Search

The effectiveness of carbon price in emissions trading schemes (ETS) is an important issue in China in the context of its ambitious climate change goals. This paper adopts a staggered difference-in-differences model to estimate whether China's ETS reduced CO2 emissions while maintaining economic growth even under low carbon prices. The results indicate that despite the low carbon prices, the ETS effectively reduced CO2 emissions without undermining the economy. Specifically, an increase of $1 in the carbon price reduced CO2 emissions by 1.69% and increased the per capita GDP by $286. The carbon price primarily achieved emission reduction and promoted economic development through channels, such as technological innovation, foreign direct investment, energy mix, and industrial structure. Carbon leakage to neighboring regions was not evident. Heterogeneity analysis showed that the environmental effects of the carbon price were more pronounced in regions with higher levels of economic development and CO2 emissions. Conversely, the economic effects of the carbon price were more pronounced in regions with lower levels of economic development and CO2 emissions. The carbon price achieved significant economic effects in regions that solely adopted the free allocation mode of emission allowances, while regions that used a combination of free allocation and auctioning experienced substantial emission reduction effects. Despite low carbon prices, China's ETS effectively reduced CO2 emissions without compromising economic growth. This finding provides new empirical evidence for the effectiveness of carbon price as well as decision support for the future promotion of ETS. Technological innovation, FDI, energy mix, and industrial structure are crucial channels through which the carbon price achieves emission reduction and promotes economic development. The absence of carbon leakage to neighboring regions suggests that ETS is an internally effective mechanism for emission control. Heterogeneity analysis showed that regional characteristics and allowance allocation modes can influence the effectiveness of carbon price, thus emphasizing the importance of targeted policy design and appropriate allocation methods. [ABSTRACT FROM AUTHOR]

Capital misallocation is a main obstacle to China's economic development. This paper deploys a quasi-natural experiment formed by the 'Revitalization Plan for Ten Industries' (RPTI) and examines the impacts that selective industrial policies have on capital misallocation. It is found that the RPTI significantly exacerbates capital misallocation and that the effect does not disappear when the RPTI ends. Mechanism analysis indicates that the RPTI significantly increases the capital productivity of firm groups with high capital productivity but significantly reduces the capital productivity of firm groups with low capital productivity. This can be further interpreted by a decrease or an increase of inefficient investment and financial constraints faced by the corresponding firm groups. The documented relationship is stronger in state-owned enterprises and in firms located in areas of high marketization. Our findings advance the understanding of governmental policy intervention in developing countries. [ABSTRACT FROM AUTHOR]

Financial inclusion (that is, access by individuals to the services provided by financial institutions such as banks, insurance, and investment firms) is a key condition for economic development, and forms one of the principal policy instruments in China for the promotion of rural-urban integration. Using data from the China Household Financial Studies (2013), this paper investigates the determinants of financial inclusion at the household level in China. Focused on the role of the Chinese household registration system (hukou), this paper proposes a new hukou typology to investigate the composite index of financial inclusion as well as the six indicators. Multilevel estimates reveal substantial differences of financial inclusion among different hukou holders; significant cross-level associations between hukou and economic development is also found, revealing the complex and non-linear relationship between hukou and financial inclusion. These findings shed light on the potential for market failures and two types of discrimination based on hukou system, which deny access to financial services to groups of people. Research implications on how to increase financial inclusion are mentioned and discussed. [ABSTRACT FROM AUTHOR]

Patriotic campaigns and mass mobilization draw on existing xenophobic attitudes of the public, reinforcing the 'us vs. them' dualism between China and 'the West'. However, patriotic campaigns are not always top-down, state-led, nor are they always primarily driven by political ideology. Patriotic content appeals to a growing nationalist audience who consumes a mixed feeling of perceived victimization at the hand of foreign aggression and the pride arising from being a Chinese citizen. This paper argues that the profitability of patriotic content circulating on social media exacerbated the tension between market-driven grassroots patriotism and state-led patriotic campaigns. The tension grows out of, and is manifested in, the online popular debate around economically driven, grassroots 'patriotic' content that can challenge the state state-led patriotic rhetoric. While the state sometimes strategically co-opts some patriotic contents into its own patriotic narratives, it also delegitimises other undesired ones through labels such as 'high-level black' (gaoji hei) or 'low-level red' (diji hong). These labels were initially used to differentiate meticulously crafted political satire and parody from incompetent, illogical and vulgar propaganda pieces that unintendedly blemish the state's patriotic campaigns, but later evolved into an exercise of power to distance the CCP from undesired patriotic content. [ABSTRACT FROM AUTHOR]

Chinese mammoth investment projects abroad, and especially those under the Belt and Road Initiative (BRI) umbrella, are receiving heavy scrutiny in academic and policy circles. However, there is insufficient empirical evidence to evaluate their impact. This paper employs a difference- in-differences approach and a pair of new datasets on government spending and economic activity compiled by the World Bank to examine the local impacts of the Chinese-Pakistan Economic Corridor in Pakistan. It finds that the 2013 announcement of CPEC was accompanied by a disproportionate increase in government spending in CPEC districts. However, in the six years after it was first announced, CPEC has not directly contributed a significant increase in economic activity in the districts along its path. [ABSTRACT FROM AUTHOR]

Economic development fails to greatly increase demand for liberal democracy in China. Is China an exception to modernization theory? If so, why? This paper studies these questions by analysing five waves of Asian Barometer Survey data from 2002 to 2019. We have three major findings. First, the shift of political values exhibits an inverted U-shaped curve with the mid-2010s as its turning point. Second, the better educated and more media exposed turned conservative much faster than the rest after the mid-2010s. Third, to trace the mechanism of this unusual reversal and divergence, we resort to a Difference-In-Differences model, taking political indoctrination, measured by media exposure and education, as treatment and the post-2013 era as treatment time, finding that political indoctrination significantly explains political cultural backsliding. Our findings enrich modernization theory by identifying the "interceptive" power of the state between economic development and cultural shifts. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to investigate the link between culture, history, government policies and the development of economic institutions. Specifically, the paper discusses the impact that history and culture, including the influence of Confucianism, have played in shaping the economic institutions of South Korea and the People's Republic of China. Research results indicate that culture, history and government policies all played a role in shaping the organizational structure of these two East Asian nations. However, China's economic landscape is dominated by small and medium-sized, family-oriented firms, particularly in the rural parts of the country. The South Korean economic landscape, on the other hand, is dominated by large conglomerate firms called Chaebols which are also dominated by one family. [ABSTRACT FROM AUTHOR]

China's increasingly developed high-speed railways (HSR) network has been found to have important influences on economic development, but analysis of its effect on individual income is inadequate. Based on the data of Chinese Household Income Project Survey (CHIP07 and CHIP13) and China's HSR data, this paper examines HSR's influence on residents' income and the underlying mechanism. Using the difference-in-differences (DID) approach, we document that the connection of HSR network increases both urban and rural residents' income. Besides, to address the potential endogeneity, we construct the least cost path spanning tree network to be served as an instrumental variable (IV) of HSR and the results confirm the reliability of the conclusion. What's more, a HSR-induced industrial restructuring mechanism is revealed by further study, and those who received the higher education is proved to benefit most from HSR. Therefore, education turns out to be an effective way to enhance HSR's income effect. [ABSTRACT FROM AUTHOR]

How do states pursue industrial policies in the context of China's rise? Examining Indonesia and Malaysia's mineral processing sectors, we argue that these countries illustrate two different pathways that states take to bolster their industrial policies. Indonesia has followed the leading sector strategy to increase domestic nickel processing capacity and decrease reliance on resource exports. Chinese firms and the Indonesian government built the Indonesia Morowali Industrial Park to house nickel smelters, fostering a new leading sector. Chinese capital in smelting follows what Albert Hirschman has called 'intermediate investments', maximising forward and backward linkages across the Indonesian economy. In contrast, Malaysia has followed the dual economy strategy, where semi-finished goods are imported and assembled into finished ones to be exported abroad. Chinese firms and the Malaysian government established the Malaysia–China Kuantan Industrial Park to import, process and export steel products. However, due to the dual economy strategy, the industrial park impairs the activities of domestic steelmaking companies and inhibits the potential build-up of smelting capacity. In sum, through an examination of an industrial park in each country, our paper connects the literatures on industrial policy and Chinese capital. [ABSTRACT FROM AUTHOR]

Based on the trade data of digitizable products exported by China to the 65 'Belt and Road' countries from 1998 to 2018, this study adopts the extended trade gravity model to analyze the impact of ICT on the country's exports of these products. The empirical results show that ICT has a significant and positive effect on the development of trade of digitizable products and it also promotes China's exports by lowering trade costs and accelerating innovation. The paper provides new evidence on information and technology's impact and influential mechanisms with regard to new trade patterns. [ABSTRACT FROM AUTHOR]

Financial agglomeration and green economic growth have become a trend in global financial and economic development. This paper analyzes the impact mechanism of financial agglomeration on green economic growth from two angles: growth promotion and energy conservation/emission reduction. Based on the Slacks Based Model-Data Envelopment Analysis (SBM-DEA) of undesired outputs, the green economic growth efficiency of 30 regions in China from 2008 to 2017 was measured. The study uses a spatial measurement model and finds that financial agglomeration has a significant positive effect on green economic growth. The specific manifestation is that with a 1% increase in the level of financial agglomeration, the productivity of green total factor increases by about 0.1837% and 0.0964% green economic growth in neighboring areas. Further analysis shows that this improvement in green total factor productivity is mainly achieved through technological advancement that promotes coordinated economic growth, energy saving and emission reduction. [ABSTRACT FROM AUTHOR]

In order to identify the causes of China's new business cycle patterns, such as an obvious downward shift and reduced fluctuations under the 'New Normal', this paper develops a large-scale dynamic stochastic general equilibrium model as a unified framework for incorporating technology, investment, trade, economic policy and financial volatility. The main conclusions are as follows. First, as to the causes of the downward shift, the current contraction phase of business cycles is mainly due to narrowing economic policy space, decelerating export growth and higher financial volatility. Secondly, as to the contributors to business cycle fluctuations, export growth deceleration is the main contributor to the current contraction phase of business cycles, while financial volatility is very likely to be a key driver of future business cycle fluctuations. Finally, as to China's future business cycle patterns, it tends to fluctuate less considering the effects of numerous temporary shocks have emerged so far. [ABSTRACT FROM AUTHOR]

Neither clear theoretical interpretation nor empirical validation of public educational investment to urban-rural migration or urbanization exists comprehensively. This paper comprehensively analyzes the relationship between public educational investment and urban-rural migration to fill in this niche. We first discuss the theoretical effect of public educational investment and urban-rural migration. Although public educational investment results in distortion and may hinder economic development in the short term, it will still benefit the economy due to its positive long-term impact on human capital. These benefits include a higher level of urban-rural migration and a deepening level of capital accumulation. The empirical evidence using China's data, where we control for confounding factors, take into account endogeneity of public educational investment and investigate the mechanisms behind the relation, confirms our theoretical discussion. This paper is of great significance in understanding China's past process of urban-rural migration. [ABSTRACT FROM AUTHOR]

The China–Pakistan Economic Corridor (CPEC) announced in 2015, is a $60 billion package of Chinese-led investment in roads, railways, energy, and industry. It is part of China's new Eurasia-wide Belt and Road Initiative (BRI). The likely impact of CPEC is controversial. Some scholars argue that CPEC will generate prosperity, regional equality and rapid economic growth in Pakistan. Other scholars argue, however, that CPEC will lead to debt and to the economic and political subordination of Pakistan to China. The existing discussion of CPEC has a near exclusive inward-looking focus on Pakistan. Some scholars, mainly from outside of Pakistan, have looked in more detail at China, but principally from an international relations perspective. Missing from all of this discussion is how economic change in China, particularly in western China, will influence the likely economic outcome of the CPEC. This paper makes an effort to begin to fill this gap. [ABSTRACT FROM AUTHOR]

This article assesses the extent to which the official Chinese discourse of Ecological Civilisation (shengtai wenming) is adhered to in practise. Ecological Civilisation (or Eco-Civilisation) is presented as a Chinese vision of human progress which purports to de-couple economic development from environmental degradation. Underpinning the idea are five overlapping pillars (environment, economy, society, culture and governance) which, it is claimed, provide a theoretical framework to promote harmony between humanity and nature. Advocates see the concept as an example of a new Chinese modernity based on socialist values and President Xi Jinping has declared China a torchbearer of the global endeavour for Eco-Civilisation. However, our paper casts doubt over this assertion when applied specifically to the Belt and Road Initiative (BRI). Although there is some evidence of a commitment to the principles of Eco-Civilisation, we identify a number of substantial and interlinking practical shortfalls relating to three core themes: inclusion, enforcement and transparency. [ABSTRACT FROM AUTHOR]

This paper aims to investigate the impact of China’s aid, trade and investments on the development trajectories in postcolonial Africa, focussed on Rwanda. The analytical framework of this study is informed by Helen Milner’s observation that ‘International political economy is a growth industry’. Furthermore, the study deploys dependency theory and world systems theory to examine how the global economic configuration operates though the hierarchy of core, semi-periphery and periphery among the states. Our focus on Rwanda is based on our observation that this small, landlocked, natural resources-deficient, aid-dependent country is an atypical destination for Chinese patronage and investments. We argue that as a non-resource rich country, Rwanda presents an anomaly, thus, underlining the gap in the existing knowledge on China–Africa engagements. We discuss the inherent dependency in the neoliberal economic structure and present a case for using dependency theory to understand and explain the contemporary globalised economy and emerging South–South cooperation. We conclude with a call for more in-depth cross-comparative research on China–Africa relations to grasp the magnitude of dependencies and economic transformations within postcolonial African states. [ABSTRACT FROM AUTHOR]

Since Xi Jinping became leader of the Chinese Communist Party in 2012, he has promoted the goal of realizing the "China dream," which centers on the effort to sustain rapid economic growth so that China can join or even surpass the rich countries of the world. Given the slowing of economic growth even before the 2020 coronavirus epidemic, debate has arisen about whether China can achieve this ambitious goal. This paper recounts the author's personal experiences thinking about the history of China's efforts since the Qing Dynasty to develop economically in order to ponder the issues in this debate. This overview leads to the conclusion that China's dramatic and surprising acceleration of economic growth in the decades after 1978 was driven by circumstances and forces that no longer work in China's favor, and that the nation now faces several serious problems that could make realization of Xi's China dream problematic. [ABSTRACT FROM AUTHOR]

Measuring and reporting an individual's view and practice on the Triple Bottom Line (TBL) of social equality, economic development and environmental protection for sustainable development remains complete. This paper aims to investigate famers' perceptions of TBL on water use. Zhangye City, a very arid region and the first experimental site for the national initiative of Building the Water-saving Society in China, was selected as the case study area. A questionnaire-based interview approach was adopted to collect farmers' rating of the importance of water for social security, economic development and ecological sustainability from 900 randomly selected farm households in 18 irrigation districts. The results show that 43% of the total respondents rated economic development as the most important, 27.6% chose social security, while 29.4% rated ecological sustainability as the first. It is found that personal characteristics of farmers among a myriad of factors showed most statistically significant correlation with farmers' perception of water use. Some variables, such as age and occupation, influence the farmers' perceptions of all three dimensions or at least two dimensions of water use but in different directions. The findings are of important implications for designing water policies for sustainable development. [ABSTRACT FROM AUTHOR]

The Belt and Road (B&R) initiative was introduced by the Chinese government to promote the worldwide economic development and multilateral cooperation between China and the associated countries. As a crucial part of global supply chains, transportation plays a key role to ensure the implementation of the B&R. Safety is one of the issues with great importance in transportation research. However, its foci have been expanded from traditional risk through security to resilience and sustainability. Resilience has attracted considerable interests from both researchers and practitioners across different research domains in recent years. Various studies have been conducted on transportation resilience from different perspectives. Consequently, different definitions have been developed to define and describe resilience. This paper presents a systematic review on transportation resilience with emphasis on its definitions, characteristics, and research methods applied in different transportation systems/contexts. It aims to figure out what transportation resilience is and what kind of essential characters it usually has. More importantly, research challenges are analysed and a future research agenda on the resilience of transportation systems is proposed. This paper will provide comprehensive insights into understanding the transportation resilience, as well as establish new horizons for relevant research topics within the context of the B&R. [ABSTRACT FROM AUTHOR]

The Belt and Road initiative has a significant focus on infrastructure, trade, and economic development across a vast region, and it also provides significant opportunities for sustainable development. The combined pressure of climate variability, intensified use of resources, and the fragility of ecosystems make it very challenging, however, to achieve future sustainability. To develop the path in a sustainable way, it is important to have a comprehensive understanding of these issues across nations and evaluate them in a scientific and well-informed approach. In this context, the Digital Belt and Road (DBAR) program was initiated as an international venture to share expertise, knowledge, technologies, and data to demonstrate the role of Earth observation science and technology and big Earth data applications to support large-scale development. In this paper, we identify pressing challenges, present the research priorities and foci of the DBAR program, and propose solutions where big Earth data can make significant contributions. This paper calls for further joint actions and collaboration to build a digital silk road in support of sustainable development at national, regional and global levels. [ABSTRACT FROM AUTHOR]

Interpretations of the Belt and Road Initiative (BRI) mostly agree that it is a policy opening that offers some remedies for China's economic and security challenges, as well as reflects China's increasing regional and global ambitions. This paper argues that the multiple drivers characterizing the BRI result from the multiple identities of China as a developing country struggling with several sources of instability and macroeconomic problems and, simultaneously, a regional and an emerging power, and finally a major global power with significant economic capacity to shape the global economic order. The paper aims to substantiate the entanglement of the defensive and ambitious motivations behind the BRI by examining the background against which the Chinese Communist Party leadership has suggested it. In so doing, it draws on Chinese official policy documents and statistics, speeches from Chinese leaders and existing social-scientific research on the transformation of China's economic and political landscape in recent years. [ABSTRACT FROM AUTHOR]

Prevailing narratives in the discourse on China-Africa engagement are that China is developing Africa. This paper departs from those narratives because they disregard the agency of Africa's political elite. Basing its argument on the nature of the African political elite, the paper analyses their role in determining the impact of China's economic and trade engagement on economic development in their respective countries. To do that, it first discusses the nature and identity of African political elites, and examines how they control their states and scarce resources. Having done that, the paper then analyses their role in determining the nature and extent of development emanating from their countries’ economic engagement with China. It then concludes that it is not how much foreign states invest in African countries that determines Africa's rise, but rather political elites who influence the direction of their states’ development. [ABSTRACT FROM AUTHOR]

This article discusses the emotions and cultural politics within domestic work contexts involving employers and migrant domestic workers in Macau. Since Macau was transferred back to China from Portugal in 1999, the Macau SAR government has pursued a neoliberal economic policy that emphasizes economic growth. With a revitalized economy boosted by casino revenues, thousands of migrant workers have moved to Macau to take advantage of new employment opportunities. Based on first-hand interviews with migrant domestic workers and employers in Macau, this paper examines how emotions are motivated and articulated within the affective interactions between employers and Migrant Domestic Workers (MDWs). This includes how employers’ emotions of fear and disgust towards MDWs contribute to the creation of an MDW population as a feared and inferior “other,” and how such affective operations reinforces the existing hegemonic dominance of naming and legitimizing the exploitation of MDWs. Meanwhile, in the production of domesticity in the home, this paper explores how emotions such as emotional numbness and disgust experienced by the MDWs make affective negotiations and contestation possible, and generate disobedience and resistance to the disciplines and controls imposed upon them. This article also investigates how such emotions, acting as a kind of intervention, operate within the production of specific subjectivities and identities that MDWs want to claim for themselves. [ABSTRACT FROM PUBLISHER]

While debates continue about China's role in sub-Saharan Africa, there is growing consensus that China is a different kind of development partner. One distinct feature of Chinese partnerships is that they include support for the tobacco industry, a sector other donor states and institutions shun. Not only is tobacco a primary agricultural export in a number of Africa states, the state-owned Chinese National Tobacco Corporation is the largest tobacco company in the world. This paper analyses Chinese support for the tobacco industry in three states – Zimbabwe, Malawi and Zambia – documenting how co-operation is shaped by Chinese state capitalism and assessing the development and governance implications. Following an introduction situating the analysis within the context of China–Africa co-operation and tobacco's global value chain, Chinese engagement in each country is analysed. Findings indicate that, despite differences across case studies in terms of development outcomes, common governance implications are apparent. African elites initiated tobacco-related co-operation to meet their interests, but Chinese interests dominated implementation. Consequently, Chinese investments have maintained hierarchal governance of an exploitive and harmful industry. Analyses of Chinese African co-operation need to move beyond public–private paradigms and interrogate the nuances of Chinese state capitalism in Africa. [ABSTRACT FROM AUTHOR]

China–Pakistan Economic Corridor (CPEC), a key artery of China's Belt and Road Initiative (BRI), has attracted the attention of researchers and policymakers within and outside Pakistan. A blend of investment-loan-grant model of over US$ 46 billion, CPEC contains projects aimed at building energy and communication infrastructure and industrial zones. Based on the analysis of primary and secondary data, this study aims to answer two questions: first, what are the main socio-economic or geostrategic prospects of CPEC for Pakistan and China? Second, are there any constraints and challenges in the implementation of CPEC projects and how are these going to be addressed? The paper examines CPEC's potential in bringing about socio-economic development in Pakistan and its financial and geostrategic significance for China. It also explores key constraints related to the fragile security situation and the potential of CPEC to further exacerbate the geopolitical situation in the region, particularly in South Asia, where it could intensify tension between Pakistan and India as the latter perceives CPEC as a Chinese geopolitical and security project. In addition, the long-term financial implications of CPEC are assessed, with particular focus on its potential to become a debt trap for Pakistan in the long run. [ABSTRACT FROM AUTHOR]

Ports are an important driving force for world economic growth, but they consume considerable energy. The marine sector has proposed the development of green ports to achieve low-carbon sustainable development. This paper presents a green project scheduling model of port construction to optimize comprehensive economic and environmental efficiency. Various realistic constraints are considered, including investment scale, energy savings, emissions reduction, and project priority. Comprehensive efficiency involves cost reduction, energy savings, emissions reduction, and other efficiency goals. The problem is formulated as an integer program and is solved using CPLEX in a general algebraic modeling system (GAMS). We use a representative port in China as a case port in solving its green project scheduling. The results show that the port can save 6,527 tons of standard coal, reduce 40,875 tons of CO2, and save 49 million yuan per year in the five-year implementation period. The payback in investing in these green projects is less than six years. From an economic and environmental perspective, the comprehensive efficiency achieved is significant. [ABSTRACT FROM AUTHOR]

Despite the massive forced relocation of residents during urban restructuring in China, there is no systematic overview regarding how residents experience the process and its outcomes. Most studies concerning urban restructuring in China directly equate forced relocation with displacement, which has a negative connotation. This predominantly negative view overlooks the multifaceted effects of forced relocation on relocatees. This paper aims to provide a better understanding of relocatees' experiences during urban redevelopment in China by establishing a conceptual model in which the time sequence of events and their context are central. It conceptualizes forced relocation as a process with various and changing socio-spatial implications over time, and as a specific type of residential mobility that occurs in the context of urban restructuring. As such, the conceptual model divides the process of forced relocation into a pre-demolition stage, a transitional stage and a post-relocation stage and investigates the social, economic, physical, psychological and behavioural dimensions of the experiences of relocatees as affected by the macro and micro context. The conceptual model is used to structure the analysis of the existing literature about residents' experiences and to subsequently identify the gaps in the literature that should be addressed in future studies of forced relocation in the Chinese context. [ABSTRACT FROM AUTHOR]

A reduction in the CO2 emission intensity (ton per gross domestic product) from a base year to a target year with different rates of reduction in each individual year can yield different cumulative CO2 emissions over time, which could have different effects on the climate. In this paper, an indicator is proposed to measure the extent to which the cumulative CO2 emissions are generated by a specific reduction trajectory of CO2 emission intensity, especially for emerging economies with a relatively higher economic growth rate. The proposed indicator is important for less-developed countries and regions in which economic growth is heavily reliant on energy and in which significant potential exists for improvement of energy efficiency. The indicator is applied to evaluate the CO2 emission reduction performance in China's 12th Five-Year Plan period, and the result is not encouraging, especially when the likely gap between the energy conservation goals and temperature goals is further examined. Mitigation goals should be set by considering not only the performance in the final year, but also the reduction in cumulative emissions over the evaluation period. [ABSTRACT FROM AUTHOR]

On the basis of the role of entrepreneurs in the process of economic development, this paper builds an overlapping generation model to examine the impact of income inequality on economic development from the viewpoint of entrepreneur formation. The results show that in the presence of credit constraints, the impact of income inequality on economic development depends on the stages of development. In the early stages of development, income inequality is beneficial for the formation of entrepreneurs through alleviating the credit constraints. In the later stages of development, however, it is income equality which stimulates the formation of entrepreneurs through alleviating the credit constraints. By the data of China's provinces over the period 2003–2012, this paper estimates the impact of income inequality on the formation of entrepreneurs using the system Generalized Method of Moments approach. The results show that income inequality has a significantly negative impact on the formation of entrepreneurs in both one-step and two-step regressions. [ABSTRACT FROM PUBLISHER]

The Slow City concept advocates the development of cities by combining modern technologies and traditional lifestyles to provide efficient transportation and communication and high quality of life for the residents. This study investigates the present situation, development approach and public acceptability of the Slow City concept in China. Based on the theory and the practical application of the Slow City concept in major member countries, the development process of Slow City can be divided into three stages: the origin stage, the development stage and the promotion stage. This study shows that the Slow City development in China is at the third stage. Due to diverse economic foundations, cultural traditions and the sociopolitical environment, the Slow City in China represents different features compared to the Slow City in Europe. A systematic analysis provides a better understanding of the situation of the Chinese Slow City. Then, the authors evaluate the degree of acceptability of the Slow City concept in China based on three aspects: the understanding, the awareness, and the popularity of the Slow City. Based on the results, this paper suggests optimistic growth opportunities for the Slow City in China and provides several strategies with regard to diverse perspectives. [ABSTRACT FROM AUTHOR]

Since the beginning of bilateral ties in 1950, the China–Pakistan relationship has grown significantly. Known as Pakistan's 'all-weather friend', bilateral economic cooperation has been advanced by the China–Pakistan Economic Corridor (CPEC) agreement, worth US$62 billion of Chinese investment in Pakistan. Due to its geo-economic and geopolitical importance, the CPEC is considered a 'game changer' by Beijing and Islamabad. However, since its initiation in 2015, the CPEC has also been a source of tension between centre and provincial governments in Pakistan. This paper analyses the impact of the CPEC on nation-building in Pakistan. In the light of nation-building theories, it further argues that the CPEC has provided Pakistan with much-needed opportunities to address inter-provincial and federal–provincial discord through dialogue and compromises. [ABSTRACT FROM AUTHOR]

This paper examines the impact of the Hoa, an ethnically Chinese, economically dominant minority, on regional economic development in Vietnam. To address the endogeneity of the geographical distribution of the Hoa, we use an important historical episode: the rapid deterioration in Sino-Vietnamese diplomatic relationship that led many ethnic Chinese to flee abroad, particularly to the refugee camps in the Guangxi province of China, in 1979. We find that the effects of proximity to the refugee camps on the share of ethnic Chinese in 1989 were more pronounced for provinces that had a larger presence of the ethnic Chinese population in 1979. We also find strong correlations between the 1989 share of ethnic Chinese (instrumented) and contemporary indicators of economic performance. The results suggest that the ethnic Chinese minority had positive economic impacts on Vietnam’s regional economies and that the post-Vietnam War exodus of ethnic Chinese was likely to have had long-term negative economic impacts. [ABSTRACT FROM AUTHOR]

This paper argues that whilst the relationship between US consumerism and China's low-wage production has underpinned China's economic growth in recent years, policy-makers are increasingly cognisant of heightened internal and external vulnerabilities, namely increased domestic social unrest and downturns in US demand. Despite calls for increased domestic consumption, opinion remains divided as to the extent to which policy-makers will make a genuine departure with China's export-orientation. This paper argues, however, that the direction of the Chinese political economy will depend much on the transformative role of workers’ struggles. Placed in a broader north-east Asian comparative perspective, we argue that China appears to be on the verge of a transition towards a limited labour supply, as evidenced in increasing labour shortages, rising wages costs and new forms of labour unrest. An in-depth case study of the strike at Nanhai Honda in 2010 suggests that China's migrant workers are beginning to develop a class consciousness and move from reactive to proactive demands. Furthermore, the response of the Chinese state and employers has shifted from one of outright repression to one of accommodation. These trends are likely to be highly significant in terms of China's uneven integration into the global economy. [ABSTRACT FROM PUBLISHER]

Talent programmes are treated as a strategic foundation for social–economic development in China. With increasing levels of funding for basic research, talent programmes in basic research are becoming more complex. This increased complexity leads to inefficiencies because it is difficult to coordinate and manage these talent programmes effectively. This paper reports a survey of talent programmes in basic research in China. The results show that talent programmes in basic research have not yet formed an integrated system and that there exist some weaknesses in integration, structure, hierarchy and chronological order. Based on these conclusions, this paper proposes a framework for the talent programme system in basic research using system theory. Furthermore, measures to address weaknesses in the existing talent programme system are provided and analysed according to China's national talent strategy. These measures should be helpful for promoting the operation of talent programmes and optimising their overall performance. [ABSTRACT FROM AUTHOR]

Set against the background of China's changing economy and its rapid rise as a major tourism provider, this paper examines the development of tourism, and tourism policies, in Kanas (Xinjiang), an ethnic inhabited scenic area in north-western China which has seen visitor numbers rise from c. 800 to c. 1 million annually from 1990 to 2013. It uses the first four stages of Butler's Tourism Area Life Cycle model (TALC) as a framework, analysing governments' role in policy-making and implementation, and the tensions and conflicts at each TALC stage. It finds that the TALC is a useful analytical framework in China, despite its command economy, and governments' multiple roles in tourism development. The position of cultural heritage and the characteristics of the Tuva and Kazakh ethnic minority peoples in tourism in Kanas are critically examined, as is China's concept of social harmony and progress. Social harmony is compared - and contrasted - with the emerging concept of the Just Destination in destination planning and management. The minorities are found to be weak in knowledge, capital and bargaining power, but the relationships involved are complex and still evolving. The paper is one of a JOST series on China's new tourism management policies. [ABSTRACT FROM AUTHOR]

The Chinese hukou system has been a hot topic in China study for decades. It not only restricts access to state-sponsored benefits (such as food and housing provision) in pre-reform China, but continues to influence the local-led urbanization in post-reform era. However, few studies have explained why this highly exploitative system persists in China. This paper tries to contribute some insights to interpretation of this issue based on Foucault’s concept of governmentality. It is argued that Chinese hukou system is actually a power relation consisting of a series of governmental technologies based on differentiation, surveillance and calculation in pursuit of economic growth and political stability. The governmental techniques and rationality within the Chinese institutional system make the hukou system persist in modern China. [ABSTRACT FROM AUTHOR]

The Belt and Road initiative is a novel exploration of China towards strategic collaboration with Eurasia countries to an extent of a larger scale with higher and deeper level of cooperation. To meet the growing global demand of transportation, increasing numbers of liner shipping companies collaborate and form alliances to share vessel capacity and reduce capital costs. Effective liner shipping vessel sharing is essential for the Belt and Road initiative in terms of building efficient maritime transport networks. In promoting environmental development, shipping companies are required to attain higher environmental standards. However, limited literature relates vessel sharing to environmental performance. This paper studies the impacts of liner vessel sharing from the economic and environmental perspectives. Two container allocation models are developed for the two scenarios: with and without vessel sharing. The carbon emissions in transportation are calculated under both scenarios. Numerical studies are carried out using services along the China-Indochina Peninsula Economic (CIPE) Corridor. Liner shipping companies could benefit from vessel sharing in terms of significant profit improvement. Vessel sharing could also benefit the environment by reducing the CO2 emissions dramatically. [ABSTRACT FROM AUTHOR]

In 2013, the concept of the ‘Silk Road Economic Belt and the 21st-Century Maritime Silk Road (Belt and Road)’ was initiated by the Chinese government, which involves Asian, European and African continents and their adjacent seas. Logistics plays a core role in such a large framework of economy and trade. In recent years, China, European Union, and Southeast Asia pay much attention to the design and development of the intermodal transportation network towards both economic and environmental efficiency. In this paper, we propose an empty container repositioning model in the intermodal transportation network of Belt and Road (B&R) Initiative by considering both standard and foldable containers. In this model, empty containers are repositioned from the inland of the original area, such as China, to other areas of B&R Initiative related countries and regions, such as European Union and Southeast Asia. We develop a mixed integer linear programming model to determine the optimal repositioning of empty containers via the intermodal transportation network. An Artificial Bee Colony algorithm is developed to solve large size problems in practice and numerical experiments are conducted to show the efficiency of our proposed algorithm. We provide managerial insights regarding the impact on the network performance of foldable containers transportation. [ABSTRACT FROM AUTHOR]

Taiwan is an island in East Asia that strongly depends on imported fossil fuels. To reduce emissions and pollutants, there is interest in wind and solar energy. The current solar energy systems convert solar energy into electricity with high capital cost because of their low efficiency and high operational costs. This paper presents the position of renewable energy methods in Taiwan and the benefits of its expansion. This research suggests that the use of Photovoltaic/thermal (PV/T) collectors and wind turbines can provide appropriate solutions for electricity production due to the benefits of the long duration of insolation of solar collectors and the energy density of wind turbines. However, there are several challenges and problems that must be solved (land conditions and geographical positions are not appropriate for PV/T installation and wind energy system, respectively). Finally, a series of suggestions is presented to solve the economic problems associated with wind and solar energy systems. [ABSTRACT FROM AUTHOR]

Whether military spending is capable of promoting social welfare is currently a controversial issue. The aim of this paper is to investigate how military spending affects the input and output of social welfare (i.e. social welfare expenditures and social welfare index). A panel cointegration analysis and an impulse response function are conducted with multi-country panel data, over two time periods, 1998–2011 and 1993–2007. In addition, to extend a comparative analysis over different economies, BRICS (i.e. Brazil, Russia, India, China, South Africa) and G7 (i.e. the US, Japan, Germany, the UK, France, Italy, Canada) countries are selected as representatives of emerging economies and developed countries, respectively. The empirical results show that military spending enhances social welfare expenditures in developed countries, while the effect is ambiguous in emerging economies. Also, military spending is capable of promoting the social welfare index based on the FMOLS estimation. The comparative analyses indicate that unlike in the G7, the effect of the growth of military spending on the growth of social welfare expenditures is negative and shorter in the BRICS. [ABSTRACT FROM AUTHOR]

China’s defence expenditure has been growing rapidly along with GDP growth during the past two decades. Meanwhile, the income gap has continued to increase. There are conflicting views regarding whether the defence expenditure is capable of reducing income inequality. Therefore, this paper investigates the existence of any spillover effect of defence expenditure on income inequality, with a special focus on the regional differences among 31 provinces and 7 military regions in China. We extend panel cointegration and the impulse response function by using panel data during the period of 1997–2012. The empirical results show that the defence expenditure has an impact on income inequality, and the effect varies over different regions in China. The defence expenditure has a spillover effect on income inequality in the full sample panel and the southeastern panel. An increase in the defence expenditure does not crowd out social welfare spending due to the high level of economic development and government expenditure. On the contrary, in the northern panel, the effect is opposite because of the unbalanced economic development levels within the panel. Beijing as the capital of China, benefits more from the expansion of defence expenditure thus widening the income gap. In addition, the impulse response analyses further confirm a stronger effect of the defence expenditure on income inequality in the northern and the southeastern panels over a short period. [ABSTRACT FROM AUTHOR]

This paper discusses China’s policy of developing an ecologically based circular economy (CE). In this paper, CE is understood as the environmental dimension of the wider vision of China as a ‘harmonious society’, formulated by the 16th Party Congress in 2002 in response to the social and environmental problems following in the wake of the unfettered economic growth policy of China after Mao Zedong’s death in 1976. The 18th Party Congress of CCP in 2012 further strengthened the official resolve to develop China as an ‘ecological civilization’ characterized by harmony between man and nature under the epitome ‘Beautiful China’. The paper discusses CE in this wider context. It is based on a review of literature on CE available in English. The aim is to present a more comprehensive understanding and critique of the Chinese version of CE as part of a wider policy for socioeconomic transformation and development of an ecologically based society, than has so far been done. The paper concludes by discussing bottlenecks and challenges confronting the implementation of CE in this wider socioeconomic context. The main problems are claimed to be the challenge of implementing CE as a top-down social engineering process and the lack of civil society involvement. [ABSTRACT FROM AUTHOR]

This paper uses a formal model to analyze the effects of political military competition among states on the size and composition of state. Great economies of scale in warfare, even distribution of military capability among contestants and greater value of contested resources generate higher level of military capacity and growth of government. If there is decreasing return to scale in state revenue generating function and provision of public intermediate inputs, then there will be an increasing size of civilian public sector relative to that of military. The paper finally studies how waves of military revolutions affected international political military competition and the size and composition of government in history. [ABSTRACT FROM AUTHOR]

The application of the developmental state concept outside its birthplace in East Asia is generally unsuccessful. The culprit is the ‘laundry list’ method commonly seen in the literature. In this paper a ‘strategic capacity’ conceptualisation is used instead, with emphasis on its diverse institutional underpinnings. The paper demonstrates that the Chinese state's approach to industrial relations is integrated with its national development strategy and that crafting institutions of labour management is part of the state's effort at building up its strategic capacity for political, social and economic management. The study delineates the factors shaping labour management institutions, paying special attention to the communist heritage that sets China apart from other developmental states. As such, the concept of developmental state has much wider application. [ABSTRACT FROM PUBLISHER]

This paper investigates the benefits of Chinese companies to the Ugandan economy using data gathered during fieldwork in Kampala. Potential contributions to the Ugandan economy are analysed through a number of economic and managerial factors, and their determinants. This paper shows that potential benefits vary on the basis of sector, investment size and ECCO registration. The potential harm caused by one sector in particular is indicated. The paper presents recommendations regarding how potential benefits can be maximised and harm reduced. Given the increased presence of Chinese enterprises in Africa, these findings are relevant to African policymakers and academics. [ABSTRACT FROM AUTHOR]

This paper studies the dynamic relationships between GDP, residential property prices, and stock prices in Hong Kong. The study is interesting because most people put their wealth into these two markets. We find that there are long-run feedback effects between the two asset markets, providing evidence of wealth and credit-price effects in Hong Kong. There are also long-run, bi-directional causal links between real GDP and real asset prices. Hence, real asset prices can drive long-run economic growth and vice versa. Finally, the paper discusses what policy lessons can be drawn from the empirical analyses that have been undertaken. [ABSTRACT FROM AUTHOR]

The Chinese political economy is a dynamic entity constituted by multiple developmental trajectories. Recent debates on two seemingly divergent 'models' in the subnational regions of Chongqing and Guangdong have foregrounded the potential contradictions of this dynamism. While existing research has attempted to evaluate these trajectories as outcomes of elite politics or ideological incommensurability, an overlooked but no less important aspect is the connections between these trajectories, Mao-era regulatory policies and the post-1978 system of reciprocal accountability. Synthesizing empirical materials from policy documents, academic commentaries, statistical data and interviews with planners from China, this paper provides a critical evaluation of these connections. [ABSTRACT FROM AUTHOR]

This paper asks if economic growth and steps towards a market economy have affected earnings gaps between the Han and nine large urban ethnic minorities: Zhuang, Hui, Manchurian, Tujia, Uighur, Miao, Tibetan, Mongol and Korean. It also asks how earnings premiums and earnings penalties have changed for the nine ethnic minorities. For the analysis we use a subsample of the 2005 China's Inter-Census Survey. We find examples of three different changes over time in earnings premiums and earnings penalties: One ethnic minority for whom the development has been more favourable than for the Han majority; a second category in which development has been similar; and a third category for which development has been unfavourable. We conclude from the analysis that it can be misleading to infer the experience of one ethnic minority from that of another. [ABSTRACT FROM AUTHOR]

The paper examines the complex interrelationship between economic growth and the urban–rural income inequality in China by estimating a simultaneous equation system. This study uses a panel data-set that covers 29 provinces from 1988 to 2007, and compares the earlier period with the later period. It finds a robust and positive impact of the rural surplus labor on urban–rural inequality, which is consistent with Lewis’ dual economy theory. Economic growth is found to aggravate the urban–rural inequality in the earlier period, but there is no hard evidence in the later period. This implies that China has not yet, or at least by 2007, entered the second stage of the Kuznets curve. We also find no robust evidence on the impact of the inequality on growth in either period, but find robust evidence on the impact of both foreign direct investment and exports on the increasing inequality during the earlier period, whereas no significant impact in the later period is found. Finally, the spread of education reduced the inequality in the earlier period, but no such impact is robust in the later period. [ABSTRACT FROM AUTHOR]

This paper examines whether defense expenditures contributed to economic growth in China for the 1952–2012 period. We examine the contribution of defense to economic growth using recently published official data on economic activity, defense, and government expenditures. We employ the Feder-Ram and augmented Solow models of economic growth to explore the defense-growth relationship. The Feder-Ram model appears to poorly explain economic growth in China. The augmented Solow model suggests, however, that a 1% increase in defense expenditures raises the economic growth rate by approximately 0.15–0.19%. [ABSTRACT FROM PUBLISHER]