness based on different horizons, market conditions, moneyness status and time to maturity. Empirical results indicate that the PCR is a strong forward-looking indicator of the variance of 50ETF returns. A robust and negative correlation is detected. A significant linear correlation between the PCR and the 50ETF return only exists during the market crash. This study shows evidence that the PCR as seen in common trading practices may be misused and indicates a potential way of using it. Journal: Economic and Political Studies Pages: 352-376 Issue: 3 Volume: 7 Year: 2019 Month: 7 X-DOI: 10.1080/20954816.2019.1633823 File-URL: http://hdl.handle.net/10.1080/20954816.2019.1633823 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:7:y:2019:i:3:p:352-376 Template-Type: ReDIF-Article 1.0 Author-Name: Shuhao Tan Author-X-Name-First: Shuhao Author-X-Name-Last: Tan Author-Name: Zhongchun Tan Author-X-Name-First: Zhongchun Author-X-Name-Last: Tan Title: Grassland tenure, livelihood assets and pastoralists’ resilience: evidence and empirical analyses from western China Abstract: Pastoralists in western China are highly vulnerable due to harsh natural conditions and the poor socioeconomic environment they confront. More than 50% of the pastoralists in major grassland areas are living below the survival line; moreover, around 90% of the usable grasslands in China have been degraded to some degree, and the degradation expands at a rate of two million ha per year. Enhancing pastoralists’ resilience is desirable for the economic development and social stability in pastoral areas. As an important aspect influencing livelihoods, grassland tenure in China has not been well studied to learn how it affects the welfare of pastoralists, and what can be done to strengthen their resilience. Based on the evidence from four periods of fieldwork conducted by the authors during 2005–2014, the study applies an analytical framework adapted from the sustainable livelihood theory to examine the interactions of grassland tenure, livelihood assets of pastoralists and their resilience. Main findings show that the existing grassland tenure arrangements cause unbalanced and decreased livelihood assets, which in turn reduce the resilience of pastoralists by lowering their capacities of coping with stresses or shocks. Of the policies and measures aiming to enhance the pastoralists’ adaptive capacity and ongoing development, building social capital is critical. Developing functional livelihood asset markets such as grassland rental markets and financial markets will also contribute to a more robust livelihood structure. Journal: Economic and Political Studies Pages: 381-403 Issue: 4 Volume: 5 Year: 2017 Month: 10 X-DOI: 10.1080/20954816.2017.1384605 File-URL: http://hdl.handle.net/10.1080/20954816.2017.1384605 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:5:y:2017:i:4:p:381-403 Template-Type: ReDIF-Article 1.0 Author-Name: Qianheng Chen Author-X-Name-First: Qianheng Author-X-Name-Last: Chen Author-Name: Pei Guo Author-X-Name-First: Pei Author-X-Name-Last: Guo Title: Outward foreign direct investment in agriculture by Chinese companies: land grabbing or win–win? Abstract: Using the firsthand materials collected during on-site fieldworks and in-depth interviews, this paper examines the dimensions, especially the motives, for driving Chinese firms to invest in agriculture overseas from the macro (or government’s)- and micro (or firms’)-perspectives, as well as the impact of Chinese firms’ agricultural outward foreign direct investment (OFDI) from the multi-stakeholder perspective. From the perspective of China’s central government, the goal of encouraging domestic enterprises’ overseas investment in agriculture is not to ensure national grain security, but to stabilise the domestic supply of strategic agricultural products. From the micro-perspective, the impetuses for driving Chinese firms to invest in agriculture overseas are diverse and land exploitation is just one of them. They may wish to compete with local producers and some of the enterprises do not have a strong awareness of environmental protection and social responsibility. This is not the whole story. Chinese enterprises’ agricultural OFDI increases agricultural investment and reduces poverty in the host countries, and expands the supply of agricultural products of the local markets. In the long run, the growing presence of Chinese firms with advanced technology will yield the benefits of competition: an expansion of local supplies while providing cheap technology that can be duplicated by local farmers. Only a very small proportion of the agricultural products grown abroad is sold back to China, while a large part is sold domestically or exported to a third market. Therefore, Chinese firms’ agricultural OFDI has offered little direct, but some indirect, help in guaranteeing China’s food security. Perhaps, China’s diplomatic and political benefits obtained through agricultural OFDI outweigh the benefits of ensuring food security. Chinese enterprises’ agricultural OFDI is a win–win situation for the host countries and for China. Journal: Economic and Political Studies Pages: 404-420 Issue: 4 Volume: 5 Year: 2017 Month: 10 X-DOI: 10.1080/20954816.2017.1384607 File-URL: http://hdl.handle.net/10.1080/20954816.2017.1384607 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:5:y:2017:i:4:p:404-420 Template-Type: ReDIF-Article 1.0 Author-Name: Terence Tai Leung Chong Author-X-Name-First: Terence Tai Leung Author-X-Name-Last: Chong Author-Name: Wenqi Liu Author-X-Name-First: Wenqi Author-X-Name-Last: Liu Title: The roadmap of interest rate liberalisation in China Abstract: This paper examines the roadmap of interest rate liberalisation in China, including the current dual-track interest rate system and the future benchmark rate system. It provides a theoretical foundation for China to develop its own benchmark interest rate. A vector autoregression model is estimated to investigate the effectiveness of Chinese market interest rates, Shanghai Interbank Offered Rate (SHIBOR), and repo rates against different factors such as market size, volatility, transmission channels of monetary policy, and term structures of interest rates. The result shows that SHIBOR affects both the market and the economy. As SHIBOR promptly reflects the changes in currency markets, we argue that it has the potential to become China’s benchmark interest rate. Journal: Economic and Political Studies Pages: 421-440 Issue: 4 Volume: 5 Year: 2017 Month: 10 X-DOI: 10.1080/20954816.2017.1384614 File-URL: http://hdl.handle.net/10.1080/20954816.2017.1384614 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:5:y:2017:i:4:p:421-440 Template-Type: ReDIF-Article 1.0 Author-Name: Zhenya Liu Author-X-Name-First: Zhenya Author-X-Name-Last: Liu Author-Name: Shixuan Wang Author-X-Name-First: Shixuan Author-X-Name-Last: Wang Title: Understanding the Chinese stock market: international comparison and policy implications Abstract: The definitions of the bear, sidewalk and bull markets are ambiguous in the existing literature. This makes it difficult for practitioners to distinguish between different market conditions. In this paper, we propose statistical definitions of the bear, sidewalk and bull markets, which correspond to the three states in our hidden semi-Markov model. We apply this analysis to the daily returns of the Chinese stock market and seven developed markets. Using the Viterbi algorithm to globally decode the most likely sequence of the market conditions, we systematically find the precise timing of the bear, sidewalk and bull markets for all the eight markets. Through the comparison of the estimation and decoding results, many unique characteristics of the Chinese stock market are revealed, such as ‘crazy bull’, ‘frequent and quick bear’ and ‘no buffer zone’. In China, the bull market is more volatile than in developed markets, the bear market occurs more frequently than in developed markets, and the sidewalk market has not functioned as a buffer zone since 2005. Possible causes of these unique characteristics are also discussed and implications for policy-making are suggested. Journal: Economic and Political Studies Pages: 441-455 Issue: 4 Volume: 5 Year: 2017 Month: 10 X-DOI: 10.1080/20954816.2017.1384616 File-URL: http://hdl.handle.net/10.1080/20954816.2017.1384616 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:5:y:2017:i:4:p:441-455 Template-Type: ReDIF-Article 1.0 Author-Name: Hazel Bateman Author-X-Name-First: Hazel Author-X-Name-Last: Bateman Author-Name: Kevin Liu Author-X-Name-First: Kevin Author-X-Name-Last: Liu Title: Pension reform: Australia and China compared Abstract: Over the past few decades, China’s pension system has evolved from separate schemes almost exclusively for urban and public sector workers to one with broad national coverage. In a similar time-frame, successive Australian governments have introduced reforms to Australia’s retirement income arrangements in an attempt to increase retirement savings and address age-related pressures on the financing of the publicly provided age pension. This paper compares, contrasts and assesses the pension systems in China and Australia. Although China and Australia are at different stages of economic development and demographic transition and operate quite different pension systems, there are lessons to be learned from each other. Journal: Economic and Political Studies Pages: 456-474 Issue: 4 Volume: 5 Year: 2017 Month: 10 X-DOI: 10.1080/20954816.2017.1384620 File-URL: http://hdl.handle.net/10.1080/20954816.2017.1384620 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:5:y:2017:i:4:p:456-474 Template-Type: ReDIF-Article 1.0 Author-Name: David Tuesta Author-X-Name-First: David Author-X-Name-Last: Tuesta Title: Retirement and labour markets under the context of pension reform in Latin America Abstract: Latin America has been experiencing a process of pension reform for more than three decades. Although these reforms have had some success in helping the systems achieve fiscal sustainability, they have not provided the citizens of Latin American countries with broad social protection, thus leaving a certain proportion of people without access to pensions during their old age and, in many cases, forcing them to extend their participation in the labour force. Hence, there is a need to identify the socioeconomic factors that promote the likelihood of obtaining a pension or, conversely, of continuing to work into old age. Based on micro-data from the National Household Surveys of five representative Latin American countries, this paper uses a Probit model to investigate this likelihood. Depending on country-specific aspects, this research finds that factors such as wealth accumulated during working years, high levels of education, additional income flows, family support, and age and gender tend to define the fate of the elderly regardless of whether they are included under the social protection umbrella. Journal: Economic and Political Studies Pages: 475-500 Issue: 4 Volume: 5 Year: 2017 Month: 10 X-DOI: 10.1080/20954816.2017.1384622 File-URL: http://hdl.handle.net/10.1080/20954816.2017.1384622 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:5:y:2017:i:4:p:475-500 Template-Type: ReDIF-Article 1.0 Author-Name: Mukul G. Asher Author-X-Name-First: Mukul G. Author-X-Name-Last: Asher Author-Name: Azad Singh Bali Author-X-Name-First: Azad Singh Author-X-Name-Last: Bali Title: Creating fiscal space to pay for pension expenditure in Asia Abstract: Many Asian countries are projected to age rapidly and will need to devote a larger proportion of their GDP to finance age-related expenditure including on pensions. Governments therefore will have to create additional fiscal space to fund such expenditure to sustain the credibility of existing pension promises. This paper presents an exploratory framework for creating fiscal space. The framework has three interrelated components: enhancing broad-based growth, improving revenue performance and better expenditure management. The paper distinguishes between funding of pensions, i.e. the share of GDP devoted to pensions, and financing of pensions, i.e. the different methods and instruments used to finance pensions. The focus of the paper is on funding, and the framework relies on both the income–expenditure flows and the government balance sheet to create fiscal space. Several examples of how potential fiscal space can be created in Asian economies of China, India and Indonesia to make their pension promises more credible are provided. The paper emphasises that the measures discussed for enhancing fiscal space should not be undertaken as a purely technical exercise, but should be combined with managing the political economy in a given context. Journal: Economic and Political Studies Pages: 501-514 Issue: 4 Volume: 5 Year: 2017 Month: 10 X-DOI: 10.1080/20954816.2017.1384625 File-URL: http://hdl.handle.net/10.1080/20954816.2017.1384625 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:5:y:2017:i:4:p:501-514 Template-Type: ReDIF-Article 1.0 Author-Name: Terence Tai-leung Chong Author-X-Name-First: Terence Tai-leung Author-X-Name-Last: Chong Title: Editorial Journal: Economic and Political Studies Pages: 113-121 Issue: 2 Volume: 7 Year: 2019 Month: 4 X-DOI: 10.1080/20954816.2019.1595331 File-URL: http://hdl.handle.net/10.1080/20954816.2019.1595331 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:7:y:2019:i:2:p:113-121 Template-Type: ReDIF-Article 1.0 Author-Name: Lawrence J. Lau Author-X-Name-First: Lawrence J. Author-X-Name-Last: Lau Title: The sky is not falling! Abstract: As of October 2018, almost half of US imports of goods from China are subject to new US tariffs at various rates, mostly at 10% until the year-end of 2018, when the rates were scheduled to be raised to 25%. These tariff rates will prove to be prohibitive for most if not all of the US imports from China. Assuming that US imports from China will be reduced by half, the initial direct real impact on the Chinese economy may be estimated at a loss of 0.43% of GDP. If indirect effects are included, the full real impact may be estimated at a maximum loss of 1.12% of Chinese GDP. These estimated impacts are relatively small and quite manageable. There is a possibility that the scope of the US tariffs may be expanded to cover all US imports from China, in which case the full negative economic impact will be doubled, but still leaving an expected rate of economic growth in excess of 4%. The Renminbi is not likely to be significantly devalued as a result of the trade war. However, there are also longer-term underlying forces at work behind the China–US trade war – the competition for economic and technological dominance and the rise of populism, isolationism, nationalism and protectionism. It is important for China–US relations, and China’s relations with the rest of the world, in particular with the European Union, Association of Southeast Asian Nations (ASEAN), Japan and Russia, to be carefully managed going forward. Journal: Economic and Political Studies Pages: 122-147 Issue: 2 Volume: 7 Year: 2019 Month: 4 X-DOI: 10.1080/20954816.2019.1595325 File-URL: http://hdl.handle.net/10.1080/20954816.2019.1595325 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:7:y:2019:i:2:p:122-147 Template-Type: ReDIF-Article 1.0 Author-Name: Larry D. Qiu Author-X-Name-First: Larry D. Author-X-Name-Last: Qiu Author-Name: Chaoqun Zhan Author-X-Name-First: Chaoqun Author-X-Name-Last: Zhan Author-Name: Xing Wei Author-X-Name-First: Xing Author-X-Name-Last: Wei Title: An analysis of the China–US trade war through the lens of the trade literature Abstract: The current China–US trade war that started in early 2018 has been the largest of this kind in the global market in the past half century, if not longer. Many speculations about the reasons for and progress and potential implications of the trade war emerge. Countries must understand the reasons for the war to avoid future trade wars. Predicting what will happen in the near future and the related economic consequences are even more important for people (including businessmen and government policymakers) to prepare for them and make corresponding decisions. However, endeavouring to predict is a tough job. This paper tries to provide an unbiased analysis through the lens of the trade literature. That is, we want to ask how much we can understand the current trade war on the basis of the accumulated knowledge we can obtain from our profession. Related theories include imperfect competition, increasing returns, terms of trade argument, distributional effects and political economy argument. Journal: Economic and Political Studies Pages: 148-168 Issue: 2 Volume: 7 Year: 2019 Month: 4 X-DOI: 10.1080/20954816.2019.1595329 File-URL: http://hdl.handle.net/10.1080/20954816.2019.1595329 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:7:y:2019:i:2:p:148-168 Template-Type: ReDIF-Article 1.0 Author-Name: Edwin L.-C. Lai Author-X-Name-First: Edwin L.-C. Author-X-Name-Last: Lai Title: The US–China trade war, the American public opinions and its effects on China Abstract: Donald Trump’s trade war with China does not make economic sense, but he does not face much domestic opposition to this trade war. Moreover, it is a part of a broader strategy of the nationalistic Americans’ attempt to suppress the rise of China. Would China give in to the requests of the US under the threat of the escalation of the trade war? In what way? My conjecture is that China is willing to compromise up to a point. What China is likely to do is to promise to buy more goods and services from the US, allow greater market access for American firms, reduce Chinese subsidies to its industries, reduce forced technology transfers by American firms, strengthen enforcement of intellectual property rights protection and make verification all these commitments more transparent. Although the US might stop escalating the trade war, it is likely that the tariffs already imposed on Chinese goods would not be removed soon. In response to that, China also would not remove most of those tariffs already imposed on imports from the US, in keeping with the spirit of the tit-for-tat policy. It is possible that a temporary ceasefire is agreed, but the trade war can last for a long time. The final assembly stage of many industries might leave China, but not necessarily the whole production process. Hong Kong can be a victim of the trade war if it escalates. Journal: Economic and Political Studies Pages: 169-184 Issue: 2 Volume: 7 Year: 2019 Month: 4 X-DOI: 10.1080/20954816.2019.1595330 File-URL: http://hdl.handle.net/10.1080/20954816.2019.1595330 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:7:y:2019:i:2:p:169-184 Template-Type: ReDIF-Article 1.0 Author-Name: Terence Tai Leung Chong Author-X-Name-First: Terence Tai Leung Author-X-Name-Last: Chong Author-Name: Xiaoyang Li Author-X-Name-First: Xiaoyang Author-X-Name-Last: Li Title: Understanding the China–US trade war: causes, economic impact, and the worst-case scenario Abstract: This paper studies the current trade war between China and the US from a historical standpoint. By comparing the ongoing trade war with similar trade conflicts in history, we reveal three major causes, with varying degrees of importance, from both economic and political perspectives. The trade war can principally be attributed to trade imbalances, the US midterm elections and rivalry over global economic dominance. As the fundamental conflicts between China and the US cannot be easily resolved, we hold a pessimistic view on the complete settlement of the trade war. In this paper, we perform a scenario analysis, which shows that in the worst-case scenario, China will suffer a 1.1% decrease in employment and a 1% GDP loss, which are not negligible, but manageable for China. Journal: Economic and Political Studies Pages: 185-202 Issue: 2 Volume: 7 Year: 2019 Month: 4 X-DOI: 10.1080/20954816.2019.1595328 File-URL: http://hdl.handle.net/10.1080/20954816.2019.1595328 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:7:y:2019:i:2:p:185-202 Template-Type: ReDIF-Article 1.0 Author-Name: Dongsheng Di Author-X-Name-First: Dongsheng Author-X-Name-Last: Di Author-Name: Gal Luft Author-X-Name-First: Gal Author-X-Name-Last: Luft Author-Name: Dian Zhong Author-X-Name-First: Dian Author-X-Name-Last: Zhong Title: Why did Trump launch a trade war? A political economy explanation from the perspective of financial constraints Abstract: The existing explanations for President Trump’s decision to trigger a trade war with most of America’s trading partners are not sufficient. The less explored motivation, we argue, is to raise income for the federal government through tariffs in order to balance the surging fiscal deficit caused by Trump’s bold tax cut policy since December 2017. The repeated increase in interest rates by the Federal Reserve throughout 2018 is leading to sharp increase in the cost of servicing America’s US$21 trillion and growing debt, which means that debt servicing would soon become the biggest outlay of the US government. This new explanation implies that the US will need additional sources of income like tariffs in order to balance its budget, and tariffs on Chinese products is viewed as a main source of such income. China should, therefore, rethink its strategy in seeking a resolution for the trade war. Journal: Economic and Political Studies Pages: 203-216 Issue: 2 Volume: 7 Year: 2019 Month: 4 X-DOI: 10.1080/20954816.2019.1595327 File-URL: http://hdl.handle.net/10.1080/20954816.2019.1595327 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:7:y:2019:i:2:p:203-216 Template-Type: ReDIF-Article 1.0 Author-Name: Badar Alam Iqbal Author-X-Name-First: Badar Alam Author-X-Name-Last: Iqbal Author-Name: Nida Rahman Author-X-Name-First: Nida Author-X-Name-Last: Rahman Author-Name: Jonathan Elimimian Author-X-Name-First: Jonathan Author-X-Name-Last: Elimimian Title: The future of global trade in the presence of the Sino-US trade war Abstract: The looming of a vindictive spirit owing to dishevelled trade relations amidst China and the US seems to be near. Never has it been so apparent than now. The US has had itself as the largest economy on the world stage and China’s attempt at shuffling this incumbency has led the US to open a tariff fire on Chinese imports. The tariff brawl appears to be not settling anytime soon as the retaliatory measures are swelling incessantly. Being the two largest economies of the world, giving in for disengaging trade with each other is bound to have a ripple effect on the global system of trade. Where the detesting to barrier-free trade on the part of the US and China are certain to inflict pain upon both countries, it might come as a benefit for other countries. This research explores the movement in global trade springing out of the Sino-US trade war. Journal: Economic and Political Studies Pages: 217-231 Issue: 2 Volume: 7 Year: 2019 Month: 4 X-DOI: 10.1080/20954816.2019.1595324 File-URL: http://hdl.handle.net/10.1080/20954816.2019.1595324 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:7:y:2019:i:2:p:217-231 Template-Type: ReDIF-Article 1.0 Author-Name: Zhengyu Wu Author-X-Name-First: Zhengyu Author-X-Name-Last: Wu Title: China and Maritime Transformation: History, Strategy and Policy Implications Abstract: This paper seeks to place China’s ongoing maritime transformation in a larger context, and thereby clarify the strategic implications of its pursuit of maritime capabilities. It argues that, given their amphibious nature, rimland powers are bound to encounter more challenges in the pursuit of maritime transformation, and more importantly, such pursuits easily backfire and cause undesirable ramifications. This paper examines the underlying mechanism which led to the failed maritime transformation of rimland powers in modern history. Then, based on the strategic lessons from modern history, it examines the strategic challenges concomitant with China’s pursuit of maritime capabilities, and contends that, if China hopes to escape similar fate, it has to pay serious attention to three strategic issues. Journal: Economic and Political Studies Pages: 134-155 Issue: 2 Volume: 1 Year: 2013 Month: 7 X-DOI: 10.1080/20954816.2013.11673863 File-URL: http://hdl.handle.net/10.1080/20954816.2013.11673863 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:1:y:2013:i:2:p:134-155 Template-Type: ReDIF-Article 1.0 Author-Name: Jiantao Ren Author-X-Name-First: Jiantao Author-X-Name-Last: Ren Title: Party’s Control over the State: An Interpretation of the Keynote Political Report to the 18th Party Congress Abstract: Hu Jintao’s political report to the 18th National Congress of the Communist Party of China (CPC) shows that China, a particular type of party-state different from any kind of Western political system, is undergoing a tremendous and difficult transition. On one hand, the 18th National Congress of the CPC reinforced the party-state morphology, and, on the other, we notice that the Party’s state-building has actually developed to an unprecedented level. However, it is believed that the CPC is facing fateful challenges in governing the country. It is therefore extremely important to make adjustments in the political ideas, institutional arrangements and practical measures if the CPC wants to ensure a long-term success. In contrast to the overall political arrangements, specific procedures need to be implemented to achieve the goal of good governance of the CPC. Journal: Economic and Political Studies Pages: 156-177 Issue: 2 Volume: 1 Year: 2013 Month: 7 X-DOI: 10.1080/20954816.2013.11673864 File-URL: http://hdl.handle.net/10.1080/20954816.2013.11673864 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:1:y:2013:i:2:p:156-177 Template-Type: ReDIF-Article 1.0 Author-Name: Zhongjie Li Author-X-Name-First: Zhongjie Author-X-Name-Last: Li Title: This Time Is Different:The 18th CPC National Congress Abstract: This article contains a comprehensive discussion of the 18th Party Congress from the point of view of an inside observer. It first discusses the historical role and significance of this congress from the perspectives of the function and power of the Party congress itself, China’s external environment, and the major decisions of this congress, as ell as in comparison with the previous congresses. It then expounds on the major policy decisions and the spirit of the 18th National Congress in six key areas. The article concludes with a discussion of the new requirements and statements of the congress. Journal: Economic and Political Studies Pages: 178-197 Issue: 2 Volume: 1 Year: 2013 Month: 7 X-DOI: 10.1080/20954816.2013.11673865 File-URL: http://hdl.handle.net/10.1080/20954816.2013.11673865 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:1:y:2013:i:2:p:178-197 Template-Type: ReDIF-Article 1.0 Author-Name: Yongwei Chen Author-X-Name-First: Yongwei Author-X-Name-Last: Chen Author-Name: Dong Li Author-X-Name-First: Dong Author-X-Name-Last: Li Title: RMB Appreciation, Output Growth, and Inflation Abstract: Following Dibooglu and Kutan (2005), we construct a structural VAR model to investigate the impact of RMB (the Chinese currency) appreciation on growth and inflation in China. The empirical results show that RMB appreciation has negative effects on output growth and inflation while neither effect is statistically significant. However, exchange rate shocks are important in the fluctuations of output growth and inflation. We also simulate the scenario of a sharp currency appreciation compared to the gradual approach adopted by the Chinese government. In the counterfactual analysis we find that a sharp appreciation would lead to more violent shocks in economic growth and inflation compared to the gradual approach. Journal: Economic and Political Studies Pages: 3-17 Issue: 2 Volume: 1 Year: 2013 Month: 7 X-DOI: 10.1080/20954816.2013.11673857 File-URL: http://hdl.handle.net/10.1080/20954816.2013.11673857 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:1:y:2013:i:2:p:3-17 Template-Type: ReDIF-Article 1.0 Author-Name: Nie Huihua Author-X-Name-First: Nie Author-X-Name-Last: Huihua Author-Name: Jinbo Li Author-X-Name-First: Jinbo Author-X-Name-Last: Li Title: Collusion and Economic Growth: A New Perspective on the China Model Abstract: In this paper we propose a political-economy model of China that explains both the rapid economic growth frequent rate of accidents that have occurred in China. The central government delegates authority to the local government to regulate the production activities of the firm. Under information asymmetry the local government can collude with the firm choose “bad” technology the use of which will lead to faster economic growth more accidents than the use of “good” technology. We characterize optimal equilibrium within collusion contracts under which the central government will allow collusion when the cost to eliminate collusion is high. We also characterize the optimal collusion-proof contract under which the payments reprimands taxes that take place between the local government the firm are endogenously determined. Our predictions on collusion growth are supported by an empirical study on the coal industry. Journal: Economic and Political Studies Pages: 18-39 Issue: 2 Volume: 1 Year: 2013 Month: 7 X-DOI: 10.1080/20954816.2013.11673858 File-URL: http://hdl.handle.net/10.1080/20954816.2013.11673858 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:1:y:2013:i:2:p:18-39 Template-Type: ReDIF-Article 1.0 Author-Name: Shiqing Xie Author-X-Name-First: Shiqing Author-X-Name-Last: Xie Author-Name: Jiajun Huang Author-X-Name-First: Jiajun Author-X-Name-Last: Huang Title: Price Discovery Function of Index Futures in China: Evidence from Daily Closing Prices Abstract: Price discovery is one of the main functions of stock index futures. Using the daily closing prices of the CSI 300 index and its index futures from April 2010 to April 2012, this paper applies a vector error correction model (VECM) and an impulse response function to conduct an empirical analysis on the price discovery function of index futures in China. This paper has the following four findings: (1) a solid cointegration relationship between the CSI 300 index and its index futures exists in the long run; (2) when prices deviate from the long-term equilibrium, the stock index reverses weakly, while the reversal of index futures is much stronger; (3) the daily lead-lag relationship between the prices of the CSI 300 index and its index futures contracts is not significant in the short run; (4) shocks from the spot market have a lasting impact upon the futures market, but not vice versa, due to the limited short-term adjustment ability of the spot market. Journal: Economic and Political Studies Pages: 40-54 Issue: 2 Volume: 1 Year: 2013 Month: 7 X-DOI: 10.1080/20954816.2013.11673859 File-URL: http://hdl.handle.net/10.1080/20954816.2013.11673859 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:1:y:2013:i:2:p:40-54 Template-Type: ReDIF-Article 1.0 Author-Name: Kui-Wai Li Author-X-Name-First: Kui-Wai Author-X-Name-Last: Li Author-Name: Xianbo Zhou Author-X-Name-First: Xianbo Author-X-Name-Last: Zhou Title: A Nonparametric and Semiparametric Analysis on Inequality and Development: Evidence from OECD and Non-OECD Countries Abstract: This paper studies the income inequality and economic development relationship by using unbalanced panel data of OECD and non-OECD countries (regions) for the period 1962-2003. The nonparametric estimation results show that income inequality in OECD countries is almost on the backside of the inverted-U relationship, while non-OECD countries are approximately on the foreside, except that the relationship in both country groups shows an upturn at a high level of development. Development has an indirect effect on inequality through control variables, but the modes are different in the two country groups. The model specification tests show that the relationship is not necessarily captured by the conventional quadratic function. The cubic and fourth-degree polynomials, respectively, fit the OECD and non-OECD country groups best. Our finding is robust regardless of whether the specification uses control variables. Development plays a dominant role in mitigating inequality. Journal: Economic and Political Studies Pages: 55-79 Issue: 2 Volume: 1 Year: 2013 Month: 7 X-DOI: 10.1080/20954816.2013.11673860 File-URL: http://hdl.handle.net/10.1080/20954816.2013.11673860 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:1:y:2013:i:2:p:55-79 Template-Type: ReDIF-Article 1.0 Author-Name: Jianhua Gang Author-X-Name-First: Jianhua Author-X-Name-Last: Gang Title: Dual-market Equilibrium of China’s Residential Housing Price Abstract: This paper constructs a structural dynamic equilibrium model based on a dual market system, which includes China’s residential housing market and the property rental market in China’s first-tier urban cities. The paper analyzes dual-market general equilibria under different scenarios as perceived since 2004. An open-economy Gordon growth model is also introduced to examine fair housing prices based on the assumption of no arbitrage. Empirical results indicate significant (but time-varying) price deviations from the equilibrium level since 2005 which are mostly driven by contingent demand and property investors. The paper concludes that the contingent purchasing demand supports China’s recent residential price hike and that speculation does not dominate the price boom. The recent quota policy has a theoretical downward pressure on the housing price in the short run but it also lifts property rents dramatically in the middle and long run. Journal: Economic and Political Studies Pages: 80-108 Issue: 2 Volume: 1 Year: 2013 Month: 7 X-DOI: 10.1080/20954816.2013.11673861 File-URL: http://hdl.handle.net/10.1080/20954816.2013.11673861 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:1:y:2013:i:2:p:80-108 Template-Type: ReDIF-Article 1.0 Author-Name: Suisheng Zhao Author-X-Name-First: Suisheng Author-X-Name-Last: Zhao Title: Delicate Balance of Power in the Asia-Pacific: The Obama Administration’s Strategic Rebalance and the Transformation of US-China Relationship Abstract: The rise of China has transformed the global power balance and made the US-China relationship increasingly strategic and complicated. While some Americans are anxious about what China’s great power aspiration means for US interests, many Chinese are concerned about the US intention to keep China down. In this context, many in Beijing believe that the Obama administration’s strategic rebalance toward the Asia-Pacific is bent on hindering China’s rise as a great power. To what extent is the strategic rebalance about China? Is it part of the US strategy to contain China’s rise? Can the US and China function in relative power equality and build a balance of power to maintain peace and stability in the Asia-Pacific? Seeking answers to these important questions, this article argues that the strategic rebalance is a continuation of the long-standing struggle of the US to define its interests in the region. China remains a centerpiece in the rebalance not only because building a cooperative relationship with China is the key for its success, but also because the rebalance has to address the rapidly shifting balance of power in the region where China has emerged as an ever-more influential power. It is in US interests to work with its partners as well as China to construct a regional order based on the balance of power, and rules and institutions capable of allowing China to grow and be secured but not use its new might arbitrarily. Journal: Economic and Political Studies Pages: 109-133 Issue: 2 Volume: 1 Year: 2013 Month: 7 X-DOI: 10.1080/20954816.2013.11673862 File-URL: http://hdl.handle.net/10.1080/20954816.2013.11673862 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:1:y:2013:i:2:p:109-133 Template-Type: ReDIF-Article 1.0 Author-Name: Donald Lien Author-X-Name-First: Donald Author-X-Name-Last: Lien Title: Editorial Journal: Economic and Political Studies Pages: 1-3 Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/20954816.2018.1426354 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1426354 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:6:y:2018:i:1:p:1-3 Template-Type: ReDIF-Article 1.0 Author-Name: John V. C. Nye Author-X-Name-First: John V. C. Author-X-Name-Last: Nye Title: Positional goods and the challenge of Chinese regional inequality Abstract: Scholars have focussed on income inequality as a major source of social instability. But the focus on crude income inequality has masked the deeper developmental problem facing many fast-growing economies. China is an extreme case of this issue inasmuch as its coastal regions can be viewed as comparable to middle income states, while the greater part of its rural and western areas would be comparable to the poorer nations of the world. That means that the new middle class pays attention to issues such as pollution and status or positional goods than simple material goods. Construction costs of houses are in particular less than location. Other status goods are similar because they are not amenable to simple productivity improvement. This will make policies more difficult as conflict increases between those areas who are still eager for basic economic development and those richer areas whose wants and needs start to more closely resemble the preferences of richer developed countries. Journal: Economic and Political Studies Pages: 4-10 Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/20954816.2018.1426355 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1426355 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:6:y:2018:i:1:p:4-10 Template-Type: ReDIF-Article 1.0 Author-Name: O. Fiona Yap Author-X-Name-First: O. Fiona Author-X-Name-Last: Yap Title: Politics or the economy? Weak economic performance and political support in East and Southeast Asia Abstract: What are the effects of weak economic performance in East and Southeast Asia? In particular, does weak performance lead to citizens’ dissatisfaction and, correspondingly, increase preference for stronger governments who may achieve economic targets more quickly? Recent elections in less-democratic nations and emergent democracies of East and Southeast Asia suggest growing support for political parties carries over from previous authorities. And, governments are harking back to policies of the past that emphasise economic performance over political development in order to motivate political support. However, few studies systematically assess how weak economic performance affects citizens’ political support. This paper addresses this neglect. Using public opinion surveys from the Asian Barometer, we track how economic performance affects political support over time in countries with a multiparty system. The results offer two useful insights. First, economic performance is robustly and positively related to government approval. Thus, strong economic performance corresponds with strong support for government while weak performance yields weak support. Importantly, this finding is consistent with the large amount of literature on economic voting. Second, economic performance is not consistently related to democratic support; instead, political influence plays an intervening role in how economic performance affects democratic support. This underlines the significance of institution-building for political stability and political development in the region. Equally important, the results tie to the literature on political institutionalisation and democratic support. In conjunction, the results embrace East and Southeast Asia into the broader disciplinary research of motivation theory-building and empirical studies. Journal: Economic and Political Studies Pages: 11-29 Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/20954816.2018.1426356 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1426356 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:6:y:2018:i:1:p:11-29 Template-Type: ReDIF-Article 1.0 Author-Name: Nathan Peng Author-X-Name-First: Nathan Author-X-Name-Last: Peng Author-Name: Sock-Yong Phang Author-X-Name-First: Sock-Yong Author-X-Name-Last: Phang Title: Singapore’s economic development: pro- or anti-Washington Consensus? Abstract: Singapore’s remarkable economic development in the past five decades since independence has attracted much policy attention. This article first provides a brief overview of Singapore’s economic development. The second part discusses Singapore’s development strategies that are aligned with the Washington Consensus: globalisation, conservative fiscal and monetary policies, investments in education and infrastructure. It also discusses the policies adopted to further enhance the outcomes of such policies. The third part focusses on policies that are inconsistent with the prescriptions of the Washington Consensus: the visible hand of government direction of industry, the important role of state-owned enterprises, as well as growth-enhancing social policies. It concludes with the present challenges facing the city-state. Journal: Economic and Political Studies Pages: 30-52 Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/20954816.2018.1426364 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1426364 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:6:y:2018:i:1:p:30-52 Template-Type: ReDIF-Article 1.0 Author-Name: Junko Shimizu Author-X-Name-First: Junko Author-X-Name-Last: Shimizu Author-Name: Kiyotaka Sato Author-X-Name-First: Kiyotaka Author-X-Name-Last: Sato Title: A currency basket and future exchange rate arrangements in Asia Abstract: Due not only to a dominant role of the US dollar in regional trade and financial transactions but also to de facto US dollar pegged exchange rate policy, Asian countries cannot avoid exchange rate risks between their own currency and the US dollar. In recent years, however, the Chinese government has actively promoted the Renminbi (RMB) internationalisation especially in international trade. In December 2015, China introduced a new exchange rate index against a basket of 13 trade-weighted currencies, which can be considered a major turning point from the US dollar standard toward a more flexible currency basket system. However, the estimated implicit basket weights reveal that several Asian economies still tend to stabilise their currencies against the US dollar, while Malaysia and Singapore have stabilised their currencies against RMB in recent years. Since the internationalisation of local currencies and regional monetary arrangements are typically facilitated with each other, further progress of RMB internationalisation is expected to promote a leading role of China in establishing regional exchange rate policy coordination. Journal: Economic and Political Studies Pages: 53-68 Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/20954816.2018.1426360 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1426360 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:6:y:2018:i:1:p:53-68 Template-Type: ReDIF-Article 1.0 Author-Name: W. Travis Selmier Author-X-Name-First: W. Travis Author-X-Name-Last: Selmier Title: Social capital and folk lending in China’s hottest financial market Abstract: In 2011, responding to a credit crunch, Wenzhou became the first and only municipality to institute complete financial reform. Wenzhou had been the fastest growing municipal economy in China’s fastest-growing province for two decades. But the global financial crisis hit hard the informal financial networks which funded small and medium-sized enterprises. The so-called ‘Wenzhou model’ has long been dependent on financial capital from other parts of China funnelled through these networks to fund local entrepreneurs, especially the person-to-person financing known as folk lending. These informal financial networks relied heavily on interpersonal connections, reputation and trust, the major ingredients of social capital in banking and finance. In order to generate the social capital lost in the credit crunch, Wenzhou created government financial intermediaries, but these have not had much success. However, peer-to-peer on-line financing companies (P2P platforms), established concurrently by private entrepreneurs with little capital, have been highly successful. In effect, P2P platforms have capitalised on the ‘Wenzhou model’ by using the Wenzhou brand name to create a new form of financing network channel. Journal: Economic and Political Studies Pages: 69-90 Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/20954816.2018.1426361 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1426361 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:6:y:2018:i:1:p:69-90 Template-Type: ReDIF-Article 1.0 Author-Name: Yi Feng Author-X-Name-First: Yi Author-X-Name-Last: Feng Author-Name: Zhijun Gao Author-X-Name-First: Zhijun Author-X-Name-Last: Gao Author-Name: Wanjun Jiang Author-X-Name-First: Wanjun Author-X-Name-Last: Jiang Title: What attracts China’s contracts to Latin America and the Caribbean? An empirical study of the determinants of Chinese contracts Abstract: As China’s economy has reached the stage of ‘New Normal’, Chinese companies are increasingly seeking opportunities overseas. In the context of the slow recovery of world economy, China’s outward economic activities have found themselves in many parts of the globe, including the Latin America and the Caribbean (LAC) region, some of the farthest places away from China. While many scholars have conducted extensive studies on China’s trade and foreign direct investment (FDI) in Latin America and the Caribbean, this paper focusses on Chinese contracts in the region, a topic that has been rarely studied. Using both random-effects and fixed-effects models covering 30 LAC economies during 1998–2015, the multivariate panel regressions show that among numerous determinants, Chinese companies prefer to undertake projects in the countries that are economically more advanced and more populous. In addition to the level of development and the size of population, those that have natural resources, expansionary economy, and political openness tend to have Chinese contracts completed. The above, however, is true of only the countries with which China has diplomatic relations. For the countries that recognise China’s Taiwan ‘diplomatically’, Chinese contracts do not seem to be as much economically determined as those that recognise People’s Republic of China (PRC) diplomatically. Politics appear to interfere with contractual decisions except in the following categories: mineral resources and an expansionary economy. Journal: Economic and Political Studies Pages: 91-117 Issue: 1 Volume: 6 Year: 2018 Month: 1 X-DOI: 10.1080/20954816.2018.1426362 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1426362 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:6:y:2018:i:1:p:91-117 Template-Type: ReDIF-Article 1.0 Author-Name: Xiaojun Li Author-X-Name-First: Xiaojun Author-X-Name-Last: Li Author-Name: Jean C. Oi Author-X-Name-First: Jean C. Author-X-Name-Last: Oi Title: Unpacking the patterns of corporate restructuring during China’s SOE reform Abstract: State-owned enterprises (SOEs) in China have undergone significant restructuring since the mid-1990s. To date, scholars have devoted considerable attention to the constraints upon and motives for corporate restructuring in China. Yet the majority of the existing studies treat restructuring as a simple ownership transfer from the state to non-state entities without considering the resulting ownership structure of the firm. Consequently, we know relatively little about why otherwise similar SOEs were restructured at different times and through different means. This study intends to fill this gap by examining the determinants of both the timing and the methods of restructuring in a unique longitudinal survey of 145 SOEs over an 11-year period. Using a competing-risks model, we demonstrate that political as well as economic factors determine the possibility, nature and speed of restructuring. In particular, we show that political constraints on employee retention increase the likelihood that a SOE will be restructured as shareholding as opposed to its ownership being directly transferred to private hands. These findings shed new light on the economic and political logic of corporate restructuring in China. Journal: Economic and Political Studies Pages: 118-134 Issue: 2 Volume: 6 Year: 2018 Month: 4 X-DOI: 10.1080/20954816.2018.1463459 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1463459 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:6:y:2018:i:2:p:118-134 Template-Type: ReDIF-Article 1.0 Author-Name: Qian Sun Author-X-Name-First: Qian Author-X-Name-Last: Sun Title: Explaining the state-owned enterprise wage premium in China: is it unobserved heterogeneity? Abstract: State-owned enterprises (SOEs) in China pay higher wages than private firms. Is it because SOEs pay their workers wage premium or because they employ high-quality workforce? Using the latest methods and data, this paper accounts for the unobserved heterogeneity and estimates the SOE wage premium for the period 1995–2013. It is found that the wage premium has diminished since 1995 and has become insignificant since 2000. The significant wage gap between SOEs and non-SOEs can be explained by the fact that SOEs recruit high-quality workforce in correlation with SOEs’ industrial composition. This paper also evaluates the instruments used in the previous studies and rejects them through validity tests. The evidence suggests that the labour market in China is not segmented by ownership. Journal: Economic and Political Studies Pages: 135-157 Issue: 2 Volume: 6 Year: 2018 Month: 4 X-DOI: 10.1080/20954816.2018.1463477 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1463477 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:6:y:2018:i:2:p:135-157 Template-Type: ReDIF-Article 1.0 Author-Name: Feng Song Author-X-Name-First: Feng Author-X-Name-Last: Song Author-Name: Yihua Yu Author-X-Name-First: Yihua Author-X-Name-Last: Yu Title: Modelling energy efficiency in China: a fixed-effects panel stochastic frontier approach Abstract: This paper combines energy demand modelling with stochastic frontier analysis to investigate the changing trends, variations and determinants of energy efficiency for 27 Chinese provinces over the period 1995 to 2014. An aggregate ‘frontier’ energy demand function and an efficiency function are estimated simultaneously. We obtained several findings. First, the energy intensity is not a particularly good indicator of energy efficiency. Second, the energy efficiency levels for all the provinces improved during the sample period, but the current efficiency levels are still low, implying great potential for energy saving. In addition, the energy efficiency gap among the provinces seems to have widened over the past 20 years, as the variance has increased by almost three times. Finally, technological progress driven by new investment and the development of market mechanisms are two important drivers of energy efficiency improvement. Journal: Economic and Political Studies Pages: 158-175 Issue: 2 Volume: 6 Year: 2018 Month: 4 X-DOI: 10.1080/20954816.2018.1463479 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1463479 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:6:y:2018:i:2:p:158-175 Template-Type: ReDIF-Article 1.0 Author-Name: Hanène Mejdoub Author-X-Name-First: Hanène Author-X-Name-Last: Mejdoub Author-Name: Ahmed Ghorbel Author-X-Name-First: Ahmed Author-X-Name-Last: Ghorbel Title: Conditional dependence between oil price and stock prices of renewable energy: a vine copula approach Abstract: The current paper focusses on the co-movement between oil prices and renewable energy stock markets in a multivariate framework. The vine copula approach that offers a great flexibility in conditional dependence modelling is used. More specifically, we investigate the issue of the average dependence and co-movement between oil prices (West Texas Intermediate [WTI]) and renewable energy stock prices (Wilder Hill New Energy Global Innovation Index [NEX], Wilder Hill Clean Energy Index [ECO] and S and P Global Clean Energy Index [SPGCE]) by applying the vine copula based threshold generalised autoregressive conditional heteroskedasticity (TGARCH) model. Over the period 2003–2016, empirical findings reveal significant and symmetric dependence between the considered markets. Therefore, there is symmetric tail dependence, indicating the evidence of upper and lower tail dependence. This means that movements in oil prices and renewable energy indices are coupled to the same direction. These empirical insights are of particular interest to policymakers, risk managers and investors in renewable energy sector. Journal: Economic and Political Studies Pages: 176-193 Issue: 2 Volume: 6 Year: 2018 Month: 4 X-DOI: 10.1080/20954816.2018.1463600 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1463600 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:6:y:2018:i:2:p:176-193 Template-Type: ReDIF-Article 1.0 Author-Name: Jianbo Song Author-X-Name-First: Jianbo Author-X-Name-Last: Song Author-Name: Zihao Su Author-X-Name-First: Zihao Author-X-Name-Last: Su Author-Name: Xiaoqun Nie Author-X-Name-First: Xiaoqun Author-X-Name-Last: Nie Title: Does development of financial markets help firm innovation? Evidence from China Abstract: This paper examines the impact of financial market development on firm R&D investment. Using hand-collected R&D investment data of 221 high-tech firms listed in China’s small and medium-sized board in the period of 2009–2015, we find that equity financing, particularly internal cash flow, is the main source for R&D investment of high-tech firms. Mature firms make more use of debt financing than young ones and are faced with less severe financial constraints. The development of financial markets relieves the dependence of R&D investment on internal capital, and the effect is more recognisable in young firms than in mature ones. However, the constraint of debt financing is not alleviated as much as that of equity financing by financial deepening, which suggests that debt markets still need developing, and more favourable policies are necessary for innovative firms. Journal: Economic and Political Studies Pages: 194-208 Issue: 2 Volume: 6 Year: 2018 Month: 4 X-DOI: 10.1080/20954816.2018.1463601 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1463601 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:6:y:2018:i:2:p:194-208 Template-Type: ReDIF-Article 1.0 Author-Name: Bo Huang Author-X-Name-First: Bo Author-X-Name-Last: Huang Author-Name: Lin He Author-X-Name-First: Lin Author-X-Name-Last: He Author-Name: Shanshan Xiong Author-X-Name-First: Shanshan Author-X-Name-Last: Xiong Author-Name: Yirui Zhang Author-X-Name-First: Yirui Author-X-Name-Last: Zhang Title: The impact of bond rating downgrades on common stock prices in China Abstract: In this paper, we examine how bond rating downgrades affect common stock prices in China by using the data of all the bond rating downgrades in China during the period from 1 January 2008 to 30 May 2016. To provide empirical evidence for the theory in Goh and Ederington (1993), we classify the samples according to the downgrade reasons and the bonds’ time to maturity and examine the abnormal returns of each group in different windows. The empirical results show that the downgrades due to deteriorating financial prospects have a negative effect on stock prices and that this effect lags behind. The downgrades due to leverage changes have no significant effect on stock prices. Meanwhile, the variation in the decrease in stock prices due to rating downgrades of bonds that will mature within three years is significantly larger than that of those which will mature after more than three years. Journal: Economic and Political Studies Pages: 209-220 Issue: 2 Volume: 6 Year: 2018 Month: 4 X-DOI: 10.1080/20954816.2018.1463602 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1463602 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:6:y:2018:i:2:p:209-220 Template-Type: ReDIF-Article 1.0 Author-Name: Guangjie Ning Author-X-Name-First: Guangjie Author-X-Name-Last: Ning Author-Name: Yuhao Jiang Author-X-Name-First: Yuhao Author-X-Name-Last: Jiang Title: Review of research on property income in China Abstract: In recent years, the property income of Chinese residents has increased rapidly. However, a huge gap in property income has emerged and its effect on the total income inequality has become evident. Thus, the study on property income is of great significance. This article reviews and evaluates the existing literature on property income in the aspects of its estimation, characteristics, functions, causes and dynamic evolution. We also try to point out possible directions for future research. Journal: Economic and Political Studies Pages: 221-235 Issue: 2 Volume: 6 Year: 2018 Month: 4 X-DOI: 10.1080/20954816.2018.1463603 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1463603 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:6:y:2018:i:2:p:221-235 Template-Type: ReDIF-Article 1.0 Author-Name: Yizhou Wang Author-X-Name-First: Yizhou Author-X-Name-Last: Wang Title: Six Decades of China’s Diplomacy: Review and Reflections Abstract: This article analyzes the history and characteristics of China’s diplomacy since the foundation of the People’s Republic of China in 1949. As a background analysis, it first reviews China’s foreign relations during 1919-1949. On this basis it further discusses themes and characteristics of China’s diplomacy in the eras of Mao Zedong and Deng Xiaoping. Subsequently, it examines six periods in the six decades of China’s diplomacy and describes the process and implications of this evolution. Journal: Economic and Political Studies Pages: 120-135 Issue: 1 Volume: 1 Year: 2013 Month: 1 X-DOI: 10.1080/20954816.2013.11673873 File-URL: http://hdl.handle.net/10.1080/20954816.2013.11673873 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:1:y:2013:i:1:p:120-135 Template-Type: ReDIF-Article 1.0 Author-Name: Huosheng Tan Author-X-Name-First: Huosheng Author-X-Name-Last: Tan Title: Deliberative Democracy in China: A Sociology of Knowledge Perspective Abstract: This paper analyzes from the perspective of the sociology of knowledge how the theory of deliberative democracy was introduced into China. This perspective means that the analysis of this article will not focus on the theory itself, but rather on the various strategies adopted in this process (the strategy of introducing deliberative democracy theory into Chinaand the strategy of putting this theory into practice) and their effects. Journal: Economic and Political Studies Pages: 156-177 Issue: 1 Volume: 1 Year: 2013 Month: 1 X-DOI: 10.1080/20954816.2013.11673874 File-URL: http://hdl.handle.net/10.1080/20954816.2013.11673874 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:1:y:2013:i:1:p:156-177 Template-Type: ReDIF-Article 1.0 Author-Name: Korvela Paul-Erik Author-X-Name-First: Korvela Author-X-Name-Last: Paul-Erik Title: Postdemocracy and the End of History Abstract: The article asserts that certain trends and developments are possibly threatening democracy in established democracies. Even though democracy might not face any external challengers, as an ideology it nevertheless faces threats endemic to itself. There are clearly detectable trends that possibly transform or have already transformed established democracies into postdemocracies, managed democracies or controlled democracies. Thus, democracy might be in fact superseded rather than deepened and perfected. The article scrutinizes the phenomenon of postdemocratization from three perspectives. First, it connects the phenonomenon with globalization and the associated contraction of the state which produces a possible legitimacy crisis of democracies. Secondly, the article discusses how the rise of governance networks and new ways of participation create a democratic deficit despite their opposite intention. Thirdly, the role of private corporations and their influence on the political system is discussed. The article concludes that as more and more political power is escaping from the political system, democracy transforms into postdemocracy. Journal: Economic and Political Studies Pages: 136-155 Issue: 1 Volume: 1 Year: 2013 Month: 1 X-DOI: 10.1080/20954816.2013.11673875 File-URL: http://hdl.handle.net/10.1080/20954816.2013.11673875 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:1:y:2013:i:1:p:136-155 Template-Type: ReDIF-Article 1.0 Author-Name: Yulu Chen Author-X-Name-First: Yulu Author-X-Name-Last: Chen Title: Editorial Statement of the Economic and Political Studies (EPS) Journal: Economic and Political Studies Pages: 3-4 Issue: 1 Volume: 1 Year: 2013 Month: 1 X-DOI: 10.1080/20954816.2013.11673866 File-URL: http://hdl.handle.net/10.1080/20954816.2013.11673866 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:1:y:2013:i:1:p:3-4 Template-Type: ReDIF-Article 1.0 Author-Name: Yulu Chen Author-X-Name-First: Yulu Author-X-Name-Last: Chen Author-Name: Bo Hu Author-X-Name-First: Bo Author-X-Name-Last: Hu Title: Internationalization of the RMB: An Evaluation Framework Abstract: As the Chinese economy continues to develop, China is becoming a more active player in the world economy, and the RMB is being more widely used in international markets. In this paper we use indicators representing the RMB’s functionsof pricing, settlement and reserve to create an RMB Internationalization Index (RII) to evaluate the degree of the internationalization of the currency. We calculate the RII levels in 2010 and 2011, and find that the RII increased dramatically during these two years. However, when compared to the currencies of developed countries, the RMB is far from achieving complete internationalization. We propose a “three-step development” strategy for the RMB to be internationalized. Journal: Economic and Political Studies Pages: 5-20 Issue: 1 Volume: 1 Year: 2013 Month: 1 X-DOI: 10.1080/20954816.2013.11673867 File-URL: http://hdl.handle.net/10.1080/20954816.2013.11673867 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:1:y:2013:i:1:p:5-20 Template-Type: ReDIF-Article 1.0 Author-Name: Daniel P. Ahn Author-X-Name-First: Daniel P. Author-X-Name-Last: Ahn Title: Improving Energy Market Regulation: Domestic and International Issues Abstract: Recent extreme energy price highs and volatility have brought worldwide attention to the regulation of commodity markets in the context of the broader global financial overhaul. As part of the Dodd-Frank Act, the U.S. government now mandatescentralized clearing and margin and capital requirements. But commodity markets are globally integrated and international policy coordination is required for effective market regulation. Improved regulation and supervision of commodity markets has been highlighted in the G20 agenda. Essential details of the new global regulatory landscape still need to be fleshed out, particularly in five major areas: physical transparency; financial transparency; centralized clearing and standardized contracts; capital and margin requirements; and position limits. This paper presents energy policy options that achieve market efficiency by preventing market manipulation, manage systemic risk, and control excessive volatility. Journal: Economic and Political Studies Pages: 21-43 Issue: 1 Volume: 1 Year: 2013 Month: 1 X-DOI: 10.1080/20954816.2013.11673868 File-URL: http://hdl.handle.net/10.1080/20954816.2013.11673868 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:1:y:2013:i:1:p:21-43 Template-Type: ReDIF-Article 1.0 Author-Name: Fusheng Xie Author-X-Name-First: Fusheng Author-X-Name-Last: Xie Author-Name: An Li Author-X-Name-First: An Author-X-Name-Last: Li Author-Name: Andong Zhu Author-X-Name-First: Andong Author-X-Name-Last: Zhu Title: Marxist Crisis Theory and the Rate of Profit in the U.S. Economy during 1975-2008 Abstract: The cyclical fall in the rate of profit reveals the basic mechanism of the cyclical fluctuation of the economy. A new synthesis of the Marxist crisis theory necessitates calculating the rate of profit as well as considering factors such as capital-labor relations, realization of value, the organic composition of capital, and money and credit. Empirical studies suggest that the U.S. profit rate in real economy showed no signs of effective recovery during 1975-2008. The shrinking profit share caused by growing employment of non-production workers turns out to be the major factor contributing to the cyclical fall in the rate of profit, which in turn may be traced to the reorganization of the production process before the 1990s and the growing flexibility of employment relations after the 1990s. With long-term stagnation of the rate of profit, a new, financialised model of accumulation that heavily depends on increasing liquidity in the economy took shape in the United States, making the U.S. economy more fragile. The current crisis is but a natural result of the intrinsic contradiction between the Fed’s efforts to encourage financialised accumulation and to maintain the dollar as a legitimate quasi international reserve currency. Journal: Economic and Political Studies Pages: 44-78 Issue: 1 Volume: 1 Year: 2013 Month: 1 X-DOI: 10.1080/20954816.2013.11673869 File-URL: http://hdl.handle.net/10.1080/20954816.2013.11673869 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:1:y:2013:i:1:p:44-78 Template-Type: ReDIF-Article 1.0 Author-Name: Allan H. Meltzer Author-X-Name-First: Allan H. Author-X-Name-Last: Meltzer Title: End of the “American Century” Abstract: At the start of the post WWII era, the United States led the world to establish a political and economic order for freer trade, military cooperation, and economic development in low income countries. The program was far from perfect, but it gave the world decades of growth, expansion, and increased freedom and opportunity. More people in more countries raised their living standards more significantly than in any other period of human history. Freer trade and avoidance of major wars benefited people everywhere. The U.S. leadership is nevertheless much weaker now. Countries cannot agree on trade treaties to remove further barriers, and the growing size and importance of several countries with diverse interests make agreements harder to reach. Terrorism in parts of the world restricts the spread of markets. A likely outcome will be slower growth of the world economy in the future. Journal: Economic and Political Studies Pages: 79-88 Issue: 1 Volume: 1 Year: 2013 Month: 1 X-DOI: 10.1080/20954816.2013.11673870 File-URL: http://hdl.handle.net/10.1080/20954816.2013.11673870 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:1:y:2013:i:1:p:79-88 Template-Type: ReDIF-Article 1.0 Author-Name: Yaqing Qin Author-X-Name-First: Yaqing Author-X-Name-Last: Qin Title: Power Shift, Governance Deficit and a Sustainable Global Order Abstract: This paper puts forward three interrelated arguments. First, a tripartite power structure has been emerging, with the United States as the superpower, and Europe and the BRICS as major forces. Together they will shape the future world order. Second, the changed nature of security concerns from purely inter-state threats to trans-state ones provides opportunities for the three forces to cooperate, but genuine cooperation for the global commons is far from satisfying. It results in a gap between the demand for effective global governance and the supply of adequate international institutions. Hence there appears a global governance deficit. Third, the key to eliminating such a deficit is cooperation between the original major powers and the emerging ones for building a sustainable global order. If such cooperation is to be realized, emerging powers should be taken as equal partners rather than challengers in the international system. In this respect, their active participation in the reform of international institutions is of paramount significance. Journal: Economic and Political Studies Pages: 89-106 Issue: 1 Volume: 1 Year: 2013 Month: 1 X-DOI: 10.1080/20954816.2013.11673871 File-URL: http://hdl.handle.net/10.1080/20954816.2013.11673871 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:1:y:2013:i:1:p:89-106 Template-Type: ReDIF-Article 1.0 Author-Name: Yinhong Shi Author-X-Name-First: Yinhong Author-X-Name-Last: Shi Title: “Triumphalism” and Decision Making in China’s Asia Policy Abstract: The recent years have seen the fading influence of China and the increasing role of the United States in East Asia. This situation is partly attributed to problems in China’s foreign policy orientation, diplomatic behaviors, and policy-making mechanism. In its relations with the East Asian neighbors, China has exhibited a kind of “triumphalism.” The complex causes of this triumphalism include the conception of “G2 the Chinese version,” China’s rising popular nationalism, the less-regulated mass media and the coordination failure within the bureaucracy. Nevertheless, the Chinese top leaders have the final say and their role is always decisive. Journal: Economic and Political Studies Pages: 107-119 Issue: 1 Volume: 1 Year: 2013 Month: 1 X-DOI: 10.1080/20954816.2013.11673872 File-URL: http://hdl.handle.net/10.1080/20954816.2013.11673872 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:1:y:2013:i:1:p:107-119 Template-Type: ReDIF-Article 1.0 Author-Name: Huoqing Tang Author-X-Name-First: Huoqing Author-X-Name-Last: Tang Author-Name: Andrew McEvoy Author-X-Name-First: Andrew Author-X-Name-Last: McEvoy Author-Name: Chengsi Zhang Author-X-Name-First: Chengsi Author-X-Name-Last: Zhang Title: How the inflation targeting system can deal with the economic effects of Brexit Abstract: On 23 June 2016, the citizens of the United Kingdom (UK) took part in one of the most iconic votes in modern economic history as they voted in favour of the UK leaving the European Union (EU). This has resulted in great uncertainty around the future of the economy of the UK as well as the world economy. There were obvious and immediate effects around the time of the vote, such as the decrease in business and consumer confidence, depreciation in the value of the pound which will ultimately lead to inflation, and there are also many effects which we will only see come to fruition as the Brexit (Britain exiting from the EU) scenario plays out over the coming two- to three-year horizon. This allows us to conduct a scenario analysis of the various methods that the UK may utilise to withdraw from the EU and the effects that these methods will have on the economy of the UK and these effects will come through many channels. Our analysis shows how the Bank of England can use monetary policy to limit the effects of Brexit through trying to achieve its 2% inflation target. Journal: Economic and Political Studies Pages: 1-34 Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/20954816.2018.1558983 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1558983 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:7:y:2019:i:1:p:1-34 Template-Type: ReDIF-Article 1.0 Author-Name: Wilson X. B. Li Author-X-Name-First: Wilson X. B. Author-X-Name-Last: Li Author-Name: Tina T. He Author-X-Name-First: Tina T. Author-X-Name-Last: He Author-Name: Stella P. L. Cho Author-X-Name-First: Stella P. L. Author-X-Name-Last: Cho Title: Government involvement in banking systems and economic growth: a comparison across countries Abstract: This study investigates 92 countries of different legal origins, including 25 English origin, 44 French origin, 11 Scandinavian and German origin, and 12 socialist origin countries. Compared to other countries, China has the highest government ownership of banks, and lies in the middle in terms of official supervisory power over banks, and government efficiency in governance. As regards economic development measured by per capita GDP growth, in the period from 1995 to 2015, China performed significantly better than all the other countries in the sample – countries varying in legal origin, government ownership of banks, level of economic and financial development, supervisory power over banks, and government efficiency. The findings are robust when we examine the country-years with similar per capita GDP as that of China. The regression results show that in some circumstances, higher government ownership of banks is associated with higher economic growth and the positive association is more significant in socialist origin countries. Further discussions suggest that the high government involvement in commercial banks fits in well with the unique characteristics of China – such as a large population, underdeveloped economy, imbalance in resources and development in different areas, as well as the utmost trust placed on the Chinese government and government owned banks – thus may benefit economic growth. Journal: Economic and Political Studies Pages: 35-65 Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/20954816.2018.1558981 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1558981 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:7:y:2019:i:1:p:35-65 Template-Type: ReDIF-Article 1.0 Author-Name: Badar Alam Iqbal Author-X-Name-First: Badar Author-X-Name-Last: Alam Iqbal Author-Name: Shaista Sami Author-X-Name-First: Shaista Author-X-Name-Last: Sami Author-Name: Abdul Turay Author-X-Name-First: Abdul Author-X-Name-Last: Turay Title: Determinants of China’s outward foreign direct investment in Asia: a panel data analysis Abstract: This paper is an attempt to examine the trends and significant determinants of China’s outward foreign direct investment (OFDI) in Asia. In order to find out the important determinants of China’s OFDI in Asia, this study applies the panel data regression technique. The time period from 2006 to 2015 is taken into consideration. Econometric analysis has been done based on three data sets: the first includes 27 Asian countries/regions which attract Chinese OFDI. While Chinese Hong Kong is excluded from the sample, the second data set consists of 26 countries the same as those in data set one. The third data set comprises China’s top 12 destination countries of OFDI in Asia. The findings show that China’s OFDI has risen rapidly and secured the second rank globally, only behind the United States and surpassing Japan. For the first time, the flow of Chinese OFDI exceeded the level of inward foreign direct investment (IFDI), and Asia attracted a 74.4% share out of China’s total OFDI in 2015. The results reveal that inflation rate, export, import, corruption, infrastructure and geographic distance are the significant determinants of China’s investment in Asia. This paper provides new evidence on the determinants of China’s OFDI in Asia. By using currently available data of 27 Asian host countries, this paper offers a new insight into significant determinants of China’s OFDI in the region. Journal: Economic and Political Studies Pages: 66-86 Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/20954816.2019.1572354 File-URL: http://hdl.handle.net/10.1080/20954816.2019.1572354 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:7:y:2019:i:1:p:66-86 Template-Type: ReDIF-Article 1.0 Author-Name: Zongxin Qian Author-X-Name-First: Zongxin Author-X-Name-Last: Qian Author-Name: Jingyun Gan Author-X-Name-First: Jingyun Author-X-Name-Last: Gan Author-Name: Yonghong Tu Author-X-Name-First: Yonghong Author-X-Name-Last: Tu Author-Name: Fang Wang Author-X-Name-First: Fang Author-X-Name-Last: Wang Title: International policy coordination and RMB internationalisation: theory and historical experience Abstract: Based on theoretical logics derived from the literature and the historical experience, we take a deep look at the relationship between international policy coordination and RMB internationalisation. International policy coordination and RMB internationalisation are complements. On the one hand, an effective policy coordination mechanism needs the support of an efficient international monetary system, thus calling for diversification of international vehicle currencies. RMB, supported by solid economic fundamentals, can be a good candidate as one of the international vehicle currencies in the diversified international monetary system. On the other hand, due to the existence of policy spill-over effects, an appropriate coordination mechanism improves policy effectiveness in China, which promotes RMB internationalisation by enhancing China’s economic and financial strength. Journal: Economic and Political Studies Pages: 87-105 Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/20954816.2018.1558985 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1558985 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:7:y:2019:i:1:p:87-105 Template-Type: ReDIF-Article 1.0 Author-Name: Monir Hossain Moni Author-X-Name-First: Monir Hossain Author-X-Name-Last: Moni Title: Book review of: The Political Economy of Japanese Trade Policy Journal: Economic and Political Studies Pages: 106-112 Issue: 1 Volume: 7 Year: 2019 Month: 1 X-DOI: 10.1080/20954816.2018.1558982 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1558982 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:7:y:2019:i:1:p:106-112 Template-Type: ReDIF-Article 1.0 Author-Name: Yuwei Hu Author-X-Name-First: Yuwei Author-X-Name-Last: Hu Title: Editorial Journal: Economic and Political Studies Pages: 343-344 Issue: 4 Volume: 4 Year: 2016 Month: 10 X-DOI: 10.1080/20954816.2016.1251133 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1251133 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:4:y:2016:i:4:p:343-344 Template-Type: ReDIF-Article 1.0 Author-Name: Monika Queisser Author-X-Name-First: Monika Author-X-Name-Last: Queisser Author-Name: Andrew Reilly Author-X-Name-First: Andrew Author-X-Name-Last: Reilly Author-Name: Yuwei Hu Author-X-Name-First: Yuwei Author-X-Name-Last: Hu Title: China’s pension system and reform: an OECD perspective Abstract: Population ageing is a worldwide phenomenon, but the speed and scale of ageing are much greater in China than in most other countries. This paper discusses the key demographic indicators of the population in China and provides a comparison with Organisation for Economic Co-operation and Development (OECD) countries. The evolution of the Chinese pension system is summarised before concentrating on the current structure for both public- and private-sector workers as well as rural and urban residents. The level of future pension promises for full career workers is calculated and compared with those of selected OECD countries. Possible future challenges are highlighted as China seeks to achieve an adequate and sustainable pension system. The paper highlights the issue of high level of pensioner poverty in comparison to many OECD countries as well as the low retirement age, particularly for women, despite China’s relatively high employment rates for older workers. Journal: Economic and Political Studies Pages: 345-367 Issue: 4 Volume: 4 Year: 2016 Month: 10 X-DOI: 10.1080/20954816.2016.1251134 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1251134 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:4:y:2016:i:4:p:345-367 Template-Type: ReDIF-Article 1.0 Author-Name: Heikki Oksanen Author-X-Name-First: Heikki Author-X-Name-Last: Oksanen Title: Coping with the effects of population ageing on public finances in the European Union and China Abstract: The population age structure is changing fast both in the European welfare states and in China, as fertility remains low and longevity continues to increase. The pressure on public pensions, health care and long-term care expenditures is receiving increased attention. Sound public finances in the Euro area call for pension reforms, especially for raising the retirement age. Although the challenges are qualitatively similar in the EU and China, the quantitative picture is different: GDP per capita in China is about 30% of that in the more advanced states of the EU, and the ageing-related public expenditures as a percentage of GDP is currently one quarter of this ratio in the EU. A particular factor in China is migration of workers to the cities and factories from rural areas. For a harmonious society, their rights to social security, including pensions and their children’s access to education, require modernisation of government institutions. The retirement age in practically all EU countries and in China is currently low, lagging behind the increase in longevity. Increasing the ratio of participating in working life to the average years of retirement is a key to moderating the pressures on public finances. Journal: Economic and Political Studies Pages: 368-396 Issue: 4 Volume: 4 Year: 2016 Month: 10 X-DOI: 10.1080/20954816.2016.1251727 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1251727 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:4:y:2016:i:4:p:368-396 Template-Type: ReDIF-Article 1.0 Author-Name: Xiaojun Wang Author-X-Name-First: Xiaojun Author-X-Name-Last: Wang Author-Name: Ge Shan Author-X-Name-First: Ge Author-X-Name-Last: Shan Title: Raising the retirement age: the impact on the individual and actuarial balance for Chinese urban workers’ basic pensions Abstract: Rapid population ageing and increasing longevity are raising concerns about the sustainability of the basic pension systems in China. Raising the retirement age, as an important way to maintain long-term financial sustainability, has become the main policy choice for China. Some studies show that postponing retirement can solve the financial pressures of pension systems effectively. However, if the pension benefits increase with the pensionable age, this may offset some effects and even have a negative impact on the financial balance. This paper builds cohort models and period actuarial balance models for Chinese urban workers’ basic pension system to measure the cohort and period effects of postponing retirement, with the aim of analysing the change in the individual pension net wealth and the long-term actuarial balance of the system with population ageing and increasing life expectancy. The result shows that raising the retirement age, which is linked to life expectancy, will lead to an increase in the pension benefits, individual net pension wealth and then pension fund expenditure. It may benefit the individual and short-term actuarial balance but have a small effect on the long-term actuarial balance of the system. Journal: Economic and Political Studies Pages: 397-413 Issue: 4 Volume: 4 Year: 2016 Month: 10 X-DOI: 10.1080/20954816.2016.1251135 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1251135 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:4:y:2016:i:4:p:397-413 Template-Type: ReDIF-Article 1.0 Author-Name: Keyong Dong Author-X-Name-First: Keyong Author-X-Name-Last: Dong Author-Name: Gengyu Wang Author-X-Name-First: Gengyu Author-X-Name-Last: Wang Title: China’s pension system: achievements, challenges and future developments Abstract: This study focuses on the framework and achievements of China’s pension system, and analyses the long-term risk and institutional dilemmas. Because the existing pension system does not clearly define the responsibilities among the government, the market and the individuals, the main challenge facing China’s current pension system is the huge future fund gap and the difficulty in coping with the risk of an ageing population. The proposal for China’s pension scheme reformation is to establish a three-pillar pension system: transfer the social pooling account into a public pension as the first pillar; merge the refilled personal account by transferring the state-owned assets and the enterprise annuity into the occupational pension as the second pillar; and promote the tax deferral individual pension plan as the third pillar. The roles and functions of the government in the three-pillar pension system are different: for the first pillar, it is fully responsible for the system construction, management and funding security; for the second and the third pillar, it is responsible for system construction and operational supervision. Journal: Economic and Political Studies Pages: 414-433 Issue: 4 Volume: 4 Year: 2016 Month: 10 X-DOI: 10.1080/20954816.2016.1251726 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1251726 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:4:y:2016:i:4:p:414-433 Template-Type: ReDIF-Article 1.0 Author-Name: Bingwen Zheng Author-X-Name-First: Bingwen Author-X-Name-Last: Zheng Title: Population ageing and the impacts of the universal two-child policy on China’s socio-economy Abstract: The two-child policy was officially proclaimed in the Guideline of the 13th Five-Year Plan and approved in March 2016. This article provides a detailed analysis of the Chinese demographic structure characterised by ageing with sub-replacement fertility. It argues that the universal two-child policy is timely and necessary for the New Normal economy. The policy has significance in relieving socio-economic pressure and promoting economic growth, for which it is not only a necessary premise but also a sufficient condition. Having reviewed the evolution of the demographic transition theory, this research undertakes a comparative analysis of different stages of demographic transition in different regions across the world. It further investigates the three stages of successful demographic transition in China. The universally adopted two-child policy, as it meets the requirements of demographic transition, is also inevitable for socio-economic development. Journal: Economic and Political Studies Pages: 434-453 Issue: 4 Volume: 4 Year: 2016 Month: 10 X-DOI: 10.1080/20954816.2016.1251136 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1251136 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:4:y:2016:i:4:p:434-453 Template-Type: ReDIF-Article 1.0 Author-Name: Yuwei Hu Author-X-Name-First: Yuwei Author-X-Name-Last: Hu Title: Implications of population ageing for the Chinese productivity Abstract: Since 2000 when China entered the ‘ageing society’, the pace of ageing has speeded up. At the same time, traditional growth engines of the Chinese economy (i.e. export and investment) are losing momentum. Against this background, to what extent the expected demographic transformation would affect growth trajectory of the Chinese economy is of great interest. Among new growth engines, productivity has been receiving increasing attention among China’s top policy makers. In this paper, we try to identify both micro and macro effects of ageing on China’s productivity. In general, our research supports the hypothesis that more working experience and/or elder contributes to higher wage growth and total factor productivity, although with a reversed U-shaped pattern. Journal: Economic and Political Studies Pages: 454-467 Issue: 4 Volume: 4 Year: 2016 Month: 10 X-DOI: 10.1080/20954816.2016.1251728 File-URL: http://hdl.handle.net/10.1080/20954816.2016.1251728 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:4:y:2016:i:4:p:454-467 Template-Type: ReDIF-Article 1.0 Author-Name: Mark Beeson Author-X-Name-First: Mark Author-X-Name-Last: Beeson Title: China’s big idea: making sense of the Belt and Road Initiative Journal: Economic and Political Studies Pages: 237-239 Issue: 3 Volume: 6 Year: 2018 Month: 7 X-DOI: 10.1080/20954816.2018.1498987 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1498987 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:6:y:2018:i:3:p:237-239 Template-Type: ReDIF-Article 1.0 Author-Name: Mark Beeson Author-X-Name-First: Mark Author-X-Name-Last: Beeson Title: Geoeconomics with Chinese characteristics: the BRI and China’s evolving grand strategy Abstract: China has become the second largest economy in the world in a historically unprecedented space of time. Subsequently, China has begun to exert a form of geoeconomic influence that is changing the way we think about both the nature of international relations in the 21st century and about the precise uses China’s policymakers will put their growing power into. This paper explores these debates and China’s evolving approach to foreign and strategic policies through the prism of the Belt and Road Initiative (BRI). If the BRI becomes a reality it will quite literally cement China’s place at the centre of a regional network of production processes that will inevitability enhance China’s overall economic and geopolitical importance. At the very least, China’s ascent is forcing a reassessment about the nature of power and influence in the contemporary international system. Not only is the nature of economic organisation currently raising important theoretical and practical questions about the basis of international competition, but it is also becoming increasingly clear that the power and influence of national governments are largely determined by relative shifts in the balance of economic power, as much as it is by more traditional strategic factors. Journal: Economic and Political Studies Pages: 240-256 Issue: 3 Volume: 6 Year: 2018 Month: 7 X-DOI: 10.1080/20954816.2018.1498988 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1498988 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:6:y:2018:i:3:p:240-256 Template-Type: ReDIF-Article 1.0 Author-Name: W. Travis Selmier Author-X-Name-First: W. Travis Author-X-Name-Last: Selmier Title: The Belt and Road Initiative and the influence of Islamic economies Abstract: While the name ‘Silk Road’ connotes significant Chinese influence, in fact since the eighth century the old land route ran mostly through Islamic countries and areas, from present-day Xinjiang to Istanbul, and the old sea route passed through Islamic trading principalities for centuries. Modern Islamic economies, and concepts of Islamic economics, will exert considerable impact on the Belt and Road Initiative (BRI, also known as OBOR) development programmes. Although a non-Muslim majority country, China has a longer, deeper and more influential history of cultural interaction with Islam than any other large country or major culture, save perhaps India and Indian culture. The new ‘West’ for China consists of countries with great variety of Islamic economies, and so I argue that China has certain unique advantages to engage with Islamic economies and utilise Islamic banking and finance. Using Kazakhstan, Pakistan and Iran as examples, this paper argues that variation across modern views of ‘Islamic economics’ not only results in challenges but also holds promise for BRI development strategies in countries with Muslim majorities. Journal: Economic and Political Studies Pages: 257-277 Issue: 3 Volume: 6 Year: 2018 Month: 7 X-DOI: 10.1080/20954816.2018.1498989 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1498989 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:6:y:2018:i:3:p:257-277 Template-Type: ReDIF-Article 1.0 Author-Name: Ling Jin Author-X-Name-First: Ling Author-X-Name-Last: Jin Title: Synergies between the Belt and Road Initiative and the 2030 SDGs: from the perspective of development Abstract: The Belt and Road Initiative (BRI) has its own development logic, which draws mainly from China’s development and cooperation experiences. In addition to aid, the BRI prioritises ownership, infrastructure connectivity and comprehensive approaches to development. The 2030 Sustainable Development Goals (SDGs), drawing many lessons from the implementation of the Millennium Development Goals (MDGs), mark a visible shift from the past donor–recipient relationship to an equal development partnership in the international development narrative. Comparing the two initiatives, this paper identifies synergies between the BRI and the SDGs from the perspective of development and concludes that an emphasis on ownership is the basis for docking the two development visions. The docking process should begin at the stage of strategic dialogue and policy planning between China and its development partners, and infrastructure connectivity is an area of special importance when seeking synergies and developing differentiated approaches to working in different contexts. Journal: Economic and Political Studies Pages: 278-292 Issue: 3 Volume: 6 Year: 2018 Month: 7 X-DOI: 10.1080/20954816.2018.1498990 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1498990 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:6:y:2018:i:3:p:278-292 Template-Type: ReDIF-Article 1.0 Author-Name: Yakov Silin Author-X-Name-First: Yakov Author-X-Name-Last: Silin Author-Name: Larisa Kapustina Author-X-Name-First: Larisa Author-X-Name-Last: Kapustina Author-Name: Italo Trevisan Author-X-Name-First: Italo Author-X-Name-Last: Trevisan Author-Name: Andrei Drevalev Author-X-Name-First: Andrei Author-X-Name-Last: Drevalev Title: The silk road economic belt: balance of interests Abstract: The article makes an analogy between the Great Silk Road and the modern Belt and Road Initiative (BRI, also known as ‘One Belt, One Road’ [OBOR]) of China in the context of their significance for the development of international trade, as well as the Central Asian region. The historical role of the Silk Road is considered from the viewpoint of mutual benefit of states along the trade route. The authors consider the concept as the co-development of states, suggested by China within the framework of the BRI, which involves international cooperation on the basis of mutual benefits for all participants, promotion of economic growth and welfare, development of modern infrastructure through joint investments. An attempt is made to assess the interests of Central Asian countries in the Silk Road Economic Belt (SREB) projects. Common interests include construction of modern road infrastructure, exploration and extraction of mineral deposits, transportation of energy resources, establishment of logistics and industrial zones. There is an increase in the transit role of the Central Asian countries within the framework of the BRI, as well an increase in investments from China. The countries along SREB are concerned about potential threats of the inflow of Chinese labour, the use of technologies that can cause environmental problems, the loss of control over strategic assets, and general growth of financial dependence on China. The article analyses Russia’s perception of the Chinese initiative. It is concluded that the main mutual interest of the two countries is opposing the US’s attempts to establish a dominating role in the region and thus ensuring the security of the transport system through the institutions of the Eurasian Economic Union (EAEU) and the Shanghai Cooperation Organisation (SCO). The authors reveal a trend of changing the role of Russia as the main transit corridor for Chinese goods exported to Europe and European ones imported to China. The key long-term economic interests of China implementing the BRI have been identified: expansion of foreign markets, access to critical resources in the countries of Central Asia, export of capital, transfer of production abroad, increased exports of high-tech products and services, expansion of the RMB currency area and initiation of structural changes in the global management system. The assessment of China’s initiative by the US and Europe is given as a claim to economic leadership and the struggle to balance the country’s geopolitical position with its economic strength. The authors identify the areas of mutual and opposing interests of some European countries and China. It is concluded that, despite high risks and existing threats, the projects of the BRI can be implemented successfully that achieve the balance of interests and long-term mutual benefits of the countries involved. Journal: Economic and Political Studies Pages: 293-318 Issue: 3 Volume: 6 Year: 2018 Month: 7 X-DOI: 10.1080/20954816.2018.1499072 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1499072 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:6:y:2018:i:3:p:293-318 Template-Type: ReDIF-Article 1.0 Author-Name: Qinhua Xu Author-X-Name-First: Qinhua Author-X-Name-Last: Xu Author-Name: William Chung Author-X-Name-First: William Author-X-Name-Last: Chung Title: Risk assessment of China’s Belt and Road Initiative’s sustainable investing: a data envelopment analysis approach Abstract: China’s Belt and Road Initiative (BRI) aims to promote greater development and connectivity between 64 Eurasian countries. To accomplish this, China must increase its investments in the countries involved as well. The BRI’s investments are expected to positively influence the development and connectivity of countries along the BRI, but a low return of investment cannot reflect investment risks. This study proposes the assessment of the BRI’s investments through the lens of sustainable investing risk. Sustainable investing is an investment discipline that considers environmental, social and governance (ESG) dimensions to generate long-term competitive financial returns and positive societal impact. A data envelopment analysis (DEA) model is used to calculate the composite indicators for each ESG dimension and country, and the average of the three indicators represents the sustainable investing risk score of each country. Results of the DEA reveal that Afghanistan has the lowest environmental rating (i.e. highest risk), Syria has the lowest social and governance ratings, Yemen has the lowest average rating, and Singapore has the highest rating. Moreover, no significant relationship is found between the BRI’s investment efforts and a country’s risk ratings, and an adequate risk ratio reflects the investments of the BRI. Journal: Economic and Political Studies Pages: 319-337 Issue: 3 Volume: 6 Year: 2018 Month: 7 X-DOI: 10.1080/20954816.2018.1498991 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1498991 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:6:y:2018:i:3:p:319-337 Template-Type: ReDIF-Article 1.0 Author-Name: David Vines Author-X-Name-First: David Author-X-Name-Last: Vines Title: The BRI and RCEP: ensuring cooperation in the liberalisation of trade in Asia Abstract: The Belt and Road Initiative (BRI) offers the prospect of trade integration between Asia and Europe. But it is subject to a number of risks, some of them are similar to those associated with the Trans-Pacific Partnership (TPP). East Asian trade liberalisation in the 1990s involved collaborative autonomy – a cooperative process of outward-looking unilateral liberalisation on a ‘most favoured nation’ (MFN) basis – rather than the creation of a regional free trade area. By contrast, the TPP has sought to create a free trade area, which would have led to trade diversion and have had other unsatisfactory features. The combination of BRI with the Regional Cooperation Economic Partnership (RCEP) might offer the possibility of outward-looking liberalisation, one which is neither dominated by China nor subject to the trade diversion of the TPP. This combination would bring strength and legitimacy to the BRI. Journal: Economic and Political Studies Pages: 338-348 Issue: 3 Volume: 6 Year: 2018 Month: 7 X-DOI: 10.1080/20954816.2018.1498992 File-URL: http://hdl.handle.net/10.1080/20954816.2018.1498992 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:6:y:2018:i:3:p:338-348 Template-Type: ReDIF-Article 1.0 Author-Name: Terence Tai Leung Chong Author-X-Name-First: Terence Tai Leung Author-X-Name-Last: Chong Title: Editorial Journal: Economic and Political Studies Pages: 1-5 Issue: 1 Volume: 8 Year: 2020 Month: 1 X-DOI: 10.1080/20954816.2019.1704352 File-URL: http://hdl.handle.net/10.1080/20954816.2019.1704352 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:8:y:2020:i:1:p:1-5 Template-Type: ReDIF-Article 1.0 Author-Name: Charles Ka Yui Leung Author-X-Name-First: Charles Ka Yui Author-X-Name-Last: Leung Author-Name: Joe Cho Yiu Ng Author-X-Name-First: Joe Cho Yiu Author-X-Name-Last: Ng Author-Name: Edward Chi Ho Tang Author-X-Name-First: Edward Chi Ho Author-X-Name-Last: Tang Title: What do we know about housing supply? The case of Hong Kong SAR Abstract: The house price in the Hong Kong SAR of China is well-known to be ‘unaffordable’. This paper relates the macroeconomy with the housing market of Hong Kong and argues that the housing supply plays a vital role in explaining the phenomenon. This paper also shows that there are some practical challenges in understanding the housing supply of Hong Kong, including the potentially complicated ownership structure of real estate development. While the discussion centres on the situation of Hong Kong, its lesson may also apply to housing markets in other small open economies. Journal: Economic and Political Studies Pages: 6-20 Issue: 1 Volume: 8 Year: 2020 Month: 1 X-DOI: 10.1080/20954816.2019.1691705 File-URL: http://hdl.handle.net/10.1080/20954816.2019.1691705 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:8:y:2020:i:1:p:6-20 Template-Type: ReDIF-Article 1.0 Author-Name: Terence Tai Leung Chong Author-X-Name-First: Terence Tai Leung Author-X-Name-Last: Chong Author-Name: Xiaoyang Li Author-X-Name-First: Xiaoyang Author-X-Name-Last: Li Title: The development of Hong Kong housing market: past, present and future Abstract: From previous boom-bust cycles of the housing market of the Hong Kong SAR of China, we find that the imbalance between housing demand and supply, the interaction between the stock market, financial institutions and the real estate market, and international capital flows are the key determinants of housing price movements in Hong Kong. A comparison between the current episode of high real estate prices and that in 1997 suggests that structural changes have taken place and that different underlying forces are in play, thus indicating a low likelihood of a similar crash in the housing market. However, it is still imperative for the Hong Kong SAR government to find effective ways to cool down the overheated housing market. While we agree that the actions taken by the government will be able to suppress the housing price in the long run, the short-term effect may not be satisfactory due to the time lags of these policies. Journal: Economic and Political Studies Pages: 21-40 Issue: 1 Volume: 8 Year: 2020 Month: 1 X-DOI: 10.1080/20954816.2019.1697535 File-URL: http://hdl.handle.net/10.1080/20954816.2019.1697535 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:8:y:2020:i:1:p:21-40 Template-Type: ReDIF-Article 1.0 Author-Name: Yang Zhang Author-X-Name-First: Yang Author-X-Name-Last: Zhang Author-Name: Qingyong Zhang Author-X-Name-First: Qingyong Author-X-Name-Last: Zhang Author-Name: Huanhuan Zheng Author-X-Name-First: Huanhuan Author-X-Name-Last: Zheng Title: Housing policies in Greater China and Singapore Abstract: This paper provides a comparative study of housing policies in the greater China area and Singapore. We trace out the key features of the housing markets in the Chinese mainland, the Hong Kong SAR, the Macao SAR, and Singapore and review policies adopted in these markets. Soaring housing prices may distort capital allocation efficiency as money flows into housing market instead of more productive sectors, which poses threat to long-term sustainability and economic growth. Governments in these four jurisdictions have implemented various macroprudential policies and regulations in an attempt to curb housing demand, however the effectiveness of housing policies varies across markets. The housing prices stabilise in Singapore but continue to rise in Greater China despite the introductions of various tightening policies. The policy effectiveness is contingent on not only the characteristics of the market but also on its design and implementations. Journal: Economic and Political Studies Pages: 41-64 Issue: 1 Volume: 8 Year: 2020 Month: 1 X-DOI: 10.1080/20954816.2019.1691797 File-URL: http://hdl.handle.net/10.1080/20954816.2019.1691797 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:8:y:2020:i:1:p:41-64 Template-Type: ReDIF-Article 1.0 Author-Name: Siu Kei Wong Author-X-Name-First: Siu Kei Author-X-Name-Last: Wong Author-Name: Ka Shing Cheung Author-X-Name-First: Ka Shing Author-X-Name-Last: Cheung Title: Housing price dispersion in the presale market Abstract: Sale before completion (i.e. presale) is a common practice that real estate developers use to sell residential units. Since presale buyers are unable to inspect uncompleted units, developers may take advantage of asymmetric information and release information about quality to the market selectively. The search theory also suggests that incomplete pricing information, especially for new products, will induce a less competitive market that is characterised by dispersed presale prices. Would price dispersion be reduced if developers were required to provide more quality and pricing information? In this study, we argue that this is not necessarily the case. We conduct a natural experiment using a new information disclosure ordinance governing first-hand residential sales in the Hong Kong SAR, China. We find that the ordinance reduced the price dispersion of presale units with asymmetric information about property quality, but increased their price dispersion when limited pricing information (e.g. thin trading volume) was available in the neighbourhood. As a critical test, we further show that the ordinance increased price dispersion even more after the units were completed. This suggests that the ordinance has indeed made presale pricing more difficult because developers are no longer allowed to use different strategies to test market demand. Journal: Economic and Political Studies Pages: 65-81 Issue: 1 Volume: 8 Year: 2020 Month: 1 X-DOI: 10.1080/20954816.2019.1690267 File-URL: http://hdl.handle.net/10.1080/20954816.2019.1690267 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:8:y:2020:i:1:p:65-81 Template-Type: ReDIF-Article 1.0 Author-Name: Haoyuan Ding Author-X-Name-First: Haoyuan Author-X-Name-Last: Ding Author-Name: Guoyong Liang Author-X-Name-First: Guoyong Author-X-Name-Last: Liang Author-Name: Tong Qi Author-X-Name-First: Tong Author-X-Name-Last: Qi Author-Name: Jiezhou Ying Author-X-Name-First: Jiezhou Author-X-Name-Last: Ying Title: Tail causalities between monetary supply and real estate prices in China Abstract: The asymmetric and segmented causality between the monetary policy and real estate market in China is crucial but remains mystery. With the application of quantile causality test, this article investigates nonlinear dependence between property prices and money supply. Our results show that the tail causality exists in many cities in China. Moreover, we find that small-sized cities and inland cities are more sensitive to the broad money (M2) changes when the housing market return is in the tail quantile intervals. These findings can help the Chinese government formulate appropriate monetary policies regarding their implications in the real estate market. Journal: Economic and Political Studies Pages: 82-95 Issue: 1 Volume: 8 Year: 2020 Month: 1 X-DOI: 10.1080/20954816.2019.1690268 File-URL: http://hdl.handle.net/10.1080/20954816.2019.1690268 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:8:y:2020:i:1:p:82-95 Template-Type: ReDIF-Article 1.0 Author-Name: Weida Kuang Author-X-Name-First: Weida Author-X-Name-Last: Kuang Author-Name: Tao Li Author-X-Name-First: Tao Author-X-Name-Last: Li Author-Name: Jingjian Xiao Author-X-Name-First: Jingjian Author-X-Name-Last: Xiao Title: Housing prices and household savings: evidence from urban China Abstract: Based on precautionary saving motives, this research develops a three-period life-cycle model to manifest the impact of housing prices on household savings in urban China. The theoretical model illustrates that the expected appreciation of housing prices at a household’s middle age leads to the increase in household savings at a household’s young age. Second, household savings at a household’s young age are positively associated with both expected educational and medical expenditures in a household’s middle age and pension expenditures at a household’s old age. Third, the expected housing prices crowd out educational and medical expenditures at a household’s middle age. With the panel data sets of China’s 31 provinces during 1996–2016, results suggest that the expected housing prices significantly interact with the current household savings. However, the influence of the expected housing prices on the current household savings is greater than that of the current household savings on the expected housing prices. Third, the expected expenditures of education, medical care and pension fuel up the current household savings. Meanwhile, the housing prices crowd out the expenditures of education, medical care and pension. Finally, data of the Urban Household Survey (UHS) over the period 2002–2007 show that the household head age has an effect of reverse U-shape on household savings. Accordingly, to prevent a housing bubble and promote household consumption, policy makers should curb housing price inflation by enacting appropriate countercyclical housing policies. Journal: Economic and Political Studies Pages: 96-114 Issue: 1 Volume: 8 Year: 2020 Month: 1 X-DOI: 10.1080/20954816.2019.1699722 File-URL: http://hdl.handle.net/10.1080/20954816.2019.1699722 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:8:y:2020:i:1:p:96-114 Template-Type: ReDIF-Article 1.0 Author-Name: Alex Wing Ho Yiu Author-X-Name-First: Alex Wing Ho Author-X-Name-Last: Yiu Author-Name: Terence Tai Leung Chong Author-X-Name-First: Terence Tai Leung Author-X-Name-Last: Chong Title: An instrumental variable approach to unveiling the determinants of flatted factory rent in Hong Kong Abstract: The early period of industrialisation in the Hong Kong SAR occurred during the 1950s–1970s. Manufacturers were engaged in labour-intensive manufacturing processes with the assistance of machines in factory buildings. Since the 1980s, manufacturers in Hong Kong have faced keen competition from neighbouring economies, amidst the rising costs of land and labour. Moreover, since the adoption of an opening-up policy by the Chinese mainland since 1978, more and more local manufacturers in Hong Kong have relocated their production processes to the mainland so as to take advantage of the lower factor costs. As a result, the contribution of the manufacturing sector to GDP declined from around 20% in 1986 to 2.7% in 2006 and further decreased to merely 1.1% in 2016. Interestingly, there has been a general upward trend of real flatted factory1 rent in Hong Kong in the past decade. This study, via a threshold regression, demonstrates that not only demand from the retail property rental market has been a factor in the increase of factory rent, but demands from the office rental market and local households have also contributed to the recent rise in real factory rent since 2006 Q1. Journal: Economic and Political Studies Pages: 115-138 Issue: 1 Volume: 8 Year: 2020 Month: 1 X-DOI: 10.1080/20954816.2020.1720969 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1720969 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:8:y:2020:i:1:p:115-138 Template-Type: ReDIF-Article 1.0 Author-Name: Haiqiang Chen Author-X-Name-First: Haiqiang Author-X-Name-Last: Chen Author-Name: Ying Fang Author-X-Name-First: Ying Author-X-Name-Last: Fang Title: Introduction Journal: Economic and Political Studies Pages: 139-140 Issue: 2 Volume: 8 Year: 2020 Month: 4 X-DOI: 10.1080/20954816.2020.1738048 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1738048 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:8:y:2020:i:2:p:139-140 Template-Type: ReDIF-Article 1.0 Author-Name: Liping Lu Author-X-Name-First: Liping Author-X-Name-Last: Lu Author-Name: Xiaoyang Li Author-X-Name-First: Xiaoyang Author-X-Name-Last: Li Author-Name: Zongxin Qian Author-X-Name-First: Zongxin Author-X-Name-Last: Qian Title: Monetary policy, financial development and the financing of zombie firms: evidence from China Abstract: This paper examines the financing channels for zombie firms in China. We find that equity markets and suppliers provide substantial financing support for zombie firms, while banks and other financing channels are less important. We also find that the amount of investment does not increase accordingly after zombie firms obtain external financing, which indicates an inefficient use of funds by these zombie firms. Our results are robust to various definitions of zombie firms, and also to a propensity score matching method. Journal: Economic and Political Studies Pages: 141-164 Issue: 2 Volume: 8 Year: 2020 Month: 4 X-DOI: 10.1080/20954816.2020.1730542 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1730542 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:8:y:2020:i:2:p:141-164 Template-Type: ReDIF-Article 1.0 Author-Name: Yu Luo Author-X-Name-First: Yu Author-X-Name-Last: Luo Author-Name: Lianyun Zeng Author-X-Name-First: Lianyun Author-X-Name-Last: Zeng Title: Digital financial capabilities and household entrepreneurship Abstract: This study investigates the impact of digital financial capabilities on household business ownership and business innovation. Utilising the 2015 China Household Finance Survey (CHFS) data, this paper constructs robust capabilities scores and finds positive associations between digital financial capabilities and household entrepreneurship. After specifying instrumental variables, the results still hold. In addition, we compare the driving forces of the impact through componential dimensions, and discuss the different function channels that digital financial capabilities affect business ownership and business innovation. What’s more, we add the interaction term of digital capability and financial capability, illustrate its role in improving the goodness of fit of the models, and further discuss the interaction effect both generally and at each level of the capabilities scores. Finally, we conduct robustness checks across socioeconomic groups and provide policy implications. This study highlights the different function channels of digital financial capabilities concerning different entrepreneurial activities, as well as the importance of interaction effect in understanding how digital financial capabilities affect household entrepreneurship. Journal: Economic and Political Studies Pages: 165-202 Issue: 2 Volume: 8 Year: 2020 Month: 4 X-DOI: 10.1080/20954816.2020.1736373 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1736373 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:8:y:2020:i:2:p:165-202 Template-Type: ReDIF-Article 1.0 Author-Name: Liang Guo Author-X-Name-First: Liang Author-X-Name-Last: Guo Author-Name: Erzhuo Liu Author-X-Name-First: Erzhuo Author-X-Name-Last: Liu Author-Name: Ya Dai Author-X-Name-First: Ya Author-X-Name-Last: Dai Title: Structural design and performance analysis of China’s Local Government Financing Vehicles Abstract: In this paper, we investigate the reasons for the establishment and operation models of China’s Local Government Financing Vehicles (LGFVs). We also outline the current literature on the structural arrangement and the developments of LGFVs. Moreover, we employ the empirical analysis to examine the driving factors of the financial performance of LGFVs. Using 1,042 LGFVs that issued debt securities during the period 2011–2016, we find that the financial performance of LGFVs is positively associated with local tax revenues, local education levels, local saving deposits, and firm size but negatively associated with local government spending and firm leverage ratios. Based on our empirical findings, we finally propose policy recommendations for the establishment of relevant investment and financing platforms. Journal: Economic and Political Studies Pages: 203-223 Issue: 2 Volume: 8 Year: 2020 Month: 4 X-DOI: 10.1080/20954816.2020.1738031 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1738031 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:8:y:2020:i:2:p:203-223 Template-Type: ReDIF-Article 1.0 Author-Name: Xiaohong Xu Author-X-Name-First: Xiaohong Author-X-Name-Last: Xu Title: Policy and institutional reforms of China’s economic aid: motives and implications Abstract: The People’s Republic of China (PRC) has been an aid donor for over six decades, offering multiple forms of development aid to other developing countries. Meanwhile, China has been constantly readjusting its strategies of aid provision while introducing institutional reforms to improve the efficiency of aid as a form of economic statecraft. What significant policy and institutional changes has China conducted in its aid distribution? What are the key motivators that have propelled such reforms? And how do Western donors perceive the Chinese model of aid distribution? Using a two-level analytical framework, this article mainly explores the domestic and international factors driving the three rounds of Chinese aid reforms. The article finds that while the transformation of China’s strategic priority enabled by leadership perception change is the key domestic incentive for aid reforms, international variables contribute to such processes either directly by exerting pressure and conveying knowledge or indirectly by changing China’s global status and leadership perception. Journal: Economic and Political Studies Pages: 224-245 Issue: 2 Volume: 8 Year: 2020 Month: 4 X-DOI: 10.1080/20954816.2020.1728832 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1728832 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:8:y:2020:i:2:p:224-245 Template-Type: ReDIF-Article 1.0 Author-Name: Antonio Abatemarco Author-X-Name-First: Antonio Author-X-Name-Last: Abatemarco Author-Name: Roberto Dell’Anno Author-X-Name-First: Roberto Author-X-Name-Last: Dell’Anno Title: Fiscal illusion and progressive taxation with retrospective voting Abstract: This article addresses the tax progressivity decision of a rent-maximising government under the circumstances that voters’ perceptions of the tax price of public goods are biased by cognitive anomalies (i.e. fiscal illusion) and that the electorate opts for re-appointing or for dismissing the incumbent according to a retrospective voting logic. Given electoral and constitutional constraints, we show that the design of the tax system can be sensibly affected by fiscal illusion within the population of voters. Specifically, we find that (i) the tax system is more (less) progressive when taxes and public expenditures are perceived less (more), and (ii) an increase in the median voter’s income may positively or negatively affect tax progressivity depending on the nature (pessimistic or optimistic) of fiscal illusion. The impact of fiscal illusion on tax progressivity has been validated by econometric analysis. Journal: Economic and Political Studies Pages: 246-273 Issue: 2 Volume: 8 Year: 2020 Month: 4 X-DOI: 10.1080/20954816.2020.1728831 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1728831 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:8:y:2020:i:2:p:246-273 Template-Type: ReDIF-Article 1.0 Author-Name: Qing He Author-X-Name-First: Qing Author-X-Name-Last: He Author-Name: Junyi Liu Author-X-Name-First: Junyi Author-X-Name-Last: Liu Author-Name: Sizhu Wang Author-X-Name-First: Sizhu Author-X-Name-Last: Wang Author-Name: Jishuang Yu Author-X-Name-First: Jishuang Author-X-Name-Last: Yu Title: The impact of COVID-19 on stock markets Abstract: This paper attempts to explore the direct effects and spill-overs of COVID-19 on stock markets. Using conventional t-tests and non-parametric Mann–Whitney tests, we empirically analyse daily return data from stock markets in the People’s Republic of China, Italy, South Korea, France, Spain, Germany, Japan and the United States of America. Our empirical results show that (i) COVID-19 has a negative but short-term impact on stock markets of affected countries and that (ii) the impact of COVID-19 on stock markets has bidirectional spill-over effects between Asian countries and European and American countries. However, there is no evidence that COVID-19 negatively affects these countries’ stock markets more than it does the global average. The findings contribute to the research on economic impact of the pandemic by providing empirical evidence that COVID-19 has spill-over effects on stock markets of other countries. The results also provide a basis for assessing trends in international stock markets when the situation is alleviated worldwide. Journal: Economic and Political Studies Pages: 275-288 Issue: 3 Volume: 8 Year: 2020 Month: 7 X-DOI: 10.1080/20954816.2020.1757570 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1757570 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:8:y:2020:i:3:p:275-288 Template-Type: ReDIF-Article 1.0 Author-Name: Iikka Korhonen Author-X-Name-First: Iikka Author-X-Name-Last: Korhonen Title: Introduction Journal: Economic and Political Studies Pages: 289-290 Issue: 3 Volume: 8 Year: 2020 Month: 7 X-DOI: 10.1080/20954816.2020.1777681 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1777681 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:8:y:2020:i:3:p:289-290 Template-Type: ReDIF-Article 1.0 Author-Name: Guonan Ma Author-X-Name-First: Guonan Author-X-Name-Last: Ma Author-Name: Yao Wang Author-X-Name-First: Yao Author-X-Name-Last: Wang Title: Can the Chinese domestic bond and stock markets facilitate a globalising renminbi? Abstract: A global renminbi (RMB) needs to be backed by a large, deep and liquid RMB market with a world-class Chinese government bond (CGB) market as its core. It also needs the support from a bigger and more open domestic stock market. China’s CGB market is the sixth largest local currency sovereign bond market in the world. By transforming the non-tradable, captive central bank liabilities into homogeneous and tradable CGBs through cutting the still high Chinese reserve requirements by 1/3, the size of the CGB market can rise by 40%, boosting market liquidity while trimming distortions to the banking system. Also, policy bank bonds may attract foreign investor demand. Finally, a bigger and more open domestic A-share stock market also helps expand the RMB assets in the international investor portfolio. With both bigger bond and stock markets and their higher foreign ownerships following market opening, the combined sum of Chinese domestic bonds and A-shares held by foreign investors may increase five folds during 2018–2025, lifting the RMB asset position in global investor portfolios, facilitating a potential global RMB, while promoting a deeper and more efficient Chinese domestic capital market. This process of liberalising cross-border portfolio capital flows for non-resident investors may bring both risks and benefits to the Chinese economy. Journal: Economic and Political Studies Pages: 291-311 Issue: 3 Volume: 8 Year: 2020 Month: 7 X-DOI: 10.1080/20954816.2020.1780831 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1780831 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:8:y:2020:i:3:p:291-311 Template-Type: ReDIF-Article 1.0 Author-Name: Dong Lu Author-X-Name-First: Dong Author-X-Name-Last: Lu Author-Name: Erzhuo Liu Author-X-Name-First: Erzhuo Author-X-Name-Last: Liu Title: In search of currency internationalisation: a perspective from financial openness Abstract: This paper examines the role of financial openness for currency internationalisation. We provide a theoretical synthesis on the economic and financial channels that financial openness might affect currency internationalisation. Historical experiences from the UK, the US, Japan and Germany show the essential role played by financial policies to promote one currency’s international status. We collect recent data of a panel of countries to provide an in-depth empirical analysis on how financial openness would affect a currency’s acceptance in international official reserves. We find strong evidence that portfolio positions generally have a larger impact on the currency’s share in international reserves than FDI. Moreover, portfolio positions in the liability side, especially foreign investments in domestic debt securities, have a statistically significant and economically important effect on currency internationalisation. Our results have implications for China, highlighting the specific effects of financial policies on RMB internationalisation. Journal: Economic and Political Studies Pages: 312-330 Issue: 3 Volume: 8 Year: 2020 Month: 7 X-DOI: 10.1080/20954816.2020.1769897 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1769897 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:8:y:2020:i:3:p:312-330 Template-Type: ReDIF-Article 1.0 Author-Name: Yinggang Zhou Author-X-Name-First: Yinggang Author-X-Name-Last: Zhou Author-Name: Xin Cheng Author-X-Name-First: Xin Author-X-Name-Last: Cheng Author-Name: Yiming Wang Author-X-Name-First: Yiming Author-X-Name-Last: Wang Title: Measuring the importance of RMB in the exchange rate spill-over networks: new indices of RMB internationalisation Abstract: Using an innovative network approach, this study constructs new indices of the renminbi (RMB) internationalisation and presents strong evidence of the RMB’s growing influence globally and regionally. We identify networks of exchange rate spill-overs and examine time-varying spill-over intensities among the RMB and world major currencies of G20 members as well as currencies related to the Belt and Road Initiative (BRI). Shocks from the RMB generate intensifying spill-overs across currency networks. The role of the RMB in the networks has increased steadily over time. Our findings highlight that the RMB has become increasingly important since China has initiated the marketisation reform of its currency and proposed to build the modern Belt and Road. Journal: Economic and Political Studies Pages: 331-354 Issue: 3 Volume: 8 Year: 2020 Month: 7 X-DOI: 10.1080/20954816.2020.1775374 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1775374 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:8:y:2020:i:3:p:331-354 Template-Type: ReDIF-Article 1.0 Author-Name: Ke Song Author-X-Name-First: Ke Author-X-Name-Last: Song Author-Name: Le Xia Author-X-Name-First: Le Author-X-Name-Last: Xia Title: Bilateral swap agreement and renminbi settlement in cross-border trade Abstract: This research empirically examines the impact of China’s renminbi (RMB) Bilateral Swap Agreements (BSAs) on the usage of the currency in cross-border trade transactions. By using a unique dataset from SWIFT including cross-border settlement messages of 91 countries/regions between October 2010 and November 2015, we confirm that the signing of an RMB BSA helps increase the number, value and proportion of the RMB settlement in cross-border trade. Our results are robust with respect to the choice of different models, including multi-level mixed model, two-stage regression model, and difference-in-difference model. In addition to justifying the effectiveness of China’s BSA-signing strategy to promote the RMB usage in trade settlement, our results clarify that the signing of those RMB BSAs is not purely for China’s political ends as some scholars claim. Journal: Economic and Political Studies Pages: 355-373 Issue: 3 Volume: 8 Year: 2020 Month: 7 X-DOI: 10.1080/20954816.2020.1780818 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1780818 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:8:y:2020:i:3:p:355-373 Template-Type: ReDIF-Article 1.0 Author-Name: Jennifer Lai Author-X-Name-First: Jennifer Author-X-Name-Last: Lai Author-Name: Paul D. McNelis Author-X-Name-First: Paul D. Author-X-Name-Last: McNelis Title: Offshore fears and onshore risk: exchange rate pressures and bank volatility contagion in China Abstract: This paper shows that signals from the offshore China spot market for the Chinese renminbi of the Hong Kong SAR (listed as CNH) directly affect the volatility of share prices of Chinese banks and the overall risks of Chinese banking stability. This is especially so amid heightened uncertainty about global trade or the People’s Republic of China. Thus, the CNH market volatility is a leading indicator of onshore Chinese banking sector volatility. Our results suggest that further offshore exchange market movements arising out of news such as increasing trade friction with the United States will generate greater volatility in the Chinese banking sector. Far from being a shock absorber for the Chinese financial system, the CNH market appears to be a shock transmitter of risk from offshore economic policy uncertainty to the Chinese banking system. Journal: Economic and Political Studies Pages: 374-393 Issue: 3 Volume: 8 Year: 2020 Month: 7 X-DOI: 10.1080/20954816.2020.1762830 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1762830 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:8:y:2020:i:3:p:374-393 Template-Type: ReDIF-Article 1.0 Author-Name: Xiaoguang Liu Author-X-Name-First: Xiaoguang Author-X-Name-Last: Liu Author-Name: Yuanchun Liu Author-X-Name-First: Yuanchun Author-X-Name-Last: Liu Author-Name: Yan Yan Author-X-Name-First: Yan Author-X-Name-Last: Yan Title: China macroeconomic report 2020: China’s macroeconomy is on the rebound under the impact of COVID-19 Abstract: The year 2020 is bound to be a very special year in the history of China’s and the world’s economy. The sudden onslaught of COVID-19 has taken a heavy toll on China’s macroeconomy and its market participants. Also, the global economic and trade system has tipped into the most severe downturn since World War II. The macro stimulus policy packages launched by various countries are of an epic scale, in a way rarely seen before. China was the first to be hit by the epidemic, to contain the epidemic, and to resume work and production. China’s economic recovery and reconstruction are of landmark and leading significance for the global economy. The content of this report mainly includes the following two aspects: one is to forecast the basic trend and recovery potential of China’s economy under the impact of the epidemic; the other is to provide applicable policy recommendations for post-epidemic economic rehabilitation and its mid- to long-term development. We focus on four issues: the progress and nature of China’s economic recovery at the current stage; major challenges and risks facing China’s economic recovery in the next stage; how to design policies of a sizable scale and policy mechanisms to achieve desired effects; and whether the existing policy is sufficient to cope with various risks and challenges, to enhance resilience and re-consolidate economic foundations. In view of this, the report presents the forecast and prospect of China’s core macroeconomic indicators in 2020 and puts forward policy recommendations accordingly. Journal: Economic and Political Studies Pages: 395-435 Issue: 4 Volume: 8 Year: 2020 Month: 10 X-DOI: 10.1080/20954816.2020.1844609 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1844609 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:8:y:2020:i:4:p:395-435 Template-Type: ReDIF-Article 1.0 Author-Name: Xiaolin Huo Author-X-Name-First: Xiaolin Author-X-Name-Last: Huo Author-Name: Zhigang Qiu Author-X-Name-First: Zhigang Author-X-Name-Last: Qiu Title: How does China’s stock market react to the announcement of the COVID-19 pandemic lockdown? Abstract: In this paper, we study how China’s stock market reacts to the sudden outbreak of COVID-19 in 2020, particularly to the announcement of the pandemic lockdown. In general, we observe reversals both at the industry level and at the firm level due to investors’ overreactions to the pandemic lockdown. For industry- and firm-level stocks with positive cumulative abnormal returns (CARs) in the event window when Wuhan was locked down, the reversals are stronger. Thus, the reversal effects are mostly driven by industries and stocks that positively overreact to COVID-19 than do others. Further investigation shows that overreactions are stronger for stocks with lower institutional ownership, which means that retail investors react more strongly to COVID-19. Among stocks with positive CARs in the event window, those with higher idiosyncratic volatilities and lower book-to-market ratios tend to have worse performance after one month. Journal: Economic and Political Studies Pages: 436-461 Issue: 4 Volume: 8 Year: 2020 Month: 10 X-DOI: 10.1080/20954816.2020.1780695 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1780695 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:8:y:2020:i:4:p:436-461 Template-Type: ReDIF-Article 1.0 Author-Name: Kerry Liu Author-X-Name-First: Kerry Author-X-Name-Last: Liu Title: The effects of the China–US trade war during 2018–2019 on the Chinese economy: an initial assessment Abstract: The China–US trade war during 2018–2019 has attracted attentions from academics, policy makers, businesses and investors around the world. Unlike previous researches which are mainly based on hypothetical scenarios, this study looks at the real effects of the China–US trade war on the Chinese economy. Based on either weekly or monthly data during January 2018–December 2019 including creatively using the Google Trends data to measure the severity of the trade war, this study examines the effects of the China–US trade war on Chinese Renminbi, China–US bilateral trade and stock markets. Journal: Economic and Political Studies Pages: 462-481 Issue: 4 Volume: 8 Year: 2020 Month: 10 X-DOI: 10.1080/20954816.2020.1757569 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1757569 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:8:y:2020:i:4:p:462-481 Template-Type: ReDIF-Article 1.0 Author-Name: Wuqing Wu Author-X-Name-First: Wuqing Author-X-Name-Last: Wu Author-Name: Dongliang Xu Author-X-Name-First: Dongliang Author-X-Name-Last: Xu Author-Name: Yue Zhao Author-X-Name-First: Yue Author-X-Name-Last: Zhao Author-Name: Xinhai Liu Author-X-Name-First: Xinhai Author-X-Name-Last: Liu Title: Do consumer internet behaviours provide incremental information to predict credit default risk? Abstract: The peer-to-peer lending industry has experienced recent turmoil, posing risks to fintech companies and banks. Based on a random sample of 33,669 borrowers who had downloaded peer-to-peer lending platforms prior to submitting loan applications to a well-known fintech company, Du Xiaoman Financial (formerly Baidu Finance), this article evaluates the predictive power of borrowers’ internet behaviours on credit default risk. After controlling for borrowers’ basic characteristics that are widely used in academic research and enterprise practices, the coefficients of key factors selected from 3,100 variables are economically and statistically significant. The average Kolmogorov-Smirnov value of the prediction model calculated using the hold-out method is approximately 37.09%. The results remain robust in several additional analyses. This study indicates the importance of non-credit information, particularly borrowers’ internet behaviours, in supplementing borrowers’ credit records for both fintech companies and banks. Journal: Economic and Political Studies Pages: 482-499 Issue: 4 Volume: 8 Year: 2020 Month: 10 X-DOI: 10.1080/20954816.2020.1759765 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1759765 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:8:y:2020:i:4:p:482-499 Template-Type: ReDIF-Article 1.0 Author-Name: Marie Claire Villeval Author-X-Name-First: Marie Claire Author-X-Name-Last: Villeval Title: Introduction Journal: Economic and Political Studies Pages: 1-3 Issue: 1 Volume: 9 Year: 2021 Month: 1 X-DOI: 10.1080/20954816.2020.1837553 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1837553 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:9:y:2021:i:1:p:1-3 Template-Type: ReDIF-Article 1.0 Author-Name: Anne Corcos Author-X-Name-First: Anne Author-X-Name-Last: Corcos Author-Name: François Pannequin Author-X-Name-First: François Author-X-Name-Last: Pannequin Author-Name: Claude Montmarquette Author-X-Name-First: Claude Author-X-Name-Last: Montmarquette Title: How an All-or-Nothing insurance behaviour challenges economic policies: an experimental approach Abstract: Based on experimental data, this paper confirms, in a controlled environment, converging theoretical and empirical results that, when individuals insure, they choose to insure themselves with a full cover. This insurance behaviour creates an opportunity for the public authority to drive people to enter the insurance market where they would buy full insurance. This paper also sheds light on the risks of an opportunistic insurers’ behaviour. This heuristic challenges the efficiency of separating contracts designed to address adverse selection issues. Indeed, a strong preference for full contracts may encourage low-risk individuals to turn to (full) contracts designed for high-risk individuals, yielding advantageous selection opportunities for insurers. However, if this heuristic strengthens the high-risks’ reluctance for partial insurance, it may increase the efficiency of the separating contracts, and the low-risk individuals suffer less from adverse selection. Journal: Economic and Political Studies Pages: 4-16 Issue: 1 Volume: 9 Year: 2021 Month: 1 X-DOI: 10.1080/20954816.2020.1815397 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1815397 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:9:y:2021:i:1:p:4-16 Template-Type: ReDIF-Article 1.0 Author-Name: Jim Engle-Warnick Author-X-Name-First: Jim Author-X-Name-Last: Engle-Warnick Author-Name: Julie Héroux Author-X-Name-First: Julie Author-X-Name-Last: Héroux Author-Name: Claude Montmarquette Author-X-Name-First: Claude Author-X-Name-Last: Montmarquette Title: Willingness to pay to reduce future risk: a fundamental issue to invest in prevention behaviour Abstract: At the core of the decision to invest in prevention are individuals who face immediate real costs against future and uncertain benefits. In this paper, we elicit subjects’ willingness to pay to reduce future risk. In our experiments, subjects are given a cash endowment and a risky lottery. They report their willingness to pay to exchange the risky lottery for a safe one. Subjects play the lottery either immediately, eight weeks later, or 25 weeks later. Thus, both the lottery and the future are sources of uncertainty in our experiments. In two additional treatments, we control for future uncertainty with a continuation probability (a stopping rule), constant and independent across periods, that simulates the chances of not being able to return to play the lottery after 8 and 25 periods. We find evidence for a present bias in both the time-delay sessions and the continuation probability sessions, suggesting that this bias robustly persists in environments including both risk and future uncertainty. Therefore, eliciting prevention behaviour is a major challenge. Journal: Economic and Political Studies Pages: 17-36 Issue: 1 Volume: 9 Year: 2021 Month: 1 X-DOI: 10.1080/20954816.2020.1827500 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1827500 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:9:y:2021:i:1:p:17-36 Template-Type: ReDIF-Article 1.0 Author-Name: Min-Taec Kim Author-X-Name-First: Min-Taec Author-X-Name-Last: Kim Author-Name: Robert Slonim Author-X-Name-First: Robert Author-X-Name-Last: Slonim Title: The multi-dimensional effects of reciprocity on worker effort: evidence from a hybrid field-laboratory labour market experiment Abstract: We examine the gift exchange hypothesis on both the quantity and quality of work using a hybrid field-laboratory labour market experiment. We recruited participants to enter survey data for a well-known charitable organisation. Workers were paid either a high or low wage. We find that although the total number of surveys entered did not vary in terms of wages, high wage workers made fewer errors and entered more surveys after controlling for errors. We further find that for low costs associated with errors, offering a low wage maximises profits; but for higher costs, paying a high ‘gift exchange’ wage maximises profits. Journal: Economic and Political Studies Pages: 37-67 Issue: 1 Volume: 9 Year: 2021 Month: 1 X-DOI: 10.1080/20954816.2020.1831687 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1831687 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:9:y:2021:i:1:p:37-67 Template-Type: ReDIF-Article 1.0 Author-Name: Stéphane Robin Author-X-Name-First: Stéphane Author-X-Name-Last: Robin Author-Name: Kateřina Strážnická Author-X-Name-First: Kateřina Author-X-Name-Last: Strážnická Author-Name: Marie Claire Villeval Author-X-Name-First: Marie Claire Author-X-Name-Last: Villeval Title: Bubbles and incentives: an experiment on asset markets Abstract: We explore the effects of competitive incentives and of their time horizon on the evolution of both asset prices and trading activity in experimental asset markets. We compare (i) a no-bonus treatment; (ii) a short-term bonus treatment in which bonuses are assigned to the best performers at the end of each trading period; (iii) a long-term bonus treatment in which bonuses are assigned to the best performers at the end of the 15 periods of the market. We find that the existence of bonus contracts does not increase the likelihood of bubbles but it affects their severity, depending on the time horizon of bonuses. Markets with long-term bonus contracts experience lower price deviations and a lower turnover of assets than markets with either no bonuses or long-term bonus contracts. Short-term bonus contracts increase price deviations but only when markets include a higher share of male traders. At the individual level, the introduction of bonus contracts increases the trading activity of males, probably due to their higher competitiveness. Journal: Economic and Political Studies Pages: 68-89 Issue: 1 Volume: 9 Year: 2021 Month: 1 X-DOI: 10.1080/20954816.2020.1839158 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1839158 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:9:y:2021:i:1:p:68-89 Template-Type: ReDIF-Article 1.0 Author-Name: Loukas Balafoutas Author-X-Name-First: Loukas Author-X-Name-Last: Balafoutas Author-Name: Alexander Libman Author-X-Name-First: Alexander Author-X-Name-Last: Libman Author-Name: Vasileios Selamis Author-X-Name-First: Vasileios Author-X-Name-Last: Selamis Author-Name: Björn Vollan Author-X-Name-First: Björn Author-X-Name-Last: Vollan Title: Exposure to conspiracy theories in the lab Abstract: Conspiracy theories are widespread in the modern information era. Being exposed to conspiracy theories may affect behaviour, for example, by spreading mistrust among people and within organisations, even if it does not necessarily generate widespread beliefs in the conspiracy narrative. Our paper investigates the effect of exposure to conspiracy theories on strategic sophistication. We present evidence from a laboratory experiment, in which we prime half of our participants with exposure to a conspiracy theory. We find that such exposure leads to increased strategic sophistication. Using a causal mediation analysis we confirm that the effect on sophistication arises independently of whether people believe in the content or not. Journal: Economic and Political Studies Pages: 90-112 Issue: 1 Volume: 9 Year: 2021 Month: 1 X-DOI: 10.1080/20954816.2020.1818930 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1818930 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:9:y:2021:i:1:p:90-112 Template-Type: ReDIF-Article 1.0 Author-Name: James Habyarimana Author-X-Name-First: James Author-X-Name-Last: Habyarimana Author-Name: Daniel Houser Author-X-Name-First: Daniel Author-X-Name-Last: Houser Author-Name: Stuti Khemani Author-X-Name-First: Stuti Author-X-Name-Last: Khemani Author-Name: Viktor Brech Author-X-Name-First: Viktor Author-X-Name-Last: Brech Author-Name: Ginny Seung Choi Author-X-Name-First: Ginny Seung Author-X-Name-Last: Choi Author-Name: Moumita Roy Author-X-Name-First: Moumita Author-X-Name-Last: Roy Title: Clientelism and identity Abstract: Electoral clientelism or vote buying has been regarded as undermining democratic institutions and weakening the accountability of the state towards its citizens, especially the poor. Social identity as a form of political mobilisation may contribute to this, enabling support to be won with clientelist transfers. This paper reports data from a novel laboratory experiment designed to examine whether clientelism can be sustained as a political strategy, and whether identity impacts the nature or efficacy of clientelism. Specifically, we design a voting and leadership game in order to examine whether individuals vote for clientelist allocations by a leader even at the expense of more efficient and egalitarian allocations. We find group identity does not significantly impact the prevalence of clientelist plans. Leaders are more likely, however, to choose allocations that provide fewer benefits (lower rents) to themselves when they are part of the majority in-group than when they are in the minority. Journal: Economic and Political Studies Pages: 113-133 Issue: 1 Volume: 9 Year: 2021 Month: 1 X-DOI: 10.1080/20954816.2020.1837335 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1837335 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:9:y:2021:i:1:p:113-133 Template-Type: ReDIF-Article 1.0 Author-Name: Kerry Liu Author-X-Name-First: Kerry Author-X-Name-Last: Liu Title: The effects of COVID-19 on Chinese stock markets: an EGARCH approach Abstract: Coronavirus disease 2019 (COVID-19), the disease caused by the novel coronavirus SARS-CoV-2, has greatly affected financial markets, economies and societies worldwide. This study focusses on the Chinese stock markets. Based on Google Trends data during the period from 1 January 2020 to 12 April 2020, and using the exponential generalised autoregressive conditional heteroskedastic (EGARCH) model, this study finds that the higher uncertainty resulting from the COVID-19 pandemic is significantly associated with the drop in China’s composite index, but this impact varies by sectors. Simultaneously, the higher uncertainty due to COVID-19 is significantly associated with greater volatility in stock returns for both the composite index and sector indices. Journal: Economic and Political Studies Pages: 148-165 Issue: 2 Volume: 9 Year: 2021 Month: 4 X-DOI: 10.1080/20954816.2020.1814548 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1814548 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:9:y:2021:i:2:p:148-165 Template-Type: ReDIF-Article 1.0 Author-Name: Terence Tai Leung Chong Author-X-Name-First: Terence Tai Leung Author-X-Name-Last: Chong Author-Name: Xiaoyang Li Author-X-Name-First: Xiaoyang Author-X-Name-Last: Li Author-Name: Cornelia Yip Author-X-Name-First: Cornelia Author-X-Name-Last: Yip Title: The impact of COVID-19 on ASEAN Abstract: Starting in December 2019, COVID-19 had been spreading across the world on a limited scale for a quarter until March 2020 when the death toll in the countries comprising the Association of Southeast Asian Nations (ASEAN) finally started to mount. However, despite the relatively late outbreak in the region, the ASEAN market had already plunged along with other regional markets across the world amid heightened concern about the economic impact of the biggest viral killer in 2020. In this paper, we examine the economic impact of coronavirus on different ASEAN countries separately by analysing their respective economic figures for the first two quarters in 2020. This allows us to delineate the overall picture of its impact on ASEAN countries as well as to provide an estimation for the future outlook of the ASEAN economic bloc. We propose that the slowing growth, the sluggish recovery of trade and the cross-country transmission of unemployment are three significant risk factors that the ASEAN economies are faced with. Journal: Economic and Political Studies Pages: 166-185 Issue: 2 Volume: 9 Year: 2021 Month: 4 X-DOI: 10.1080/20954816.2020.1839166 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1839166 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:9:y:2021:i:2:p:166-185 Template-Type: ReDIF-Article 1.0 Author-Name: Wilson X. B. Li Author-X-Name-First: Wilson X. B. Author-X-Name-Last: Li Author-Name: Tina T. He Author-X-Name-First: Tina T. Author-X-Name-Last: He Title: Determinations of strategy responding to COVID-19 Abstract: This study explores what determines the selection of strategies by governments responding to COVID-19. To answer the question, we propose concepts of individual utility and societal utility and build a simple model. By applying the model, we predict that countries with an individualist culture would adopt more passive strategies while countries with a collectivist culture would adopt more active strategies. The comparison between strategies adopted in China and in the United Kingdom supports the prediction. Furthermore, as the spread of COVID-19 virus continues, governments’ response may change and individualist countries may switch to more active strategies. So we extend our model to incorporate the dynamics of strategy selection, and explain the switch between passive and active strategies. We then predict in particular that facing the unexpected infections and deaths, the countries with an individualist culture would temporally adopt a relatively more active strategy responding to COVID-19. The evidence from Spain shows the dynamic feature of strategy selection as predicted by our model. Journal: Economic and Political Studies Pages: 135-147 Issue: 2 Volume: 9 Year: 2021 Month: 4 X-DOI: 10.1080/20954816.2020.1763544 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1763544 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:9:y:2021:i:2:p:135-147 Template-Type: ReDIF-Article 1.0 Author-Name: Zucheng Zhao Author-X-Name-First: Zucheng Author-X-Name-Last: Zhao Author-Name: Charles Sutcliffe Author-X-Name-First: Charles Author-X-Name-Last: Sutcliffe Title: Asset–liability models and the Chinese basic pension fund Abstract: Pillar 1B (individual accounts) of the Chinese basic pension fund (BPF) have suffered from substantial underfunding due to a series of challenges such as rising longevity, conservative investment policies, and the fragmentation of the pension system. Using an asset–liability model (ALM), we investigate the effects of the pre-2015 and post-2015 limits, as well as no limits, on asset allocations. We also investigate the likely effect on investment performance of transferring the pillar 1B funds to the Council of National Social Security Fund (NSSF) and raising the retirement age to 65. We find that an ALM is superior to an assets-only analysis, and removing the limits on investment in domestic assets (but not foreign assets) would be beneficial, as would transferring the assets to the NSSF and raising the retirement age. Finally, the official notional rate on individual accounts should be set at a realistic level. Journal: Economic and Political Studies Pages: 186-216 Issue: 2 Volume: 9 Year: 2021 Month: 4 X-DOI: 10.1080/20954816.2020.1793497 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1793497 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:9:y:2021:i:2:p:186-216 Template-Type: ReDIF-Article 1.0 Author-Name: Gedion Onyango Author-X-Name-First: Gedion Author-X-Name-Last: Onyango Title: Whistleblowing behaviours and anti-corruption approaches in public administration in Kenya Abstract: This article demonstrates that whistleblowing often receives little attention in public administration due to ambivalence regarding administrative roles held by public administrators, the fluid scalar chain and horizontal linkages, and competitive and intricate public, organisational and private interests. Drawing on comparative analysis to elucidate the broader scope of anti-corruption reforms and whistleblowing in public administration, the article explores the influence of the administrative culture on the relationship between whistleblowing behaviours and implementation of anti-corruption reforms in public administration in Kenya. It illustrates how bureaucratic oversight mechanisms such as internal auditing procedures and ethical guidelines tend to underperform where administrative environments largely feature autocratic bureaucratic authority, parochial management styles and centralised decision-making processes. Despite the functional specialty of public institutions, these cultural composites potentially elicit administrative behaviours that generally make whistleblowing anti-organisational, anti-social and an outright illegality in public administration. The absence of whistleblowing legislation or weak whistleblowing laws exacerbate these conditions. Whistleblowing becomes even more complex at the local-state level as social networks and working groups tend to be strengthened by the collectivist associational culture in public administration. Consequently, non-performance of anti-corruption reforms were found to stem from the collective chastisement of whistleblowing practices in public organisations in Kenya. Furthermore, institutional deficits typical in local-state administration seemingly made it riskier for potential whistleblowers to come forth, mainly attendant to loose and inconsistent legislation on corruption. Therefore, to enhance whistleblowing, there is a need to insulate potential whistleblowers from legal retaliation, including cultural retaliations that come in forms of emotional and professional ‘attacks’. Journal: Economic and Political Studies Pages: 230-254 Issue: 2 Volume: 9 Year: 2021 Month: 4 X-DOI: 10.1080/20954816.2020.1800263 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1800263 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:9:y:2021:i:2:p:230-254 Template-Type: ReDIF-Article 1.0 Author-Name: Yanwei Wang Author-X-Name-First: Yanwei Author-X-Name-Last: Wang Author-Name: Chinenye Gerlof Uzodinma Author-X-Name-First: Chinenye Gerlof Author-X-Name-Last: Uzodinma Author-Name: Caoyuan Niu Author-X-Name-First: Caoyuan Author-X-Name-Last: Niu Title: The path, value and limits of the Confucius Institute in carrying out public diplomacy Abstract: On the basis of Chinese language teaching and cultural communication activities, the Confucius Institute carries out a variety of cultural exchange activities between China and the host country, which has become an effective way for China to carry out public diplomacy and participate in global cultural governance. By analysing the concepts of public diplomacy, cultural diplomacy, people-to-people exchange and cultural governance, this paper summarises three typical paths of Confucius Institutes in carrying out public diplomacy: ‘from the government to foreign nationals’, ‘from the government to Chinese citizens and then to foreign nationals’, and ‘from the government to foreign nationals and then to foreign nationals’. The value of the Confucius Institute in carrying out public diplomacy is reflected on the level of national diplomacy, international exchange and global governance. Furthermore, the capability of the Confucius Institute as a language and cultural communication institution initiated by China and in cooperation with other countries in carrying out public diplomacy is limited. This limitation, on one hand, originates from the nature of the Confucius Institute as a language and cultural communication organisation, and on the other hand, is related to the difficulties and challenges that China faces in its participation in global governance. Public diplomacy and cultural diplomacy are based on national interests. They also transcend national interests and, furthermore, become a way for a country to actively participate in global cultural governance. The experience of and challenges faced by the Confucius Institute can have important implications for China in participating in global cultural governance. Journal: Economic and Political Studies Pages: 217-229 Issue: 2 Volume: 9 Year: 2021 Month: 4 X-DOI: 10.1080/20954816.2021.1914416 File-URL: http://hdl.handle.net/10.1080/20954816.2021.1914416 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:9:y:2021:i:2:p:217-229 Template-Type: ReDIF-Article 1.0 Author-Name: Marco Cepik Author-X-Name-First: Marco Author-X-Name-Last: Cepik Author-Name: Fabrício H. Chagas-Bastos Author-X-Name-First: Fabrício H. Author-X-Name-Last: Chagas-Bastos Author-Name: Rafael R. Ioris Author-X-Name-First: Rafael R. Author-X-Name-Last: Ioris Title: Missing the China factor: evidence from Brazil and Mexico Abstract: China’s rapid economic growth created new challenges and opportunities for Latin America over the 2000s. Much ink has been spilt analysing how countries in the region surfed the Chinese wave of commodity-based prosperity. However, there is fertile and quite unexplored territory to analyse how these regional powers in the Global South, from a comparative perspective, have interacted with China as they tried to improve their international position over the 2000s. We analyse in this article how Brazil and Mexico dealt with China’s presence and strategic goals in Latin America and assess the outcomes they extracted from this relationship. We draw evidence from and offer comparisons across different presidencies in each country (Lula and Rousseff in Brazil, and Fox, Calderón, and Peña Nieto in Mexico) over the 2000s, which allows us to grasp the variation in ideology, governance style, and electoral legitimacy. We ground our theoretical framework in the concept of international insertion, a Southern-based framework that opens space to understand and explain how countries in the South behave in international politics from a different point of view. We claim that the efforts made by the national governments in both countries to improve their positions achieved limited or transitory results, if considering China as a strategic factor. Journal: Economic and Political Studies Pages: 358-377 Issue: 3 Volume: 9 Year: 2021 Month: 7 X-DOI: 10.1080/20954816.2021.1933767 File-URL: http://hdl.handle.net/10.1080/20954816.2021.1933767 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:9:y:2021:i:3:p:358-377 Template-Type: ReDIF-Article 1.0 Author-Name: Jie Zhang Author-X-Name-First: Jie Author-X-Name-Last: Zhang Title: Is the Confucian ethic a hindrance to economic development in China? Abstract: Opinions differ among academics concerning the relationship between the Confucian ethic and China’s economic development. This research reveals that the Confucian ethic originated from the practical demand for guaranteeing the smooth operation of households. Later, it developed into a coordinator between the government and individuals, thus bringing about the institutional compromise between the family system and bureaucracy, which is the foundation of the market system specific to China. In the future, the successful development of a market economy will be largely dependent on whether an institutional equilibrium between the government and market forces can be reached, and this will be strongly related to the Confucian ethic. This paper holds that Confucianism involves inherent conflicts between the macro and the micro level. At the macro level, Confucianism sets very high standards for wealth and morals, but at the micro level it pays little attention to how to create wealth. Accordingly, for the ongoing market reform, it is rational to continue introducing Protestant ethics-oriented Western systems since they are more advantageous in terms of increasing wealth accumulation. However, this process lacks stability and inclusiveness and is thus prone to the separation of wealth from morals. This is exactly where Confucianism should step in. This paper concludes that the long separation of wealth accumulation from the Chinese cultural traditions has become the biggest obstacle to China’s economic growth. In the face of intensified social and economic conflicts, the only appropriate option is to revive tradition and root the reform in China’s own cultural soil. Journal: Economic and Political Studies Pages: 255-314 Issue: 3 Volume: 9 Year: 2021 Month: 7 X-DOI: 10.1080/20954816.2020.1864840 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1864840 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:9:y:2021:i:3:p:255-314 Template-Type: ReDIF-Article 1.0 Author-Name: Victor Edem Sosoo Author-X-Name-First: Victor Edem Author-X-Name-Last: Sosoo Author-Name: David Iheke Okorie Author-X-Name-First: David Iheke Author-X-Name-Last: Okorie Author-Name: Haiqiang Chen Author-X-Name-First: Haiqiang Author-X-Name-Last: Chen Title: Roles of commodity futures derivatives and financial crises in global food security Abstract: Commodity futures have been largely blamed for the price hikes in 2007/mid-2008 and 2010/2011 and the decreased food security around the world, especially in less developed countries. There still exist serious disagreements between most economists and policymakers as to whether this is the case. We run time-series regressions for all samples and subsamples for lower-income, middle-income, and high-income countries respectively. The empirical results show that commodity futures have a more significant negative impact on food security in low-income countries than in middle-income and high-income economies. Financial crises, however, have a significant impact on food security in all the regional divisions as a whole and are seen to exasperate the negative effect of some of the commodity futures on food security. We also find evidence that a certain degree of speculation in some commodities stabilises prices of those commodities as expected by theory. Our results have important policy implications as policymakers must control these speculations but should also be careful not to overregulate the market. Journal: Economic and Political Studies Pages: 336-357 Issue: 3 Volume: 9 Year: 2021 Month: 7 X-DOI: 10.1080/20954816.2021.1872854 File-URL: http://hdl.handle.net/10.1080/20954816.2021.1872854 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:9:y:2021:i:3:p:336-357 Template-Type: ReDIF-Article 1.0 Author-Name: Fusheng Xie Author-X-Name-First: Fusheng Author-X-Name-Last: Xie Author-Name: Han Cheng Author-X-Name-First: Han Author-X-Name-Last: Cheng Title: The political economy of climate change: the impasse and way out Abstract: Mainstream economics attributes climate change to negative externalities of carbon emissions and the lack of climate property rights. Although market-based strategies such as emission trading are widely implemented under the guideline of mainstream economics, there is no evidence that the accelerating trend of global warming has been contained. Marxian economists criticise the theoretical point of departure of the mainstream perspective about climate change and climate governance, and propose an alternative analytical framework focussing on the relationship between climate and capital accumulation. Following the Marxian perspective, we discuss the subject, nature, strategy, and possibility of a popular climate movement that could serve as an alternative to the existing mainstream climate governance. Journal: Economic and Political Studies Pages: 315-335 Issue: 3 Volume: 9 Year: 2021 Month: 7 X-DOI: 10.1080/20954816.2021.1885780 File-URL: http://hdl.handle.net/10.1080/20954816.2021.1885780 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:9:y:2021:i:3:p:315-335 Template-Type: ReDIF-Article 1.0 Author-Name: Yao-Yuan Yeh Author-X-Name-First: Yao-Yuan Author-X-Name-Last: Yeh Author-Name: Charles K. S. Wu Author-X-Name-First: Charles K. S. Author-X-Name-Last: Wu Author-Name: Wei-hao Huang Author-X-Name-First: Wei-hao Author-X-Name-Last: Huang Title: China’s soft power and US public opinion Abstract: In recent years, China has been using its soft power (most notably, the establishment of Confucius Institutes) to influence public opinion in foreign countries. However, the literature on soft power has yet to provide a definitive answer about whether that has led to a positive image of China in the foreign audience. Additionally, it is not clear if a positive image would influence public attitudes concerning foreign policies in those countries, such as policies related to trade and military conflicts. Based on an online survey experiment in June 2018, this research shows that soft power information (about positive contributions of Confucius Institutes to the American society) does make the US public feel warmer towards China and become more willing to support trade negotiations. However, the warm feeling does not alter public attitudes towards a potential military conflict with China over disputed islands in the South China Sea. Our study provides both empirical support and advice to policymakers interested in the influence of China’s soft power on US public opinion. Journal: Economic and Political Studies Pages: 447-460 Issue: 4 Volume: 9 Year: 2021 Month: 10 X-DOI: 10.1080/20954816.2021.1933766 File-URL: http://hdl.handle.net/10.1080/20954816.2021.1933766 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:9:y:2021:i:4:p:447-460 Template-Type: ReDIF-Article 1.0 Author-Name: Victor Menaldo Author-X-Name-First: Victor Author-X-Name-Last: Menaldo Author-Name: Nicolas Wittstock Author-X-Name-First: Nicolas Author-X-Name-Last: Wittstock Title: Does technology transfer from the US to China harm American firms, workers, and consumers? A historical and analytic investigation Abstract: Decades of spectacular economic growth have made China into an important geopolitical player. As Chinese companies improve their capabilities across several areas of advanced technology, including artificial intelligence, some US policymakers and pundits lament the country’s ‘unfair trade practices’ and serial ‘theft of American intellectual property’, particularly through so-called forced technology transfer. China hawks claim these practices hurt US companies, workers, and consumers. Do Chinese technology practices harm economic efficiency? What are their distributional consequences? To address these questions, we explore the different modalities of international technology transfer and flesh out their economic consequences. We also investigate the recent history of technology transfer, providing examples from the industrialisation experiences of European countries and the Asian Tigers. We surmise that current Chinese processes are neither novel nor alarming from the standpoint of either economic efficiency or distribution: US firms are collecting record royalty payments for their intellectual property from China and generating gangbuster profits due to their access to Chinese labour, suppliers, and the country’s growing consumer market. American consumers benefit from US–China economic interdependence and so do some workers. The consequences for the US economy as a whole are positive. While we are agnostic about whether these practices threaten America’s national security, we offer ideas for how to prevent China from acquiring its most sensitive military technology. Journal: Economic and Political Studies Pages: 417-446 Issue: 4 Volume: 9 Year: 2021 Month: 10 X-DOI: 10.1080/20954816.2021.1933768 File-URL: http://hdl.handle.net/10.1080/20954816.2021.1933768 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:9:y:2021:i:4:p:417-446 Template-Type: ReDIF-Article 1.0 Author-Name: Steven Ongena Author-X-Name-First: Steven Author-X-Name-Last: Ongena Title: Do governments and banks see eye to eye about the environment? Maybe not yet, but can they? Journal: Economic and Political Studies Pages: 461-462 Issue: 4 Volume: 9 Year: 2021 Month: 10 X-DOI: 10.1080/20954816.2021.1976905 File-URL: http://hdl.handle.net/10.1080/20954816.2021.1976905 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:9:y:2021:i:4:p:461-462 Template-Type: ReDIF-Article 1.0 Author-Name: Xiaoguang Liu Author-X-Name-First: Xiaoguang Author-X-Name-Last: Liu Author-Name: Yuanchun Liu Author-X-Name-First: Yuanchun Author-X-Name-Last: Liu Author-Name: Yan Yan Author-X-Name-First: Yan Author-X-Name-Last: Yan Title: China macroeconomic report 2021: China’s macroeconomy marches towards normalisation Abstract: In the year 2021, China’s economy continues to recover and moves towards policy normalisation. This report identifies features indicating the beginning of China’s macroeconomic normalisation, the internal and external pressure it faces, and the supporting policies. Due to the economic recovery and the base effect, China’s real GDP growth rate is projected to reach above 8.0% in 2021, and the quarterly growth rate will drop from 18.3% in Q1 to 5.0% in Q4, showing a declining trend. Based on qualitative assessments and statistical forecasts, this report puts forward some policy suggestions. Journal: Economic and Political Studies Pages: 379-416 Issue: 4 Volume: 9 Year: 2021 Month: 10 X-DOI: 10.1080/20954816.2021.2005281 File-URL: http://hdl.handle.net/10.1080/20954816.2021.2005281 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:9:y:2021:i:4:p:379-416 Template-Type: ReDIF-Article 1.0 Author-Name: Emanuela Benincasa Author-X-Name-First: Emanuela Author-X-Name-Last: Benincasa Title: Climate policy and cross-border lending: evidence from the syndicated loan market Abstract: Do cross-country differences in climate policy influence bank lending? This paper focusses on the period 2007–2017 and uses syndicated loan-level data to examine if the stringency of home-country climate policies increases cross-border bank lending. Loan fixed effects allow us to disentangle loan demand from supply and to control for unobserved and observed loan and firm characteristics. I find evidence that a strict home-country climate policy is associated with an increase in banks’ cross-border loan shares. This suggests that the transition to a low-carbon economy might be threatened if global coordination between governments is not enforced. Journal: Economic and Political Studies Pages: 463-476 Issue: 4 Volume: 9 Year: 2021 Month: 10 X-DOI: 10.1080/20954816.2021.1976904 File-URL: http://hdl.handle.net/10.1080/20954816.2021.1976904 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:9:y:2021:i:4:p:463-476 Template-Type: ReDIF-Article 1.0 Author-Name: Jianbo Song Author-X-Name-First: Jianbo Author-X-Name-Last: Song Author-Name: Haiqing Zhang Author-X-Name-First: Haiqing Author-X-Name-Last: Zhang Author-Name: Zihao Su Author-X-Name-First: Zihao Author-X-Name-Last: Su Title: Environmental subsidies and companies’ environmental investments Abstract: Environmental subsidies are important means for the government to promote companies to fulfil environmental protection responsibilities. Employing a text analysis method, this study obtains the data on government subsidies for environmental protection of A-share listed companies in China from 2007 to 2016. Empirical estimates show that the subsidies received by companies promote their environmental inputs. Additionally, analyst tracking and internal control enhance the positive effect of subsidies on the companies’ environmental investments. The above results are still valid after testing the Heckman two-stage model and the Propensity-Score-Matching and Difference-in-Difference model. This paper provides evidential support for the effectiveness of government subsidies and explores feasible ways to improve the efficiency of government subsidies based on the corporate governance channels. Journal: Economic and Political Studies Pages: 477-496 Issue: 4 Volume: 9 Year: 2021 Month: 10 X-DOI: 10.1080/20954816.2020.1760764 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1760764 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:9:y:2021:i:4:p:477-496 Template-Type: ReDIF-Article 1.0 Author-Name: Eugene Okyere-Kwakye Author-X-Name-First: Eugene Author-X-Name-Last: Okyere-Kwakye Author-Name: Khalil Md Nor Author-X-Name-First: Khalil Author-X-Name-Last: Md Nor Title: The intention of banks to adopt green banking in an emerging market: the employees’ perspective Abstract: Green banking is a comparatively new development in the financial world. It is a form of banking that considers the social and environmental impacts of banking activities. Most studies on green banking focussed on customers, management, and other stakeholders without considering the perspective of employees, whose daily work is normally affected. To fill in the gap, the primary aim of this study is to assess factors affecting the intention of banks to adopt green banking from the perspective of employees. A questionnaire was used to collect data from 94 employees at selected banks in Koforidua, the eastern region of Ghana. Multiple regression was used to analyse the data. The study finds a significantly positive relationship between management support and intention of banks to adopt green banking. However, pressures from competitors and customers are found not to have a significant impact on banks’ intention to adopt green banking. While these results are unexpected and disappointing, they provide important insights in the context that changing initiatives from the perspective of common employees are internally driven instead of externally driven. This suggests the importance of management’s role in facilitating green banking initiatives. Journal: Economic and Political Studies Pages: 497-504 Issue: 4 Volume: 9 Year: 2021 Month: 10 X-DOI: 10.1080/20954816.2021.1899621 File-URL: http://hdl.handle.net/10.1080/20954816.2021.1899621 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:9:y:2021:i:4:p:497-504 Template-Type: ReDIF-Article 1.0 Author-Name: Guangbin Yang Author-X-Name-First: Guangbin Author-X-Name-Last: Yang Title: The Communist Party of China and the Chinese road to modernisation Abstract: Faced with an overall crisis in China since the early 20th century, the Communist Party of China has pursued a Party-centric path to modernising the country, thus delivering its people out of an unorganised chaos. With democratic centralism at the core, China has developed a form of government distinct from Western representative democracy. Democratic centralism prevails throughout the organisational structure of power and the policy implementation process. This best shows the Party’s affinity to its people. China’s road to modernisation and success in governance, which are rooted in its own rich historical legacies, have meaningful implications for other developing countries. Journal: Economic and Political Studies Pages: 1-8 Issue: 1 Volume: 10 Year: 2022 Month: 1 X-DOI: 10.1080/20954816.2022.2028994 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2028994 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:10:y:2022:i:1:p:1-8 Template-Type: ReDIF-Article 1.0 Author-Name: Yangyang Shen Author-X-Name-First: Yangyang Author-X-Name-Last: Shen Author-Name: Shi Li Author-X-Name-First: Shi Author-X-Name-Last: Li Title: Eliminating poverty through development: The dynamic evolution of multidimensional poverty in rural China Abstract: This paper measures intertemporal multidimensional poverty in rural China from 1988 to 2018 based on the China Household Income Project (CHIP) data and for that time period has the following findings. First, multidimensional poverty in rural China declines steadily when measured through the income poverty approach. Second, multidimensional poverty in rural areas presents demographic and regional heterogeneity, among which elderly poverty, child poverty, and poverty in the western Chinese region are the most prominent ones. Third, income poverty and multidimensional poverty have a low overlap ratio and show intertemporal synchronisation over time. Although increases in income can alleviate multidimensional poverty, this effect is very limited. This paper suggests that a suitable multidimensional poverty identification framework should be developed in the era of poverty alleviation after 2020 and that in the new poverty alleviation governance system of China, targeted development strategies should be formulated with an increased focus on the poverty of special groups such as children and the elderly. Journal: Economic and Political Studies Pages: 85-104 Issue: 1 Volume: 10 Year: 2022 Month: 1 X-DOI: 10.1080/20954816.2022.2028992 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2028992 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:10:y:2022:i:1:p:85-104 Template-Type: ReDIF-Article 1.0 Author-Name: Daniele Carminati Author-X-Name-First: Daniele Author-X-Name-Last: Carminati Title: The economics of soft power: Reliance on economic resources and instrumentality in economic gains Abstract: Soft power is commonly presented as an alternative or a complement to harder forms of power, such as military and economic might. However, while it is safer to say that soft power does not depend on military capabilities, it is not as straightforward to separate soft power from its economic counterpart. Juxtaposing various soft power rankings with a country’s economic assets may reveal how soft power relies on economic resources. Moreover, when closely scrutinised, it is possible to appreciate how dynamics of attraction are also closely intertwined with economic gains. In an increasingly connected world, soft power could prove to be instrumental in achieving economic success. Economic effects are expected to be more consistent, observable, and attainable when compared to political ones, such as spreading democracy. Far from arguing that soft power is unable to assist in achieving political goals in the long term, this paper aims instead to highlight how a narrow culture-centred analysis of soft power greatly limits the understanding of this power in the real world, and results in the underestimation of its value and impact. China’s quest to connect the world through its Belt and Road Initiative (BRI) is a topical case through which to further explore the soft–economic power nexus. Journal: Economic and Political Studies Pages: 19-43 Issue: 1 Volume: 10 Year: 2022 Month: 1 X-DOI: 10.1080/20954816.2020.1865620 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1865620 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:10:y:2022:i:1:p:19-43 Template-Type: ReDIF-Article 1.0 Author-Name: Fangfang Zhang Author-X-Name-First: Fangfang Author-X-Name-Last: Zhang Author-Name: Hui Liu Author-X-Name-First: Hui Author-X-Name-Last: Liu Author-Name: Weinan Gu Author-X-Name-First: Weinan Author-X-Name-Last: Gu Author-Name: Jianpeng Zhang Author-X-Name-First: Jianpeng Author-X-Name-Last: Zhang Title: Multidimensional poverty and types of impoverished counties in Gansu province of China Abstract: Gansu province, considered as one of the poorest provinces in China, faces great challenges in fighting against poverty. This study highlights the importance of studying multidimensional poverty in Gansu province. The Multidimensional Poverty Indices of 75 poverty-stricken counties in Gansu province are measured quantitatively. The main driving factors of poverty are identified through the construction and application of a multidimensional poverty measurement system, classifying the impoverished counties into several categories. This study provides a scientific basis for formulating effective policies to achieve sustainable poverty reduction and high-quality development in the region after 2020. The results show that: (1) more than half of the poverty-stricken counties in Gansu province have a degree of multidimensional poverty that is below the median poverty level, with regional variations; (2) the main factors driving poverty in these counties include shortages in water and land resources, educational disruptions, undesirable medical conditions, and the underutilisation of labour, which show spatial variations; and (3) these poverty-stricken counties are categorised into four types: counties with fragile ecological environments and insufficient natural resources, counties with undesirable socio-economic conditions, counties with unfavourable conditions in development, and counties with relatively balanced development conditions. Finally, this paper proposes policy recommendations to achieve stable poverty alleviation based on different types of impoverished counties. Journal: Economic and Political Studies Pages: 105-125 Issue: 1 Volume: 10 Year: 2022 Month: 1 X-DOI: 10.1080/20954816.2022.2028991 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2028991 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:10:y:2022:i:1:p:105-125 Template-Type: ReDIF-Article 1.0 Author-Name: Cong Chong Author-X-Name-First: Cong Author-X-Name-Last: Chong Author-Name: Meng Cai Author-X-Name-First: Meng Author-X-Name-Last: Cai Author-Name: Ximing Yue Author-X-Name-First: Ximing Author-X-Name-Last: Yue Title: Focus shift needed: From development-oriented to social security-based poverty alleviation in rural China Abstract: Over the past 40-plus years since its reform and opening up, China has made remarkable achievements in poverty reduction. It accomplished the task of eradicating absolute poverty at the end of 2020 as scheduled, which is of great significance to both China and the world. Using the China Household Income Project (CHIP) survey data from 2002 to 2018, this paper studies the characteristics of the rural poverty-stricken population and estimates the poverty reduction effect of China’s social security which transfers income to the poor. We find that the transferred income targeting the poor population can effectively reduce rural poverty. In the post-2020 era, poverty reduction in China has shifted its focus from eliminating absolute poverty to alleviating relative poverty. Since the majority of the remaining relatively impoverished people in China lack the necessary ability to work, they can hardly throw off poverty through development-oriented poverty alleviation programmes. Therefore, it is necessary to shift the focus of poverty reduction in rural China from development-oriented policies to social security-based policies, which is essential to alleviate relative poverty in the new stage and prevent people from slipping back to poverty. Journal: Economic and Political Studies Pages: 62-84 Issue: 1 Volume: 10 Year: 2022 Month: 1 X-DOI: 10.1080/20954816.2022.2031514 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2031514 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:10:y:2022:i:1:p:62-84 Template-Type: ReDIF-Article 1.0 Author-Name: Terence Tai Leung Chong Author-X-Name-First: Terence Tai Leung Author-X-Name-Last: Chong Author-Name: Cornelia Yip Author-X-Name-First: Cornelia Author-X-Name-Last: Yip Author-Name: Patrick Ming Yu Ngai Author-X-Name-First: Patrick Ming Yu Author-X-Name-Last: Ngai Title: Economic implications of the sixth plenary session of the 19th CPC Central Committee for China’s Hong Kong Abstract: The sixth plenary session of the 19th Central Committee of the Communist Party of China (CPC), also known as ‘the Sixth Plenum’, was successfully held in Beijing from 8 to 11 November 2021. It passed a historic resolution on the major achievements and historical experience of the CPC over the past 100 years and set forth the direction of China’s development in the next few decades. This paper aims to analyse the conclusions reached in the sixth plenary session of the 19th Central Committee of the CPC and discuss its economic implications for the Hong Kong SAR. Journal: Economic and Political Studies Pages: 9-18 Issue: 1 Volume: 10 Year: 2022 Month: 1 X-DOI: 10.1080/20954816.2022.2028993 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2028993 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:10:y:2022:i:1:p:9-18 Template-Type: ReDIF-Article 1.0 Author-Name: Ximing Yue Author-X-Name-First: Ximing Author-X-Name-Last: Yue Author-Name: Shi Li Author-X-Name-First: Shi Author-X-Name-Last: Li Title: Introduction Journal: Economic and Political Studies Pages: 60-61 Issue: 1 Volume: 10 Year: 2022 Month: 1 X-DOI: 10.1080/20954816.2022.2032540 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2032540 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:10:y:2022:i:1:p:60-61 Template-Type: ReDIF-Article 1.0 Author-Name: Ariadna Aleksandrova Author-X-Name-First: Ariadna Author-X-Name-Last: Aleksandrova Author-Name: Marina D. Khabib Author-X-Name-First: Marina D. Author-X-Name-Last: Khabib Title: The role of information and communication technologies in a country’s GDP: A comparative analysis between developed and developing economies Abstract: The accelerating diffusion of information and communication technologies (ICTs) opens up increasing interactions between nations and between social groups at all development levels. The purpose of this study is to assess the impact of ICTs on the gross domestic product (GDP) of countries at different development levels. The investigation of this study shows that in developing nations, the growth of the ICT sector is mostly consumer-oriented and focussed on the provision of electronic services for ultimate customers. On the contrary, in developed countries, it concentrates on the expansion of digitalisation with increasing socio-economic interaction. In developing nations, the ICT sector’s contribution to the GDP is unlikely to increase. A few exceptions are China, India, Malaysia, and Serbia, which are among the top ten leading economies in terms of the growth of the ICT sector. In general, the role of ICTs in the GDP largely depends on the production structure, level of economic development, and employment rate. The results of this study can be useful for countries’ strategic development in ICTs and for improving their digital indicators in the future. Journal: Economic and Political Studies Pages: 44-59 Issue: 1 Volume: 10 Year: 2022 Month: 1 X-DOI: 10.1080/20954816.2021.2000559 File-URL: http://hdl.handle.net/10.1080/20954816.2021.2000559 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:10:y:2022:i:1:p:44-59 Template-Type: ReDIF-Article 1.0 Author-Name: Yi Feng Author-X-Name-First: Yi Author-X-Name-Last: Feng Author-Name: Qingjie Bob Zeng Author-X-Name-First: Qingjie Bob Author-X-Name-Last: Zeng Title: Economic relations and the public image of China in Latin America: a cross-country time-series analysis Abstract: This article investigates the impact of Chinese economic activities in Latin America on the national image of China in the region. Using economic and public opinion data from 17 Latin American countries from 2001 to 2016, this work relates cross-national time-series variations regarding China’s image in Latin America to changes in the economic ties (such as trade, FDI, and contracts) between the perceiving countries and China. Controlling for the size of the economy and the level of its development, the statistical analysis indicates that trade surplus against China in Latin America has a positive effect on the public perceptions of China in the region, while Chinese FDI outflows to Latin America lead to a negative effect. The effects of Chinese contracts, imports, and exports tend not to be statistically significant. We also find less developed Latin American countries with low life expectancy and low educational attainment tend to have a more positive view of China than their richer counterparts in the region. Finally, we find that Latin American countries under presidents with left-wing ideology have a much more positive view of China than countries under presidents with other ideological preferences. Diplomatic relations with China and China’s soft power influence as indexed by the presence of Confucius Institutes do not exhibit a strong impact on China’s national image in Latin America, compared with the dominant political ideology in a Latin American country as reflected in the president’s ideology. Journal: Economic and Political Studies Pages: 181-207 Issue: 2 Volume: 10 Year: 2022 Month: 4 X-DOI: 10.1080/20954816.2021.1914414 File-URL: http://hdl.handle.net/10.1080/20954816.2021.1914414 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:10:y:2022:i:2:p:181-207 Template-Type: ReDIF-Article 1.0 Author-Name: Donald Lien Author-X-Name-First: Donald Author-X-Name-Last: Lien Author-Name: Peilan Tang Author-X-Name-First: Peilan Author-X-Name-Last: Tang Title: Let’s play tic-tac-toe: Confucius Institutes versus American Cultural Centres Abstract: China and the United States (US) have established respective cultural institutions in each other, namely the Confucius Institute and the American Cultural Centre. While they differ in the establishment background and management model, in their counterpart countries’ view, both Confucius Institutes and American Cultural Centres serve the function of public diplomacy as a ‘quasi-diplomatic agency’, attracting extensive political attention. When comparing the history of their developments in the US and China, a similar trend of ‘rise-to-fall’ and ‘positivity-to-negativity’ can be observed. The stagnation of American Cultural Centres in China and the crisis of Confucius Institutes in the US both originate from the same source — political pressure. The development paths of both institutions are closely related to the development and transformation of Sino–US political relations. In this process, China’s attitude is relatively moderate in an attempt to maintain the continuous development of a friendly bilateral relation, while the US is anxious about China’s rising status as its economic and strategic competitor, thereby adjusting its China policy and imposing rigid political controls over Confucius Institutes. Affected by the Sino–US trade dispute and the COVID-19 pandemic, Sino–US relations deteriorate further; accordingly, the future outlook of Confucius Institutes in the US is worrying. However, with abundant uncertainties, the future of the Confucius Institute remains to be further studied. Journal: Economic and Political Studies Pages: 129-154 Issue: 2 Volume: 10 Year: 2022 Month: 4 X-DOI: 10.1080/20954816.2021.1920194 File-URL: http://hdl.handle.net/10.1080/20954816.2021.1920194 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:10:y:2022:i:2:p:129-154 Template-Type: ReDIF-Article 1.0 Author-Name: Osman Antwi-Boateng Author-X-Name-First: Osman Author-X-Name-Last: Antwi-Boateng Author-Name: Amira Ali Alhashmi Author-X-Name-First: Amira Ali Author-X-Name-Last: Alhashmi Title: The emergence of the United Arab Emirates as a global soft power: current strategies and future challenges Abstract: Using the Soft Power 30 Index, this research focusses on assessing the soft power status of the United Arab Emirates (UAE) by examining the elements of its soft power and potential challenges it may face in the future. This study conducts in-depth interviews with foreign diplomats and academics based in the UAE and Emirati diplomats and academics. These data are supplemented with primary and secondary data from governmental and international agencies as well as media sources. The UAE’s case demonstrates that soft power can be consciously developed by any country regardless of its regime type, size, location, and religious or racial background by getting its domestic affairs in order. A country’s domestic success in governance, enterprise, culture, education and digital infrastructure leads to global attraction, which ultimately enhances the image of a country such as the UAE. It eventually creates opportunities for more global partnerships and engagements in the areas of multilateralism, philanthropy, peacebuilding, conflict resolution and event hosting. However, these efforts face the following challenges: the threat of widely diffused actions among public and private actors, the financial cost of soft power engagement and projections, the UAE’s lack of a global media platform for shaping global agendas and its increasing use of hard power in response to geopolitical threats which can negatively affect its image. Journal: Economic and Political Studies Pages: 208-227 Issue: 2 Volume: 10 Year: 2022 Month: 4 X-DOI: 10.1080/20954816.2021.1951481 File-URL: http://hdl.handle.net/10.1080/20954816.2021.1951481 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:10:y:2022:i:2:p:208-227 Template-Type: ReDIF-Article 1.0 Author-Name: Juan Luis Manfredi-Sánchez Author-X-Name-First: Juan Luis Author-X-Name-Last: Manfredi-Sánchez Title: The political economy of city diplomacy Abstract: City diplomacy is a major trend in the soft power development. As cities face daily political issues deriving from globalisation (such as mass tourism, migration, climate change, and commodification of culture), they demand for, rather than contesting with a nationstate, an operational reinterpretation of sovereignty oriented to solve problems. Political economy approach is a useful method to understand the role of global cities where the nation state has many deficiencies. The global city establishes rules to influence international legal development and practice, even without a traditional legal basis (such as sovereignty, monopoly on violence, and legal exclusivity). As these ‘superstar cities’ grow, other cities are losing opportunities to develop and take advantage of globalisation. The risk of inter-urban inequality feeds populism. Cities will become the middle power in global political organisations in the future, and political economy will shed light on how power and values operate at the urban level. Journal: Economic and Political Studies Pages: 228-249 Issue: 2 Volume: 10 Year: 2022 Month: 4 X-DOI: 10.1080/20954816.2021.1899622 File-URL: http://hdl.handle.net/10.1080/20954816.2021.1899622 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:10:y:2022:i:2:p:228-249 Template-Type: ReDIF-Article 1.0 Author-Name: Muhammad Akhtaruzzaman Author-X-Name-First: Muhammad Author-X-Name-Last: Akhtaruzzaman Author-Name: Nathan Berg Author-X-Name-First: Nathan Author-X-Name-Last: Berg Author-Name: Donald Lien Author-X-Name-First: Donald Author-X-Name-Last: Lien Author-Name: Ying Wu Author-X-Name-First: Ying Author-X-Name-Last: Wu Title: News coverage of Confucius Institutes in the pre-Trump era Abstract: A novel dataset is presented that reveals a general pattern of declining favourability in news stories about Confucius Institutes (CIs) from 2006 through 2015 in six English-speaking countries: the US, the UK, Canada, Australia, India and Kenya. There are significant differences in mean favourability and time trends across countries, however. Decreasing trends in favourability are observed in the US and Canada, in particular, whereas Kenya and India’s time trends are nil or possibly increasing. We report empirical models of favourability conditional on GDP per capita, trade with China and the number of CIs across country-year observations. Consistent with Pew polling data, our data reveal an interesting pair of conflicting income effects. High-income countries tend to be more negative and less positive on CIs than low-income countries overall. Within-country positive shocks to real GDP per capita, however, are positively associated with favourability after cross-country differences in income levels are absorbed by country fixed effects. The number of CIs in a country has mixed effects on the favourability of news coverage about CIs across country-year observations. Despite billions of dollars spent on public diplomacy by the Chinese government, our findings suggest that its return on investment in public diplomacy in the form of CIs may not be as expected. Journal: Economic and Political Studies Pages: 155-180 Issue: 2 Volume: 10 Year: 2022 Month: 4 X-DOI: 10.1080/20954816.2020.1870025 File-URL: http://hdl.handle.net/10.1080/20954816.2020.1870025 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:10:y:2022:i:2:p:155-180 Template-Type: ReDIF-Article 1.0 Author-Name: Donald Lien Author-X-Name-First: Donald Author-X-Name-Last: Lien Title: Introduction Journal: Economic and Political Studies Pages: 127-128 Issue: 2 Volume: 10 Year: 2022 Month: 4 X-DOI: 10.1080/20954816.2022.2065427 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2065427 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:10:y:2022:i:2:p:127-128 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2098595_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f Author-Name: Taufiq Arifin Author-X-Name-First: Taufiq Author-X-Name-Last: Arifin Author-Name: Rezaul Kabir Author-X-Name-First: Rezaul Author-X-Name-Last: Kabir Author-Name: Katherin Marthon Author-X-Name-First: Katherin Author-X-Name-Last: Marthon Author-Name: Sutaryo Sutaryo Author-X-Name-First: Sutaryo Author-X-Name-Last: Sutaryo Title: Are transactional political connections more valuable to firms than relational political connections? Abstract: Political connections are an increasingly important part of firms’ strategies to develop relationships with the government and politicians. This study examines the impact of transactional and relational political connections on firm value. The results show that transactionally connected firms are more likely to exhibit greater firm value than their relationally connected and non-connected counterparts. This study further finds evidence of a long-term value-enhancing effect of the transactional approach to political connections. A variety of robustness tests with alternative model specifications continue to show that transactional political connections lead to higher firm value. The findings indicate that firms with transactional political connections are provided with better networks with the political regime in power compared with those with relational political connections. These transactionally connected firms may enjoy preferential treatment from the government, in the form of lower taxes, and the access to government loans, subsidies, bailouts, and/or procurement contracts. Journal: Economic and Political Studies Pages: 266-278 Issue: 3 Volume: 10 Year: 2022 Month: 7 X-DOI: 10.1080/20954816.2022.2098595 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2098595 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:10:y:2022:i:3:p:266-278 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2095749_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f Author-Name: Maria-Eleni K. Agoraki Author-X-Name-First: Maria-Eleni K. Author-X-Name-Last: Agoraki Author-Name: Georgios P. Kouretas Author-X-Name-First: Georgios P. Author-X-Name-Last: Kouretas Author-Name: Nikiforos T. Laopodis Author-X-Name-First: Nikiforos T. Author-X-Name-Last: Laopodis Title: Geopolitical risks, uncertainty, and stock market performance Abstract: This paper analyses the impact of geopolitical risks and economic policy uncertainty on stock returns. It uses an unbalanced panel dataset of monthly observations for 22 countries for the period 1985–2020. It controls for a set of macroeconomic and market structure variables while also taking into consideration the potential effects of the 2007–2009 financial crisis. This paper shows that the impact of geopolitical risks is negative and statistically significant. The economic interpretation of our main results is that a one-unit standard deviation increase in geopolitical risks decreases stock returns by 10.53–42.14% of its sample mean. For comparison, this paper uses alternatively the global economic policy uncertainty index and the economic policy uncertainty country index, and also finds a statistically significant negative relationship although it is weaker in the latter case. Journal: Economic and Political Studies Pages: 253-265 Issue: 3 Volume: 10 Year: 2022 Month: 7 X-DOI: 10.1080/20954816.2022.2095749 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2095749 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:10:y:2022:i:3:p:253-265 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2090096_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f Author-Name: Lidan Zhang Author-X-Name-First: Lidan Author-X-Name-Last: Zhang Author-Name: Gonul Colak Author-X-Name-First: Gonul Author-X-Name-Last: Colak Title: Foreign direct investment and economic policy uncertainty in China Abstract: The trend of foreign direct investment (FDI) in China has switched from inflow to outflow following the rapid economic growth during the past several decades. Stimulated by government policies, in recent years China’s firms have actively sought overseas investment opportunities. This paper examines the relationship between economic policy uncertainty (EPU) and cross-border capital flow decisions for listed firms in China. Our findings demonstrate that EPU originating from China does not seem to dissuade FDI inflow into China, but it does curtail FDI outflow from the country. It appears that government policies and the uncertainty the policies bring are deterministic for FDI. Journal: Economic and Political Studies Pages: 279-289 Issue: 3 Volume: 10 Year: 2022 Month: 7 X-DOI: 10.1080/20954816.2022.2090096 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2090096 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:10:y:2022:i:3:p:279-289 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_1976903_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f Author-Name: Laurent Weill Author-X-Name-First: Laurent Author-X-Name-Last: Weill Title: Politics and banking: A survey of the recent literature Abstract: This survey aims at briefly summarising key findings of the recent literature dealing with politics and banking. The interplay between banks and politics has received increasing interest in recent years following Dinc (2005) on the influence of elections on bank lending. It focusses on two questions: the influence of elections on bank behaviour, and the interconnections between democracy and banking. Two key findings emerge from the literature. First, elections exert an influence on the banking industry. They affect bank lending and bank failures, with electoral cycles leading to economic costs. Second, democracy has a beneficial impact on the credit conditions of firms. This work provides a roadmap for future research to investigate the political interference in private banks’ behaviour and in developed countries. Journal: Economic and Political Studies Pages: 342-352 Issue: 3 Volume: 10 Year: 2022 Month: 7 X-DOI: 10.1080/20954816.2021.1976903 File-URL: http://hdl.handle.net/10.1080/20954816.2021.1976903 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:10:y:2022:i:3:p:342-352 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2098457_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f Author-Name: Chunxia Jiang Author-X-Name-First: Chunxia Author-X-Name-Last: Jiang Author-Name: Yun Zhu Author-X-Name-First: Yun Author-X-Name-Last: Zhu Title: Political uncertainty, leadership and productivity Abstract: We investigate the impact of political uncertainty in the context of the upper echelon theory. Using provincial-level data of political leaders in China over the period 1995–2015, we take a two-step approach to first examine the impact of top leader teams’ (TLTs) traits on productivity and, second, to test if such leadership effects vary with political uncertainty. We find that TLTs’ education, generally a driving force behind productivity, is less effective during the period of high political uncertainty. TLTs’ work experience positively contributes to productivity, which is strengthened under high political uncertainty. TLTs’ career ambition leads to higher productivity, but such an effect attenuates when political uncertainty is high. Finally, TLTs’ political positions negatively contribute to productivity and the effect is barely affected by political uncertainty, suggesting a disconnection between political positions and economic outcomes. Journal: Economic and Political Studies Pages: 314-326 Issue: 3 Volume: 10 Year: 2022 Month: 7 X-DOI: 10.1080/20954816.2022.2098457 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2098457 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:10:y:2022:i:3:p:314-326 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2021840_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f Author-Name: Bill Francis Author-X-Name-First: Bill Author-X-Name-Last: Francis Author-Name: Iftekhar Hasan Author-X-Name-First: Iftekhar Author-X-Name-Last: Hasan Author-Name: Xian Sun Author-X-Name-First: Xian Author-X-Name-Last: Sun Author-Name: Mingming Zhou Author-X-Name-First: Mingming Author-X-Name-Last: Zhou Title: Trust, politics and post-IPO performance: SOEs vs. the private sector Abstract: This paper empirically investigates the role of social trust in the long-term performance of the initial public offerings (IPOs) in China, controlling for the formal institutional environment. We find that privately owned or smaller IPO firms experience significantly better post-IPO performance when they are incorporated in regions with more social trust. The state-owned and bigger IPO firms, on the other hand, experience better long-term post-IPO performance when they are incorporated in regions with stronger formal institutions (e.g. court enforcement and contract holding). Political pluralism turns out to benefit all IPOs in the long term. In addition, our evidence shows that stronger social trust substitutes for the quality of court enforcement but complements the role of contract holding. These results are robust after controlling for alternative definitions of ownership, outliers, non-linear effects of institutions, and the potential endogeneity of institutions in the model. Journal: Economic and Political Studies Pages: 290-313 Issue: 3 Volume: 10 Year: 2022 Month: 7 X-DOI: 10.1080/20954816.2021.2021840 File-URL: http://hdl.handle.net/10.1080/20954816.2021.2021840 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:10:y:2022:i:3:p:290-313 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2095090_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f Author-Name: Qiang Wu Author-X-Name-First: Qiang Author-X-Name-Last: Wu Author-Name: Li Zheng Author-X-Name-First: Li Author-X-Name-Last: Zheng Author-Name: Tanweer Hasan Author-X-Name-First: Tanweer Author-X-Name-Last: Hasan Title: CEOs’ political ideologies and innovation: Evidence from US public firms Abstract: Using both the number of patents and the number of citations that the patents receive as the measures of innovation and using political donations as an indicator of the chief executive officer (CEO)’s political preferences, we find that (1) firms led by CEOs with and without political partisanship show no differences in terms of innovation outputs; and (2) there are no differences between firms led by Republican and Democratic CEOs when it comes to innovation. The results are robust to a propensity-score-matching regression, a firm fixed effect regression, and alternate measures of innovation. Overall, the results suggest that CEOs’ personal political ideologies do not significantly affect their innovation decisions. Journal: Economic and Political Studies Pages: 353-367 Issue: 3 Volume: 10 Year: 2022 Month: 7 X-DOI: 10.1080/20954816.2022.2095090 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2095090 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:10:y:2022:i:3:p:353-367 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2090095_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f Author-Name: Allen Lin Author-X-Name-First: Allen Author-X-Name-Last: Lin Author-Name: Steven Raymar Author-X-Name-First: Steven Author-X-Name-Last: Raymar Title: The Three Links policy and stock returns Abstract: This study examines whether the Three Links (3L) policy affected stock returns before, during and after the 2008 Taiwan leadership election. The evidence shows that companies in the industries benefitting from (being damaged by) the 3L policy earned positive (negative) cumulative abnormal returns. Although the political party connection/affiliation seems to have had an impact as well, it was not persistent. When both factors – the policy effect and the political connection effect – are considered together, we find that the policy effect persisted during the election, while the political connection effect did not. It is obvious that the policy effect is a powerful factor explaining changes of stock returns during the 2008 leadership election in China’s Taiwan. Journal: Economic and Political Studies Pages: 327-341 Issue: 3 Volume: 10 Year: 2022 Month: 7 X-DOI: 10.1080/20954816.2022.2090095 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2090095 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:10:y:2022:i:3:p:327-341 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2098620_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220823T191300 git hash: 39867e6e2f Author-Name: Iftekhar Hasan Author-X-Name-First: Iftekhar Author-X-Name-Last: Hasan Title: Introduction Journal: Economic and Political Studies Pages: 251-252 Issue: 3 Volume: 10 Year: 2022 Month: 7 X-DOI: 10.1080/20954816.2022.2098620 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2098620 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:10:y:2022:i:3:p:251-252 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_1951482_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Qinhua Xu Author-X-Name-First: Qinhua Author-X-Name-Last: Xu Author-Name: Jishuang Yu Author-X-Name-First: Jishuang Author-X-Name-Last: Yu Author-Name: Xunpeng Shi Author-X-Name-First: Xunpeng Author-X-Name-Last: Shi Author-Name: Elena Collinson Author-X-Name-First: Elena Author-X-Name-Last: Collinson Title: The potential of energy cooperation between China and Australia under the Belt and Road Initiative Abstract: While there is a proliferation of studies on China’s Belt and Road Initiative (BRI), there is a gap in the literature in terms of an exploration of the costs and benefits from the perspective of the energy sector, in both the areas of sectoral development and energy transition. This paper uses Australia as a case study. The paper is the first to quantify the impact of the BRI in the energy sector, and the analysis informs the current debates on the BRI in Australia. We find that energy cooperation under the BRI enhances the performance of energy companies, but the Chinese energy investment in Australia faces mounting challenges. We suggest some areas for cooperation and such cooperation could be extended to third countries. Amid the increasing trade and political tensions, the two countries need continued, level-headed discussions and debates about the potential cooperation areas at all levels. Journal: Economic and Political Studies Pages: 369-386 Issue: 4 Volume: 10 Year: 2022 Month: 10 X-DOI: 10.1080/20954816.2021.1951482 File-URL: http://hdl.handle.net/10.1080/20954816.2021.1951482 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:10:y:2022:i:4:p:369-386 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_1996939_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Aygun Guliyeva Author-X-Name-First: Aygun Author-X-Name-Last: Guliyeva Title: Measuring quality of life: A system of indicators Abstract: In this day and age, improving quality of life (QOL) remains a necessary prerequisite for social progress and the central goal of state policy in many countries worldwide, regardless of their economic development. The aim of this work is to propose a system of indicators able to describe the QOL of the population to the fullest extent possible. The research methodology includes an analysis of modern approaches to explaining the QOL concept and describing its main measurement criteria, as well as a matrix comparison of the fundamental characteristics of well-being. These methods’ application and the subsequently obtained results allow developing the model for the QOL measurement. The system of indicators proposed within this model implies the consideration of both objective and subjective indicators distributed into two blocks for convenience: the Accepted Living Standard (material and environmental indicators) and the Quality of Life Opportunities (individual, cultural, and social indicators). The QOL level is determined by the balance or imbalance between the mean values of these blocks. In such a manner, the study advocates that the modern QOL measurement should consider both objective well-being indicators, collected from the reports of the analysed country’s national statistics service, and subjective indicators characterising the citizens’ perceptions of well-being at the individual level. Journal: Economic and Political Studies Pages: 476-491 Issue: 4 Volume: 10 Year: 2022 Month: 10 X-DOI: 10.1080/20954816.2021.1996939 File-URL: http://hdl.handle.net/10.1080/20954816.2021.1996939 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:10:y:2022:i:4:p:476-491 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_1933770_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Yue Ming Author-X-Name-First: Yue Author-X-Name-Last: Ming Author-Name: Michael Plouffe Author-X-Name-First: Michael Author-X-Name-Last: Plouffe Title: Engaging the dragon: UK government documents on doing business with China Abstract: China’s rise as a global economic and political power has created a policy puzzle for established global players. For the United Kingdom (UK), the policy towards China has pursued a dual emphasis: seeking commercial benefits and promoting a positive social and political change. We explore the scope and tone of official UK policy publications on doing business with China. We argue that, while these documents reflect some of the predominant concerns of public debates over the UK’s relationship with China, the political neutrality of the civil service and insulation from external forces enable the relationship to continue. We conduct content and sentiment analyses of government publications focussing on China from 2013 to 2018. During this period, the key policy focusses have remained stable, while the extent to which the main topics are discussed changes slightly with time. Sensitive topics are dealt with using a neutral tone, while publications have become increasingly positive on the prospects of business interactions with China. Journal: Economic and Political Studies Pages: 387-415 Issue: 4 Volume: 10 Year: 2022 Month: 10 X-DOI: 10.1080/20954816.2021.1933770 File-URL: http://hdl.handle.net/10.1080/20954816.2021.1933770 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:10:y:2022:i:4:p:387-415 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_1914417_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Shiyu Sun Author-X-Name-First: Shiyu Author-X-Name-Last: Sun Author-Name: Xixi Chu Author-X-Name-First: Xixi Author-X-Name-Last: Chu Author-Name: Xiangbo Liu Author-X-Name-First: Xiangbo Author-X-Name-Last: Liu Title: Urban wage inequality: The reform of state-owned enterprises in China’s great transition Abstract: Along with the further reforms of state-owned enterprises (SOEs), urban China has experienced an evident increase in wage inequality. Using provincial-level data for the period 1993–2013 and individual-level data from five waves of the China Household Income Project from 1988 to 2013, this paper investigates how the SOE reform affects wage distribution in urban China by considering three mechanisms: wage determination, ownership structure and institutional segmentation. The results of this study show that overall inequality increased with the reduction of SOEs’ share in the economy. Moreover, through a detailed Oaxaca–Blinder re-centred influence function decomposition, this experiment obtains consistent and robust results. Based on the theory of soft budget constraint, this study demonstrates that the increase in urban wage inequality has been mainly caused by wage structure effects. Since the SOE reform in the 1980s, the wage determination mechanism has changed with the increase in the return of the labour force to education. During this period, institutional segmentation was of less significance in explaining the wage gap between SOEs and non-SOEs. Furthermore, the accelerating ageing process of China’s population had no significant effects on the trajectory of urban wage inequality throughout this period. Journal: Economic and Political Studies Pages: 442-461 Issue: 4 Volume: 10 Year: 2022 Month: 10 X-DOI: 10.1080/20954816.2021.1914417 File-URL: http://hdl.handle.net/10.1080/20954816.2021.1914417 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:10:y:2022:i:4:p:442-461 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2067516_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Ying Fan Author-X-Name-First: Ying Author-X-Name-Last: Fan Author-Name: Zhuang Liang Author-X-Name-First: Zhuang Author-X-Name-Last: Liang Author-Name: Xing Yao Author-X-Name-First: Xing Author-X-Name-Last: Yao Title: Regional power system transitions towards carbon neutrality: The case of North China Abstract: China has announced its goal of reaching carbon neutrality by 2060, which will have a profound impact on its energy and economic systems. During this process, the power sector will play a key role in helping the country on its road towards carbon neutrality. This study develops a multi-regional power dispatch and capacity expansion model to combine long-term capacity expansion with short-term power dispatch. The model is built to optimise the carbon-neutral transition pathway from the perspective of economics, focussing on power system stability and reliability under high penetrations of renewables. Using the case study of North China, the cost-effective methods for power system transitions under the targets of reaching peak emissions by 2030 and achieving carbon neutrality by 2060 are discussed under different scenarios. We find that the future power supply system will rely heavily on renewable energy which will account for more than 89% of power generation. Inner Mongolia will produce more than 84% of power in the North China region. The inter-regional power transmission capacity will be five times higher than its current level. Policy choices will lead to different transition pathways as the early-stage installation decisions will have a lock-in effect on the following carbon emission reduction strategies and determine the importance of technologies adopted in achieving carbon neutrality. Although the transition to a low-carbon economy will result in an increase in cost by 17–19%, it will bring huge climate benefits to the world. Journal: Economic and Political Studies Pages: 416-441 Issue: 4 Volume: 10 Year: 2022 Month: 10 X-DOI: 10.1080/20954816.2022.2067516 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2067516 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:10:y:2022:i:4:p:416-441 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2052453_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20220907T060133 git hash: 85d61bd949 Author-Name: Qian Liu Author-X-Name-First: Qian Author-X-Name-Last: Liu Author-Name: Leonard F. S. Wang Author-X-Name-First: Leonard F. S. Author-X-Name-Last: Wang Title: Upstream SOEs in the mixed-ownership reform Abstract: This article explores possible options of the upstream mixed-ownership reform with imperfect substitute products in a vertically related market composed of one upstream SOE and two downstream profit-maximising retailers. Its focus is not only on incorporating the issue of privatisation into a vertical market structure, but also on extending the traditional upstream–downstream competition model by allowing the active contribution of retailers to enhance values at different costs. It finds that in a vertically related market where retailers’ effort matters, the socially optimal policy towards the upstream SOE is partial privatisation regardless what product differentiation is involved, but the specific degree of privatisation is negatively correlated to the level of effort costs. By contrast, in a vertically related market without retailers’ effort, the government tends to choose full nationalisation of the firm. Journal: Economic and Political Studies Pages: 462-475 Issue: 4 Volume: 10 Year: 2022 Month: 10 X-DOI: 10.1080/20954816.2022.2052453 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2052453 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:10:y:2022:i:4:p:462-475 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_1996938_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yin-Wong Cheung Author-X-Name-First: Yin-Wong Author-X-Name-Last: Cheung Title: A decade of RMB internationalisation Abstract: This article recounts China’s renminbi (RMB) internationalisation experiences since the 2009 RMB cross-border trade settlement initiative. In the first few years, the RMB made inroads into global financial markets and had a few remarkable accomplishments, including the Special Drawing Right currency status. Since the 2015 market turmoil, RMB internationalisation has levelled off – possibly due to changes in both domestic and geopolitical conditions. The RMB is currently under-represented in the global market. China’s deliberate and schematic policies will elevate the RMB’s global stature in a gradual manner but there will not be a leapfrogging in the near term. Journal: Economic and Political Studies Pages: 47-74 Issue: 1 Volume: 11 Year: 2023 Month: 1 X-DOI: 10.1080/20954816.2021.1996938 File-URL: http://hdl.handle.net/10.1080/20954816.2021.1996938 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:11:y:2023:i:1:p:47-74 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2075602_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zhitao Lin Author-X-Name-First: Zhitao Author-X-Name-Last: Lin Author-Name: Xingwang Qian Author-X-Name-First: Xingwang Author-X-Name-Last: Qian Title: US monetary policy uncertainty and RMB deviations from covered interest parity Abstract: This paper examines how US monetary policy uncertainty (MPU) affects RMB deviations from covered interest parity (CIP) and how this effect is influenced by China’s capital controls, the RMB exchange rate regime, and international reserves that constrain the transmitting channel of US MPU shocks. Our findings show that US MPU has a spill-over effect and creates deviations from RMB CIP. Capital controls insulate uncertainty shocks and alleviate the US MPU spill-over effect. There are some evidence that international reserves alleviate and the liberalised RMB exchange rate regime magnifies the spill-over effect. However, their effects become insignificant in the presence of capital controls. Moreover, the US MPU effect on RMB CIP deviations becomes prominent after the 2008 global financial crisis. Journal: Economic and Political Studies Pages: 75-98 Issue: 1 Volume: 11 Year: 2023 Month: 1 X-DOI: 10.1080/20954816.2022.2075602 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2075602 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:11:y:2023:i:1:p:75-98 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2067102_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xin Tian Author-X-Name-First: Xin Author-X-Name-Last: Tian Author-Name: Jakob de Haan Author-X-Name-First: Jakob Author-X-Name-Last: de Haan Author-Name: Yanping Zhao Author-X-Name-First: Yanping Author-X-Name-Last: Zhao Title: Capital flows, economic growth and the real effective exchange rate: Evidence from China Abstract: This paper examines the Granger causal relationship between capital flows and economic growth in China over the period 1998Q1–2019Q2, allowing for real effective exchange rate (REER) effects. As parameter instability tests indicate structural changes, we use bootstrap rolling window causality tests, which suggest that the causal nexus between capital flows and GDP growth is time-varying. We find that the causal links between foreign direct investments (FDIs) and GDP growth are hardly affected by the REER, whereas the REER plays a more important role in affecting the causal connections between portfolio investments and other investments and GDP growth. Our results suggest that cumulative portfolio inflows and cumulative other investment inflows harm GDP growth, whereas cumulative portfolio outflows and cumulative other investment outflows positively affect GDP growth. Journal: Economic and Political Studies Pages: 123-147 Issue: 1 Volume: 11 Year: 2023 Month: 1 X-DOI: 10.1080/20954816.2022.2067102 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2067102 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:11:y:2023:i:1:p:123-147 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2107783_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Gaofeng Han Author-X-Name-First: Gaofeng Author-X-Name-Last: Han Author-Name: Hui Miao Author-X-Name-First: Hui Author-X-Name-Last: Miao Author-Name: Yabin Wang Author-X-Name-First: Yabin Author-X-Name-Last: Wang Title: Liquidity of China’s government bond market: Measures and driving forces Abstract: We construct a daily liquidity index of China’s government bond market using transaction data from the national interbank market during 2001–2020. The index is a composite of popular price-based and quantity-based metrics of liquidity. The composite indices, obtained by averaging across different metrics and by applying the principal component analysis, respectively, both point to a better liquidity condition after 2010. Market liquidity swings appear to be highly correlated with domestic funding liquidity and financial market volatility, but display fewer correlations with global macrofinancial indicators. Our findings suggest that the further deepening of the government bond market would support domestic financial stability and monetary operations down the road. Journal: Economic and Political Studies Pages: 99-122 Issue: 1 Volume: 11 Year: 2023 Month: 1 X-DOI: 10.1080/20954816.2022.2107783 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2107783 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:11:y:2023:i:1:p:99-122 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2107779_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yin-Wong Cheung Author-X-Name-First: Yin-Wong Author-X-Name-Last: Cheung Author-Name: Iikka Korhonen Author-X-Name-First: Iikka Author-X-Name-Last: Korhonen Title: Introduction Journal: Economic and Political Studies Pages: 45-46 Issue: 1 Volume: 11 Year: 2023 Month: 1 X-DOI: 10.1080/20954816.2022.2107779 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2107779 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:11:y:2023:i:1:p:45-46 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2173993_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shouying Liu Author-X-Name-First: Shouying Author-X-Name-Last: Liu Author-Name: Xuefeng Xiong Author-X-Name-First: Xuefeng Author-X-Name-Last: Xiong Title: The Chinese path to modernisation: Its universality and uniqueness Abstract: Modernisation is a worldwide phenomenon. It marks a revolutionary transformation in all fields of human endeavour, including politics, society, culture, thought, and values. In many ways, China’s modernisation has the common characteristics of modernisation, including the nature of being developmental and transformative, institutional innovation, the guiding role of values, consciousness of material exchange between man and nature, and global openness. It also has the unique characteristics of catching up with and surpassing the modernisation of other countries through institutional construction and reform under the leadership of the Communist Party of China (CPC). In the new era, China will build itself into a strong and modernised country through the Chinese path to modernisation. Journal: Economic and Political Studies Pages: 1-16 Issue: 1 Volume: 11 Year: 2023 Month: 1 X-DOI: 10.1080/20954816.2023.2173993 File-URL: http://hdl.handle.net/10.1080/20954816.2023.2173993 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:11:y:2023:i:1:p:1-16 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_1920195_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Liang Guo Author-X-Name-First: Liang Author-X-Name-Last: Guo Author-Name: Sizhu Wang Author-X-Name-First: Sizhu Author-X-Name-Last: Wang Author-Name: Nicole Z. Xu Author-X-Name-First: Nicole Z. Author-X-Name-Last: Xu Title: US economic and trade sanctions against China: A loss-loss confrontation Abstract: The economic and trade sanctions implemented by the United States (US) against China have lasted for a few decades and the structural imbalance of the US–China trade relationship has ultimately been escalated to a trade war recently. We examine the economic impacts of US sanctions against China on both sponsor and target countries during the last 20 years. We find that such impacts have significantly changed over time. On one hand, US economic sanctions have gradually extended from China’s labour-intensive to high value-added products and they have largely slowed down China’s trade growth for the last decade. On the other hand, US consumers and businesses have faced higher prices and production costs for Chinese imports (or import substitutes) in the wake of the increasing US trade sanctions, leading to great deadweight losses to the sponsor country. In addition, US economic and trade sanctions against China have largely impacted other economies involved in US–China trade as well. The intermediary status of the Hong Kong SAR has been greatly challenged. Overall, US economic and trade sanctions have caused pain on both China and the US, but their impact on China (the target country) has been largely weakened. Journal: Economic and Political Studies Pages: 17-44 Issue: 1 Volume: 11 Year: 2023 Month: 1 X-DOI: 10.1080/20954816.2021.1920195 File-URL: http://hdl.handle.net/10.1080/20954816.2021.1920195 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:11:y:2023:i:1:p:17-44 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_1976902_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Thomas F. Remington Author-X-Name-First: Thomas F. Author-X-Name-Last: Remington Title: Inequality and workforce development in the post-COVID-19 environment: The case of Maine Abstract: The article analyses the interaction between the COVID-19 pandemic and social inequality in the United States, taking the state of Maine as a case study. The pandemic has revealed the effects of high economic inequality on public health in the United States, where in comparison to most developed capitalist democracies, the health care system is expensive, inefficient, and highly skewed in quality and accessibility. Likewise, for industries that were already losing jobs, the pandemic has accelerated a painful transition and intensified the harsh social and economic consequences of high and rising inequality, especially for low-wage workers. The case of Maine underscores the point that policies aimed at reducing the disparities in the distribution of income, health care, education, and opportunity will reduce inequality, protect public health, and stimulate economic growth. Journal: Economic and Political Studies Pages: 211-233 Issue: 2 Volume: 11 Year: 2023 Month: 4 X-DOI: 10.1080/20954816.2021.1976902 File-URL: http://hdl.handle.net/10.1080/20954816.2021.1976902 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:11:y:2023:i:2:p:211-233 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_1976901_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Hayriye Özgül Özkan-Değirmenci Author-X-Name-First: Hayriye Özgül Author-X-Name-Last: Özkan-Değirmenci Title: The impact of globalisation on the skill wage gap in Turkey: A quantile regression approach Abstract: This study examines how increasing international trade affects the skill wage gap in Turkey. There has been a rapid increase in international trade in Turkey after 2000. As international trade increases, goods produced with higher technologies have a higher share in overall exported products. All these developments raise a question: how does the improvement of technology levels in the Turkish manufacturing industry, together with the increasing demand for skilled workers, change the skill wage gap? To explore this issue, this study utilises the Structure of Earnings Survey Data by the Turkish Statistical Institute. To have more robust results, the quantile regression model is applied to estimate the skill wage gap. One of the most prominent findings of this study is a continuous increase in the skill wage gap even though specific information about firms and workers is controlled. Journal: Economic and Political Studies Pages: 234-251 Issue: 2 Volume: 11 Year: 2023 Month: 4 X-DOI: 10.1080/20954816.2021.1976901 File-URL: http://hdl.handle.net/10.1080/20954816.2021.1976901 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:11:y:2023:i:2:p:234-251 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_1976900_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Robert P. Giloth Author-X-Name-First: Robert P. Author-X-Name-Last: Giloth Title: The role of intermediaries in US workforce and education innovation Abstract: Intermediaries are specialised organisations that perform bridging and integrative functions to achieve improved results of social policies. Intermediaries have been most effective in the United States (US) when aligned with education and workforce system improvements and redesign, not as parallel and separate efforts. Intermediaries operate in many US social policy domains, including workforce and education, where they contribute to overcoming fragmented institutions and solving mismatch problems that interfere with hiring, career pathways and educational achievements. Intermediary solutions are especially important for creating better outcomes for low-income students and workers and improving overall racial and ethnic equity. Five mismatches especially prevalent in the US labour market require intermediary solutions: organising business to improve human resources, creating improved pathways from school to work, integrating and focussing multiple education investments, linking workforce and economic development, and improving access and use of data for design, performance management and advocacy. This paper discusses these mismatches and related intermediary solutions in more depth, offers examples of specific intermediaries in action and identifies intermediary challenges and opportunities faced by intermediaries to function better. The paper also points out that, more broadly, intermediaries are only a part of the solution to labour market and education inequalities and that broader changes in the political economy and policies are required to effect wage growth and labour market participation. Journal: Economic and Political Studies Pages: 252-273 Issue: 2 Volume: 11 Year: 2023 Month: 4 X-DOI: 10.1080/20954816.2021.1976900 File-URL: http://hdl.handle.net/10.1080/20954816.2021.1976900 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:11:y:2023:i:2:p:252-273 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2099092_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xuezheng Qin Author-X-Name-First: Xuezheng Author-X-Name-Last: Qin Author-Name: Po Yang Author-X-Name-First: Po Author-X-Name-Last: Yang Title: Education, skill formation and inequality: An introduction Journal: Economic and Political Studies Pages: 209-210 Issue: 2 Volume: 11 Year: 2023 Month: 4 X-DOI: 10.1080/20954816.2022.2099092 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2099092 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:11:y:2023:i:2:p:209-210 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2069334_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zhengkai Liu Author-X-Name-First: Zhengkai Author-X-Name-Last: Liu Author-Name: Debao Hu Author-X-Name-First: Debao Author-X-Name-Last: Hu Author-Name: Zheng He Author-X-Name-First: Zheng Author-X-Name-Last: He Title: The relationship between political connections and the mutual fund performance: Evidence from the US Abstract: This paper examines the effect of political connections between mutual fund managers and politicians on the fund performance. Using the publicly available data of individual political donations, we regard the mutual funds as politically connected when their managers make financial contributions to politicians. First, we show that aggregated stock holding changes of politically connected funds predict subsequent abnormal stock returns around the earnings announcement day, implying that the political connection promotes managers’ stock picking abilities. Further evidence derived from the sample of entry buys and exit sells shows that politically connected funds outperform politically non-connected funds by 82 basis points annually. Second, we provide evidence that earnings forecast accuracy for the firms whose stocks are held by politically connected funds is improved significantly when time is approaching the announcement date, highlighting the importance of political channels through which information flows between firms and the market are facilitated. Journal: Economic and Political Studies Pages: 174-208 Issue: 2 Volume: 11 Year: 2023 Month: 4 X-DOI: 10.1080/20954816.2022.2069334 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2069334 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:11:y:2023:i:2:p:174-208 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2132900_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zhong Tang Author-X-Name-First: Zhong Author-X-Name-Last: Tang Author-Name: Mingxi Han Author-X-Name-First: Mingxi Author-X-Name-Last: Han Title: Key issues in promoting rural revitalisation in China Abstract: Since the rural revitalisation strategy was first introduced in the 19th National Congress of the Communist Party of China, government agencies and scholars have put forward a series of indicators to measure its implementation. However, such a large number of indicators complicate the process. The rural revitalisation strategy aims to boost agricultural labour productivity, reduce the urban–rural income disparity, and promote the equalisation of basic public services, thereby accelerating the modernisation of agriculture and rural areas. This paper puts forward five indicators to evaluate the progress of implementing the rural revitalisation strategy. The indicators, though simple, underscore the key issues in promoting rural revitalisation in China. This paper also suggests that the rural revitalisation policy should aim to improve the quality of life of the rural population and promote the equalisation of basic public services rather than to reverse the population flow brought by industrialisation and urbanisation. Journal: Economic and Political Studies Pages: 149-173 Issue: 2 Volume: 11 Year: 2023 Month: 4 X-DOI: 10.1080/20954816.2022.2132900 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2132900 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:11:y:2023:i:2:p:149-173 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2110244_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Alice Guerra Author-X-Name-First: Alice Author-X-Name-Last: Guerra Author-Name: Brooke Harrington Author-X-Name-First: Brooke Author-X-Name-Last: Harrington Author-Name: Sven Steinmo Author-X-Name-First: Sven Author-X-Name-Last: Steinmo Author-Name: John D’Attoma Author-X-Name-First: John Author-X-Name-Last: D’Attoma Title: Do experienced subjects bias experimental results? Evidence from 16 laboratories in six countries Abstract: This paper addresses an area of growing concerns for laboratory researchers: is subjects’ behaviour affected by prior experiences in laboratory experiments? We address the question with a large and highly diverse international dataset and an operationalisation strategy that allows our findings to cohere with previous work while shedding new light on future research. The findings presented in this article are drawn from original data gathered as part of one of the largest tax compliance experiments ever conducted, involving more than 3,000 participants in six countries, across 16 different laboratories. Our results reveal that subjects’ behaviour correlates with their past experimental experiences, in a way that could bias results and compromise a study’s external validity. However, this change in behaviour due to experiences occurs only after subjects have participated in at least two previous laboratory experiments. The findings have implications not just for tax compliance research, but for allocation experiments more generally and for participant recruitment particularly. Journal: Economic and Political Studies Pages: 350-364 Issue: 3 Volume: 11 Year: 2023 Month: 7 X-DOI: 10.1080/20954816.2022.2110244 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2110244 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:11:y:2023:i:3:p:350-364 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2189798_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Mardhiah Mardhiah Author-X-Name-First: Mardhiah Author-X-Name-Last: Mardhiah Author-Name: Riyana Miranti Author-X-Name-First: Riyana Author-X-Name-Last: Miranti Author-Name: Robert Tanton Author-X-Name-First: Robert Author-X-Name-Last: Tanton Title: The slippery slope framework: A comprehensive evaluation of factors affecting trust and power Abstract: Many empirical studies have been conducted to test the assumptions of the slippery slope framework (SSF). However, although the SSF theory has introduced several tax compliance factors that are believed to have associations with trust in tax authorities and power of tax authorities, most studies tend to include only the two main domains of trust and power in the analysis. None of these studies comprehensively investigates the factors. Therefore, this study is dedicated to fully elaborating on these factors and their correlations with the two main domains of trust and power separately and simultaneously. The results show that most factors are proven to significantly influence trust and power. Tax penalties, norms, distributive fairness and retributive fairness significantly and positively influence trust, while audit probabilities, tax penalties, attitudes, norms and retributive fairness have significant and positive correlations with power. The results also confirm the main SSF assumptions that trust leads to voluntary compliance, while voluntary compliance positively affects overall tax compliance. However, this study fails to demonstrate the relationship of power with enforced compliance, while enforced compliance is found to negatively affect overall tax compliance. Journal: Economic and Political Studies Pages: 382-399 Issue: 3 Volume: 11 Year: 2023 Month: 7 X-DOI: 10.1080/20954816.2023.2189798 File-URL: http://hdl.handle.net/10.1080/20954816.2023.2189798 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:11:y:2023:i:3:p:382-399 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2121244_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Stephan Muehlbacher Author-X-Name-First: Stephan Author-X-Name-Last: Muehlbacher Author-Name: Andre Hartmann Author-X-Name-First: Andre Author-X-Name-Last: Hartmann Author-Name: Erich Kirchler Author-X-Name-First: Erich Author-X-Name-Last: Kirchler Author-Name: James Alm Author-X-Name-First: James Author-X-Name-Last: Alm Title: Declaring income versus declaring taxes in tax compliance experiments: Does the design of laboratory experiments affect the results? Abstract: Laboratory experiments are frequently criticised, in part because of the sensitivity of the results to specific features of the design. This paper addresses an important question regarding the key aspect of the experimental environment: How should the dependent variable – participants’ choices – be operationalised? For the specific context of laboratory research on income tax compliance, we compare the effects of the two most common operationalisation types: the declaration of gross income versus the declaration of tax payment. It is found that compliance is higher when participants indicate their tax payment than when they declare their income. It is also discovered that the effects of the three policy parameters of the economic model (the tax rate, audit probability and fine rate) are stronger when participants declare their taxes than when they declare their income. These results are relevant for interpreting prior and future experimental evidence on tax compliance and can explain some contradictory previous findings. More broadly, this study suggests that the results of laboratory experiments may depend on specific features of the experimental design, which proposes a strong need for more systematic methodological research. Journal: Economic and Political Studies Pages: 334-349 Issue: 3 Volume: 11 Year: 2023 Month: 7 X-DOI: 10.1080/20954816.2022.2121244 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2121244 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:11:y:2023:i:3:p:334-349 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2130501_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Christoph Kogler Author-X-Name-First: Christoph Author-X-Name-Last: Kogler Author-Name: Jerome Olsen Author-X-Name-First: Jerome Author-X-Name-Last: Olsen Author-Name: Erich Kirchler Author-X-Name-First: Erich Author-X-Name-Last: Kirchler Author-Name: Larissa M. Batrancea Author-X-Name-First: Larissa M. Author-X-Name-Last: Batrancea Author-Name: Anca Nichita Author-X-Name-First: Anca Author-X-Name-Last: Nichita Title: Perceptions of trust and power are associated with tax compliance: A cross-cultural study Abstract: The slippery slope framework (SSF) of tax compliance postulates that taxpayers’ compliance behaviour depends on the two dimensions: trust in authorities and power of authorities. In an attempt to overcome common-method biases, the present study tests the main assumptions of the SSF with a sample of 44 countries/regions. Country/region-level trust and power indices are calculated based on experimental data involving 14,509 participants and related to shadow economy estimates and – as an alternative indicator of non-compliance – corruption indices. The results indicate that both trust and power are negatively related to the size of the shadow economy and the extent of corruption. These results emphasise the importance of both SSF dimensions in combating tax evasion and counterproductive behaviour within a society in general. Journal: Economic and Political Studies Pages: 365-381 Issue: 3 Volume: 11 Year: 2023 Month: 7 X-DOI: 10.1080/20954816.2022.2130501 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2130501 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:11:y:2023:i:3:p:365-381 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2110215_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Marcelo Arbex Author-X-Name-First: Marcelo Author-X-Name-Last: Arbex Author-Name: Justin M. Carré Author-X-Name-First: Justin M. Author-X-Name-Last: Carré Author-Name: Shawn N. Geniole Author-X-Name-First: Shawn N. Author-X-Name-Last: Geniole Author-Name: Enlinson Mattos Author-X-Name-First: Enlinson Author-X-Name-Last: Mattos Title: Is tax evasion macho? Testosterone, personality traits and evasion Abstract: This paper examines the potential effects of testosterone and personality traits on the decision to evade taxes. In a series of experiments, subjects completed behavioural tasks and made a one-shot tax evasion decision. We estimate a negative weakly significant treatment effect, which suggests that an exogenous increase in the testosterone level may inhibit the decision to evade taxes. Our results also suggest that higher dominance and independent self-construal, as well as lower self-control, are associated with a greater likelihood of tax evasion. We discuss the mechanisms potentially linking testosterone to tax evasion. These findings support the inclusion of biological factors in the analysis of tax evasion behaviour. Journal: Economic and Political Studies Pages: 295-315 Issue: 3 Volume: 11 Year: 2023 Month: 7 X-DOI: 10.1080/20954816.2022.2110215 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2110215 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:11:y:2023:i:3:p:295-315 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2215007_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: James Alm Author-X-Name-First: James Author-X-Name-Last: Alm Author-Name: Yongzheng Liu Author-X-Name-First: Yongzheng Author-X-Name-Last: Liu Title: Introduction Journal: Economic and Political Studies Pages: 275-278 Issue: 3 Volume: 11 Year: 2023 Month: 7 X-DOI: 10.1080/20954816.2023.2215007 File-URL: http://hdl.handle.net/10.1080/20954816.2023.2215007 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:11:y:2023:i:3:p:275-278 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2117676_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: James Alm Author-X-Name-First: James Author-X-Name-Last: Alm Author-Name: Matthias Kasper Author-X-Name-First: Matthias Author-X-Name-Last: Kasper Title: Using behavioural economics to understand tax compliance Abstract: ‘Behavioural economics’, or the application of methods and evidence from other social sciences to economics, has increased greatly in significance and use in the last two decades. In this paper, we discuss the basic elements of behavioural economics. We then assess the applications of behavioural economics to the analysis of tax compliance. Our central conclusion is that many, perhaps most, of the recent insights on what motivates tax compliance have flowed directly from behavioural economics. We conclude with suggestions on – and predictions of – directions in which future applications should prove useful. Journal: Economic and Political Studies Pages: 279-294 Issue: 3 Volume: 11 Year: 2023 Month: 7 X-DOI: 10.1080/20954816.2022.2117676 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2117676 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:11:y:2023:i:3:p:279-294 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2157235_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Eva Matthaei Author-X-Name-First: Eva Author-X-Name-Last: Matthaei Author-Name: Ho Fai Chan Author-X-Name-First: Ho Fai Author-X-Name-Last: Chan Author-Name: Charlotte Schmidt Author-X-Name-First: Charlotte Author-X-Name-Last: Schmidt Author-Name: Benno Torgler Author-X-Name-First: Benno Author-X-Name-Last: Torgler Title: Relative trust and tax morale Abstract: This paper investigates the importance of trust in international institutions for the development of tax morale by focussing on interactions between trust in the national government and trust in the European Union (EU) or trust in the United Nations (UN). Using large-scale survey data from European countries, we provide evidence that all three trust variables are significantly related to the individual level of tax morale. Overall, the results regarding trust in the EU and the UN are very similar, while trust in the national government appears to be the main factor in driving tax morale. However, depending on the national context, trust in the national government interacts differently with trust in different international institutions with respect to the shaping of tax morale. Journal: Economic and Political Studies Pages: 400-418 Issue: 3 Volume: 11 Year: 2023 Month: 7 X-DOI: 10.1080/20954816.2022.2157235 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2157235 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:11:y:2023:i:3:p:400-418 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2130065_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Michele Bernasconi Author-X-Name-First: Michele Author-X-Name-Last: Bernasconi Author-Name: Luca Corazzini Author-X-Name-First: Luca Author-X-Name-Last: Corazzini Author-Name: Tiziana Medda Author-X-Name-First: Tiziana Author-X-Name-Last: Medda Title: Whistleblowing and tax evasion: Experimental evidence Abstract: In a tax compliance experiment we manipulate various dimensions to isolate the effects of whistleblowing: whether incomes are homogeneous or heterogeneous; whether whistleblowing is permitted or not; and whether subjects have complete or incomplete information about others’ tax evasion. Under complete information, we find that whistleblowing has a strong impact on compliance, reducing the proportion of concealed income and increasing the precision of the auditing procedure. Moreover, the probability of being whistled increases with evasion and rich subjects react to whistleblowing more than poor subjects do. Introducing incomplete information reduces the deterrent effect of whistleblowing, but not among the richest taxpayers. Journal: Economic and Political Studies Pages: 316-333 Issue: 3 Volume: 11 Year: 2023 Month: 7 X-DOI: 10.1080/20954816.2022.2130065 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2130065 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:11:y:2023:i:3:p:316-333 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2269327_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Terence Tai Leung Chong Author-X-Name-First: Terence Tai Leung Author-X-Name-Last: Chong Author-Name: Sizhu Wang Author-X-Name-First: Sizhu Author-X-Name-Last: Wang Author-Name: Ce Zhang Author-X-Name-First: Ce Author-X-Name-Last: Zhang Title: Understanding the digital economy in China: Characteristics, challenges, and prospects Abstract: This paper explores the distinct characteristics of China’s digital economy during its rapid growth over the past decade and sheds light on the transformative impact that the digital economy has had on the Chinese society. The findings reveal that China’s digital economy has experienced remarkable expansion in recent decades, driven by the convenience and efficiency it has brought about. Notable achievements include the development of robust digital infrastructure, the emergence of innovative digital finance, and the rapid growth of central bank digital currency. Throughout this digitalisation process, the government has played a pivotal role in driving and regulating the digital economy. Recognising the significance of digital transformation, the government has actively engaged in shaping policies and providing regulatory frameworks to foster a conducive environment for digital advancements and market regulation. Journal: Economic and Political Studies Pages: 419-440 Issue: 4 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/20954816.2023.2269327 File-URL: http://hdl.handle.net/10.1080/20954816.2023.2269327 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:11:y:2023:i:4:p:419-440 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_1914415_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yurou Liu Author-X-Name-First: Yurou Author-X-Name-Last: Liu Title: The high-speed railway opening and audit quality: Evidence from China Abstract: This study examines the effect of the high-speed railway operation on audit quality proxied by absolute abnormal accruals. Auditing is a complex activity that relies heavily on professional judgement and sufficient evidence. Auditors usually need to conduct on-the-spot investigations and face-to-face conversations to obtain auditing evidence. In this process, transportation plays an important role. From the perspective of geography, this paper examines the impact of the high-speed railway implementation on audit quality. It finds that the high-speed railway operation significantly improves audit quality. The results are robust to parallel tests and when using the Big Eight auditors to proxy for audit quality. Further analyses suggest that this effect is more pronounced in firms audited by non-local auditors and firms located in non-first-tier cities. Taken together, these results suggest that the opening of high-speed railways is effective in improving audit quality. Journal: Economic and Political Studies Pages: 494-515 Issue: 4 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/20954816.2021.1914415 File-URL: http://hdl.handle.net/10.1080/20954816.2021.1914415 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:11:y:2023:i:4:p:494-515 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2115191_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Qing Wang Author-X-Name-First: Qing Author-X-Name-Last: Wang Author-Name: Chengjun Liu Author-X-Name-First: Chengjun Author-X-Name-Last: Liu Author-Name: Sai Lan Author-X-Name-First: Sai Author-X-Name-Last: Lan Title: Digital literacy and financial market participation of middle-aged and elderly adults in China Abstract: Digital literacy has become increasingly important for individuals to participate in regular economic activities, including employment, consumption, and investment. This paper quantitatively defines digital literacy with recently released household survey data in China and describes the digital divide across regions and ages. We further show that digital literacy increases risky asset ownership in the financial market among the middle-aged and elderly population. In this sense, this paper identifies a novel factor that affects financial investment. These findings imply that the digital divide may lead to the asset divide and wealth inequality. Family and social assistance to improve the digital literacy of disadvantaged population groups may increase financial inclusion as well. Journal: Economic and Political Studies Pages: 441-468 Issue: 4 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/20954816.2022.2115191 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2115191 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:11:y:2023:i:4:p:441-468 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2195527_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Suleyman Orhun Altiparmak Author-X-Name-First: Suleyman Orhun Author-X-Name-Last: Altiparmak Author-Name: Sidan Wang Author-X-Name-First: Sidan Author-X-Name-Last: Wang Title: The energy transition of the Chinese national oil companies towards renewables: An opportunity or a bottleneck? Abstract: Renewable energy is the fastest growing energy source. China, the world’s biggest energy consumer, is also the largest investor in renewable energy. Although it is expected that oil will continue to dominate the energy mix in China and in the world by 2040, a transition towards a renewable model in the energy sector is unfolding, which has also been acknowledged by international oil companies (IOCs). Then, how the Chinese national oil companies (NOCs) approach such a transition becomes important – to what extent their investment transform and what are the pressures and influences behind the transformation. This paper investigates the positions and decisions taken by the Chinese NOCs, through comparing the similarities and differences between these NOCs and IOCs. A neo-Gramscian theoretical framework that considers environmental governance through dynamics at material, organisational, and discursive levels is used to examine the Chinese NOCs’ energy transition. We find that the Chinese NOCs’ energy transition is determined by: materially, economic profits; organisationally, the administrative environmental governance structure that copes with the market competition against IOCs and other state-owned companies; and discursively, the political concept of ecological civilisation. Journal: Economic and Political Studies Pages: 516-528 Issue: 4 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/20954816.2023.2195527 File-URL: http://hdl.handle.net/10.1080/20954816.2023.2195527 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:11:y:2023:i:4:p:516-528 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2042789_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jing Zhang Author-X-Name-First: Jing Author-X-Name-Last: Zhang Author-Name: Shuang Yue Author-X-Name-First: Shuang Author-X-Name-Last: Yue Author-Name: Shuang Zi Author-X-Name-First: Shuang Author-X-Name-Last: Zi Title: Can executive mobility reduce the stock price crash risk? Evidence from China Abstract: The 21st century has witnessed increasing fluctuations in both the real economy and financial markets around the world. How to maintain the stability of the capital market has attracted more serious attention. This paper examines the impact of executive mobility on the stock price crash risk at the company level. Based on the data of A-share listed companies during 2010–2019, our empirical results show that executive mobility can effectively reduce the stock price crash risk. Furthermore, our research confirms that employee salaries play an intermediary role in the impact of executive mobility on the stock price crash risk. This paper has important implications for companies in emerging markets to optimise the structure of their executive teams. Journal: Economic and Political Studies Pages: 529-540 Issue: 4 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/20954816.2022.2042789 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2042789 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:11:y:2023:i:4:p:529-540 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2055814_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zhigang Qiu Author-X-Name-First: Zhigang Author-X-Name-Last: Qiu Author-Name: Xi Sun Author-X-Name-First: Xi Author-X-Name-Last: Sun Author-Name: Lijun Wu Author-X-Name-First: Lijun Author-X-Name-Last: Wu Author-Name: Dun Jia Author-X-Name-First: Dun Author-X-Name-Last: Jia Author-Name: Ziyue Wang Author-X-Name-First: Ziyue Author-X-Name-Last: Wang Title: The 2018 new asset management regulation and LGFV bonds in China Abstract: While the local government debts and local government financing vehicle (LGFV) bonds underwent reconstruction, in 2018 the new asset management regulation introduced some tighter measures to restrain shadow banking business and to mitigate the moral hazard issue that led to an ongoing boom of the LGFV market. This paper examines the impacts of the 2018 new asset management regulation on the credit spread of newly issued LGFV bonds and explores how the new asset management regulation affects the implicit guarantee of local governments in the LGFV market that has piled up systemic risks. We find that the release of the new asset management regulation has raised the credit spread of LGFV bonds at issuance. More importantly, the credit spread becomes increasingly sensitive to the local governments’ financial capacity and credibility right after the introduction of the new asset management regulation. Therefore, investors are compensated by more risk premiums for holding LGFV bonds issued by the local governments with a weaker balance sheet. Consequently, the implicit guarantee problem in the LGFV bond market has worsened. Journal: Economic and Political Studies Pages: 469-493 Issue: 4 Volume: 11 Year: 2023 Month: 10 X-DOI: 10.1080/20954816.2022.2055814 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2055814 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:11:y:2023:i:4:p:469-493 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2241780_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Su Wang Author-X-Name-First: Su Author-X-Name-Last: Wang Title: Predicting new firm survival and growth: The power of alternative data Abstract: This paper demonstrates that the alternative data of manager turnover can provide investors and policymakers with a more timely and available predictor of new firm performance beyond the traditional financial information. This paper constructs a comprehensive alternative dataset of manager turnover that covers a near-population sample of new firms in the United Kingdom. It shows that manager departures and appointments can predict new firms’ survival and growth, even after controlling for firm financials. In addition to the within-firm prediction, the average manager turnover in other firms of the same industry can cross-predict individual firm performance. The within-firm prediction is more pronounced for non-family firms, smaller firms and firms incorporated during or after the Great Recession, and the cross-firm prediction is stronger for younger firms. This paper sheds light on the power of alternative data in the prediction of firm performance, particularly for new firms that often do not have available information. Journal: Economic and Political Studies Pages: 58-87 Issue: 1 Volume: 12 Year: 2024 Month: 1 X-DOI: 10.1080/20954816.2023.2241780 File-URL: http://hdl.handle.net/10.1080/20954816.2023.2241780 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:12:y:2024:i:1:p:58-87 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2230622_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Jian Feng Author-X-Name-First: Jian Author-X-Name-Last: Feng Author-Name: Xin Liu Author-X-Name-First: Xin Author-X-Name-Last: Liu Title: No more free lunch: The increasing popularity of machine learning and financial market efficiency Abstract: In this paper, we show that the increasing popularity of machine learning improves market efficiency. By analysing the performance of a set of popular machine learning-based investment strategies, we find that profits from these strategies experience significant declines since the wide adoption of machine learning techniques, especially for profits based on the more preferred method of neural networks. These declines mainly come from long legs. Using the ‘machine learning’ Google search index as a proxy for machine learning-based trading intensity, we find that returns from the neural networks-based long–short and long-only strategies are weaker following high levels of machine learning intensity, while no relation is found between machine learning intensity and the short-only neural networks-based strategy. Journal: Economic and Political Studies Pages: 34-57 Issue: 1 Volume: 12 Year: 2024 Month: 1 X-DOI: 10.1080/20954816.2023.2230622 File-URL: http://hdl.handle.net/10.1080/20954816.2023.2230622 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:12:y:2024:i:1:p:34-57 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2222447_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Zhigang Qiu Author-X-Name-First: Zhigang Author-X-Name-Last: Qiu Author-Name: Jianqiu Wang Author-X-Name-First: Jianqiu Author-X-Name-Last: Wang Author-Name: Ke Wu Author-X-Name-First: Ke Author-X-Name-Last: Wu Author-Name: Sijie Yang Author-X-Name-First: Sijie Author-X-Name-Last: Yang Title: The value of FinTech innovations for the finance industry: Evidence from China Abstract: This paper explores the value effects of FinTech innovations on the finance industry in China, focussing on the banking system. We use a crawler-like application programme to grab patent filing information and manually identify and classify FinTech innovations based on their application fields. FinTech patents generally bring adverse value effects to various finance sectors, revealing a competitive relationship between innovators and financial firms. FinTech innovations applied to insurance and asset management cause the most harm to the industry, especially to state-owned and joint-stock commercial banks. Moreover, disruptive FinTech innovations by start-up firms appear to pose more potential threats to commercial banks. Journal: Economic and Political Studies Pages: 1-19 Issue: 1 Volume: 12 Year: 2024 Month: 1 X-DOI: 10.1080/20954816.2023.2222447 File-URL: http://hdl.handle.net/10.1080/20954816.2023.2222447 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:12:y:2024:i:1:p:1-19 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2276965_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Xiaoyang Li Author-X-Name-First: Xiaoyang Author-X-Name-Last: Li Author-Name: Haoming Feng Author-X-Name-First: Haoming Author-X-Name-Last: Feng Author-Name: Hailong Yang Author-X-Name-First: Hailong Author-X-Name-Last: Yang Author-Name: Jiyuan Huang Author-X-Name-First: Jiyuan Author-X-Name-Last: Huang Title: Can ChatGPT reduce human financial analysts’ optimistic biases? Abstract: This paper examines the potential of ChatGPT, a large language model, as a financial advisor for listed firm performance forecasts. We focus on the constituent stocks of the China Securities Index 300 and compare ChatGPT’s forecasts for major financial performance measures with human analysts’ forecasts and the realised values. Our findings suggest that ChatGPT can correct the optimistic biases of human analysts. This study contributes to the literature by exploring the potential of ChatGPT as a financial advisor and demonstrating its role in reducing human biases in financial decision-making. Journal: Economic and Political Studies Pages: 20-33 Issue: 1 Volume: 12 Year: 2024 Month: 1 X-DOI: 10.1080/20954816.2023.2276965 File-URL: http://hdl.handle.net/10.1080/20954816.2023.2276965 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:12:y:2024:i:1:p:20-33 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2273003_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Shahzad Hussain Author-X-Name-First: Shahzad Author-X-Name-Last: Hussain Author-Name: Tanveer Ahmad Author-X-Name-First: Tanveer Author-X-Name-Last: Ahmad Author-Name: Sabeeh Ullah Author-X-Name-First: Sabeeh Author-X-Name-Last: Ullah Author-Name: Ajid Ur Rehman Author-X-Name-First: Ajid Ur Author-X-Name-Last: Rehman Author-Name: Syed Jawad Hussain Shahzad Author-X-Name-First: Syed Jawad Hussain Author-X-Name-Last: Shahzad Title: Financial inclusion and carbon emissions in Asia: Implications for environmental sustainability Abstract: This study explores how carbon emissions are affected by financial inclusion. Using a balanced panel data set of 26 Asian countries, we compute a composite index, through the principal component analysis (PCA) technique, of financial inclusion based on a set of attributes related to financial inclusion. Our main analysis also delineates the subsamples of developed and developing Asian economies. The results reveal a long (short)-run positive (negative) impact of financial inclusion on carbon emissions across the Asian countries. This finding is also true for the developed country subsample, implying nonlinearity in short- and long-run relationships. For the developing countries, a more pronounced long-run positive impact compared to developed countries is found. Furthermore, the pairwise causality test results indicate the existence of bi-directional causality between financial inclusion and carbon emissions. These findings have important policy implications, especially in the context of the strategic integration of financial inclusion and climate change strategies. Journal: Economic and Political Studies Pages: 88-104 Issue: 1 Volume: 12 Year: 2024 Month: 1 X-DOI: 10.1080/20954816.2023.2273003 File-URL: http://hdl.handle.net/10.1080/20954816.2023.2273003 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:12:y:2024:i:1:p:88-104 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2052452_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Di Gao Author-X-Name-First: Di Author-X-Name-Last: Gao Author-Name: Yongsheng Chu Author-X-Name-First: Yongsheng Author-X-Name-Last: Chu Author-Name: Hongjin Xiang Author-X-Name-First: Hongjin Author-X-Name-Last: Xiang Title: Mixed oligopoly, state-owned banks’ shareholding reform and foreign capital penetration Abstract: This paper examines the impact of the policy on eliminating the ratio of foreign shareholding in banks in a mixed oligopoly model. Its analytic results show that state-owned banks should encourage privatisation along with an increasing proportion of the domestic share in multinational banks. Furthermore, we argue that the increase in domestic stockholding of multinational banks raises domestic private firms’ profits but decreases their social welfare in the deposit market. The results of numerical simulation show that when the quantity of private banks is fixed, foreign banks tend to enlarge their stake and strengthen their controlling power. Journal: Economic and Political Studies Pages: 105-116 Issue: 1 Volume: 12 Year: 2024 Month: 1 X-DOI: 10.1080/20954816.2022.2052452 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2052452 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:12:y:2024:i:1:p:105-116 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2276968_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Tien-Der Han Author-X-Name-First: Tien-Der Author-X-Name-Last: Han Author-Name: Ruochen Li Author-X-Name-First: Ruochen Author-X-Name-Last: Li Title: Optimal privatisation, and optimum-welfare and maximum-revenue tariffs Abstract: We examine the effect of privatisation on the priority of the maximum-revenue tariff and the optimum-welfare tariff in an international mixed oligopoly with foreign competition and optimal privatisation. We demonstrate that when the marginal cost of the domestic privatised firm is high enough, the optimum-welfare tariff will exceed the maximum-revenue tariff. Moreover, due to the higher tariff rate that leads to the high degree of privatisation, the optimum-welfare tariff generates greater optimal privatisation than the maximum-revenue tariff does. Lastly, when the gap between the number of domestic private firms and that of their foreign counterparts becomes larger, the optimum-welfare tariff will exceed the maximum-revenue tariff. Journal: Economic and Political Studies Pages: 220-234 Issue: 2 Volume: 12 Year: 2024 Month: 4 X-DOI: 10.1080/20954816.2023.2276968 File-URL: http://hdl.handle.net/10.1080/20954816.2023.2276968 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:12:y:2024:i:2:p:220-234 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2203306_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Aloys Prinz Author-X-Name-First: Aloys Author-X-Name-Last: Prinz Title: Cultural tightness, trust, and power in enforcing tax compliance Abstract: The so-called Cultural Tightness–Looseness (CTL) concept intends to describe the socio-cultural foundation of societies by the strictness of social norms. In this paper, CTL is used to investigate its relevance to enforcing tax compliance. The CTL concept is formalised by structural payoff matrices for the confrontation between citizens and officials. Social norms and their impacts on the behaviour of the parties in a conflict are used to define several variants of tight and loose societies. The payoff matrices are employed to classify respective forms of societies. For a dynamic analysis, ‘power’ and ‘trust’, as policy measures of behaviour control, are introduced to determine which instrument or combination of instruments emerges as the most relevant and effective option in the respective societal setting. The result is that ‘trust’ emerges in tight societies as the more important instrument of behaviour control, whereas ‘power’ appears as the more crucial tool in loose societies. Therefore, it is concluded that power or the ‘cops and robbers’ approach is usually applied in loose societies to enforce tax compliance. By contrast, ‘trust’ via the provision of information and support for paying taxes can be more often used in tight societies. Journal: Economic and Political Studies Pages: 143-170 Issue: 2 Volume: 12 Year: 2024 Month: 4 X-DOI: 10.1080/20954816.2023.2203306 File-URL: http://hdl.handle.net/10.1080/20954816.2023.2203306 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:12:y:2024:i:2:p:143-170 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2192559_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Carlo V. Fiorio Author-X-Name-First: Carlo V. Author-X-Name-Last: Fiorio Author-Name: Alessandro Santoro Author-X-Name-First: Alessandro Author-X-Name-Last: Santoro Title: Tax enforcement activities: Evidence on the impact of a threat-of-audit letter Abstract: As part of their ordinary enforcement activities, tax authorities around the world use letters and other forms of personalised communications to elicit tax compliance at a low cost. The literature shows that the impact of a threat-of-audit letter (TAL) depends critically on the credibility of the letter which, in turn, depends on the information disclosed to the taxpayer. We study a TAL that is credible because it also uses third-party information to target a form of cost manipulation but, at the same time, incentivises alternative forms of cost manipulation by not targeting them. We find that the direct impact on the targeted cost manipulation is stronger than the strategic increase in other costs, and therefore the overall effect of the TAL on taxable income is positive. Our approach can be applied to any letter or enforcement action that reveals information to taxpayers and thus prompts their strategic responses. By observing the taxpayers’ responses along all relevant dimensions, the tax authority can evaluate the impact of the strategy and also obtain valuable information to target future enforcement activities. Journal: Economic and Political Studies Pages: 171-187 Issue: 2 Volume: 12 Year: 2024 Month: 4 X-DOI: 10.1080/20954816.2023.2192559 File-URL: http://hdl.handle.net/10.1080/20954816.2023.2192559 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:12:y:2024:i:2:p:171-187 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2298971_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Xiaoyang Li Author-X-Name-First: Xiaoyang Author-X-Name-Last: Li Author-Name: Mo Liang Author-X-Name-First: Mo Author-X-Name-Last: Liang Author-Name: Jidong Yang Author-X-Name-First: Jidong Author-X-Name-Last: Yang Title: Policy uncertainty and land transaction prices in China Abstract: Economic policy uncertainty has prominent effects on investment and output. Using unique transaction-level data in China, this paper explores the impact of economic policy uncertainty on land transaction premiums in China. On average, a 1% increase in the policy uncertainty level reduces land transaction premiums by 3.907 percentage points. The impact of policy uncertainty is more profound for firms with tighter financial constraints and land located in cities with lower rent-to-price ratios. The influence of policy uncertainty becomes weaker after the anti-corruption campaign in China, especially in provinces scrutinised by the central inspection teams, implying that improvements in the political environment alleviates the impact of policy uncertainty. Journal: Economic and Political Studies Pages: 117-142 Issue: 2 Volume: 12 Year: 2024 Month: 4 X-DOI: 10.1080/20954816.2023.2298971 File-URL: http://hdl.handle.net/10.1080/20954816.2023.2298971 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:12:y:2024:i:2:p:117-142 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2179957_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Rosella Levaggi Author-X-Name-First: Rosella Author-X-Name-Last: Levaggi Author-Name: Francesco Menoncin Author-X-Name-First: Francesco Author-X-Name-Last: Menoncin Title: Tax evasion and debt in a dynamic general equilibrium model Abstract: The literature has long analysed optimal taxation policies in economies where tax evasion is widespread. Nevertheless, very little has been produced on the relationship between public debt, tax evasion, and long-term economic growth. In this article, we investigate the relationship between sovereign debt sustainability and tax evasion by computing under which conditions the debt/GDP ratio is endogenously mean reverting in the context where tax evasion may increase the public debt and public expenditure is used to finance public and merit goods. For a log utility consumer, the level of tax evasion has no effect on the mean reverting conditions while the same is not true for more general functional forms. Finally, we conclude that allowing for tax evasion is not a suitable policy to make the debt/GDP ratio stable over time, especially in low-growth economies. Journal: Economic and Political Studies Pages: 188-206 Issue: 2 Volume: 12 Year: 2024 Month: 4 X-DOI: 10.1080/20954816.2023.2179957 File-URL: http://hdl.handle.net/10.1080/20954816.2023.2179957 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:12:y:2024:i:2:p:188-206 Template-Type: ReDIF-Article 1.0 # input file: REPS_A_2052454_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Ming Sun Author-X-Name-First: Ming Author-X-Name-Last: Sun Author-Name: Leonard F. S. Wang Author-X-Name-First: Leonard F. S. Author-X-Name-Last: Wang Author-Name: Qidi Zhang Author-X-Name-First: Qidi Author-X-Name-Last: Zhang Title: Specific vs. ad valorem taxation and social welfare in mixed duopoly with foreign ownership Abstract: In this paper, we set up a mixed duopoly competition model between state-owned and private firms in order to compare specific and ad valorem taxes. Assuming that the total output under specific and ad valorem taxation remains unchanged, we find that if the public firm is completely privatised, the output of the private firm under the two tax schemes will be the same. If the public firm is not completely privatised, the output of the the private firm under specific taxation will be greater than that under ad valorem taxation. If the private firm is a pure local one, the social benefits will be the same under the two tax schemes. However, if the private firm is a joint venture that involves domestic and foreign entities, social welfare under ad valorem taxation will be greater than that under specific taxation. Journal: Economic and Political Studies Pages: 207-219 Issue: 2 Volume: 12 Year: 2024 Month: 4 X-DOI: 10.1080/20954816.2022.2052454 File-URL: http://hdl.handle.net/10.1080/20954816.2022.2052454 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:repsxx:v:12:y:2024:i:2:p:207-219