Tax competition,imperfect capital mobility and the gain from non-preferential agreements

The gain to competing governments from entering into binding non-preferential tax agreements (that prevents discriminatory taxation in favor of mobile capital) depends on the extent of capital mobility between jurisdictions. In particular the gain is increasing in the cost of relocation of capital and the fraction of the domestic tax base which is relatively immobile. We show this in a symmetric model of tax competition between two governments where all capital is imperfectly mobile and differ only in their cost of relocation.     

The role of innovation in venture capital: empirical evidence from European Union and EFTA countries

This article investigates the effects of innovation attempts on the venture capital and investment activity in the cases of the selected European Union plus European Free Trade Agreement countries using annual panel data and by controlling for real income growth and business sophistication. Our findings suggest that innovation has positively significant effects on venture capital in the cases without opt-out countries (United Kingdom and Denmark); however, these effects become negative in the cases with opt-out countries. Policy implications are provided in the conclusion section of this study.     

R&D based knowledge capital and future firm growth: Evidence from China’s Growth Enterprise Market firms

Building upon a dynamic stochastic general equilibrium (DSGE) model, this paper examines the role of knowledge-based capital (KC) in improving firms’ future growth in productivity. Based on the analysis of Chinese listed firms from 2006 to 2017 in the Growth Enterprise Market (GEM), we find KC often generates endogenous movements in productivity and earnings over the business cycles, suggesting that the nature of KC is pro-cyclical. Moreover, investment in KC is often classified as a corporate expense and is thus deducted from the current year’s profits. Therefore, firms with high R&D investments have significantly higher future productivity growth but lower current profitability than do those with lower R&D investments. Given these characteristics, KC’s benefits to productivity and future earnings are thus not immediate. For faster growth in the long term, firms should continue investing in KC even if they may face a short-term fall in corporate earnings as a result of internal knowledge investment, especially for fast-growing GEM firms.     

Capital buffer and credit‐risk adjustments in Islamic and conventional banks

The main purpose of this article is to empirically investigate the interactions between changes in capital buffer and changes in credit risk, using panel data of Islamic and conventional banks located in the Middle East and North Africa (MENA) region over the period 1999–2016. A negative two‐way relationship between the changes in capital buffer and the changes in credit risk is found for the two types of banks, that is, banks tend to decrease their capital buffers in response to an increase in risk exposure and limit their risky activities in response to an increase in their capital buffers. Dividing our period of study into three subperiods to assess the effect of the last financial crisis 2007–08 on the adjustment process, we point out the negative bidirectional relationship between the changes in capital buffer and the changes in credit risk of the two types of banks is present for the three subperiods except the case of conventional banks during the precrisis period. Moreover, we provide evidence that Islamic banks adjust their capital buffer in response to the changes in credit risk regardless of the existence or not of a deposit insurance scheme. In contrast, the negative two‐way relationship between the changes in capital buffer and the changes in credit risk in conventional banks is found only in countries without deposit insurance schemes.     

乡村振兴战略下农村产业融合、人力资本与农民增收*——以浙江省为例

［目的］乡村振兴战略是贯彻新发展理念，建设现代化经济强国的重大战略之一。农村产业兴旺，农民生活富裕是乡村振兴战略的重要目标。农村一、二、三产业融合发展是实现乡村产业振兴，农民增收的重要途径。农村人力资本状况关系到农村产业融合的人才建设，关系到农民增收的实现。文章力图探究乡村振兴战略下农村产业融合、人力资本与农民增收间的相互作用关系，以期为乡村振兴战略的实现提供政策建议。［方法］以浙江省为例进行实证分析，通过建立PVAR模型，采用格兰杰因果关系及面板数据模型进行检验。［结果］农村产业融合及人力资本构成农民增收的格兰杰因果关系，两者都对农民增收产生显著影响，且人力资本影响效应更大。农民增收及人力资本对农村产业融合没有起到相应的促进作用。［结论］在实证分析的基础上，从加大人力资本投入、培育农村产业融合复合型人才及加强宣传引导工作等方面提出相应的政策建议促进农村产业融合。     

The impact of foreign direct investment on productivity: New evidence for developing countries

We provide new empirical evidence on the relationship between inward foreign direct investment (FDI) and total factor productivity (TFP) growth using cross-country data for 51 developing countries over the period 1984–2010. Our results suggest a weak direct effect of FDI on TFP growth but, after accounting for the roles of human capital and institutions as contingencies in the FDI-TFP growth relationship, we find a robust FDI-induced productivity growth response dependent on these ‘absorptive capacities’. However, the relevance of the human capital contingency effect diminishes when the effect of institutions is also considered, which suggests that improving institutions is relatively more important than human capital development for developing countries to realise productivity gains from FDI.     

自然资源依赖对城乡收入差距的影响研究

［目的］针对全国31个省（市、区）（不含港澳台地区）、自然资源依赖度高的地区和自然资源依赖度低的地区，从整体和分区域研究自然资源依赖对城乡收入差距的影响，探究不同区域其影响程度的差异性，进而为弱化各区域城乡收入差距，解决由城乡收入差距拉大造成的各类社会矛盾具有重要的现实意义。［方法］从理论上分析了自然资源依赖对城乡收入差距的影响，并利用1999—2017年的省级面板数据，运用固定效应模型，从全国和分区域实证分析了自然资源依赖对城乡收入差距的影响。［结果］针对全国，自然资源依赖会拉大城乡收入差距； 分区域结果，针对自然资源依赖度高的地区，自然资源依赖拉大城乡收入差距； 针对自然资源依赖度低的地区，自然资源依赖对城乡收入差距影响不显著。［结论］为缩小城乡收入差距，需要降低经济体对自然资源的依赖，针对自然资源依赖度高的地区，政府通过将部分自然资源收益转化为农业创新基金和农村基础设施投入，促进自然资源收益向农村公共资本转化，完善现有的自然资源收益分配及转化制度； 鼓励资源型产业技术创新，加大研发投入，延长资源产业链； 加大农村教育投入、提升农村人力资本质量。     

Venture capital,innovation, and growth: evidence from Chinese metropolitan data

Using panel data from 282 Chinese cities from 2003 to 2015, we estimate the impact of venture capital (VC) on innovation, employment, and payroll in metropolitan areas. Controlling for endogeneity, VC investments are significantly positively related to metropolitan innovation, employment, and payroll in a fixed effects panel regression and dynamic GMM estimation. Using the number of IPOs (Initial public offerings) in the city as an instrumental variable to again control for endogeneity, VC remains significant. Our results show that VC is significantly contributing to the metropolitan economy as a whole by supporting innovation, creating jobs, and generating wealth in the local cities.     

Nonlinearities in the real exchange rates: new evidence from developed and developing countries

This paper investigates nonlinearities in the dynamics of real exchange rates. We use Monte Carlo simulations to establish the size properties of the Teräsvirta-Anderson test, when the dynamics of the real exchange rate is influenced by an exogenous process. In addition, we show that a modified nonlinearity test, which includes additional right-hand-side variables, performs much better than the original in both Monte Carlo exercises and in the actual data on 1431 bilateral real exchange rate series. Finally, we investigate the dynamics of the real exchange rate for both developed and developing countries using the modified test for the recent floating period. In general, the results find a greater incidence of nonlinear dynamics for developing country real exchange rates.     

Citizens’ e-participation on agenda setting in local governance: Do individual social capital and e-participation management matter?

Although a growing body of literature has touted e-participation as a means of facilitating greater citizen participation in policy decision-making processes, little is known about the driving forces behind citizens’ use of e-participation. Based on a literature review of social capital and citizen participation, this study develops and tests a model proposing that three dimensions of social capital and three dimensions of citizen participation management should be positively associated with e-participation in agenda setting. Using data from a Korean e-participation survey conducted in 2009, we found that citizens tend to be more active e-participants when they have greater trust in government and are weakly tied to offline social groups. We also found that citizen participants’ perception of government responsiveness to their input can facilitate their e-participation. The study findings imply that local governments should pay more attention to the function of public trust in local government and provide quality feedback in response to citizen input. They should also be sensitive to how the social factors of e-participants can facilitate involvement in agenda setting.