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African countries face an economic transformation gap. Given the large and growing Chinese presence on the African continent, a fundamental question is whether Chinese firms contribute to, or hinder, economic transformation in Africa. This article conducts a scoping review of over one hundred sources, examining the pathways through which Chinese firms can affect economic transformation. On balance, the literature points to a positive role of Chinese firms. Africa–China trade leads to mixed results, while Chinese investment and infrastructure construction are found to contribute positively to transformation. Chinese firms are also found to support capacity building, spillovers and innovation in African countries. [ABSTRACT FROM AUTHOR]

Since 2001, the exports of foreign-invested enterprises (FIEs) have accounted for more than 50 percent of China's total exports. As foreign capital occupies a high proportion of the total capital of FIEs, most FIEs' capital gains are foreign factor income. Although these gains are calculated as a part of China's GDP, they do not belong to China's national income. To determine the real contribution of exports to China's welfare, the present paper analyses the impact of exports on China's national income using a non-competitive input-output model capturing processing trade. The results show that every US$1000 of China's exports generates US$506.8 of national income. The real contribution of exports to China's welfare is much smaller than what we expected. This suggests that China should endeavor to improve the gains from international markets or find another engine to maintain its economic growth. [ABSTRACT FROM AUTHOR]

Does foreign direct investment (FDI) into developing countries affect the growth of local firms in host countries? Using a dataset of 38 sectors in China's electrical and electronics industry, in this paper, we analyze whether FDI has a positive effect on local firms, with technology spillovers, added value and increasing total factor productivity, or a negative, market stealing, effect. Estimating the relationship between growth of local firms and investment of foreign firms, our results show that FDI is likely to have a negative impact on the growth of local firms in sectors with large disparities in technology and less experience in business. Therefore, local firms lacking in technology need to find markets with no competition from foreign firms or determine strategies to compensate technology disparities. [ABSTRACT FROM AUTHOR]

Various reasons have been put forward to explain the massive accumulation of non-performing loans in China. This paper applies the financial-restraint model as the analytical framework and argues that failure to create sufficient economic rents is the chief reason underlying the current dismal performance of banks. While the formal financial system is less important than the informal system—especially for financing the private enterprises that are playing a crucial role in economic growth—not addressing the non-performing loan crisis in the formal financial system will likely invite an economic slow-down. [ABSTRACT FROM AUTHOR]

The research analyses small and medium enterprises (SMEs), i.e. township and village enterprises (TVEs), operating in rural China over the last decade. It focuses on factors that affect the growth of TVEs run by Township and Village (TV), defined as collective, at provincial level. The paper examines SME theory and the role of human capital in the SMEs development. Following this, it analyses the development of Chinese TVEs and their role in the socio-economic development of rural areas and of the national economy. A panel analysis is then performed, using provincial panel data of collective TVEs over the period 1986–93, in order to capture the major determinants of provincial growth. The results of the panel estimations highlight some important features of TVEs run by TV sector, and provide empirical evidence in support to the positive role of clustering (measured through a new index) and human capital in the provincial growth of this sector. Copyright © 1999 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

Market-oriented economic reform has given much greater autonomy to state and collective enterprises' managers to make production, investment and marketing decisions. However, as the assets of these enterprises are still owned by government at different levels, the decision-making and risk-bearing functions of enter-prises may be divorced, firms are more likely to maximize income per employee rather than firm's profits. This hypothesis is tested in this paper by analysing Chinese enterprises' earnings determination behaviour using a data set encompassing state, collective and private sectors. The main findings are that the state and the collective sectors behave more like labour managed firms in that they try to maximize income per worker rather than profit, whereas private-sector firms are profit maximizers. Furthermore, collective-sector firms which bear a higher degree of risk, appear to base their profit sharing decisions more on enterprises' economic and financial performance, than do state-owned enterprises. Hence collective enterprises' bonus payments improve productivity more than do state-sector bonuses. [ABSTRACT FROM AUTHOR]

The Government of China assists Malawi with infrastructure, grants and loans, and Chinese businesses provide cheap commodities to Malawians. Despite this, Tumbuka northern Malawians do not conceptualise the Chinese as doing development. Rather, they perceive the Government of China as exploiting their government and conceptualise Chinese goods as signifiers of Malawi's underdevelopment. This article argues that Tumbuka apprehensions about China reflect a prominent Malawian discourse, where 'development' is associated with westernisation and is gifted into a nation and community by wealthy outsiders. This finding goes someway to explaining Malawians' reactions to Chinese 'developers' and presents a challenge to western development norms. Copyright © 2017 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

This study investigates the exchange rate exposure of Chinese firms at the industry and firm level based on the conventional capital asset pricing model ( CAPM) framework. At the industry level, the dynamic conditional correlation MGARCH (DCC MGARCH) estimates demonstrate that the market model and three-factor model are appropriate for exposure measurements, and industry returns are more likely to be exposed to unanticipated changes in the real exchange rate and the trade-weighted effective exchange rate, particularly for manufacturing industries. At the firm level, although the seemingly unrelated regression (SUR) estimates vary across markets, it is apparent that there is a relationship between firm size and exposure effects, which also show that lagged exchange rate changes have significant exposure effects on firm returns. This study finally suggests that non-financial firms should set up special commissions to hedge currency risks of their future cash flows. [ABSTRACT FROM AUTHOR]

This study focuses on the impact of knowledge creation capability and absorptive capacity on product innovativeness. Capabilities contribute through their uniqueness, their integration into effective configurations, and their deployment in response to external environment changes. Therefore, this study examines the individual (uniqueness) and interactive (integration) effects of knowledge creation capability and absorptive capacity on product innovativeness as well as how these effects vary in differing technologically turbulent contexts (deployment). Based on a survey of 212 Chinese firms, this study finds that in addition to their individually positive effects, knowledge creation capability and absorptive capacity have a synergistic effect on product innovativeness. Moreover, the individual effect of knowledge creation capability and the synergistic effect become stronger as technological turbulence increases, whereas the impact of absorptive capacity tends to be dampened by technological turbulence. [ABSTRACT FROM AUTHOR]

With the development of the Chinese economy, how to make the right decision regarding firms' risk is becoming more and more important. Case-based reasoning (CBR) is a potential method that can help forecast business risk status in advance; it is easy to apply and is able to provide good explanations of output. In order to obtain more accurate prediction with CBR, it is essential to investigate factors that influence CBR's performance, and to optimize these factors sequentially for the improvement of CBR's performance in firm risk prediction in emerging markets under a more practicable assumption. We verified that sequential optimization of feature selection, feature weighting, instance selection and the number of nearest neighbours is a possible alternative for improving predictive performance of CBR forecasting under the assumption that the number of failed samples is smaller than that of nonfailed samples. The detailed implementation includes: (1) selecting significant features through a correlation matrix and reducing feature dimensions with factor analysis; (2) using variance contribution ratios of features from factor analysis as feature weights; (3) eliminating noisy cases via a state matrix; and (4) obtaining the optimal number of nearest neighbours from empirical results among different numbers of nearest neighbours. To validate the usefulness of the sequential optimization approach, we applied it to a real-world case: firm risk prediction with imbalanced data from the emerging market of China. Experimental results show that predictive accuracy of CBR applied in the emerging market was improved with the sequential optimization approach. Insightful thoughts from the results of the sequential optimization of the CBR forecasting system on modelling social tasks are also provided. [ABSTRACT FROM AUTHOR]

The article offers the author's insights regarding the impact of ASEAN-China Free Trade Area (ACFTA) on insular Southeast Asia. He mentions that China proposed the ACFTA believing that it would promote its rise as an economic power. He notes that free trade agreements like ACFTA resulted to the removal of policy instruments by which nations have been able to buffer and control the impacts of external trade on their local economies and vulnerable to competition from overseas and exposure of local enterprises to competition from overseas. He adds that ACFTA has its own internet site, ASEAN-China Free Trade Area, which is in English and Chinese languages.

Cleaner Production (CP) has been advocated worldwide as a strategy for companies to obtain environmental and economic benefits simultaneously. This analysis of how city-level CP programmes were implemented in Changzhou and Nantong (Jiangsu Province, China) finds that both cities failed to meet the Province's targets to implement CP at all large- and medium-sized companies by the end of 2000. Ineffective vertical control, weak inter-agency co-ordination, and lack of alignment between CP requirements and the core missions and operating procedures of implementing agencies have impeded CP implementation in the two cities. The relatively few successful CP outcomes at companies are based on the professionalism and skills of individual implementing agents. However, successes that rely exclusively on individual agents may not last, and thus institutional changes will be needed if the government's CP programmes are to lead to broader CP adoption. [ABSTRACT FROM AUTHOR]

The article reports that the China-Africa Development Fund worth $5bn, which is noted by Beijing as an economic assistance, will be utilized for Chinese enterprises and its projects for Africa. Relative to this, development experts believes that this tying aid to purchasing services and goods from the donor country is inefficient and wasteful while majority of the donor governments have been abandoning it because they that tying aid minimizes its effectiveness by as much as a quarter. On the other hand, most of the aid assistance of Beijing to Africa requires the construction of infrastructure and other contracts to be divided up.