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Differences between the business environment in the home country and the host country are an important factor when enterprises consider their location choice with regard to outward foreign direct investment (OFDI). However, this is ignored by much existing literature. Based on the trade‐off framework of international firms between exporting and participation in OFDI under the condition of heterogeneous enterprises, this paper constructs a theoretical model of the impact of distance of doing business (DDB) on OFDI. We take China's OFDI as an example and use the World Bank Group's Ease of Doing Business Index to construct the DDB indicator, as well as test the impact of the DDB on China's OFDI by combining the macro‐location panel data of China's OFDI between 2004 and 2017. The results showed that increasing DDB significantly reduces the scale of China's OFDI. The effect is robust. The mechanism is that DDB significantly decreases the success rate of OFDI and increases the cost of OFDI, thereby decreasing the scale of OFDI. Further analysis then finds that official acts, such as building partnerships, and folk acts, such as increasing cultural identity, can significantly reduce the negative effect of DDB on OFDI. [ABSTRACT FROM AUTHOR]

China's foreign direct investment is an important driving force for economic growth, which also aggravates carbon emissions. Based on China's provincial panel data from 2003 to 2018, this paper uses the panel-fixed effect model and panel threshold model to explore the impacts of two-way foreign direct investment on carbon emissions and analyze the threshold effects of different environmental regulations. The empirical results show that inward foreign direct investment (IFDI) has a significant inhibitory effect on carbon emissions, while outward foreign direct investment (OFDI) leads to the aggravation of carbon emissions. Considering regional heterogeneity, environmental regulation in high-carbon areas mainly affects local OFDI, and environmental regulation in low-carbon areas mainly inhibits carbon emissions by affecting IFDI. In addition, high-carbon regions can achieve the inhibition of OFDI on carbon emissions by strengthening command-and-control regulation and reducing the promotion of OFDI on carbon emissions by strengthening market incentive regulation and voluntary regulation. Meanwhile, excessive command-and-control regulation and market incentive regulation in low-carbon areas bring unexpected regulatory effects, but the inhibitory effect of IFDI on carbon emissions can be increased by strengthening voluntary regulation. [ABSTRACT FROM AUTHOR]

One of the challenges that China currently faces is how to reduce the emissions of water pollution. However, the study of water pollution convergence has a certain policy significance for controlling the emissions of water pollution. This article firstly uses chemical oxygen demand (COD) and ammonia nitrogen (NH3–N) as indicators of water pollution. Due to the obvious spillover effect of water in space, this article adds a spatial effect to the convergence model. Based on panel data of 30 provinces and cities from 2006 to 2017, this article uses a dynamic spatial Dubin model to analyze the convergence of water pollution emission intensity to address the endogenous problem in the model. The empirical results of this paper show that there is absolute β-convergence and conditional β-convergence in the intensity of water pollution emissions. The spatial autocorrelation test shows that there is a positive spatial autocorrelation of water pollution emissions, which means that the pollution emissions in neighboring areas will affect the emissions in the local area. The industrial structure has a certain promoting effect on the emission of water pollution, which means that adjusting the industrial structure and alleviating the structure of the secondary industry is the trend of future development. Economic growth can curb the emissions of water pollution. The influences of urbanization and foreign investment on the emissions of the two pollutants are inconsistent, and policies can be formulated according to local conditions in the future. [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]

In this paper, we employ the unique qualified foreign institutional investors (QFII) scheme in China to investigate whether and how the different religious beliefs in the areas where foreign institutional shareholders from are associated with the corporate social responsibility (CSR) performance of domestic firms. After controlling for other determinants, we find robust evidence that firms with QFII investors from areas with stronger religious beliefs have better CSR performance than those that do not have these beliefs'. This association is more pronounced when a QFII has a shorter holding period, has a relatively large ownership in the firm, or is a more committed investor in China. The above moderating results show that the stock preference may be a channel through which religious QFIIs affect firms' CSR performance. Our paper contributes to the growing body of literature on CSR and on the effects of investors' religious beliefs. It also offers useful guidance to listed companies, institutional investors, regulators, and other stakeholders. [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]

This paper studies the impact of foreign direct investment (FDI) on regional innovation, which is measured by patent applications and patent citations, based on city‐level data in China from 1995 to 2015. Using an instrumental variable approach, this paper demonstrates that FDI not only promotes the quantity of regional innovation, but also improves the quality of regional innovation in China. The findings are robust to various specifications of the empirical model and measurements. In addition, we highlight the channel of improving local absorptive capacity and market competition through which FDI exerts positive influence on regional innovation, and show that FDI acts as a substitute for local financial development to raise regional innovation. [ABSTRACT FROM AUTHOR]

Using a new firm-level database, EMENDATA, this paper investigates the effects on Chinese multinational enterprises of Outward FDI (OFDI) into advanced European countries. Propensity score matching is combined with a difference-in-difference estimator to reduce the problems of self-selection of treated firms in foreign markets and to eliminate timeinvariant and unobservable differences between those firms and the controls. The results provide robust evidence in support of the view that China's OFDI had so far a positive impact on domestic activities in enhancing firms' productivity and scales of operation, as measured by assets, sales and employment. Distinguishing among such investments on the basis of entry mode shows that acquisitions facilitate early access to intangible assets but are detrimental to financial performance, whereas greenfield investments have a positive impact on the scale and productivity of Chinese investors. [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]

In the post-Maoist era, a new approach was introduced in China, which opened China's markets for foreign investments besides harvesting cordial relations, especially with its neighbours. It helped China emerge as a global power to such a level where the US regards China as a potential competitor. To protect its strategic interests in the East Asian region, the US has introduced a 'Pivot to Asia' policy posing a direct threat to China's trade passing through the South China Sea routes. China has already embarked upon an intercontinental connectivity initiative known as One Belt One Road to bypass the US presence in East Asia. The China Pakistan Economic Corridor is its flagship project which allows China to diversify its trade routes and decrease its dependence on the South China Sea. This paper, therefore, investigates China's behavioural change in East Asia, especially in the post-Cold War era, by applying the theory of Uneven and Combined Development presented by Leon Trotsky. It aims to understand the US policy of containment of China in East Asia and significance of Pakistan in the Chinese approach towards reducing external pressures. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to introduce economic history as a new stream of international business (IB) research. It offers a long-term perspective on how the IB has evolved over time, focussing on the interplay between multinational enterprise and the nation state. Design/methodology/approach: The paper uses existing scholarly literature on international economic history to develop eight key propositions regarding the interface between the politics and economics of foreign direct investment (FDI). Findings: There is a rivalry between nation states and competition between firms. These two forms of conflict interact. Nations use their leading firms as instruments of international policy while leading firms rely on political and financial support from home nations. Using historical evidence and cross-country comparisons, the paper explains has the scale and scope in IB activity have changed dramatically over time. Research limitations/implications: There is scope for more detailed historical studies on national policies towards inward and outward FDI. Practical implications: It is important to see the recent international economic policies of China in a long-run historical perspective and to appreciate the similarities between its policies and those of other countries in the past. Social implications: Many of the potential economic gains generated by FDI may be lost through an excessive commitment of resources to the pursuit of military power as a foundation for international political power. Originality/value: This paper challenges IB researchers to widen their horizons. [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.)

Based on the evidence from listed company microdata and data from 285 cities in China, this paper studies the coordinated development of two-way FDI (CDFDI) in improving green energy efficiency (GEE). In particular, this paper examines the spatial heterogeneity effects of CDFDI on GEE. The results showed that CDFDI had a positive impact on the GEE of local and surrounding cities. Mechanistic examinations show that the effects of CDFDI on GEE are mediated by technological diffusion, nationalization, and environmental regulation. After dividing different city types, the impact of CDFDI is also different. By constructing a spatial decay weight matrix, this paper also finds that the positive spatial spillover effect of CDFDI is limited to 1050 KM. Finally, different investment motive portfolios also has a heterogeneous impact on the local and surrounding cities' GEE. After dividing the time nodes, the effect of this heterogeneity is more prominent. • We use multiple undesired output indicators covering eight pollutants to measure green energy efficiency (GEE). • CDFDI has a significant boost to GEE in local and surrounding cities. • The impact of CDFDI on GEE is moderated by technological diffusion, nationalization, and environmental regulation. • The spatial spillover effects of CDFDI are heterogeneous by city category and geographic distance. • CDFDI with different investment motives has heterogeneous effects on local and surrounding cities' GEE. [ABSTRACT FROM AUTHOR]

The People's Republic of China has increasingly become an attractive location for foreign capital. The flow of foreign capital into mainland China includes the so-called northbound cash flow which is a colorful term that is often used to describe capital flowing into the mainland from Hong Kong. Two markets that have become an attractive destination for northbound cash flow is the Shanghai stock exchange and the Shenzhen stock exchange. This paper investigates the impact, if any, of northbound cash flows on investor sentiment for investors residing in mainland China. In other words, the paper attempts to ascertain whether the extent of northbound cash flows influences the extent to which mainland investors feel either bullish or bearish about the market. The research objective is addressed using quantitative models and focuses on the Shanghai and Shenzhen stock exchange. Research results indicate that northbound cash flows from Hong Kong significantly impacts investor sentiment in mainland China. [ABSTRACT FROM AUTHOR]

This paper highlights the policy aspects of India and China, in the context of consensus building on bilateral trade, which is the cornerstone of diplomatic and political ties between the two countries. India and China have witnessed uninterrupted economic development with a significant rise in bilateral trade because of protrade policies in the last few decades. In this backdrop, this paper examines the dynamic spillovers of India–China's bilateral trade on the economic growth of the two countries. For the purpose, Autoregressive distributed lag (ARDL) model in multivariate framework is utilized with gross capital formation (GCF) and foreign direct investment (FDI) as two additional explanatory variables. The results highlight that the India–China bilateral trade share has significant long-run impact on the growth of GDP per capita (GDPP) of the two countries, while the impact is more pronounced for China. The growth rates of the two countries are found significantly cointegrated with the variables in question. The results provide important insights in foreign trade patterns, with policy implication for trade and economic co-operations between the two countries. [ABSTRACT FROM AUTHOR]

With the rapid development of China, urbanization has become an important research topic of China's CO2 emissions. To fill the gap in considering the spatial correlation of the comprehensive urbanization that includes multi-dimensional factors on CO2 emissions from urban civil buildings (UBEC), this study constructs a comprehensive evaluation indicator of urbanization from four aspects including population, economy, society, and land urbanization by using the entropy method. The spatial spillover effect of UBEC and the impact of comprehensive urbanization on UBEC are also studied by using the spatial panel model in this paper. This study finds out that UBEC has obvious spatial spillover effects. During the early years of the study period, the eastern coastal areas had greater carbon emissions, while in recent years, they have gradually transitioned to the northwestern regions. Comprehensive urbanization has a significant promotion effect on it. And foreign direct investment and per capita energy consumption also have positive impact on UBEC. This study provides a reference for measuring the effects of urbanization on sector-specific CO2 emissions and may be useful for energy efficiency and emission abatement efforts in China. [ABSTRACT FROM AUTHOR]

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]

Digital transformation has given firms new development capability. This paper portrays the overall digital transformation intensity of China's listed firms in 2007–20, and empirically examines the impact of digital transformation on outward foreign direct investment (OFDI) and its transmission mechanisms for the first time. It is found that digital transformation significantly enhances OFDI with two transmission mechanisms: (1) reduced transaction costs and (2) improved production and operation efficiency [Correction added on 25 Aug 2023, after first online publication: The number of transmission mechanisms have been corrected from 'three' to 'two' in this version.] The impact is more pronounced in the host countries whose economies are more digitalized, in private enterprises, and in the service industries than in their respective counterparts. [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]

While the literature shows that stricter environmental regulations deter exports and inward foreign direct investment (FDI), few studies examine the impacts on outward FDI, especially for developing countries. In this paper, we analyse this issue in the context of China, which is the largest developing country in terms of FDI. We collect the transaction-level data of all the overseas mergers and acquisitions (M&As) by Chinese firms from 2000 to 2019. For the identification of the causal effect, we exploit the implementation of the Environmental Protection Law in 2015 as a quasi-natural experiment and carry out the difference-in-difference-in-differences analysis (DDD). The results show significant impacts of stricter environmental regulations on outward FDI. When the provincial emission reduction target increases by 10% points, the number of overseas M&A transactions in the high-polluting industries has increased by 32 every year since 2015. Moreover, the investments are more likely towards countries with better environmental protection. This suggests that firms aim at gaining cleaner technologies via M&As rather than transferring pollution abroad. [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.)

In recent years, the environmental problems caused by excessive carbon emissions from energy sources have become increasingly serious, which not only aggravates the climate change caused by the greenhouse effect but also seriously restricts the sustainable development of Chinese economy. An attempt is made in this paper to use energy consumption method and input-output method to study the carbon emission structure of China's energy system and industry in 2015 from two perspectives, namely China's energy supply side and energy demand side, by taking into account the two factors of energy invest in gross capital formation and export. The results show that neglecting these two factors will lead to underestimation of intermediate use carbon emissions and overestimation of final use carbon emissions. On energy supply side, the carbon emission structure of China's energy system is still dominated by high-carbon energy (raw coal, coke, diesel, and fuel oil, etc.), accounting for more than 70% of total energy carbon emissions; on the contrary, the natural gas such as clean energy accounts for only 3.45% of total energy carbon emissions, indicating that the energy consumption structure optimization and emission reduction gap of China's energy supply side are still substantial. On energy demand side, the final use (direct consumption by residents and government) produces less carbon emissions, while the intermediate use (production by enterprises) produces more than 90% of the total energy carbon emissions. Fossil energy, power sector, heavy industry, chemical industry, and transportation belong to industries with larger carbon emissions and lower carbon emission efficiency, while agriculture, construction, light industry, and service belong to industries with fewer carbon emissions and higher carbon emission efficiency. This means that the optimization of industrial structure is conducive to slowing down the growth of energy carbon emissions on the demand side. [ABSTRACT FROM AUTHOR]

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]

This paper proposes theoretically that FDI(Foreign Direct Investment) not only increases the share of high-quality export products in China's manufacturing industry but it also exerts an effect of demonstration and competition on local enterprises, thus facilitating local enterprises to improve the quality of their export products. We empirically test this theory by using the customs database, which confirms that FDI has a positive impact on the quality of Chinese export products. On the one hand, the export products of foreign-funded enterprises, making up more than 50% of the share of China's exports, are of a higher quality than those of China's local enterprises. On the other hand, FDI strengthens the market competition of local enterprises and promotes the TFP (Total Factor Productivity) of Chinese enterprises, thereby positively affecting the quality of their export products. [ABSTRACT FROM AUTHOR]

Eco‐efficiency is an important indicator which serves as a helpful instrument for the studies of sustainable development. This paper estimated the eco‐efficiency of 26 cities in China's Yangtze River Delta urban agglomerations. Based on different matrixes, Moran's I was applied to analyze the spatial correlation. The spatial Durbin model was applied to analyze the direct and indirect effect of influencing factors. Some conclusions were drawn. (a) The average eco‐efficiency showed an increasing trend. The regional difference of eco‐efficiency decreased and then increased. Shanghai's eco‐efficiency had been the highest. (b) The eco‐efficiency showed positive spatial autocorrelation and it also exhibited significant characteristic of local spatial autocorrelation. (c) Economic development, fixed assets investment, and technological level of one city had a significant positive impact on the eco‐efficiency of the city itself. Industrial structure, fiscal decentralization, and foreign direct investment of a city had a significant negative impact on the eco‐efficiency of the city itself. Changes in the economic development and technological levels in a city had positive impacts on the eco‐efficiency of its neighboring cities. Foreign direct investment had a negative spatial spillover effect. (d) This paper suggested that it is necessary to pay attention to the interaction of influencing factors among cities. [ABSTRACT FROM AUTHOR]

The pursuit of a green transformation agenda in China is an important aspect of achieving sustainable development. The role played by green financial development efficiency (GFDE) in this pursuit cannot be overlooked. This paper explored the impact of GFDE on China's green transformation agenda and its contributions toward sustainable development. The study adopts a systematic approach to examine the relationship between GFDE and green transformation, utilizing relevant data and literature. The study aligns with previous research in the field that highlights the importance of green finance in reducing carbon emissions and promoting sustainable development in China. It also adds to the existing literature by specifically focusing on the role of green financial development efficiency in the pursuit of a green transformation agenda in China. The study found a significant improvement in GFDE over the period of 2010 to 2020 in promoting green transformation in China. Both systems generalized method of moments and fixed-effect models revealed that trade openness, foreign investments, technological innovation, and government budget positively influenced GFDE while energy consumption and economic policy uncertainty had a significant adverse effect on GFDE. The results of this study inform policymakers and stakeholders of the importance of green finance in promoting sustainable development. The study intimated that the financial sector should provide support for green technologies and businesses by offering range of green products such as green bonds, funds, and loans. [ABSTRACT FROM AUTHOR]

China established several Pilot Free Trade Zones (PFTZs) in recent years as a major step to deepen trade liberalisation. In this paper, we investigate the impact of free trade zones (FTZs) on the economy's capital flow, imports and exports, as well as the underlying mechanisms. We consider the newly established FTZs as a natural experiment and construct a difference‐in‐difference (DID) model with the staggered establishment dates of the FTZs. Our results show that FTZs promote local foreign direct investment (FDI) and outward foreign direct investment (OFDI), but their influence on goods exports and imports remains limited. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to explore the effect of the home country institutional environment on firms' outward foreign direct investment (OFDI) and how it is affected by institutional environment differences across home country subregions. Drawing on transaction cost theory, this paper examined the relationship between the Belt and Road Initiative (BRI) and Chinese firms' OFDI, as well as the moderating roles of local government officials' career horizons and state ownership. Design/methodology/approach: A sample of 5,018 Chinese firm-year observations with foreign investment activities was used over 11 years to estimate a panel-feasible generalized least square regression model. Findings: The results show that the BRI improves Chinese firms' OFDI in countries along the BRI route. Furthermore, this positive relationship is weaker for firms where provincial officials have longer career horizons and is stronger for state-owned enterprises (SOEs) compared to non-SOEs. Originality/value: The findings confirm the positive effect of home country institutional environment on firms' OFDI. Furthermore, the multiple government perspective offers new insight into the effects of the home country's institutional environment on OFDI. [ABSTRACT FROM AUTHOR]

The debate on the environmental effects of foreign direct investment (FDI) has long been overdue but remains inconclusive. One key reason is that existing studies have focused mainly on the linear effect of FDI, ignoring its nonlinear effect. To remedy this deficiency, this paper establishes a nonlinear theoretical framework for modeling the connection between FDI and environmental pollution. Furthermore, we develop a spatial semiparametric autoregressive two-way effect panel data model to empirically test the nonlinear impact of FDI on China's environment. The results reveal strong evidence for the positive spillover effect of pollutant emissions in the spatial distribution and an inverted "N-shaped" connection between FDI inflow and environmental pollution. The influx of FDI has been shown to positively moderate the impact of economic growth on environmental degradation. In contrast, FDI inflow has negatively mitigated the impacts of industrialization on environmental degradation. The findings also reveal that energy consumption, economic growth, industrialization, and population size exacerbate environmental pollution, while technology and urbanization do the opposite. The research results have important practical relevance for re-examining the environmental performance of FDI and formulating coherent policies for attracting investment and energy-reduction policies. [ABSTRACT FROM AUTHOR]

Under the constraints of energy and environment, improving green economic efficiency (GEE) has become the key path to promote the sustainable economic development. Among the driving factors of GEE, the role of outward foreign direct investment (OFDI) is worth exploring. In this paper, we adopt the inter-provincial panel data of China from 2011 to 2019 and System Generalized Method of Moments (SYS-GMM) to explore the influence of OFDI on GEE. We find that OFDI significantly improves China's GEE, and reverse technology spillover through direct investment in developed countries is an important way for OFDI to promote GEE. Regional heterogeneity test shows that OFDI significantly promotes GEE in eastern China; however, the promotion effect is not significant in midwestern China. Besides, the promoting effect of OFDI on GEE has been further improved after 2016. We further adopt panel threshold model and find that when the financial development (FD) and human capital (HUM) exceeds 2.0954 and 0.0290, respectively, the promoting effects of OFDI on GEE are greatly enhanced. We suppose that the above conclusions can provide guidance for policymakers to optimize OFDI and improve GEE. [ABSTRACT FROM AUTHOR]

This paper examines the Granger causal relationship between capital flows and economic growth in China over the period 1998Q1–2019Q2, allowing for real effective exchange rate (REER) effects. As parameter instability tests indicate structural changes, we use bootstrap rolling window causality tests, which suggest that the causal nexus between capital flows and GDP growth is time-varying. We find that the causal links between foreign direct investments (FDIs) and GDP growth are hardly affected by the REER, whereas the REER plays a more important role in affecting the causal connections between portfolio investments and other investments and GDP growth. Our results suggest that cumulative portfolio inflows and cumulative other investment inflows harm GDP growth, whereas cumulative portfolio outflows and cumulative other investment outflows positively affect GDP growth. [ABSTRACT FROM AUTHOR]

This paper examines how China has been portrayed in international cinema throughout the twentieth and twenty-first centuries. Using the Internet Movie Database, the authors extract the plot synopses of 4,927 China-related films. The authors apply the word embedding technology and Latent Dirichlet Allocation (LDA) topic model to explore the cinematic plots, as well as achieve the sentiment score and ascertain the socioeconomic factors of score change. The findings indicate that the image of China in international cinema has been associated with gross domestic product (GDP) and foreign direct investment. The image of China changed from the barbarian to the schemer, and finally to the civilized great power, giving the insight into cultural trends that traditional research methods cannot capture. [ABSTRACT FROM AUTHOR]

Building a sustainable energy system and achieving sustainable economic growth has always been China's development goal. However, under the promotion incentive and information asymmetry, local governments may choose to sacrifice the ecological environment to maintain expected economic growth goals. This paper analyzes the relationship between economic growth targets and green energy efficiency (GEE) by using panel data models and spatial econometric techniques. Moreover, the mediation effect model and threshold effect model are used to study their influence mechanism and the possible nonlinear relationship. The results indicate that economic growth targets reduce the efficiency of GEE. The impact of environmental regulation on GEE is "U" shaped. Environmental regulation plays a positive moderation role between economic growth targets and GEE. Additionally, higher levels of technological innovation, industrial upgrading, and environmental regulation result in a reduction in the negative effects of economic growth targets on the GEE. However, the improvement in the foreign direct investment can increase the negative influences of economic growth targets on the GEE. [ABSTRACT FROM AUTHOR]

There are obvious differences between different types of environmental regulation, which are manifested in different environmental protection tendencies and goals, and there are also significant differences in policy implementation. Therefore, it is an urgent empirical problem to quantitatively evaluate the impact of heterogeneous environmental regulation on the upgrading of industrial structures. Therefore, on the basis of measuring the level of industrial structure upgrading, this paper empirically tests the impact of heterogeneous environmental regulation on industrial structure upgrading. The results show that the upgrading level of China's industrial structure increased year by year from 2000 to 2018. The three types of environmental regulatory measures have effectively promoted the upgrading of the industrial structure, and the market-incentive environmental regulation (MER) has a significantly higher role in the advancement of the industrial structure than the command-controlled environmental regulation (CER) and the voluntary public participation environmental regulation (VER). With the improvement of regional economic development level, the three types of environmental regulation have gradually become more prominent in promoting the upgrading of industrial structure. In the mechanism test, it is found that technological innovation has a partial mediating effect in the process of CER affecting the upgrading of industrial structure, MER and public VER have a complete mediating effect, while foreign direct investment (FDI) has only a partial mediating effect in the process of the three types of environmental regulation affecting industrial advancement, and there is no mediating effect in the process of influencing the rationalization of industrial structure. [ABSTRACT FROM AUTHOR]

With the decline of China's economic growth rate and the uproar of antiglobalization, the textile industry, one of the business cards of China's globalization, is facing a huge impact. When the economic model is undergoing transformation, it is more important to prevent enterprises from falling into financial distress. So, the financial risk early warning is one of the important means to prevent enterprises from falling into financial distress. Aiming at the risk analysis of the textile industry's foreign investment, this paper proposes an analysis method based on deep learning. This method combines residual network (ResNet) and long short-term memory (LSTM) risk prediction model. This method first establishes a risk indicator system for the textile industry and then uses ResNet to complete deep feature extraction, which are further used for LSTM training and testing. The performance of the proposed method is tested based on part of the measured data, and the results show the effectiveness of the proposed method. [ABSTRACT FROM AUTHOR]

As the world's largest CO2 emitter, China's emission reduction is the key to mitigating global climate change. Global investment capital, as a significant influencing factor of emissions, greatly contributes to China's economic growth and stimulates frequent interprovincial trade since the reform and opening. However, the spatial correlation of foreign investment and CO2 emissions across Chinese provinces is rarely considered. This paper explores the role of foreign direct investment (FDI) in emission reduction in China during 2004–2015 using the spatial Durbin economic models with two‐way fixed effects. Then, the partial differential equations decomposition of the local and spatial spillover effects is conducted for capturing the marginal effects of influencing factors. Results show that FDI contributes to emission reduction for the whole country, whereas interprovincial transmission and intra‐provincial transmission show significant heterogeneity. Specifically, FDI increases emissions in host areas, while FDI provides positive environmental externalities to adjacent areas through spatial spillovers. Our findings provide a new perspective to explain the coexistence of the "Pollution Haven" and "Pollution Halo" theories in a country. Also, the exploration of spatial spillover effects of FDI on emissions can provide a reference for other countries with rising trade and investment flows to promote collaborative emission reduction. Key Points: Local effects of foreign direct investment on emissions are positive, while spatial spillover effects are negativeThe coexistence of the "Pollution Haven" and "Pollution Halo" theories in a country is examinedResults help promote collaborative emission reduction across regions with trade [ABSTRACT FROM AUTHOR]

Foreign enterprises in China have long enjoyed 'super‐national treatment'. This paper aims to explore the role of tax benefits in observed transitioning from domestic into foreign enterprise. Using firm‐level data, we find that the preferential tax policies enjoyed by foreign firms increase the probability of transitioning from domestic to foreign firms. To examine the effects of imported foreign direct investment (FDI), we separate introduced FDI into 'genuine' and 'fake' types according to the share of the host firm's registered capital, and it is seen that only 'genuine' FDI can improve the targeted firm's productivity and financial situation. [ABSTRACT FROM AUTHOR]

Foreign direct investment (FDI) and import and export trade helped strengthen China's equipment manufacturing industry, which is among the world's top high performing industries. However, extensive economic growth in the manufacturing sector has caused massive resource consumption and serious environmental pollution. Therefore, this paper analyzes the impact of FDI and trade openness on the green total factor productivity (GTFP) of China's equipment manufacturing industry by using panel data of the equipment manufacturing industry and 7 sub-industries in China operating from 2003 to 2015. The results indicate that FDI, export trade, human capital, and environmental regulation have asignificant positive impact on the GTFP of China's equipment manufacturing industry, while import trade and technological innovation have asignificant negative impact. And the levels of human capital, technological innovation and environmental regulation restrict the impact of FDI and export trade on the GTFP of the equipment manufacturing industry through threshold effects. [ABSTRACT FROM AUTHOR]

A considerable number of German multinational enterprises (MNE) are located in the Greater Shanghai Area. German MNE in the industrial sector show an inclination to export German forms of technical training—more specifically German‐style dual apprenticeship training—to their worldwide subsidiaries. Within China, this is especially the case for the Greater Shanghai Area, which has established itself as a 'hotspot' for dual apprenticeship training in the last 15 years. This paper explores what makes the Greater Shanghai Area such a 'hotspot' for dual apprenticeship training—in international comparison—by focusing on factors influencing the spatial agglomeration of dual apprenticeship training activities in this region. The paper finds unevenly distributed institutional resources regarding the attraction of German Foreign Direct Investment as well as unevenly distributed resources at the skill formation system level as important influencing factors. Both factors show 'self‐reinforcing' dynamics strengthening already existing spatial agglomeration of dual apprenticeship training activities. [ABSTRACT FROM AUTHOR]

This paper analyses the legal framework of Chinese-funded enterprises' agricultural investment under the background of big data. To analyses the policies even that contradictions with several entities and their problems were undertaken to choose the best judgements using a decision making support system in the context analysis of the big data approach. Under the conditions of the market economy, to ensure the sustainable development of China's agricultural investment, the construction and improvement of the legal system is an effective way. Meanwhile, under on the background of big data, on the basis of in-depth reflection on the history, current situation, problems and institutional roots of China's agricultural investment legal system, this paper draws on the experience and lessons of foreign agricultural investment legal systems to conduct a more systematic analysis of China's agricultural investment legal system from the perspective of economic law. Finally, this paper gives advice on agricultural investment decision-making through problem analysis, which provides a reference for subsequent related research. [ABSTRACT FROM AUTHOR]

Using a new data set on regional inputs and outputs, this paper focuses on the role of interregional technology spillovers in the process of industrial growth in Chinese regions from 1990 till 2005. Inflows of foreign direct investment (FDI) increase rapidly between 1990 and 1998 and after 2001. Domestic capital investment increases even more rapidly than FDI, resulting in declining FDI intensity from 1995 onward. Domestic research and development (R&D) investment accelerates after 1998. Regional industrial growth benefits from interregional R&D spillovers. From 1998 onward, it also benefits from international FDI spillovers. Interestingly, FDI in a region has a negative impact on the growth of industrial output in neighboring regions. [ABSTRACT FROM AUTHOR]

Against the increasingly serious haze pollution in China, this paper is to compare the impacts of different factors on haze pollution in different regions, and understand the causes of regional inequality of haze pollution. In doing so, quantile regression and regression-based Shapley value decomposition are employed in this paper. The main results are as follows. (1) Population density and industrialization level have positive impacts on haze pollution, while economic development negatively influences haze pollution, however, the impact of environmental regulation on haze pollution is ineffective. (2) With quantile increasing, the effect of foreign direct investment on haze pollution changes from positive to negative, and the influence of energy intensity on haze pollution changes from negative to positive. (3) The decomposition results specify that the regional inequality in population density is the main cause of the regional disparities of haze pollution. The inequalities in industrialization level and regional factors are also important reasons, and the contribution of energy intensity cannot be ignored either. The regional gap of economic development is conducive to reducing the regional disparities of haze pollution. [ABSTRACT FROM AUTHOR]

This paper theoretically analyzes the direct impact of environmental regulation on carbon emissions and its indirect effects on carbon emissions through foreign direct investment (FDI), energy consumption, industrial structure, and technological innovation. Then, this paper constructs a spatial lag model to empirically test the dual effects of environmental regulation on carbon emissions based on the provincial panel data of 2003–2017 in China. The results show that the average Moran's I value of carbon emissions during 2003–2017 is 0.2506, passing the significance test at 1% level, and carbon emissions have spatial correlation characteristics. The direct impact of environmental regulation on carbon emissions is significant and positive. Environmental regulation could indirectly influence carbon emissions by influencing FDI, energy consumption, and technological innovation, and meanwhile, FDI, energy consumption, and technological innovation help to reduce carbon emissions under the constraint of environmental regulation, specifically. However, the impact of environmental regulation on carbon emissions through industrial structure is not significant. [ABSTRACT FROM AUTHOR]

This research proposes a new theory called bilateral rent‐seeking to explain the dramatic growth of foreign direct investment (FDI) inflow into China over the past several decades. We construct a Nash bargaining model to illustrate the relevance of how the reciprocal relationship between the local state and foreign investors leads to the greater incentives for the latter to invest in the local market, thus resulting into the huge FDI inflows into the domestic market in China in the past several decades. The empirically evidence presented in the end is broadly consistent with the theories proposed in this paper [ABSTRACT FROM AUTHOR]

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This paper aims to establish a new statistical framework for measuring global flow of funds (GFF) based on its inherent mechanisms. It advances a previous theoretical discussion and develops a practical operational statistical matrix. Based on theoretical and practical possibilities the paper gets existing data from the International Investment Position, the Coordinated Direct Investment Survey, the Coordinated Portfolio Investment Survey, and International Banking Statistics are integrated for measuring GFF. The main outcome is a prototype GFF matrix that includes stock data geographically disaggregated by country/region and selected financial instruments. The paper presents a GFF Matrix compiled with the pattern of 'Country vis-à-vis Country' matrix, and through using the GFF matrix to analyze the basic status, mutual relationship and existing problems between China, Japan, and the United States in the external financial positions. [ABSTRACT FROM AUTHOR]

This paper supplements studies on the economic consequences of judicial independence from the perspective of cash flow. It explores the rotation of local judges as an exogenous shock that increases local judicial independence in China and analyses the impact of rotation on provincial cash inflow using data from China's high‐value payment system. The difference‐in‐difference estimates indicate that the rotation of the judges can attract more outside cash inflow, including amount and average size. This effect persists even after controlling for the endogeneity concern and the effect of disaster. The results of the dynamic effects show that the impact of the rotation of the judges on cash inflow mostly originates in the second and third years after the rotation. We further find that judicial independence can promote more foreign direct investment, venture capital's investment, and bank loans and clarify the impacting mechanisms of judicial independence on cash inflow. [ABSTRACT FROM AUTHOR]

This paper investigates the most essential issues behind the ongoing U.S.–China trade war. In addition to the apparent bilateral trade imbalance, China's status as a non-market economy (as labelled by the Trump administration) is one of the most fundamental reasons that the United States triggered the U.S.–China trade war. Accordingly, the United States' most pressing request is to urge China to implement further structural reform. This paper argues that the current Chinese economy is quickly becoming a modern market economy with a unique Chinese character. This is evident from ongoing structural reform to create a competitive environment between state-owned enterprises and private enterprises, and through a further opening-up of the market by guaranteeing a wider and deeper market access for inbound foreign direct investment. [ABSTRACT FROM AUTHOR]