Search

Copyright of Pacha: Revista de Estudios Contemporáneos del Sur Global is the property of PACHA REVISTA DE ESTUDIOS CONTEMPORANEOS DEL SUR GLOBAL and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Purpose: This paper aims to examine the question, "How do firm-level, home-country and host-country environmental performance (EP) affect the outward foreign direct investment (OFDI) of Chinese multinational enterprises (MNEs)?" Design/methodology/approach: The authors examine the relationships between EP and OFDI propensity and between EP and OFDI intensity using a sample of 359 Chinese firms in industries with a significant environmental footprint between 2009 and 2019 (2,002 firm-year observations) and a Heckman two-stage model. Findings: This study shows that the propensity for OFDI by Chinese MNEs is significantly and positively related to the firm's prior EP and the country-level EP of China. However, the amount of FDI invested is significantly and positively related to the firm's prior EP and negatively related to the EP of the host country. Research limitations/implications: The findings suggest that FDI in a country by an MNE is determined by a combination of firm-level EP, home-country EP and host-country EP. This study finds that the decision to undertake FDI (propensity) and the decision about how much to invest (intensity) are determined by different factors. The propensity for FDI is determined by the home-country EP and firm-level EP. However, the intensity of FDI is determined by a combination of the host country EP and firm-level EP. A limitation is that this study only examines MNEs in China, so the findings may not apply to other countries. Originality/value: This paper shows that MNEs' EP is positively related to the propensity and intensity of their OFDI decisions. However, this paper shows that the home-country and host-country EP may also play an important role in determining the propensity or intensity of OFDI. [ABSTRACT FROM AUTHOR]

This paper compares the paths of development taken by China and Malaysia in their attempts to pursue catching-up. While both China and Malaysia rely to a large extent on attracting foreign direct investment, China has, since its economic liberalisation in the late 1970s, implemented a more proactive set of industrial policy to embed foreign know-how and promote domestic technological deepening. This is illustrated through a comparison of the evolution of the Chinese and Malaysian semiconductor (upstream) industry. Although their progress remains tentative at this stage, China seems to be showing more concrete signs of technological and industrial sophistication than Malaysia. Such mastery is a useful platform for Chinese firms to progressively climb the technological ladder and to capture more value from the production and sales of increasingly complex goods and services. The principles discussed in this paper provide policy lessons, or at least some initial guidance, for other developing economies aspiring to move up the value chain. [ABSTRACT FROM AUTHOR]

Nigeria is one of the top countries of China's outward foreign direct investments in energy and power projects to meet the needs of China's fast-growing energy-intensive industries. Following several risks faced by investors to invest in countries with high levels of regulatory, judicial and political uncertainties that appeared in most African states, including Nigeria, contracting parties often take steps to advance and enhance their investment relations and investment climate through an agreement or bilateral investment treaties. This paper examines the China–Nigeria Bilateral Investment Treaty (BIT) and the investment arbitration framework in place in the energy sector. It includes a general analysis on China–African BITs and features common difficulties and possible ways of addressing them. It analyzes the adequacy or otherwise of these frameworks and the various protections afforded to the contracting parties or the host state and the investors. It contends that the current China–Nigeria BIT is lacking essential environmental and social aspects, including sustainable development, corporate social responsibility, transparency and respect for the human rights of host communities, for the promotion of better China–Nigeria investment relations. Notwithstanding the fact that there has not been any known energy dispute in China–Nigeria-related projects, this paper calls for the need for an effective and efficient dispute resolution mechanism to address future disputes between the parties, in order to promote a favorable investment climate for Chinese (and international) investors willing to invest in Nigeria. It advocates that the China–Nigeria BIT should be unambiguous and well drafted to cover issues that could best address investment disputes in the energy sector. [ABSTRACT FROM AUTHOR]

Green innovation (GI) has the dual attributes of green development and being innovation driven, and it has become an inevitable choice for solving the prisoner's dilemma of environmental protection and economic development under the action of the concept of sustainable development in the new era. This paper aims to clarify how environmental regulation (ER) can achieve a win‒win situation of GI and environmental protection by using data from prefecture-level cities in China and creating a dynamic panel model, quantile model, spatial econometric model, and panel threshold model to empirically analyze the dynamic effect and spatial effect of ER on GI as well as the nonlinear characteristics of the relationship between them and to examine the moderating effect of foreign direct investment (FDI). The results show that ER significantly promotes the development of the GI level and that FDI can play a positive moderating role. The impact has regional heterogeneity, time period heterogeneity, and resource endowment heterogeneity. After several robustness tests, the empirical conclusions are still credible. Based on the empirical conclusions, this paper makes policy suggestions on ER, foreign investment introduction, and the coordinated development of regional GI. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to examine the impact of host country corruption on foreign direct investment (FDI) from China to developing countries in Africa. With the opposing arguments that corruption is detrimental to or instrumental in FDI and mixed empirical evidence, this paper contributes to the literature by providing new evidence on the issue. Additionally, little research has been done on the impact of corruption on FDI made by developing country multinationals to developing countries. This paper fills a void in this area. Design/methodology/approach: Based on the published literature, as well as China and Africa contexts, the authors develop hypotheses that host countries with low corruption receive more FDI and resource-seeking investments weaken the relationship. The annual stock of Chinese FDI in 35 African countries, host country corruption data and other control variables from 2007 to 2015 are collected. Feasible generalized least squares models are used to test the hypotheses. Additional robustness tests are also conducted. Findings: The findings support the hypotheses. Specifically, Chinese investors make more investments in host countries with low corruption except for resource-seeking investments in resource-rich host counties. The results are statistically significant accounting for various control variables. The results of the robustness tests show that the main findings are robust. Originality/value: First, this study provides new evidence on the impact of corruption on FDI. Second, this study also fills a void by examining FDI from a developing country, China to other developing countries in Africa. Finally, this study also has a practical implication for Chinese multinationals investing in Africa. [ABSTRACT FROM AUTHOR]

As there are many studies on the predictors of corporate social responsibility (CSR) reporting, the influences of foreign direct investments (FDIs) knowledge spillovers (KSs) on CSR reporting in developing countries remain unclear. This paper introduces the passive‐learning KSs concept to explain whether, why, and how domestic firms learn CSR knowledge from their foreign counterparts. First, we investigate the relationship between foreign ownership and the quality of CSR reporting (CSRQ). Second, we test the moderating effect of three types of direct institutional pressures: the green development policy, the mandatory CSR reporting requirement, and CSR regulations issued by the State‐owned Assets Supervision and Administration Commission. Third, we examine the moderating effect of board interlocks to explore the indirect impacts of institutional pressures. We run regressions on a sample of Chinese A‐share listed companies and the hypotheses are generally supported. This paper contributes to the literature on CSR reporting and FDIs KSs by adopting the passive‐learning KSs theory to explain CSR KSs in developing countries. [ABSTRACT FROM AUTHOR]

What type of investment strategies are effective for foreign venture capital (VC) firms investing in transition economies? This is the research question we address in this paper by analyzing recent institutional developments and investment activities of foreign VC firms investing in China. We find that foreign VC firms identify China as lacking fully-developed institutions necessary to effectively support VC investing. We further find that foreign VCs have evolved unique proactive, hands-on investment strategies via a bumpy road of investing in China: initially dominating the Chinese VC industry, but since the great financial recession playing a still-significant but reduced and disadvantaged-role subservient to the rapidly increasing role of domestic VC firms. We developed a novel triangulation research methodology that allows us to provide significantly more depth in our analysis of how foreign VCs compete in transition economies. This research contributes to both the institutional theory and VC investing literatures. We suggest that foreign VCs can increase their competitive advantage by developing hands-on value-added investing strategies, when investing in transitioning markets. [ABSTRACT FROM AUTHOR]

The papers in this special issue focus on modelling knowledge and innovation spillovers with an emphasis on the context of China. The first paper decomposes the relative importance of economic growth into knowledge spillovers and technical diffusion, using cross-country data on a worldwide scale, as well as provincial data at the regional scale of China. The second paper investigates whether the economic and financial performances of reformed state-owned enterprises are affected by the presence of non-state-owned enterprises from related industries. The final paper examines how the spatial spillovers from inward and outward foreign direct investment affect the innovation activities of domestic firms in China's Shandong province. This special issue contributes to a better understanding of the channels for transferring knowledge and innovation spillovers in China. [ABSTRACT FROM AUTHOR]

Environmental resources play an extremely important role in economic development. In the context of China's economic development entering a new normal, attaching importance to environmental protection and strengthening environmental regulations will have an important impact on the original foreign direct investment (FDI) and China's economic development. Therefore, this paper combines the characteristics of the "new normal" of China's economic development, takes 30 provinces in China from 2008 to 2017 as the research object, and uses the PVAR model and impulse response function to re-verify the interaction mechanism and path among environmental regulation, FDI and high-quality economic development. The study found that: (1) There is an obvious mutual promotion relationship between environmental regulations and the quality of China's economic development and economic development environment. Strengthening environmental regulation is conducive to the realization of China's economic "new normal" development goal. (2) Although the strengthening of environmental regulation will have a significant constraint effect on FDI and China's economic growth rate, but the effect is relatively small. (3) FDI and economic growth rate variables are mutually motivated and promote each other, but both of them have a significant inhibitory effect on regional environmental regulation. In general, under the background of the "new normal" of China's economic development, appropriately increasing the intensity of environmental regulation is not only conducive to environmental protection and promoting high-quality and sustainable economic development, but also can serve the purpose of guiding the structure of foreign investment and transforming the mode of economic growth. [ABSTRACT FROM AUTHOR]

China tends to be a dominant figure in the literature on global land grabbing. It is either cast as a major land grabber in distant places such as Africa, or as a key player in crop booms elsewhere because it provides for massive market demand, such as for soya from South America. These are all important issues and are well covered in the literature. However, the crop booms inside China that involve transnational capital and investors - and have provoked conflict around land politics - have been overlooked. Spotlighting the issue of land grabbing inside China reminds us that capital accumulation is principally interested in geographies and settings where it can generate profit - regardless of nationalities, boundaries, structural or institutional conditions. This paper hopes to contribute towards a more refined picture of global land grabbing. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to investigate the primary motivations for China's outward foreign direct investment (ODI) decisions. Design/methodology/approach: Using a panel data sample covering the period 2003–2012 and a comprehensive set of 176 host countries. Findings: This study finds that market size, trade variables and natural resource variables are strongly related to the Chinese ODI stocks. This indicates that Chinese ODI decisions are driven by both market- and resource-seeking motives. The subperiod sample test results lend even stronger support to the market-seeking motive for ODI. Originality/value: These results seem to emerge from the policy changes that were undertaken during the sample period. Consistent with subgroup tests, this study finds that the main purposes of China's ODI in the top 100 countries are natural resource explorations and production line replacements. [ABSTRACT FROM AUTHOR]

This paper uses cointegrated error-correction modeling to investigate the nature of Granger causality between corruption and foreign direct investment (FDI) in two rapidly emerging economic superpowers; namely, China and India. The results for China and India indicate that short-run Granger causality unidirectionally runs from FDI to corruption without feedback. These empirical findings (along with supporting theoretical arguments) dispute prior correlational-based studies which claim that corruption instigates changes in FDI. However, our results further support significant long-run causality running from corruption to FDI inflows, but only in India (not in China). This finding reinforces theoretical propositions of lower corruption arbitrariness in China as compared to India. Furthermore, short- and long-run causality between corruption and FDI in India appear dynamic in nature and time-sensitive implying some difficulties for policymakers in their fight against corruption. The paper discusses possible underlying reasons for the empirical results and draws several policy and Asian business implications. [ABSTRACT FROM AUTHOR]

The study aims to investigate the impact of China's outward foreign investment (OFDI) in Cambodia, Laos, Myanmar, Vietnam, and Thailand (CLMVT). The motivation behind this paper is to examine a pivotal role in determining the macroeconomic factors in these five hosting countries as the "neighboring model" of China. Using panel data for China's outward to her five neighboring countries in the Greater Mekong Subregion (GMS) for the period 2007–2019. This paper uses two different panel specifications models named correlation from classical statistics and Bayesian statistics where empirical results of this research qualify that China's OFDI is the main factor to have a positive influence on the macroeconomic factors in CLMVT. The GMS region is currently challenging the general FDI theory from the "neighboring model" of China's going global" strategy using OFDI as a pioneer for success for the small developing country namely, CLMVT. Many studies showed that the implementation of the "Belt and Road" strategy will help China increase investment in countries along the route, which will further promote the implementation of the "on going" strategy since 2013. We use panel data for China's outward to her five neighboring countries in the Greater Mekong Subregion (GMS) for the period 2007–2019, measures the potential of China's outward foreign direct investment by using two different panel specifications models named correlation from classical statistics and Bayesian statistics. This research implements the core concept of Bayes' theorem. This theorem allows us to use a priori beliefs of probability to combine with evidence that it can be found (update every economic situation in CLMVT countries) then this method will have a new prediction of the posterior probability distribution. The posterior probability distribution will be received from the simulation algorithm once again. It would be calculated from the scope of every scenario that can be happening based on our belief in the future. The Bayesian correlation testing still confirms that the FDI inflow from China per GDP of CLMVT countries has the most play important role to drive the macroeconomic of these five countries' economy. [ABSTRACT FROM AUTHOR]

Employing an institutional – FDI – economic growth lens the purpose of this paper is to identify and explain the impacts of Chinese FDI (CFDI) on host countries' economic growth. While extensive research has been undertaken regarding determinants of CFDI, little is known about the actual outcomes of CFDI in recipient countries. Based on a sample of 22 countries over the period 2003–2018, our results identify that while general flows of FDI exhibited positive impacts on host countries' economic growth, CFDI had a negative effect on host country economic growth. From the host country perspective, given the emphasis that is placed on FDI as an instrument of growth and development, our findings raise questions about what host countries are actually gaining from CFDI and the potential implications of whether pursuing the 'Beijing Consensus' as opposed to the 'Washington Consensus' is really in the long-term interests of countries. [ABSTRACT FROM AUTHOR]

This paper investigates a large body of research for the purpose of sorting out the variety of data-sets, research methods, and findings that have emerged over the past decade concerning FDI productivity spillovers in Chinese industry. The review includes 16 papers, which together represent a striking range of data-sets, models, econometric strategies, and research results. After reviewing six dimensions of comparisons of the literature, the paper seeks to identify the common findings, explain why the differences are so extensive, and identify a set of guidelines for framing future research in this field. [ABSTRACT FROM AUTHOR]

This paper investigates whether environmental regulations affect inward foreign direct investment (FDI). The identification strategy uses the reduction target policy for air pollutants during eleventh Five‐Year Plan period implemented by the Chinese government in 2006. Our difference‐in‐difference‐in‐differences estimation employs three‐dimension of variations; prefecture (i.e., high target prefectures vs. low target prefectures), industry (more polluting industries relative to less polluting ones), and year (i.e., before and after 2005). We find that tougher environmental regulations lead to less inward FDI through increasing the probability of exit and reducing the probability of entry of foreign invested enterprises. Mechanism analysis shows that foreign invested enterprises with relatively low productivity demonstrate strong negative response. This allocation of resource improves industry productivity. [ABSTRACT FROM AUTHOR]

Environmental regulation is an effective tool to control environmental problems caused by foreign trade. Research conclusions are inconsistent on the relationship between environmental regulations and exports. Based on the Heckscher-Ohlin-Vanek model, this paper provides an empirical analysis for examination the effect of environmental regulations on manufacturing exports, adopting panel data of 16 sectors from China's manufacturing during 2005-2015. Material capital, human capital, technology input and foreign direct investment are simultaneously selected as independent variables to explore the export impact of corresponding changes in these endowments. The pollution intensity index was introduced to categorise different manufacturing sectors. Results indicated that China's environmental regulations intensity play different roles in the manufacturing sectors with different pollution levels. Stricter environmental regulation improves the export of intensive pollution manufacturing sectors but hinders exports in light pollution sectors. Meanwhile, other endowment factors also exert varying effects in the light, moderate and intensive pollution manufacturing sectors. [ABSTRACT FROM AUTHOR]

India has failed to develop merchandise exports as China has. The Indian government is aware of this challenge and hence has created a specific plan for the industry called Plan 2025 to benchmark Chinese reforms. However, Plan 2025 fails to enhance the industry at this stage. This paper examines how some successful economic reforms in China did not have the desired impact in India. This paper shows that some key success factors of the Chinese experience have deliberately not been included in India (absence of agglomeration effect with emerging neighbours, rent capture behaviour at a political level, same focus on IT & service instead of manufacturing from the SEZs, absence of upgrade to the current Chinese reforms). Still more significantly, there were policy mistakes. The Indian willingness to focus on knowledge generation for the manufacturing sector (as it has always done for IT & services) instead of on knowledge exploitation as China did, prevented India from using the backwardness advantage to obtain technology transfer and spillover to the rest of the economy. Therefore, this paper makes some recommendations for Indian policy-makers on how to improve the current flaws detected in the application of some Chinese economic reforms. As there is a need for state level analysis, the methodology consisted in comparing the past economic history and trajectories of two Indian States (Gujarat & Karnataka) with two Chinese Deltas (Yangtze River and Pearl River) using the approaches of the regional innovation systems (RIS) and the regional entrepreneurial ecosystems (REE). [ABSTRACT FROM AUTHOR]

Copyright of Research Papers of the Wroclaw University of Economics / Prace Naukowe Uniwersytetu Ekonomicznego we Wroclawiu is the property of Uniwersytet Ekonomiczny we Wroclawiu and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Purpose: This paper aims to use the institutional perspective to jointly explore the underlying motives that drive Chinese private small- and medium-sized enterprises (SMEs) to invest in the developed economy of Germany and the role China's institutional environment is playing in this context. Design/methodology/approach: Given the lack of recent in-depth studies, the authors use multiple case study method to present rich insights from elite interviews with executives belonging to seven Chinese SMEs and industry experts, as well as the study of firm documents, social media and the latest governmental policies. Findings: The results indicate not only market-, resource- and strategic asset-seeking motives, but contrary to the literature, also efficiency-seeking goals. Further driving factors are the integration in global value chains and high degrees of entrepreneurial orientation. The second major finding is that China's institutional environment induces widely divergent effects. Its ministries established new outward foreign direct investments (OFDI) support measures that are beneficial for some SMEs' post-entry operations. However, some firms are not aware of any support measures or suffer from discrimination that hinders innovation and from which they try to escape by investing abroad. Originality/value: This paper considers different levels of analysis (firm, entrepreneur, institutional environment) to investigate Chinese SMEs' motives in Europe's largest market. By examining why and how these firms use OFDI to a developed economy, the authors address an essential question for China's economy that is of primary political and academic concern ("How can China get that improved innovation that often seeds entrepreneurial growth?"). In addition, the study contributes to the growing discussion of institutional escapism in emerging markets by revealing five institutional hardships Chinese SMEs are facing and how this relates to their internationalization. [ABSTRACT FROM AUTHOR]

By analysing comprehensive firm data from 1999 to 2013 categorized by zip code, we find that Foreign Direct Investment (FDI) companies consistently received more local government subsidies in China. When comparing FDI within the same county and year, it becomes evident that FDI creates positive growth and productivity spillovers for other businesses in the same zip code. Furthermore, there is additional evidence to support the amenities channel as a possible productivity spillover channel. This paper makes a significant contribution to the debate regarding FDI's spillover effects at a disaggregated level. [ABSTRACT FROM AUTHOR]

This paper studies the impacts of geographic proximity and investment connection on the outward foreign direct investment (OFDI) decisions by Chinese multinational firms, including both greenfield investment and cross‐border merger and acquisition. We model firms' OFDI expansion with the lagged spatial structure, and collect outward FDI data of 3479 Chinese multinational firms from 2002 to 2013 whose investment destination covers more than 160 countries. We find that the spatial expansion of firms' existing OFDI play an important role in shaping their future investment decisions. Firstly, firms tends to invest in destinations that are closer to China, and expand further into destinations that are geographically closer to their existing OFDI locations. This is the geographic network effect. Secondly, we also find that firms are more likely to invest in countries with more intense FDI from China, and extend their OFDI networks to destinations with stronger investment connections with their existing subsidiary locations. This is the investment network effect. We show that these two effects are robust to alternative investment and geographic network measures and further controls. [ABSTRACT FROM AUTHOR]

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]

Copyright of Journal of International Business Studies is the property of Springer Nature and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The spatial interaction model is an effective way to explore the geographical disparities inherent in the Belt and Road Initiative (BRI) by simulating spatial flows. The traditional gravity model implies the hypothesis of equilibrium points without any reference to when or how to achieve it. In this paper, a dynamic gravity model was established based on the Maximum Entropy (MaxEnt) theory to estimate and monitor the interconnection intensity and dynamic characters of bilateral relations. In order to detect the determinants of interconnection intensity, a Geodetector method was applied to identify and evaluate the determinants of spatial networks in five dimensions. The empirical study clearly demonstrates a heterogeneous and non-circular spatial structure. The main driving forces of spatial-temporal evolution are foreign direct investment, tourism and railway infrastructure construction, while determinants in different sub-regions show obvious spatial differentiation. Southeast Asian countries are typically multi-island area where aviation infrastructure plays a more important role. North and Central Asian countries regard oil as a pillar industry where power and port facilities have a greater impact on the interconnection. While Western Asian countries are mostly influenced by the railway infrastructure, Eastern European countries already have relatively robust infrastructure where tariff policies provide a greater impetus. [ABSTRACT FROM AUTHOR]

Copyright of Dokuz Eylul University Journal of Graduate School of Social Sciences is the property of Dokuz Eylul University Graduate School of Social Sciences and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper investigates the changing sources of growth in post-reform China. Using cross-province regressions, this paper finds that, in earlier periods, exports, foreign direct investment and marketization were significantly related to per capita income growth, whereas since the late 1990s, foreign direct investment and marketization have lost their significance and have been replaced by new sources of growth, such as innovation and knowledge, with only exports continuing to be important. This finding is robust after controlling for other variables representing other economic policies and provincial characteristics. We also tackle the possible endogeneity of innovation variables using the instrumental variables estimation method. [ABSTRACT FROM AUTHOR]

While outward foreign direct investments (OFDIs) shift resources from a home economy to foreign destinations, increased market and resource access as well as technological and knowledge effects in return have positive impacts on the home region. Such effects may be especially important in emerging contexts, such as that of China. Analyzing data of 285 Chinese city-regions, this paper investigates the impact of OFDIs on home-region income. We show that foreign investment activity positively and significantly impacts income levels in the home region, with differentiated effects depending on the knowledge characteristics of investments and regional absorptive capacity. [ABSTRACT FROM AUTHOR]

This paper applies a difference‐in‐differences framework to explore the economic consequences of the recent U.S.–China trade war. The average abnormal returns of Chinese listed firms during a period centered on President Trump's announcement on 22 March 2018 are taken as a proxy for the firms' exposure to the potential trade war. Firms more negatively exposed are found, surprisingly, to report higher total revenues in the post‐announcement period. The results indicate that the Chinese firms tend to reallocate their business from overseas to the domestic market. Such within‐firm reallocation is found to be more pronounced among private firms, exporting firms and non‐FDI firms. Besides, firms with higher negative exposure increase total investment and financing but decrease foreign investment after the trade war. [ABSTRACT FROM AUTHOR]

Purpose In this paper, the authors aim to examine trade in parts and components of Mexico, Chile and Brazil, focusing in particular on trade of television parts (SITC 7711) and semiconductors (SITC 7763) with China and South Korea. They also study the impact of foreign direct investment (FDI) on supply chain activities.Design/methodology/approach The authors use sub-categories of trade data to look at export and import of parts and components involving China, South Korea, Mexico, Brazil and Chile. They also use two-stage regressions to examine the impact of FDI on supply chain trade.Findings The authors found preliminary evidence that there may be early signs of an emerging Trans-Pacific production network between these three Latin American economies and the China-based and South Korea-based East Asian supply chains. The authors argue that this budding network will improve economic welfare. To deepen the Trans-Pacific supply chain, it would be desirable for China and South Korea to consider joining the Trans-Pacific Partnership (TPP). In addition, FDI enhances trade in components.Practical implications To deepen the Trans-Pacific supply chain, it would be desirable for China and South Korea to consider joining the TPP. In addition, it would be beneficial for these Latin American economies to encourage more direct investment in infrastructure and in manufacturing facilities from Asia.Originality/value This paper is one of the earliest research papers examining the Trans-Pacific supply chain, linking China, South Korea with Mexico, Brazil and Chile. The authors also study the impact of FDI on supply chain activities. [ABSTRACT FROM AUTHOR]

This paper uses industry and province specific Chinese industrial data to demonstrate a potential causal link between two strands of the FDI literature. The first strand suggests that the impact of spillovers from inward FDI is less robust in middle-income economies than in either high-income or low-income economies. The second strand suggests diminishing returns of inward FDI on horizontal labor productivity in low-technology industries but not in high-technology industries. This paper suggests a link between these two phenomena. Specifically, if both FDI intensity and industry mix vary with the level of economic development, then an industry-dependent relationship between inward FDI and horizontal spillovers could cause middle-income economies to derive fewer benefits from inward FDI than either high- or low-income economies. This paper also verifies the curvilinear relationship between FDI in low-technology industries and horizontal labor productivity without relying on problematic FDI from Hong Kong, Taiwan and Macao. [ABSTRACT FROM AUTHOR]

Copyright of Hungarian Statistical Review / Statisztikai Szemle is the property of Hungarian Central Statistical Office and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper estimates the impact of environmental regulation on foreign investment using the 2003 Pollution Discharge Fee Reform in China as a quasi‐natural experiment. Using a Difference‐in‐Differences method to investigate foreign investment from 2000 to 2007, we propose the "Pollution Deterrence Hypothesis" and the "Green Strategy Hypothesis" and provide evidence for the debate between these two hypotheses. We find that foreign investors' strategic responses to enhanced environmental regulations depend on their initial shareholder status in a firm. More specifically, after increased environmental regulation, foreign investors are less likely to invest in pollution‐intensive firms in which they have held relatively small shares. However, foreign investors are more inclined to increase their shares in pollution‐intensive firms in similar situations if they already held a relatively large number of shares. Based on the heterogeneous analysis, we suggest that our results are most apparent in regions with better local governance. [ABSTRACT FROM AUTHOR]

This paper assesses the impact of Chinese foreign direct investment (FDI) on welfare in African economies using recently available data on Chinese FDI in 52 African countries between 2003 and 2018. Using fixed effects and instrumental variable (IV) estimations, we find that Chinese FDI contributes significantly to the improvement of welfare in African countries. This positive impact also holds for the sub-sample of Sub-Saharan African (SSA) countries. The results are robust across the fixed effects and IV estimations when variables that affect welfare are controlled for. The findings suggest that China's claim of a "win-win" aim for its rising investment in African countries may hold. [ABSTRACT FROM AUTHOR]

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. [ABSTRACT FROM AUTHOR]

The objective of this article is to assess the dynamics of the innovation divide between China and the Triad, as well as to determine the factors that influence its evolution. The Triad consists of three economies traditionally dominating the world economy: the United States, the European Union, and Japan. The methodology involves the decomposition of the innovativeness of the economy into innovation capability, innovation position, and the relationship between them, which indicates the efficiency of the innovation system. The analysis of dynamic indexes and σ-convergence in all these components confirms that the global economy has been gradually losing clear polarization into innovation leaders, found among developed countries and innovation followers, which have traditionally been associated with developing nations. In addition to demonstrating fast improvement in the Summary Innovation Index of China towards the Triad, the paper has a clear contribution by showcasing China's improvement through the decomposed factors of the innovativeness of the economy. In comparison with the Triad, China has a proportionally higher innovation position and efficiency of the innovation system and a lower level of innovation capacity. This demonstrates its dependence on external sources of innovation and international technology transfer, e.g. through foreign direct investments. [ABSTRACT FROM AUTHOR]

With the increase in China's land marketization level, the fundamental role of pricing mechanisms in optimizing the allocation of land resources has received greater attention and has affected foreign direct investment (FDI). This paper analyzes the effects of land marketization level and land prices on FDI using a mediation model based on data on primary land market transactions in 256 cities from 2003 to 2019. The results indicate that the land marketization level, land prices, and FDI are all increasing, with regional heterogeneity. Compared with low-level cities, the land marketization level and land prices in high-level cities have increased the most. Low-level cities have become new hotspots for FDI, whereas high-level cities remain the main destinations for FDI. Both land marketization levels and land prices significantly promote FDI. Land marketization level exerts a weak direct positive effect on FDI in high-level cities but a strong indirect positive effect on FDI in high-level cities through land prices in general. The results of this study enrich the literature on the location decisions of multinational corporations and may serve as a reference for China and other developing countries in developing policies to attract FDI. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to indicate trade characteristics of Foreign direct investment (FDI) inflows in China and examine the dynamic interaction between FDI inflows and China’s international trade through empirical analysis. Design/methodology/approach – At first, this paper builds the probability distribution model (Poisson and negative binomial (NB)) to capture the characteristics of spatial distribution of all kinds of FDI firms in Chinese cities and provinces based on count data, so as to indicate the potentials for further introducing FDI inflows in China; Second, this paper investigates the effects of trade on FDI firms inflows based on probability regress model (Binary Logit, Tobit, NB, Poisson, zero inflated negative binomial) and shows how international trade accelerates the different kinds of FDI firms to agglomerate in Eastern, Middle and Western region by the endowments of factors; third, this paper empirically examines the magnitude and characteristics of trade effects generated by FDI inflows by building dynamic panel model based on continuous data. Findings – First, statistical tests of probability distribution model based on count data show that there are characteristics of spatial agglomeration of FDI firms such as manufacture firm, R & D firm, managing and marketing firm and total sectors, which obey NB distribution as whole; Second, this study indicate that FDI inflows have strong positive effects on the international trade in China’s provinces and on China’s regional trade, and that most of foreign firms in China are export oriented being strongly characterized as labor-intensive industries, especially, contributions of FDI to imports are greater than the contributions of FDI to exports in China’s Middle and Western trade, and the growth of FDI trade in China’s trade volume has been strong over the past years; third, the empirical results of models based on count data and continuous data indicate that FDI inflows have significantly positive relationship with international trade, that is, the relationship between FDI and international trade in the case of China is the characteristics with complement and imports substituting relationship. Research limitations/implications – Because of mixed data set for FDI inflows of processing and assembling trade and production-oriented FDI, efficiency-seeking and knowledge or technology – intensive FDI inflows in the past 36 years, the paper only investigate characteristics of FDI inflows in China before the turning point of financial crisis, but it is important for capturing the whole picture of trade characteristics of FDI inflows in China. Practical implications – The derived quantitative results imply that there are still greater potentials for further introducing FDI inflows in China, and decision-maker should make policy of introducing FDI inflows which are favorable to supporting innovative activities and economic agglomeration, and preferably encourage efficiency-seeking and export-oriented FDI inflows so as enhance quality and efficiency of economic growth, which are also helpful to accelerate upgrade of Chinese industry and gradually shorten gap of growth among Eastern, Middle and Western region. Social implications – FDI inflows in China not only stimulate the remarkable growth of bilateral trade between host country and home country, but also promote the growth of international trade between China and the rest of the world. Thus, policies of bilateral or multilateral free-trade and investment area should be encouraged, which will be also favorable to promote the growth and welfare in all the regions. Originality/value – This paper demonstrates that spatial distributions of FDI firms in Chinese cities and provinces obey NB probability distribution pattern, and puts forward the methodology of model based on count data and continuous data. Besides, this paper quantitatively indicates trade characteristics of FDI inflows in China as well as the dynamic interaction between FDI inflows and China’s international trade. [ABSTRACT FROM AUTHOR]

The paper explains the growth-inequality nexus for China's provinces. The theoretical model of provincial development consists of two regions and studies the interactions of a mutually dependent development process. Owing to positive externalities, incoming trade and FDI induce imitation and hence productivity growth. The regional government can influence the economy by changing international transaction costs and providing a public infrastructure. Mobile domestic capital reinforces disparity effects. The implications of the theoretical model are tested. As the central intention of the paper is to explain provincial disparity, we directly relate income disparity (indicated by the contribution to the per capita income Theil index) to the disparity of selected income determining factors (indicated by the contribution to every other Theil index of the determinants). We examine the determinants of inequality for 28 Chinese provinces over the period 1991-2004 and apply a fixed effects panel estimation. The results confirm the theoretical framework and suggest a direct link between the factors that determine regional income and regional disparity. More specifically, it is apparent that disparities in trade, foreign and domestic capital and infrastructure have an impact on the provincial income Theil disparity, whereas provincial disparities in government expenditure and human capital do not seem to drive the income Theil disparity. Therefore, three decades of government reforms led to an extraordinary success of some provinces and increasing inequality. However, government expenditures and public human capital investments seemed to have a stabilizing effect on provincial disparity. [ABSTRACT FROM AUTHOR]

Copyright of Revista Razón Crítica is the property of La Fundacion Universidad de Bogota Jorge Tadeo Lozano and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

China's Going Global Strategy and Belt and Road Initiative gained great attention among scholars. Moreover, it is believed that Chinese investments abroad cause serious social and environmental externalities. Hence, in this paper, we examine how China's foreign direct investments influence the carbon emissions of 35 Belt and Road Initiative countries from 2000 to 2019. To do so, we use a panel model that accounts for heterogeneity and country cross-section dependence. Our results show that while other countries' foreign direct investments have contributed to the deterioration of the environment in these countries, Chinese investments have not. This substantiates the hypothesis of the halo effect influence of China's foreign investments as opposed to other countries' investments which may seek a haven for its carbon emissions. These results highlight the importance of source and destination regulations of foreign direct investments in terms of their environmental impact and carbon emissions in the Belt and Road Initiative countries. It also provides a fresh finding on the efficacy of China's foreign investment management policies and regulations in producing the desired environmental outcome in hosting countries. [ABSTRACT FROM AUTHOR]

This paper aims to broaden the scope of analysis of the contemporary global land rush by examining crop booms not only outside, but inside China; and investment flows not only from China, but also within and into China. It does so by examining the eucalyptus and sugarcane sectors in southern China, which have witnessed investment booms during the past decade, with capital being infused by both domestic capital and foreign capital, including Finnish, Indonesian, and Thai companies. Our argument addresses three key issues: (a) explaining why foreign and domestic companies enter into a multitude of lease and grower contracts involving holders of micro-plots, (b) revisiting the notion of extra-economic coercion, and (c) a critique of thinking about flows of large-scale investments centred primarily on nationality. These issues are central in current debates in the land grabs literature, and our study offers a different perspective from dominant narratives. [ABSTRACT FROM PUBLISHER]

As Chinese investment in foreign land and agriculture expands dramatically worldwide, a growing body of research has emerged on the prevalence of land deals in Latin America and Africa. Southeast Asia, however, has only recently begun to receive significant attention in these discussions. A deeper exploration of the Southeast Asian context offers crucial insights into understanding the puzzle of global land deals (why, where, how they occur) more broadly. This paper frames this exploration via an overview of regional land deal trends – focusing particularly on China’s emergence as a prolific investor in the Global South, and why Chinese investment is increasingly targeting Southeast Asia, especially vis-à-vis expanding flex and boom crop production. This paper aims to provide a broader contextualization for recent Southeast Asian case studies, and to highlight why more research in the region is key in deepening our understanding of global land deal trends. [ABSTRACT FROM PUBLISHER]

Innovation and international entrepreneurship are important paths for family businesses to achieve sustainable growth. However, there are few relevant studies on the development and inheritance of family businesses. This paper has taken China's listed family businesses from 2007 to 2020 as a sample in order to explore how investment in innovation affects international entrepreneurial performances. The study found that family businesses with high investments in innovation had lower international entrepreneurial performances. When family businesses are inherited by the firstborn or managed by multiple generations, the degree of this negative impact will increase, while heirs with overseas work experience will reduce the negative impact. The gender and overseas educational experience of the heirs will not have an impact on the negative relationship. These findings emphasize the heterogeneous role of intergenerational succession, revise some traditional inheritance views of Chinese family businesses and reveal the important role of reasonable intergenerational succession strategies in coordinating innovation and international entrepreneurship. [ABSTRACT FROM AUTHOR]

This article aims to contribute to the exploration of the ways through which Malaysia—the fourth largest economy in Southeast Asia—has engaged Chinese investment to pursue industrialization. It does so by comparing and contrasting the different approaches by which two of the most important Chinese-financed automobile projects, Chery Automobile's assembly operations in 2008 and Zhejiang Geely's partial acquisition of local producer Proton in 2017, have been embedded into the Malaysian political economy. While Chery Automobile ended up with a conundrum of extremely low local sales, Zhejiang Geely has fostered mutually beneficial partnerships with Proton and its cohort of suppliers that are shaped by the industry's ethnopolitical directives. More recently, Zhejiang Geely has exported an increasingly larger proportion of vehicles from its Malaysian operations. The contrasting fate of these projects illustrates that while they are driven by Chinese money and technological know-how, they are not necessarily Chinese-dominated. It is domestic politics—the establishment of a functional politico-commercial coalition in particular—that matters in shaping the outcome and impact of Chinese investment in Malaysia. More importantly, the paper highlights how foreign direct investment and the supposed (positive and negative) externalities are intimately tied to local factors such as political institutions and ethnocentric directives. [ABSTRACT FROM AUTHOR]

The rapid growth of foreign direct investment (FDI) has had a significant impact on rapid economic development and environmental pollution in China. Nonetheless, the underlying mechanism and empirical evidence of FDI impact on carbon emission efficiency have not been systematically explored. Therefore, this study investigates the impact of FDI on carbon emission efficiency via energy intensity, as well as the moderating role of the Low-Carbon City Pilot Policy (LCCP) in the process. We found that: (1) During the study sample period, the average carbon emission efficiency tends to rise, however, there remains a gap between the optimal carbon emission efficiency; (2) FDI is one of the key factors that inhibit the improvement of carbon emission efficiency, with a non-linear relationship between them; (3) FDI indirectly suppresses the improvement of carbon emission efficiency by promoting energy intensity. Nevertheless, the implementation of LCCP has a positive effect on carbon emission efficiency; (4) The implementation of LCCP has improved the negative impact of FDI on carbon emission efficiency, nonetheless, it cannot significantly influence the process that FDI affects carbon emission efficiency through energy intensity. Thus, we propose improvement measures from three aspects, i.e., increasing the introduction of foreign capital, adjusting the energy consumption structure, and expanding the scope of low-carbon cities. [ABSTRACT FROM AUTHOR]

China's growing presence in Africa is not news: the expansion of bilateral trade and investment ties has garnered intense media and political focus over the past decade. However, less is known about the people accompanying these increasingly intensive flows of goods and capital. This paper focuses on Zambia, drawing on multiple primary datasets to shed light on both the scale and nature of Chinese migration to the continent. Two years of Department of Immigration employment-permit data serve as the basis for the first quantitative analysis of the "Chinese" in "Africa," illuminating the increasing diversity of this population flow. While the growing Chinese presence in Africa is often viewed as a coherent neocolonialist strategy planned and implemented by the Chinese state, this paper demonstrates that it is in fact typified by a multitude of both public and private actors with independent motives. [ABSTRACT FROM AUTHOR]

Purpose – The purpose of this paper is to identify and analyse determinants of Chinese outward foreign direct investment (OFDI) into a number of African countries for the period 2003-2012. Design/methodology/approach – A series of panel data models are used to estimate the determinants of Chinese OFDI into eight African countries: Nigeria, South Africa, Zambia, Ghana, Kenya, Algeria, Egypt and the Sudan. Findings – Results highlighted that Chinese investment in African countries is driven by access to natural resources, and factors related to infrastructure quality and the regulatory environment enforced by host governments. Originality/value – To the best of the authors’ knowledge, this is one of the first papers to identify empirical determinants of Chinese OFDI in Africa and it contributes from two perspectives. Firstly, it identifies drivers behind Chinese OFDI, but also importantly from the African perspective helps understand the reasons that attract investment from one of the world’s largest investors into one of the world’s poorest regions, given the emphasis that is placed on foreign direct investment today as an instrument of growth and development. [ABSTRACT FROM AUTHOR]

The construction of new-type urbanization with the theme of innovation, green, and smart development is becoming the endogenous driving force of China's economic transformation and upgrading, and green technological innovation is a key factor in cracking the problems of development motivation and environmental constraints in urbanization construction. This paper investigates the impact of green technology innovation on urbanization based on a panel dataset covering 30 provinces in China from 2005 to 2019. First, we use the entropy method and the super-efficiency DEA method to measure the level of urbanization and green technology innovation, respectively. Moreover, on this basis, we use panel regression model and FGLS model to estimate the direct impact of green technological innovation on urbanization and its three dimensions-population urbanization, industrial urbanization, and ecological urbanization. Then, the mediating effect model is used to further study the indirect impact of green technological innovation on urbanization. The results indicate that green technological innovation is the most effective way to promote the development of new urbanization currently. In addition, green technology innovation can indirectly affect urbanization through the effects of foreign capital, energy consumption and information development, while the effect of industrial structure optimization effects is not significant. Finally, some policy suggestions are discussed to better promote the development of urbanization in China. [ABSTRACT FROM AUTHOR]