Provincial Development in China: Lessons from EU Regional Policy Experience

Abstract

This article evaluates and compares regional development in the Chinese provinces and in the regions of the European Union (EU) countries. Development efforts in southern Italy, northeast England and eastern Germany are reviewed along with EU, Community-wide regional development programmes. Equity concerns suggest promotion of regional policy, but the pursuit of maximum national economic growth would avoid it, since it sacrifices some economic growth. The impact of foreign direct investment (FDI) and domestic investments on individual Chinese provinces is compared with their impact in Europe. There is an implicit contrast between public sector regional development programs and more effective private foreign direct investments.     

较富裕地区农民住房投资过度现象、原因与对策

浙江省农村居民收入在全国处于领先水平,农民的投资方向值得关注。调查发现,浙江省农村居民收入增长后,住房仍是农民的主要投资方向,且投资已经过度。导致农民住房投资过度的主要原因是城市化水平滞后于经济发展水平、农村缺少有效的投融资渠道和落后的消费与投资观念。文章针     

Policy and trade issues for a future regional biofuels market in Southern Africa

ABSTRACT

This paper reviews the domestic political and legislative context surround biofuels initiatives to highlight what opportunities exist for establishing a biofuels trade network between South Africa (as an anchor market) and its neighbours, specifically in Zambia and Mozambique. By analysing global developments in major biofuel importers, reasons for policy inertia in South Africa, and recent experiences with biofuels investments, we suggest that the likelihood for a regional biofuels market developing is slender without addressing land-related challenges in producer countries and revising South Africa’s domestic legislation.     

The Danish cattle trade during the sixteenth and seventeenth centuries

Abstract

Danish production and exports of oxen have been the subject of frequent investigation from various points of view. Historians have chiefly tended to stress the social lop-sidedness of the trade and the dependence of these exports on the vicissitudes of the international market. While the dominant political position of the Danish nobles enabled them to monopolize the production of oxen, their economic prosperity depended on the successful maintenance of the exports.¹ Against this interpretation, however, some historians have argued that the cattle production was not only of fundamental importance to Danish agriculture but that it also made a significant contribution to the European supply. According to Erik Arup, oxen provided Denmark in the fifteenth century with an export commodity of high quality, and Astrid Friis has stressed the fundamental importance of oxen exports to the economic development of sixteenthcentury Denmark. Both interpretations, however, maintain that the production and export of oxen provided a solid economic foundation for the aristocratic rule of Denmark.²     

Impacts of the information-technology revolution on Japanese manufacturer–supplier relationships

“Vertical keiretsu,” characterized by suppliers' willingness to make customized investments, their long-term relationships with manufacturers and financial as well as personal ties between them, had been recognized as an important source of strength in Japanese industries. Our model predicts that, in contrast to the recent popular argument, the information-technology revolution can strengthen several aspects of “vertical keiretsu.” This is because the efficiency of designing customized parts can be significantly enhanced by suppliers' IT investments such as the introduction of 3D CAD systems. Our interviews with Japanese manufacturers provide a support to this prediction. J. Japanese Int. Economies 18 (3) (2004) 390–415.     

The implications for suppliers of the spread of supermarkets in southern Africa

ABSTRACT

The growth of supermarkets in southern Africa opens local and regional markets to suppliers through participation in supermarket supply chains. Supermarkets in the region provide an important route to market for processed foods and household consumable products. Through a regional value chain lens, this article provides an assessment of the implications of the growth of supermarkets for the participation of suppliers in Botswana, South Africa, Zambia and Zimbabwe. The research finds that, while supermarkets provide important opportunities for suppliers, they also exert considerable buyer power that limits supplier development and upgrading. High private standards, onerous requirements and costly trading terms negatively affect supplier participation in value chains. Long-term investments are required to build the capabilities of suppliers to meet supermarket requirements in terms of quality, consistency, volume and cost-competitiveness.     

Investitionen in nachgeschaltete Umweltschutzma?nahmen und das Paradox der Umweltabgaben- und -subventionspolitik

Zusammenfassung Der Beitrag untersucht den Anreiz von Abgaben und Subventionen zu Investitionen in nachgeschaltete Umweltschutzma?nahmen, insbesondere Filter. Unter Einbezug der resultierenden Auswirkungen auf die Produktion und mit Hilfe der Dualit?tstheorie ermittelt er den für solche Investitionen auf unvollkommenen Kapitalm?rkten unter Unsicherheit maximal zahlbaren Preis und dessen Determinanten. Sensitivit?tsanalysen zeigen sodann, dass Versch?rfungen in der Umweltpolitik andere als die gewünschten, u. U. sogar ?konomisch und ?kologisch kontraproduktive Wirkungen entfalten k?nnen.

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Summary The paper investigates the incentives of environmental policy using taxes and subsidies for investing in end-of-pipe-technologies, especially in filters. Considering the effects on production, it identifies the price ceiling and examines its determinants. Sensitivity analyses show that policy changes do not always encourage environmentally beneficial investments – in particular cases they even may be counterproductive.

     

The Interactions of Stock Prices and Exchange Rates in the ASEAN-5 Countries: New Evidence Using a Bootstrap Panel Granger Causality Approach

Abstract

Using a data-set from the ASEAN-5 countries over the January 2000–August 2013 period, this paper revisits the Granger causal nexus between the equity and foreign exchange markets by employing the bootstrap panel Granger causality approach developed by Kònya, which allows for both cross-sectional dependency and heterogeneity across countries. The results indicate a unidirectional causality from stock prices to exchange rates in Malaysia, the Philippines and Thailand and from exchange rates to stock prices in Indonesia. These findings have important implications for policy-makers and institutional investors who should rigidly monitor the dynamic linkages between stock price and exchange rate movements across the ASEAN-5 financial markets when making policy decisions and investing in these countries.     

What is the role of government trust in a firm's R&D investments? Evidence from SMEs

We examine how government trust shapes the R&D behaviors of small and medium enterprises (SMEs). To study this, we use data collected on 3045 Chinese SMEs to find that for every standard deviation increase in the government trust index, an SME has a 23.9% increase in their R&D investments. Our findings are robust after accounting for endogeneity using an instrumental variable and controlling for the impact of social trust. We further discover that SME owners who are more motivated to conduct innovation will make more R&D investments when they trust the government, driven in part by their willingness to take more risks. Finally, the effect of government trust on R&D investments is less salient when the region has a high marketization level.     

The impact of outward FDI on the performance of Chinese firms

Using new firm-level data from the Emerging Multinationals' Events and Networks DATAbase (EMENDATA), this paper investigates the effects on Chinese firms of Outward FDI (OFDI) into advanced European countries. Propensity score matching is combined with a difference-in-difference (DiD) estimator to reduce the problem of self-selection of treated firms in foreign markets, and to eliminate time-invariant and unobservable differences between those firms and the controls. The results provide robust evidence supporting the view that China's OFDI so far have had a positive impact on domestic activities in enhancing firms' productivity and scales of operation, measured by sales and employment. When we distinguish among investments on the basis of entry mode, accounting for endogeneity in the selection process, acquisitions facilitate early access to intangible assets, but are detrimental to financial performance, while greenfield investments have a stronger impact on the scale and productivity of Chinese multinationals investing in Europe.     

Norwegian timber exports in the 18th Century: A comparison of port books and private accounts

Abstract

The subject of Norwegian timber exports in the 18th century is a very wide one and it is not the intention of this article to treat it fully. The purpose here is to discuss some of the problems connected with the subject, especially the special character of the port books and their value as historical source material. The method adopted in this investigation will be to compare the information derived from the port books with the information afforded by a private archive.     

Role of high-speed rail on social fixed assets investments in China

ABSTRACT

Rapid development of high-speed rail (HSR) in the past decade has a tremendous boosting effect on China’s economy and society. Under the ‘New normal’, HSR provides an important physical space for the steady expansion of the national economy. This paper uses a panel dataset comprising 285 prefecture-level cities in 2010–2016 to establish an investment measurement model and estimate the impact of HSR on social fixed assets investment. It also uses the difference-in-difference and propensity score matching tests to verify the results. Two important findings arise from the empirical analyses: (1) HSR development significantly stimulates China’s social fixed assets investment, foreign direct investment and real estate investment; and (2) HSR investment does not substitute for investments in other industries, instead, it supplements them. These findings provide strong theoretical and empirical support for China’s long-term HSR development strategy.     

Linking IDC finance to structural transformation and inclusivity in post-apartheid South Africa

ABSTRACT

The need for structural transformation and inclusivity in South Africa is urgent, given poor economic growth, employment and equality outcomes. This article examines the role of South Africa’s main industrial finance institution – the Industrial Development Corporation (IDC) – in providing finance for structural transformation and inclusive economic growth post-apartheid. We find that the IDC’s funding has been concentrated in capital-intensive upstream sectors of the economy, with limited concessional finance to facilitate meaningful entry of SMEs into high-value and labour-absorptive downstream sectors. The IDC’s funding model (in being a self-sustainable institution) is a significant constraining factor in this regard. Furthermore, the lack of a purposeful integrated industrial policy strategy which directs investments clearly means that IDC’s funding priorities are not clearly defined.     

肉类食品企业养殖基地投资的消费者响应研究

基于287份消费者调查问卷,通过描述性分析和实证研究,分析了消费者对于肉类食品企业投资养殖基地的态度与购买意愿。研究结果表明,消费者普遍认为肉类企业有必要投资养殖基地,但是消费者对于相关宣传信息关注度和信任程度都不高。企业拥有自建养殖基地和消费者对于企业宣传的信任程度会对企业产品的食品安全、产品品质评价、购买意愿和溢价支付意愿产生正面影响。消费者对企业是否需要拥有养殖基地的认知又会影响消费者的信任程度。     

Constraints to biofuel feedstock production expansion in Zambia

ABSTRACT

World biofuel production has been increasing to improve energy security and mitigate global warming. Southern Africa’s bioenergy demand could increase with South Africa’s planned fuel blending mandates, triggering increased demand for feedstocks and agricultural land. Ensuring sustained production will require a full understanding of the constraints to production expansion, considering the tradeoffs that may be generated in rural areas, as has been observed for large-scale land acquisitions. We analyse the social and biophysical constraints to biofuel production expansion in Zambia. Previously social constraints have received limited attention even though they may prove more problematic. Results indicate that Zambia is at least moderately suitable for bioenergy investments with biophysically suitable areas largely coinciding with the socially suitable areas. However, existing gaps in compensatory procedures may inhibit large-scale projects’ access to development finance if not aligned with internationally acceptable practices, and generate negative outcomes if safeguards are not in place.     

Effects of Location Diversification and Corporate Governance on Multinational Enterprises' Financial Performance and Risk‐taking: Evidence from Taiwanese Enterprises

This study investigates the location choice performance of foreign direct investment (FDI) originating from small‐ and medium‐sized multinational enterprises established in newly industrialized economies. In this study we integrate location diversification, breadth and corporate governance to examine the performance of Taiwanese enterprises investing in Chinese mainland. Examining Taiwanese manufacturing enterprises from foundational, traditional and high‐technology aspects, our findings demonstrate the following: (i) diversifying the location choice negatively affects the return of assets; (ii) investments in regions with an abundant population positively affect the performance of Taiwanese traditional manufacturing enterprises; and (iii) a higher percentage of insider holdings in Taiwanese enterprises results in better FDI performance. We conclude that the performance of FDI originating from Taiwanese enterprises varies depending on industrial and governance characteristics. We suggest that the location choice for Taiwan FDI in Chinese mainland should be determined by the characteristics of the industry. Chinese mainland should attract multinational enterprises from emerging markets according to the characteristics of regions.     

福建吸收台商投资的现状、特征及政策分析

福建是台商在大陆投资最早的省份,从20世纪80年代初开始至今已20余年的历史.经过几个阶段的发展,台商投资的区域逐步扩展,投资的规模不断扩大,投资的结构也在升级,从初期的劳动密集型产业逐渐发展到资本技术密集型产业.并出现投资"群聚现象"和投资"本土化"趋势.福建要继续利用同台湾的人缘、地缘、情缘等优势、趁着台湾产业结构正在调整的时机,扩大吸引台资的水平,福建地方政府要在投资政策、软硬件环境上不断改善,创造更好地吸引台商投资条件.     

Labour Use and its Adjustment in Indian Manufacturing Industries

Abstract

This study provides an empirical investigation of the adjustment process of labour in Indian manufacturing industries, which evolved through structural transformation in the era of globalization. The analysis is based on a dynamic model applied to a panel of 22 two-digit manufacturing industries for the time period of 22 years covering 1980/1981 to 2001/2002. It is assumed that as competition increases industries adjust their employment to a desired level which is both industry and time specific. The results indicate that the manufacturing sector has shown a considerable dynamism in adjusting its workforce. The long-run labour demand responds greatest to the output, followed by capital and least by wages. It is observed that Indian manufacturing is not inefficient in labour use as modest speed of adjustment has led employment size closer to the optimal level.     

The Effects of Outward Foreign Direct Investment on Fixed-Capital Formation at Home: The Roles of Host Location and Industry Characteristics

Abstract

This paper pursues the idea that the relationship between foreign and domestic investments may be not as uniform as many studies suggest. By examining the case of Taiwanese outward foreign direct investment (OFDI), this paper is marked out from existing studies in the following three respects. First, it examines the extent to which the relationship between OFDI and domestic investment varies with the location of investment. Second, this research allows the results to vary between Heckscher–Ohlin (H–O) industries and Schumpeter industries. Finally, its breakdown of data will reveal sub-relationships in the data that up to now have remained hidden within the aggregate relationships reported in most studies. This study suggests that OFDI in China has a positive impact on domestic investment in H–O industries, while OFDI in other countries (OFDIO) has a negative impact on domestic investment in the same industries. These findings are in marked contrast to Schumpeter industries where a positive effect is observed only for OFDIO. Our findings also suggest that the Taiwanese government should design policies to adjust the level of liberalisation for overseas investment through legislation on an industry-by-industry basis in order that OFDI stimulates domestic investment in relevant industries more effectively.     

Tax Loss Carryovers in a Competitive Environment*

The fact that incumbent firms can immediately deduct research and development (R&D) investments from taxable income is generally believed to give them a strategic advantage over new firms that cannot deduct the investment cost, but instead generate a net operating tax loss carryover. Using an analytical model, we show that this conventional wisdom need not hold in a competitive environment. We examine operating and investment decisions in a duopolistic industry in which an initial investment in R&D yields an immediate tax benefit for one firm, but creates a net operating loss carryover for the other firm. If both firms invest in R&D, the firm with the net operating loss carryover makes more aggressive capital investment decisions following successful R&D. This may deter the incumbent firm from investing in R&D despite the lower aftertax costs of this investment. Changing the tax loss carryover rules would thus not only affects start‐up or loss firms, but would also affect the investment decisions of profitable firms in the same industry.