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Technological spillover – the transfer and use of knowledge between defence and civilian sectors – is desired by many countries, and particularly salient under intensifying US-China competition. Yet to date, no systematic measure of spillover exists. This paper presents a novel measure of spillover using a dataset of over 116,000 defence-related patents, and argues that (1) concerns over China’s ‘authoritarian advantage’ should be moderated, and (2) the composition and structure of knowledge transfer networks in the US and China should inform the appropriate channels of managing competition, which I demonstrate through case studies of aerial drones and missile technology spillover networks. [ABSTRACT FROM AUTHOR]

This study investigates the interdependent structure between Nigeria and developed stock market using directed acyclic graph with Bayesian estimation techniques for the period of March 11, 2020 to July 31, 2021. The dynamic Granger causal test of both the contemporaneous and autoregressive estimation were done using the Markov Chain Monte Carlo (MCMC) simulation method with Metropolis-Hasting (MH) sampling technique. The graphical structure of the instantaneous and autoregressive results shows returns correlation for Nigeria's stock market and both China and India's stock market while absence of return correlation are found for both US and UK stock market. The result implies that Nigeria's stock market has potential diversification benefit for the US and UK investors during pandemic crises. In addition, US stock market returns is found to depend on China stock market returns while volatility spill over runs from the US stock market to China's stock market. Last, UK stock market tends to depend on India's stock market. The implication of the study is that Nigeria's stock market is integrated with China and India's stock market while China's stock market is linked to the US stock market such that any financial shock from the lead stock markets is transmitted to the lagged stock markets. [ABSTRACT FROM AUTHOR]

There is growing interest in the relationship between digitalization and environmental, social, and governance (ESG) performance, but existing research focuses on the one-way relationship and ignores the two-way mechanism. Based on a sample of 3335 listed companies in China in 2020, this study adopts a spatial simultaneous equation model to investigate the bidirectional mechanism between companies' digitalization and ESG performance. The results show that digitalization and ESG performance have a significant positive two-way mechanism; digitalization enhances ESG performance, while ESG performance promotes digitalization. The results also indicate a significant positive intra-industry spillover effect for both digitization and ESG performance. Further research shows that the relationship between digitization and ESG performance does not differ depending on the definition of spatial weights, however, the spillover effects do differ depending on the definition of spatial weights. [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 study examines the dynamic connectedness and hedging opportunities between CSI300 (China Security Index 300) and copper, gold, PTA (purified terephthalic acid), and soybean in China from January 09, 2008, to June 30, 2023. A TVP-VAR and cDCC-FIAPARCH modeling framework was used for the empirical investigation. The results show that the total connectedness index can effectively capture cross-asset information transmission in China's financial markets. Copper returns are the dominant volatility transmitters, while CSI300, gold, and soybean returns are net recipients. The Russian–Ukraine war reinforced the safe-haven role of gold. Finally, investors with CSI300 long positions may benefit from prioritizing gold for hedging, while those with CSI300 short positions profit more from allocating gold to PTA. Portfolio managers and investors can use the findings to track the dynamics of systemic risk and adjust their long/short positions when investing in China's stock and commodity markets. [ABSTRACT FROM AUTHOR]

Intelligence relieving energy consumption and economic growth nexus is important for green development. To explore the potential power for sustainability, this paper uses entropy weight method to measure the intelligent level, adopts decoupling indicator between energy consumption and economic growth for green growth performance, and builds a spatial model to diagnose the mechanism of decoupling system. The results show that the achievements of intelligent development in the three regions are remarkable, and the intelligent level in the eastern region is the most prominent of all. Regardless of regional differences, intelligence is the main and stable driver deepening decoupling indicator; Notable pushing-out or pushing-in spilling power on regional decoupling through many channels can be identified, namely urbanization, income and FDI. Clean energy can help promote the driving effects of intelligence on decoupling and is not confined by regions. The fierce green competition race in the form of "anti-typicality" mode exists in various regions, especially in the Western region; only in the Middle region, the intelligent spatial spillover effect can form the driving force for decoupling. Accelerating the intelligent development and the application of clean energy is an effective measure to achieve the green environmental targets. [ABSTRACT FROM AUTHOR]

Eastern roe deer (Capreolus pygargus) is a small ruminant and is widespread across China. This creature plays an important role in our ecological system. Although a few studies have been conducted to investigate pathogens harbored by this species, our knowledge of the virus diversity is still very sparse. In this study, we conducted the whole virome profiling of a rescue-failed roe deer, which revealed a kobuvirus (KoV), a bocaparvovirus (BoV), and multiple circular single-stranded viruses. These viruses were mainly recovered from the rectum, but PCR detection showed systematic infection of the KoV. Particularly, the KoV and BoV exhibited closely genetic relationships with bovine and canine viruses, respectively, highly suggesting the spillover of viruses from domestic animals to wildlife. Although these viruses were unlikely to have been responsible for the death of the animal, they provide additional data to understand the virus spectrum harbored by roe deer. The transmission of viruses between domestic animals and wildlife highlights the need for extensive investigation of wildlife viruses. [ABSTRACT FROM AUTHOR]

The coronavirus disease (COVID-19) has adversely impacted the globally interconnected economy and brought the tourism sector to a temporary standstill. As such, this study aimed to investigate the spillover effect of industrial sectors by emphasizing the tourism sector. The study data was gathered from China and The United States (US) between 2019 and 2020 (pandemic period) using the Multivariate Generalised Autoregressive Conditional Heteroscedastic-Dynamic Conditional Correlation (MGARCH-DCC) and Wavelet Coherence Transform (CWT) techniques to analyse the investment holding period. Country-wise, the sectoral return volatility in China was significantly higher than the US counterpart. Additionally, the intra-sector correlation analyses demonstrated that Chinese sectors successfully mitigated the intra-sector correction in the last quarter of 2019. A short-term holding period was also suggested for investors in China while a long-term counterpart was recommended for investors in the US. Regarding the Chinese and US industrial sectors in the first quarter of 2020, it was mutually concluded that both country stocks reflected high volatility. The tourism sector was also negatively affected throughout the pandemic period (between 2019 and 2020). Essentially, this study offered practical contributions to investors, mutual fund holders, and brokers. [ABSTRACT FROM AUTHOR]

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In this study, the dependence between Bitcoin (BTC) and economic policy uncertainty (EPU) of USA and China is estimated by applying the latest methodology of quantile cross-spectral dependence. Daily data comprising a total of 1947 observations and covering the period of 1 October 2013 to 31 January 2019 are used in this study. The findings indicate that a positive return interdependence between BTC and EPU is high in the short term, and this dependence decreases as investment horizons increase from weekly to yearly. The information on the time-varying and time–frequency structure of interdependence is also extracted by applying wavelet coherence analysis. The estimated results of wavelet coherence suggest that the correlation between BTC and EPU is positive during a short-term investment horizon. Finally, the frequency domain Breitung and Candelon causality test is applied, and results show the evidence of insignificant causality between Bitcoin and EPU. Overall, the findings highlight the diversification benefits of Bitcoin during the period of uncertainty. [ABSTRACT FROM AUTHOR]

Climate policy is essential for fostering sustainable development and addressing climate-related issues, while climate policy uncertainty (CPU) introduces complex challenges in providing a consistent framework for action. In this study, we delve into the spillover dynamics among China's domestic CPU, foreign CPU, physical assets, and financial assets across various market scenarios, through a quantile-based connectedness method and evidence from China. The findings reveal: (1) The spillover dynamics are asymmetric across quantiles and time, and the COVID-19 pandemic influences the total connectedness. (2) The complexity of spillover patterns in physical assets is likely contingent upon market conditions, policy sources, asset types, and industrial-chain positions, while the spillovers of financial assets are quantile-dependent and time-varying, with the agricultural equity market showing relative resilience to the pandemic. (3) There is no significant Granger causality in quantiles between domestic CPU and foreign CPU under the entire sample period, and the rankings regarding the spillovers from CPUs to assets vary across market conditions. Implications for policymakers, investors, and firms are provided. • The spillovers of climate policy uncertainties (CPUs) and assets are asymmetric. • The pandemic influences the quantile-dependent total connectedness. • The spillover dynamics rely on market conditions and asset types. • Granger causality between China's domestic and foreign CPU is absent. • The agricultural sector shows relative resilience to the pandemic shock. [ABSTRACT FROM AUTHOR]

The importance of plant richness to enhance the presence, biodiversity and efficiency of natural enemies in agricultural systems has largely been studied and demonstrated these last decades. Planting and preserving non-crop plants or manipulating crop richness in fields are practices that have proven their efficiency. However, the impact of crop-richness continuity in space and time on pests and natural enemies at a landscape scale remains poorly studied. In a two-year study, we assessed the effect of crop richness (single crop vs. multiple crops) on pest and natural enemy abundance and spillover in a field experiment in north-east China. Overall, we found crop diversity had a limited impact on pest and natural enemy abundance at the spatial scale tested (0.025 vs. 0.2 ha). The total pest and natural enemy abundances were not different between single-crop and multi-crop plots in either year, and the community composition at the functional group level was mostly determined by the crop but not crop diversity. However, we found that crop diversity influenced the numeric response of ladybirds to aphids in wheat; their negative response (higher abundance where aphid abundance was lower, suggesting predation) was attenuated in multi-crop plots (no correlation of aphid and ladybird abundance, suggesting the use of alternative resources). This pattern was not found in maize. Finally, crop succession enhanced the spillover of ladybirds from wheat and maize to cotton plots but with limited benefits for aphid control. Because of these limited impacts, we hypothesized that crop diversity may benefit natural enemy populations and enhance pest control at larger spatial scales; while we found similar abundances of ladybirds between our small (0.025–0.2 ha) plots and in large (2 ha) close-by cotton fields, aphid abundances were more than ten times higher in large cotton fields. Our study highlights the need to accurately estimate the spatial scale at which crop biodiversity may benefit pest control, in relation to the ecology of the target pest and natural enemies. [ABSTRACT FROM AUTHOR]

This study aims to clarify whether innovation spillover effects can be observed between domestic firms in China. Using listed firms' data and the R&D capital stock and R&D workers' data at the industry level, we examined whether Chinese domestic firms benefited from spillovers from not only FDI firms but also from the other domestic firms in terms of their innovations. We found that state-owned enterprises benefited from the spillover effects on innovation input and output from the other domestic firms in China, whereas the spillover effects on the innovations of private firms (PEs) from the other domestic firms were conditional on their availability of financial resources and became larger as their available financial resources increased. Whether PEs could benefit from spillover effects through the human capital held by the other domestic firms was also conditional on their availability of financial resources. [ABSTRACT FROM AUTHOR]

We analyze the return and volatility connectedness between the three Chinese exchange rate markets, namely, the onshore market, the offshore market, and the nondeliverable forward offshore market. Our results show that connectedness exhibits an increasing trend with fluctuations during periods of internal reforms and external shocks. For example, the connectedness increased with China's exchange rate reform on August 11, 2015 but dropped after that. Furthermore, we document that the offshore spot and a forward market dominated the other rates in return spillovers. In contrast, both the offshore and onshore forward rates dominated the other rates in volatility spillovers. [ABSTRACT FROM AUTHOR]

The paper assesses international spillovers from a twin demand shock, originating sequentially in two large economies. Using a network-based spillover model, the paper concludes that while the initial shock may be modest, the network effects in shock spillovers can be substantial, comparable, and often exceed the initial shock. Individual countries may amplify, absorb, or block spillovers. To illustrate the model, the paper quantifies the macroeconomic impact of a hypothetical reduction of bilateral trade between the United States and China as a result of mutual trade restriction. • A twin shock to the world economy may originate in two large economies. China-US trade tensions, which led to an increase of the tariff by the United States on its import from China and China's retaliation, is an example of a twin shock. • A network model of trade captures higher round network effects of a twin shock. Such effects can be substantial but have been largely disregarded. • Individual countries may amplify, absorb, or block twin shock spillovers. A twin shock would produce spillover, spillin, and spillback effects. • Potential economic impact from the US-China twin shock would be modest. On average, the shock from mutual tariffs would lead to a drop in bilateral trade by 10 percent (0.1 percent of world GDP). [ABSTRACT FROM AUTHOR]

In December 2010, Hong Kong regulators allowed 12 mainland Chinese registered audit firms to audit companies incorporated in mainland China and listed in Hong Kong (H-shares). In this study, we examine whether access to the Hong Kong audit market improves the quality of audits conducted by these Chinese audit firms for clients listed in the mainland markets (A-shares). Using data from 2008 to 2016, we find that mainland auditors with H-share clients provide higher quality audits, as measured by more modified audit opinions, higher audit fees and less earnings management, than auditors without H-share clients. This effect is more pronounced when the auditors are non-Big 4 firms and the clients are listed only in mainland China. Further analysis shows that A-share investors react positively to the initial announcement that mainland auditors are permitted to conduct H-share audits. Overall, our findings suggest that H-share audits have a positive spillover effect on the quality of A-share audits. [ABSTRACT FROM AUTHOR]

This article examines the connectedness and information spillover in the Electricity‐Crypto Network (ECN) system. The Bitcoin and Ethereum markets are studied due to the level of electricity demand for active trading and mining in the three leading crypto mining economies (United States, China, and Japan). Among other findings, the leading net transmitter of information is the return of the Bitcoin market while the demand for electricity in the U.S. and Japan are the leading net information receivers in the ECN system. In a nutshell, the return and trading volumes of the cryptocurrency markets are net information transmitters while the markets' volatility and the demand for electricity in the U.S., China, and Japan are net information receivers in the system. As a policy relevance, given the favourable developments in these crypto markets, greener sources of electrical energy are expedient to mitigate emissions while mining these coins. This will reduce the impact of human activities on the climate. [ABSTRACT FROM AUTHOR]

In this study, we investigate the different spillover levels of economic policy uncertainty (EPU) on the oil, gold, and stock markets in China. EPU has the highest levels of the growth and volatility spillover on the gold market, and EPU transmits the lowest levels of growth and volatility spillovers to the oil market. EPU receives the highest level of return spillover from the oil market and the lowest from the gold market. However, EPU receives a higher level of the volatility spillover from the gold and stock markets. Regarding growth spillover, EPU is the net spillover receiver from the oil market and the net spillover transmitter to the gold market. Regarding volatility spillover, EPU is a main spillover receiver from all three markets. All net spillovers from EPU to the oil, gold, and stock markets are time‐varying. The recent financial crisis exerts significant effects on the net spillovers of EPU on the three markets. Highlights: Economic policy uncertainty (EPU) is the net growth spillover receiver from the oil market and the net growth spillover transmitter to the gold market.EPU is a main volatility spillover receiver from all three markets.All net spillovers from EPU to the oil, gold, and stock markets are time‐varying.The recent financial crisis exerts significant effects on the spillovers of EPU on the three markets. [ABSTRACT FROM AUTHOR]

This paper uses fractional integration techniques to explore the stochastic properties of the Financial Stress Indices (FSIs) of 10 Asian countries, further investigating the bilateral linkages between them to ascertain how financial stress spreads among countries in the region. For the FSIs of each country, the results show that all the estimated orders of integration are in the interval (0, 1) implying fractional integration and a long memory pattern. Thus, shocks will have transitory though long‐lasting effects. For the cross‐country spillovers of the FSIs, we find that convergence is satisfied in all cases with values of the differencing parameter around 0 and thus showing short memory behavior. It is worth noting that for the larger economies in the region, Japan and China, financial stress transmission between Japan and the smaller economies was faster than with respect to China. Overall, the results provide valuable information on the financial market activity of the countries in the region. To check for the robustness of the baseline results we also use systemic risk measures for these countries, CoVaR with the results showing evidence of fractional integration for the individual series, with all values of the differencing parameter in the range (0, 1). For convergence, there is a substantial reduction in the degree of integration, though the results are not as clear as with the FSIs. [ABSTRACT FROM AUTHOR]

This paper investigates the impact of the U.S and China equity markets on global equity markets during the COVID-19 pandemic. Specifically, we compare the contagion of global equity markets, their volatility persistence, and the volatility spillover effects from the U.S and China to other countries in pre-pandemic and during-pandemic periods. We find evidence of significant contagion effects from the U.S and China stock markets during the COVID-19 pandemic period. Further, we observe that the nature of stock index volatility does not change and there is weak evidence for volatility spillover effects during the pandemic period. [ABSTRACT FROM AUTHOR]

This study examines the effects of public health and education expenditures on economic growth using a panel dataset of Chinese provinces from 1996 to 2015. Provincial and local governments in China assumed responsibility for public expenditures, which can be essential for promoting economic growth. Furthermore, this study employs a spatial autoregressive model to examine whether strategic spatial interaction exists between provinces and whether it has a positive spillover effect on economic growth. The estimated results show that strategic spatial interaction between provinces are positive and significant to growth. Additionally, the results show that health and education expenditure is positive and significant to growth. The results suggest further delegation of responsibility to provincial and local governments to fund productive public expenditure and encourage policies that focus on health and education reforms. [ABSTRACT FROM AUTHOR]

Cross-market linkages allow transmission of shocks among markets. Previous measures of such spillovers are based on broader stock market indexes, which cannot identify the industries that are the principal drivers of spillovers and the industries that are most exposed to the spillovers. Using investable equity indexes, we show that basic materials, financials, industrials, technologies, and telecommunication equity sectors were the primary exporters of volatility from the U.S. and that the magnitude of the spillovers increased primarily during and post-2008 financial crisis. There is evidence that Canada was most vulnerable to spillovers, while China's exposure was the lowest among the countries in the sample. Based on the minimum variance portfolio optimization, we find that investing in foreign industries with low exposure to spillovers from the U.S. generates high Sharpe ratios for U.S. portfolio managers, especially during the financial crisis. [ABSTRACT FROM AUTHOR]

We quantify the causal effects of the coronavirus disease 2019 (COVID-19) on air quality in the context of China. Using the lockdowns in different cities as exogenous shocks, our difference-in-differences estimations show that lockdown policies significantly reduced air pollution by 12% on average. Based on the first lockdown city, Wuhan, we present three underlying mechanisms driving our findings: anticipatory effects, spillover effects, and a city's level of connection with Wuhan. Our findings are more pronounced in cities whose population was more willing to self-isolate or more susceptible to anxiety, or whose government faces less pressure to stimulate economic growth. Overall, this study contributes to the literature by evaluating the unintended consequences of the COVID-19 outbreak for air quality, and provides timely policy implications for policymakers. [ABSTRACT FROM AUTHOR]

The present study investigates dynamics of contagion and spillover of volatility amongst stock markets of five economies ; US, UK and Japan and two Asian emerging economies viz. India and China. The period of study is eleven years; January 1, 2009-December 31, 2019 and the data is daily closing prices of their stock market indices. The study makes a distinction between contagion and spillover whereby a shock is considered spillover if its impact is seen with a lag of one period only, while contagion is a residual transmission (Masson, P (1998); Dungey, M and Martin, V L (2007)). The results revealed substantial contagion and information flows from one market to another, be it developed or emerging. Further although US markets still decides the direction of markets, the importance of other markets has increased over the years. Further, US market on its own now appears to look for clues from both developed and emerging markets including India and China. The two emerging markets of Asia, India and China observe a lot of co-movement in returns with spillovers being linked to the developed markets. The study also tested for pre-conditions of stationarity, autocorrelation and heteroscedasticity. [ABSTRACT FROM AUTHOR]

• The relationship between R&D input, R&D output and economic growth is divergent. • Most of positive associations are found in non-peripheral regions and non-state owned sectors. • Social filters are more effective under non-peripheral regions and non-state owned sectors. • The social filters have a key role in innovation and growth. This study explores the relationship between R&D investment and economic growth in China, using a newly collected panel data set. Specifically, we investigate how social filters are connected to R&D output. Instead of linking R&D investment directly to economic performance, we adopt a two-step strategy which identifies the impact R&D investment on R&D output, and then study the causal links between R&D output and economic development. Our results suggest that the relationship between R&D input, R&D output and economic growth diverges by different region and sectors. Most of positive associations stem from non-peripheral regions and non-state owned sectors. Social filters are also more effective under these circumstances. These results reveal the complexity of relationships between R&D efforts and economic performance and point to the important role of social filters in innovation and growth. [ABSTRACT FROM AUTHOR]

18 years ago, in 2002, the world was astonished by the appearance of Severe Acute Respiratory Syndrome (SARS), supported by a zoonotic coronavirus, called SARS-CoV, from the Guangdong Province of southern China. After about 10 years, in 2012, another similar coronavirus triggered the Middle East Respiratory Syndrome (MERS-CoV) in Saudi Arabia. Both caused severe pneumonia killing 774 and 858 people with 8700 cases of confirmed infection for the former, and 2494 for the latter, causing significant economic losses. 8 years later, despite the MERS outbreak remaining in certain parts of the world, at the end of 2019, a new zoonotic coronavirus (SARS-CoV-2) and responsible of coronavirus Disease (COVID-19), arose from Wuhan, Hubei Province, China. It spread rapidly and to date has killed 3,242 persons with more than 81,000 cases of infection in China and causing over 126,000 global cases and 5,414 deaths in 166 other countries around the world, especially Italy. SARS-CoV-2 would seem to have come from a bat, but the intermediate reservoir continues to be unknown. Nonetheless, as for SARS-CoV and MERS CoV, the Spillover effect linked to animal-human promiscuity, human activities including deforestation, illegal bush-trafficking and bushmeat, cannot be excluded. Recently, however, evidence of inter-human only transmission of SARS-CoV-2 has been accumulated and thus, the outbreak seems to be spreading by human-to-human transmission throughout a large part of the world. Herein we will provide with an update on the main features of COVID-19 and suggest possible solutions how to halt the expansion of this novel pandemic. [ABSTRACT FROM AUTHOR]

In the context of the rapid growth of corporate green investment and the rapid dissemination of information brought about by Internet technology, it is important to explore the relationship between investor attention and corporate environmental responsibility. Unfortunately, an in-depth research on the relationship between investor attention and firms' environment, society, and governance (ESG) performance remains unexplored. The results show a mutual inhibition between investor attention and firms' ESG performance. Each 1% increase in investor attention decreases ESG performance by 0.252%, while each 1% increase in ESG performance decreases investor attention by 2.296%. Thus, ESG performance dominates this mutual influence. Moreover, ESG performance positively affects ESG performance and investor attention of neighboring firms. Each 1% increase in ESG performance increases ESG performance and investor attention of neighboring firms by 0.371% and 0.983%, respectively. Investor attention negatively affects investor attention and ESG performance of neighboring firms. Each 1% increase in investor attention decreases ESG performance and investor attention of neighboring firms by 0.04% and 0.104%, respectively. Further research reveals significant regional and organizational heterogeneity in the relationship between investor attention and ESG performance. The findings provide theoretical and empirical insights for further improvement of the ESG system and continued strengthening of investor guidance by regulators. • There is a mutual inhibition between investor attention and ESG performance. • ESG performance positively affects ESG performance of neighboring firms. • ESG performance positively affects investor attention of neighboring firms. • Investor attention negatively affects investor attention of neighboring firms. • Investor attention negatively affects ESG performance of neighboring firms. [ABSTRACT FROM AUTHOR]

The urgent need to reduce carbon emissions causes great concerns about rising inflation. Through measuring the interconnectedness in the carbon-inflation system consisting of four representative carbon pilots, this study demonstrates strong spillover effects between carbon returns and inflation in China, mainly driven by short-term components. The net spillovers from inflation are usually positive in the short-term, indicating that it is a net information transmitter. By contrast, inflation switches roles between information transmitter and receiver in the long-term. The net pairwise spillovers between carbon returns and inflation differ across pilots, showing heterogeneity in the carbon-inflation system. Guangdong and Shenzhen pilots exhibit significant net spillover effects on inflation, particularly in the short-term. Finally, important events exert significant impacts on the spillover effects between carbon returns and inflation, but do not necessarily enhance the overall connectedness. Overall, the multiscale interplay of the carbon-inflation system reveals an early warning of the transmission risk from carbon costs to inflation and provides useful implications for risk management at different time horizons. • The dynamic frequency spillovers between carbon and inflation are measured. • The carbon-inflation spillovers are mainly driven by short-term components. • Inflation is a net transmitter in the short-term, but a net receiver in the long-term. • Guangdong and Shenzhen pilots have net spillover effects on inflation in the short-term. • Important events do not necessarily enhance the overall connectedness. [ABSTRACT FROM AUTHOR]

This paper studies the impact of information asymmetry on productivity through the foreign direct investment (FDI) channel. Higher information asymmetry (lower transparency) could increase the information cost for investors to distinguish between good and bad investments and thus impede investment, particularly, FDI in which investors are "information disadvantageous of alien". FDI is an important determinant of productivity growth. Naturally, we connect the two key economic variables and study the influence of information asymmetry on productivity through the channel of FDI. We use data from China's publicly listed manufacturing firms. Based on a market micro-structure model, we estimate the unobserved information asymmetry using the probability of informed trading (PIN). We estimate the unobserved firm-level productivity using the proxy variable method, assuming that the evolution of productivity is not exogenous but can be shifted by FDI. We find that information asymmetry affects the productivity of domestic firms both positively and negatively, depending on firms' technology-intensity. When domestic firms are technology-intensive, they can benefit from the knowledge spillovers of FDI. In that case, we find lower information asymmetry, associated with more FDI, results in higher productivity. When domestic firms are non-technology-intensive, they can be hurt by the foreign competition. In this case, we find that lower information asymmetry results in lower productivity. [ABSTRACT FROM AUTHOR]

This article incorporates foreign intellectual capital in trade channels and in foreign direct investment channels into the unified analysis framework, using 1990-2015 transnational panel data to calculate the effects of domestic, especially in coastal regions and foreign intellectual capital spillover on total factor productivity of host countries. It is found that domestic intellectual capital investment is the main source of technological progress in host countries, and from the whole sample, foreign direct investment is the main channel for cross-border overflow of intellectual capital, while import trade has no significant impact on total factor productivity. According to the grouping, only developing countries will experience intellectual capital overflow through import trade with developed countries, while foreign direct investment between various types of countries will promote growth of total factor productivity. [ABSTRACT FROM AUTHOR]

Dispersal of A. lucorum adult mirid bugs revealed by carbon 13 stable isotope analysis, in Chinese Bt-cotton agro-landscapes, during the growing season of maize and cotton. Important fluxes of mirid bugs are measured from C 3 host plants (thus, most likely cotton, the biggest reservoir of mirid bugs in the environment) to maize fields (maize in the only C 4 plant in the environment) as shown by large, green arrows but reciprocal fluxes are not observed (small dashed, blue arrows). Therefore, maize fields have a potential to act as a sink for outbreaking mirid bug pests from source cotton fields. A, E: vegetative growth of cotton and maize, respectively; B, F: flowering stages of cotton and maize, respectively; C–D, F: fruiting stages of cotton and maize, respectively. • Tracking the dispersal of arthropod pests is essential to implement informed IPM strategies. • We used carbon 13 stable isotope analysis to estimate the dispersal of adult A. lucorum mirid bugs. • Adults fed on C 3 - vs. C 4 -plants as juveniles have different isotopic signatures for up to 9 days after shifting diet. • Most mirid bugs likely fed on cotton as juveniles and moved to maize fields once adults, but reciprocal movements were rare. • Maize fields have a good potential to be a sink for A. lucorum in Chinese Bt-cotton agro-landscapes. Agricultural landscapes are fast-changing systems due to crop planting and harvesting. These events strongly influence movements of arthropod pests and their natural enemies, yet they are insufficiently considered to implement informed pest management strategies. In China, the adoption of Bt-cotton crops at very large scales has given rise to the recent pest status of mirid bugs such as Apolygus lucorum in cotton fields. In this study we relied on carbon 13 stable isotope analysis to estimate the dispersal of A. lucorum in the Bt-cotton agricultural landscape, composed of a mosaic of cotton and maize and other minor crops. We showed that a diet on C 3 -plants including cotton induced a significantly different signature than the C 4 -plant maize. Based on δ13C ratios, we showed that more than 75% of mirid bugs caught in maize fields did not originate in situ , since they had a C 3 -diet and therefore most likely dispersed from neighbouring cotton fields. Conversely, less than 10% of mirid bugs in cotton fields had a diet on C 4 -plants, so the vast majority of them did not disperse from maize fields but instead likely stayed in cotton fields. We also observed a delayed establishment of A. lucorum populations in maize fields compared to cotton fields, likely due to host phenology. Indeed we showed in laboratory that juveniles' survival rate and adults' fecundity are high on maize silk and grain only, whose resources are available in the field shortly before harvest. Unidirectional movements of mirids from cotton to maize associated with poor developmental success on maize highlight the high potential of maize fields to act as a sink for A. lucorum mirid bug pests. This could be wisely implemented in IPM programs to enhance the management of mirid bug population outbreaks in cotton fields and reduce yield loss on cotton. [ABSTRACT FROM AUTHOR]

As global climate change intensifies, programs to promote green energy innovation are becoming increasingly urgent for humanity. However, academic debate on whether to prioritize industrial or regional policies continues, detracting the focus from programmes to promote green energy innovation. Using data from 3456 listed companies in China in 2020, this study aims to test intra-industry and spatial spillovers to provide empirical evidence to resolve the academic debate and investigate the impact of urban digital finance on corporate green energy innovation to assess the effectiveness of urban policies. Results show that firms' green energy innovations have significant intra-industry spillovers, but no significant spatial spillovers. Moreover, urban digital finance contributes significantly to green energy innovation. The impact of urban digital finance on green energy innovation varies by a firm's nature, internal controls, and external audits. Therefore, this study proposes a multilevel ecosystem for green energy innovation that theoretically supports a comprehensive and systematic understanding of corporate green energy innovation and guidelines for the precise implementation of policy portfolios. [ABSTRACT FROM AUTHOR]

This paper aimed to investigate the evidence on the transmission of China's monetary policy shocks to macroeconomic variables in Iran. Since 1990, China has become one of the main trading partners of Iran; therefore, it is expected that China's macroeconomic shocks have some consequences on Iran's Economy. In this study, a structural vector autoregressive model is used to explore such a transmission. The findings of the study reveal that the China's monetary policy changes significantly affect the Consumer Price Index (CPI) as Iran's CPI meaningfully increases with the expansion of China's money supply. Furthermore, it was found that Iran's other economic variables, including the real GDP, real effective exchange rate, and interest rate, do not significantly reflect the China's monetary shocks; even though confirm the expected sign and direction. [ABSTRACT FROM AUTHOR]

This paper proposes a method for assessing international spillovers from nominal demand shocks. It quantifies the impact of a shock in the crisis country on all other countries. The paper concludes that the network effects in shock spillovers can be substantial, comparable, and often exceed the initial shock. Individual countries may amplify, absorb, or block spillovers. Most developed countries pass-through shocks, whereas low-income countries and oil exporters tend to block shock spillovers. The method is used to study demand shocks originating from a large and medium country, China and Ukraine respectively. [ABSTRACT FROM AUTHOR]

Using a spatial econometric model this article studies the determinants and spatial spillovers of firm productivity in China’s electric apparatus industry over the period of 1999–2007. We apply Kelejian’s FE-2SLS procedure to a higher-order spatial autoregressive model and estimate the spatial dependence of firm-level TFP within and across regional borders. The model demonstrates positive and significant intra-regional technological spillovers among firms. It also provides direct evidence that technological spillovers attenuate rapidly in spatial distance. We find that firm productivity benefits from own R&D and export activities, employment density, market competition and public expenditure. Further analyses show that the strength of spillover effects is affected by a broad range of factors, including the surface area of the region, administration type, border effect, transport and ICT infrastructure, FDI intensity, the financial sector, the utility service sector, and human capital. Factors that facilitate long-distance economic connections in general make inter-regional spillovers stronger but intra-regional spillovers weaker. [ABSTRACT FROM AUTHOR]

This paper examines the influences of spatial and research and development (R&D) agglomerations on firm R&D behaviour. Analysis of firm-level data from China’s electronics industry reveals that both spatial and R&D agglomerations are positively related to R&D, highlighting the importance of network effects of agglomeration. Multinational enterprises invest less in R&D compared with domestic firms, because they tend to allocate R&D activity to the parent firm, leaving their Chinese affiliates to focus on manufacturing. No significant difference in R&D investment is observed between state-owned enterprises and private firms in China. These findings are confirmed through various robustness checks. [ABSTRACT FROM AUTHOR]

Volatility is an important component in risk return analysis of financial assets. It imparts liquidity to the financial system and also serves as an information source for rational decision making. Since the latter half of the 20th century, volatility in stock returns has been found to be time varying and exhibiting patterns and therefore, various models have been developed to capture such dynamic properties of volatility. The introduction of Autoregressive Conditional Heteroscedasticity (ARCH) models by Engle in 1982 has led to a better understanding of the behaviour of stock market volatility than the traditional measures including standard deviation. The present study attempts to model various aspects including clustering, leverage effect and spillover effect of stock market volatility in Indian and Chinese stock markets during 2001-2016 using daily time-series data with Generalised Autoregressive Conditional Heteroscedasticity (GARCH) models. Volatility has been seen to be highly persistent in both the markets. The T-GARCH model has been applied in order to assess the presence of information asymmetry that bad news impacts volatility more than good news. Our results reveal that both Indian and Chinese stock markets' volatility shows time varying behaviour. The theoretical reasoning of the asymmetric impact of news that bad news affects volatility more than good news has been confirmed in both markets. Furthermore, the spillover effect of volatility across the two markets has been tested using the T-GARCH-X model. The results show unidirectional spillover effect of volatility from Chinese stock market to the Indian stock market. This implies that shocks from Chinese stock market impact conditional volatility in the Indian stock markets only but not vice-versa. [ABSTRACT FROM AUTHOR]

This study analyzes the impact of low-carbon mergers and acquisitions (LCMA) on carbon emissions (CEM) of listed energy companies. Results show that: (1) Compared to energy companies without LCMA, LCMA can reduce CEM by 2.4%. (2) Stock-paid LCMA, horizontal LCMA, multi-frequency LCMA and local LCMA can more effectively reduce CEM of energy companies. (3) LCMA may reduce CEM by increasing low-carbon technology innovation, environmental investment, information transparency and internal control quality. However, LCMA may exacerbate CEM by increasing merger and acquisition expenses, production scale, management costs, and performance pressures. (4) LCMA has greater inhibitory effects on CEM of eastern companies, large-scale companies and mature-stage companies. (5) Spillover effects of LCMA in the same region are more significant than those in the same industry. This study is beneficial for providing LCMA recommendations for carbon reduction in energy firms. [Display omitted] • Compared to energy companies without LCMA, LCMA can reduce CEM by 2.4% • Stock-paid, horizontal, multiple and local LCMA can more effectively reduce CEM • Influence paths include scale, technology, management, and pressure effects • LCMA may exacerbate CEM by increasing performance pressures [ABSTRACT FROM AUTHOR]

There is a noticeable trend toward return migration in both developed and developing countries, including China. Nonetheless, return migration in China has received relatively scant scholarly attention. It is underexplored whether return migrants and local workers are complements or substitutes. In this study, we develop a theoretical model to disclose the mechanism of return migration on villagers. Using a novel self-collected nationwide household survey dataset combining agricultural production and income information in rural China, we examine how return migrants affect rural household income, including income growth, relative income, and expected income growth. The results show that return migrants negatively impact rural household income. This impact is driven by the competition effect and the spillover effect between return migrants and local villagers. We also analyze the identities of return migrants before and after returning to distinguish the transmission channels. Our findings suggest that the government should persist in its encouragement of urbanization and promote return migrants to carry out work that complements local villagers. • We examine how return migrants affect rural household income in China. • We use self-collected nationwide household survey data combining agricultural production and income information. • Our results show that return migrants negatively impact rural household income. • This is driven by the competition effect and spillover effect between return migrants and local villagers. • The government should encourage return migrants to carry out work that complements local villagers. [ABSTRACT FROM AUTHOR]

China’s sudden growth in solid waste production and energy consumption is challenging the government more severely than ever. The aims of this study are three-fold, to: (1) test how much intervention policies requiring householders to dispose different types of waste into separate receptacles, currently implemented in pilot cities such as Hangzhou, indirectly affect household electricity consumption; (2) investigate the importance of the form of policies (information campaigns vs. monetary incentives) and the difficulty of adopting waste disposal behaviour in considering this “spillover” effect; and (3) examine the dynamic changes of positive and negative spillover effects. Based on three-year objective panel data of two samples of Hangzhou households, this study confirms the existence of spillover, showing that, in contrast with monetary inducements, the information campaign disseminating the environmental advantages of waste separation promoted a positive spillover, although this may be influenced by difficulties in waste separation. However, positive spillover decreased more significantly over years than negative spillover, leading to the conclusion that policymakers should focus on how to maintain the positive spillover of such pro-environmental policies in the long-term. [ABSTRACT FROM AUTHOR]

By using SFA (stochastic frontier analysis) and threshold panel regression, the role of marketization degree and human capital level in FDI (foreign direct investment) spillover in China's equipment manufacturing industry is analyzed in this paper. The results show that there is significant threshold effect of marketization degree and human capital level on FDI spillover. When marketization degree changes beyond the threshold level, the influence of FDI on the technical efficiency of equipment manufacturing industry will vary from inhibition to promotion, and when the human capital level changes beyond the threshold level, FDI will further increase the technical efficiency. Importance should be attached to increasing the marketization degree and the human capital level, especially developing the sub-sectors in China's equipment manufacturing industry which haven't achieved the threshold level, thus raising the promoting effect of FDI on technical efficiency and achieving the goal of sustainable utilization of FDI. [ABSTRACT FROM AUTHOR]

The idea that educational externalities affect local governments' incentive to provide such service was proposed over a century ago. Several studies have tested the relationship in the US, with mixed results. However, the theory has rarely been tested systematically outside of the US context. Paradoxically the unique household registration system in China makes the study of educational benefit spillover simpler to grasp theoretically and easier to handle empirically. A dynamic panel-data analysis that spans 17 years across 31 provinces of China suggests that a one-percentage-point increase in intra-provincial migration rate would decrease non-personnel spending in the following year by 23, 30, and 45 yuan per student for elementary schools, junior middle schools, and senior middle schools respectively. Narrowing the focus only on rural education funding, this study also shows that intra-provincial migration negatively affects rural spending per student by a similar magnitude. While migration and urbanization often bring about prosperity and efficiency gains, the substantial negative consequences of benefit spillovers under a decentralized education system should not be overlooked, especially for non-personnel expense and for rural schools. [ABSTRACT FROM AUTHOR]

The issue of house price convergence in 34 Chinese cities is investigated. We augmented the convergence model with contemporaneous spatial dependence in house prices and found that price convergence and positive spatial spillover are both present. We explicitly addressed the endogeneity problem by introducing a Bayesian instrumental variable setup, which was estimated with particle filtering techniques. From a growth poles perspective, the empirical evidence indicates that the spread effect in regional house prices outweighs the backwash effect. The identified positive spatial spillover has two effects on the growth of house prices in Chinese cities. First, the spillover elevates the trajectories of the steady-state growth paths of house prices. Second, the spillover narrows the gaps between the growth paths of house prices in neighbouring cities. Shocks to the socio-economic variables of a city generate their own effects on domestic house prices that dominate the effects arising from cross-city price feedbacks, thus mitigating the prospect of level convergence. Our findings also suggest a collaborating role between time and spatial dependence parameters. The identification of inter-city spillover, which is a conditioning factor for regional house price convergence, offers implications to policies that are most likely to be effective in reducing regional disparity. [ABSTRACT FROM AUTHOR]

To explain the weak demand for green housing in Chinese cities, researchers point to the lack of reliable and accurate information to convince owners to invest, yet there is little concrete evidence that such information would in fact promote homebuyers' investment in green housing. We implement an information experiment in Beijing. We select two pairs of residential complexes – each pair has two complexes located in the same housing submarket, and one is green while the other is not. We ask the respondents' willingness to buy a new green housing unit, and, if yes, the price premium they are willing to pay. Then we show them an information card that documents that green apartments outperform their non-green counterparts in terms of several indoor environmental indicators, and then ask them the same two questions. We find that dwellers living in green complexes present a significantly higher initial willingness-to-pay for greenness, but this difference narrows significantly after our information treatment, as the non-green-complex dwellers' willingness-to-pay for greenness increases dramatically. This inspiring result suggests that Chinese urban households will be encouraged to purchase green housing if they are provided more reliable and concrete information. [ABSTRACT FROM AUTHOR]

Urban sprawl is becoming increasingly serious in China. Existing studies have rarely analysed its causes from the perspective of environmental change. This study investigates the impact of air pollution on urban sprawl. On the basis of the panel data of China's prefecture-level cities, an empirical test is conducted. Results indicate that in every 1% increase of PM 2.5 , urban sprawl increases by 0.484. The influence path result shows that air pollution aggravates urban sprawl by inducing discrete industrial distribution and decreasing labour supply, stimulating real estate developers' investment and land finance. Air pollution also inhibits urban sprawl by forcing industrial upgrading and increasing resident health demand. In addition, air pollution has a double threshold effect on urban sprawl, has no obvious effect on urban sprawl when the PM 2.5 index is lower than 57.74, inhibits urban sprawl when PM 2.5 is 57.74–86.8 and aggravates urban sprawl when PM 2.5 is higher than 86.8. Moreover, air pollution has a spatial spillover effect on the urban sprawl of surrounding cities. As the distance between two cities is within 200 km, air pollution has a positive spillover effect; otherwise, it has a negative one. The conclusions are expected to provide suggestions on pollution control for restraining urban sprawl. [Display omitted] • Add urban haze distribution index to measure pollution distribution in cities. • Haze can change urban sprawl by affecting industries, residents and land. • Air pollution has double threshold effect on urban sprawl. • Spillover effect of air pollution on urban sprawl is negative over 200 km. [ABSTRACT FROM AUTHOR]

In this study, we examine whether significant strategic interaction exists among Chinese provincial governments in determining the levels of their expenditures on education. The presence of such spatial interaction may be either due to spatial spillovers or due to spatial resource flows between provinces. We derive our basic regression specification based on the theoretical models in the literature. By applying a panel data generalized method of moments (GMM) method, we show that under a ‘smooth-distance-decay’ assumption in constructing the weighting scheme for the relevance of interaction between two provinces, our regression results provide evidence that supports the claim that there exists significant inter-provincial strategic interaction in public expenditure for education among the Chinese provinces. [ABSTRACT FROM AUTHOR]

The rapid growth in China's domestic investment in recent decades has generated a large appetite for global goods, including from sub-Saharan Africa (SSA). This paper estimates the impact of changes in China's investment growth on SSA's exports. Although rising trading links with China have allowed African countries to diversify their export base across countries away from advanced economies, they have also led SSA countries to become more susceptible to spillovers from China. Based on panel data analysis, a one percentage point increase (decline) in China's domestic investment growth is associated with an average 0.6 percentage point increase (decline) in SSA countries' export growth. This impact is larger for resource-rich countries, especially oil exporters. These effects could be mitigated, however, to the extent that countries can reorient their exports. [ABSTRACT FROM AUTHOR]

The rise of fintech in the past decade has received growing scholarly attention. Does the application of fintech promote innovation efficiency at the regional level? Will fintech heterogeneously affect a different stage of innovation? Motivated by these questions, this paper studies the impact of fintech on innovation efficiency and the spatial spillover effects of fintech by using regional-level data on China. We employ a two-stage DEA method to evaluate the innovation efficiency, namely, the R&D efficiency and launching efficiency, of different innovation processes. We conduct an empirical test by using the spatial Durbin model in combination with the fintech development index. The results suggest that fintech promotes overall innovation efficiency and launching efficiency but less affects R&D efficiency. Fintech also exhibits adverse spatial spillover effects on the surrounding regions in the launching stage. We further studied the effects of the breadth and depth of fintech on innovation and the impacts on different types of patents. The results show a heterogeneous impact of fintech, which generates regional development policy implications in the digital era. • Fintech innovations have developed rapidly in recent years and increasingly transform financial services. • We employ a two-stage DEA method to evaluate the R&D efficiency and launching efficiency of different innovation processes. • Fintech promotes overall innovation efficiency and launching efficiency but less affects R&D efficiency. • Fintech also exhibits adverse spatial spillover effects on the surrounding regions in the launching stage. [ABSTRACT FROM AUTHOR]

• Investigates the return and volatility linkages between international energy markets and Chinese commodity market at the micro and macro level. • Analyzes the impact of China exchange rate regime reform. • Explore the dynamic portfolio diversification strategies. This research investigates the return and volatility linkages between international energy markets and Chinese commodity market at the micro and macro level by employing the Vector Autoregressive combined with BEKK Autoregressive Conditional Heteroskedasticity model (VAR-BEKK-GARCH). Furthermore, this paper also analyzes the changes in return and volatility linkages stepping across the China's exchange rate regime reform in 2015 by splitting the sample into 2 stages: the Pre-reform period (19 June 2010-10 August 2015), and the Post-reform period (11 August 2015-31 December 2021). The empirical results show significant return and volatility spillovers between the international energy markets and China's commodity market, nevertheless, the return spillover effects has been weakened significantly and the vaolatility spillovers have been strengthened significantly after the 2015 China's exchange rate regime reform. The empirical results also provide evidence that the international energy market can effectively hedge the risks of China's commodity market, but the portfolio diversification strategies should be modified across time. Due to the decline in price co-movement, investors have been able to hedge risk in China's commodity market at a lower cost since the reform of the RMB exchange rate system in 2015. However, the efficiency of risk diversification has also declined due to the increased risk linkage between domestic and international markets. In the future, if another reform of the exchange rate system is ought to be initiated, price shocks coming from the external energy markets as well as the risk linkages are all factors needed to be taken into control. Finally, our research also provides a clear way for investors to hedge domestic commodity market risk through international energy markets. [ABSTRACT FROM AUTHOR]