Search

• The most significant common denominator in the economic growth of Japan, South Korea and China was capable bureaucracy and a developmental state that prioritized economic growth via export- and investment-led growth. • The pattern of structural breaks in Japan, South Korea, and China has been broadly similar, with China following in South Korea's footsteps by about 25 to 30 years and Japan's footsteps by about 50 to 55 years. • The GDP growth and capital–labor ratio moved together in a positive long-run relationship in Japan, South Korea and China. • China experienced growth based on total factor productivity (TFP) gains at a much earlier stage in its development path than South Korea. • At a broader level, our analysis provides cautious grounds for optimism about China's prospects for a smooth and quick transition to high income. We analyze and compare the patterns of economic growth and development in China, South Korea, and Japan in the post-war period. The geographical proximity and cultural affinity between the three countries, as well as the key role of the development state in their economies, suggest that an analytical comparison would be a meaningful and valuable exercise. Furthermore, South Korea and Japan are two of the few economies that have jumped from middle income to high income in a short period and thus offer potentially valuable lessons for China. We use Cobb–Douglas production functions to assess the long-run equilibrium relationships between per capita GDP, capital, and labor by means of cointegrated vector autoregressive (CVAR) models. We show that such equilibrium relationships cannot be rejected for all three countries, while the evidence is stronger for China and South Korea than for Japan. Our hypothesis tests show that the estimated Cobb–Douglas production functions display coefficients of capital and employment that sum up to 1 and broken linear trends that can be attributed to structural breaks and (changes in) total factor productivity (TFP) growth. We observe a striking similarity between the experience in South Korean and China, which gives some optimism that the China may be capable of graduating to high income, like South Korea. [ABSTRACT FROM AUTHOR]

High-quality economic development focuses on achieving effective qualitative improvement and reasonable quantitative growth in the economy, which is the essential way for China to achieve sustainable development. This paper aims to investigate the role of financial development in the impact of foreign direct investment on high-quality economic development. GDP and green total factor productivity are used to measure the quantity and quality of economic development, respectively. We construct benchmark panel regression models, nonlinear interaction term models, and panel threshold models to examine the threshold effect of FDI on high-quality economic development based on the scale, structure, and efficiency of financial development. A series of tests are conducted to check the robustness of the estimates. Our results show that green total factor productivity in China is primarily driven by green technology progress. Additionally, foreign direct investment has a positive impact on China's high-quality economic development, with a threshold effect and nonlinear characteristics. Specifically, the scale of financial development affects the influence of foreign direct investment on the quantity of economic development, while the efficiency of financial development affects its influence on the quality of economic development. Furthermore, the structure of financial development affects both the quantity and quality of economic development. This study presents novel findings that contribute to understanding the role of financial development in the impact of foreign direct investment on high-quality economic development. Likewise, our research has implications for achieving high-quality development. The introduction of foreign direct investment under the high-quality development of the economy should comprehensively consider financial development. • The impacts on high-quality economic development of financial development and FDI were discussed. • The scale, structure and efficiency of financial development were considered. • Both quantity and quality of economic development were focus on. • The green total factor productivity in China was measured. • Policy implications of introducing FDI in China were proposed. [ABSTRACT FROM AUTHOR]

This study aims to examine how carbon trading policies impact total factor carbon productivity and subsequently provide recommendations for sustainable regional development. Through analyzing the trends in total factor carbon productivity and its mechanisms, this paper suggests that carbon trading policies can significantly enhance total factor carbon productivity. Additional mechanistic tests reveal that carbon trading can promote technological progress, factor accumulation, scale allocation and energy substitution effects; all contributing towards a low-carbon economic transition. These four effects serve to both promote economic growth and contribute towards carbon reduction targets. Therefore, to encourage low-carbon and high-quality development of the region's economy, policymakers must focus not only on constructing and expanding carbon markets, but also emphasize the synergies between these different effects. [ABSTRACT FROM AUTHOR]

Based on panel data of 116 countries in 2014–2019, this paper investigates the association between mobile broadband speed and labor productivity. It finds no robust contemporaneous relationship for the total sample, but there is a significant and robust association when a one-year lag of mobile broadband speed is introduced. The interpretation of the results is that a 10 percent increase in mobile broadband speed in period t-1 is associated with 0.2 percent increase in labor productivity, ceteris paribus. The results are only robust for non-OECD and low-income countries, respectively. • Strong association between productivity and one-year lag of mobile broadband speed. • 10% increase in MBB speed in t-1 is associated with 0.2% productivity increase. • The results are only robust for low-income and non-OECD countries, respectively. [ABSTRACT FROM AUTHOR]

In recent years, countries have actively promoted green economic transformation. Formulating reasonable and effective environmental regulation policies is an important way to realize this transformation. Based on a policy of raising standard sewage charges in China, this paper selects the panel data of 30 provinces from 2000 to 2018 and adopts the multi-time Differences-in-Differences (DID) method to empirically examine the effect of raising environmental costs on industrial green total factor productivity (GTFP). This paper finds that industrial GTFP is significantly increased by raising standard sewage charges. The conclusion is still valid after alleviating the endogenous problem and conducting robustness tests. The policy gives a boost to industrial GTFP in Eastern and Western regions, but not significantly in Central regions, according to the heterogeneity test. Further analyses of its transmission process reveal that raising environmental costs can promote industrial green growth, mostly via technological and structural effect. As a result, if all provinces can optimize and upgrade their industrial structures and improve their levels of technological innovation when faced with increasingly strict environmental regulations, they will be able to better change the model of economic growth and realize green industrial development. [ABSTRACT FROM AUTHOR]

Advancements in productivity in the digital economy constitute an important engine for economic growth. What drives productivity dynamics in the information and communication technology (ICT) sector? This study examines the productivity dynamics of ICT firms across countries from the perspective of corporate balance sheets. We study the effects of intangible assets and leverage on productivity growth using firm-level panel data from five industrialized countries. We find that intangible assets positively affect the total factor productivity in the ICT sector. The positive effect of intangible assets on total factor productivity growth is larger for ICT manufacturing firms than for ICT service firms. We also find that leverage has a positive relationship with total factor productivity development in the ICT sector. In addition, our empirical results substantiated that productivity is catching up to the technological frontier. Furthermore, larger firms and/or younger firms generally show higher total factor productivity growth than their peers. Economies of scale are more prominent in the ICT service sector than in the ICT manufacturing sector. Our findings contribute to the understanding of cross-country productivity dynamics in the ICT sector at the firm level in the digital economy. • Firm-level total factor productivity dynamics in the ICT sector are studied. • Intangible assets have positive effects on total factor productivity growth. • Leverage also has positive impacts on total factor productivity growth. • Larger firms and/or younger firms show higher total factor productivity growth. • The ICT manufacturing sector and the ICT service sector are compared. [ABSTRACT FROM AUTHOR]