Inter-industry Technology Spillover Effects in China： Evidence from 35 Industrial Sectors

The present paper calculates 35 industrial sectors’ similarity matrices for the period of 1997-2008 using China’s input-output tables for 1997,2002 and 2007,and uses these to measure inter-industry technology spillover to analyze the spillover effects on industrial sectors’ labor productivity.The empirical analysis shows that inter-industry technology spillover has a significant positive effect on the labor productivity of each industry.The elasticity of productivity effects of inter-industry technology spillover is not only larger than that of direct R&D input,but also increases over time.We group the industries into four major categories and find that the inter-industry technology spillover effect within the categories is,on average,greater than that between the four categories,indicating that technology spillover occurs more easily between similar industries.This research shows that the interindustry technology spillover effect in China has begun to increase,and the government should take advantage of this effect.     

Do High-technology Exports Cause More Technology Spillover in China？

The volume of China’s high-technology exports has grown sharply since the implementation of its export promotion strategy "Revitalizing Trade through Science and Technology" in 1999.This paper investigates whether technology spillover effects are greater for hightechnology exports than for primary manufactured goods exports.We present a generalized multi-sector spillover model to identify both between spillover effects from exports towards non-exporters and within-spillover effects among export sectors.Using panel data for 31 provinces in China over the period from 1998 to 2005,we find that although high-technology export sectors have higher productivity compared with other sectors,this productivity advantage does not lead to technology spillover to both domestic sectors and other export sectors,and export technology spillover mainly derives from traditional export sectors rather than high-technology export sectors.As such findings can be largely attributed to the fact that China’s high-technology exports depend significantly on processing trade by foreign- invested firms,policy implications are discussed in relation to how to best promote the role of China’s high-technology exports during economic expansion.     

Home Market Effects of Foreign Trade in China＇s Manufacturing Sector： Analysis Using International Standard Industry Classification Panel Data

In this paper,we use 2002-2008 International Standard Industry Classification two-digit bilateral trade panel data for manufacturing industries in China and the OECD countries to test for the existence of home market effects.We find that significant home market effects exist in 8 out of 12 industries.These industries include the food,beverage and tobacco industry, wood products,the paper products and printing industry,chemical products,other nonmetallic mineral products,machinery and equipment,transport equipment,and miscellaneous products and waste resources recycling industry.Textile,clothing and leather manufacturing,oil refining and nuclear fuel manufacturing,rubber and plastics,and basic metals and fabricated metal products industries do not exhibit home market effects.Indeed, strong reverse home market effects occur for oil refining and nuclear fuel manufacturing and for the rubber and plastics industry.The empirical results reveal that certain industries benefit from new export opportunities due to the expansion of domestic demand in China.     

Volatifity spillovers on precious metals markets and the G-7： The effects of the Asian crisis

This paper investigates the nature of volatility spillovers between stock returns and precious metals returns for the G-7 countries over the 1995-2006 period. We divide our sample into a number of sub periods, prior to, during and after the Asian crisis, with the objective to provide a wide analysis of the behaviour of these two markets taking into account the effects of the Asian crisis; We use EGARCH modelling, which takes into account whether bad news has the same impact on volatility as good news. The results show that there is no evidence of volatility persistence from stock returns to precious metals returns, but overall the results are significant in the other way around. In terms of volatility spillovers effects, the main findings are that there is evidence of volatility spill over running in a bidirectional way in almost all the cases. And finally, the results from asymmetric spillovers effects show that negative news has a stronger impact in these financial markets than positive news.     

An Inquiry into the Determinants of the Exports of China and India

Regression analysis is used to tease out the relative significance of influences on the supply and demand for the exports of China and India. On the supply side, the value-added tax in China has discouraged export supply. The elimination of the rebate on those taxes will discourage exports. Higher wages discourage exports, but the share of exports by foreign invested enterprise is a positive influence, as is a higher share of value added in output and greater experience in exporting. On the demand side, exports depend in part on aggregate income levels in importing countries. Relative wages have been more important than exchange rates in determining the demands for Chinese and Indian exports. This evidence does not support the pressures for a devaluation of the RMB. There is also evidence of the positive significance of the accustomization of purchasers to buying Chinese exports.     

Investment and Innovation State Support of Agriculture in Russia as a Condition of WTO

Russian agriculture is one of the industries operating in the unstable economic situation in a developing market taking into account risks of the world economy, economic, political, and climatic factors. The role of agriculture is to provide people＇s needs for food, significant effects on employment, the efficiency of domestic production, and way of life in rural areas by obligatory preserving food security in Russia. One of the major tasks for agriculture is the development of innovations and investments aimed at improving the competitiveness of the domestic agricultural sector. Russia＇s membership in the WTO since 2012 is getting a particular importance in the innovation and investment support of agriculture. The strategy of innovative development of the Russian Federation until 2020 ＂Innovative Russia--2020＂ assumes three possible options for innovative development： inertial （directed on imports）, catch-up development and a local technological competitiveness and a variant of achieving leadership in leading scientific and technical sectors, and fundamental research. A positive point is that the strategy provides an algorithm of state support of the innovation cycle. The innovation cycle is the process associated with the sequence of innovation transformations （scientific or business ideas） in products, technology, business process and launches it on the market for commercial use. A positively developing regional aspect is of great importance.     

Intercultural Competency Development in Conjunction With a Short Term Study Away Experience： Changes in Undergraduate Students

The purpose of this research was to examine whether undergraduate business students who participated in a short term study abroad course and intercultural competence building coursework demonstrated a significant increase in intercultural competence over those who only enrolled in the study abroad course. The 20 participants attended a small liberal arts College in Midwestern United States. The Intercultural Development Inventory （IDI） was administered to the participating students before and after their study away experience. The IDI （v.3） is based on the theoretical framework of the Developmental Model of Intercultural Sensitivity （DMIS） introduced by Milton Bennett. The DMIS is based on the assumption that intercultural competence can be strengthen through the development of intercultural knowledge and experience with people from other cultures. The IDI has been used in numerous scholarly studies and has demonstrated valid and reliable results. It is a self-administered 50-item series of statements in which participants are asked to rate the level of their agreement with statements that address their relationship to and evaluation of cultural difference. In the model, people progress in a linear developmental fashion through six stages： defense, denial, polarization, minimization, acceptance, and adaptation. This study was designed to determine if students who studied away and completed intercultural coursework （prior intercultural knowledge and an intercultural experience） would increase their level of intercultural competency more than those students who just studied away （intercultural experience only） as measured by the change in their IDI scores. The results of this small sample show that intercultural coursework in conjunction with a short term study away experience can have a positive impact on individual intercultural development.     

Does Education Still Pay Off in Rural China： Revisit the Impact of Education on Off-farm Employment and Wages

The present study considers how education affects off-farm job participation and wages. We use a nationally representative dataset from a survey conducted in 5 provinces, 101 villages and 808 households by the authors in early 2005. The empirical results show that educational attainment, skill training and years of experience of rural residents have positive, statistically significant effects on off-farm employment. The average return to a year of education is 7percent, which is higher than those observed in previous studies. We also find the return to an additional year of schooling to be higher for post-junior high schooling than for junior high and below schooling： 11.8 versus 3.2 percent. We conclude that not only does education still pays off in rural China, but also the rate of return to education is increasing over time.     

The Cause of Turnovers of Top Management -An Empirical Research on the Special Treatment Companies in China

The turnover of top management is important for both foreign stock market and corporate management. China has developed its own stock market for more than ten years. During this period, a lot of listed companies＇ top managers were on the move. Based on 97 Chinese ST companies of 2004, this paper invesdgates the main factors, which causes the top management turnovers in the ST companies. The results of regression analysis show that the turnover of top management in Chinese ST companies is highly positively related to the change of large shareholder and are negatively related to the rate of net profit to total assets. We also find that net cash flow that is provided from operations per share, the proportion of state-owned shares and the type of audit views have no influence on the top management turnovers in such ST companies in China.     

Does Property Rights Reform Improve the Efficiency of China＇s State-owned Banks？

China ＂s state-owned banks have undergone radical changes over the past two decades, including partial privatization and listing in both the Hong Kong Stock Exchange and the Shanghai Stock Exchange. This paper evaluates the effects of these changes by analyzing the efficiency of Chinese banks over the period 1998-2012 using two frontier techniques and comparative analysis. The findings suggest that the performance and technical efficiency of the Big Four banks improved considerably after property rights reform, but this improvement is not sufficient to keep the banks at the production frontier. Tobit regressions confirm that static ownership effects are negative but that the property rights reform has had significant and positive effects on the technical efficiency of state-owned commercial banks. GDP growth and the financial crisis have had positive effects on the efficiency of Chinese banks, which is more significant for joint stock commercial banks than state-owned commercial banks. The results indicate the value of ownership reforms of state-owned asset management companies and insurance companies and the establishment of a countercyclical capital buffer.     

Vertical Spillover Effects of Multinationals on Chinese Domestic Firms via Supplier-Customer Relationships

Foreign direct investment （FDI） can benefit domestic firms in the host country. Using firm- level data for China, we find statistically positive vertical spillover effects of multinational enterprises on the performance of domestic firms through backward and forward supplier- customer relationships. The spillover effects are mainly from large multinational enterprises and are greater for state-owned firms and in poor regions. Our results are robust for both parametric regression and nonparametric matching techniques. Our findings have strong policy implications： while regulations relating to building business relationships with domestic firms when seeking foreign direct investment should be established, such policies should be aimed at private firms, big multinationals and less developed regions.     

Research on organizational learning and knowledge creation

This paper examines the effects of organization learning and knowledge creation to meet the changing needs of Chinese IT industry. A conceptual model is developed and three research hypotheses are empirically examined using structural equation modeling. The data were collected via a survey of three IT firms in Suzhou of China. The results indicate that organization learning has a positive influence on the knowledge creation. Theoretical, managerial and research implications are discussed.     

China‘s Financial Reform in the Context of Financial Stability and Efficiency

I. IntroductionAs Douglas North once said, "Institutions are the rules of the game in a society. The beginning of wisdom is to understand how the game is played." In the same way, it is vital to understand the international experience and rules of a financial system when a country tries to advance financial reform. International experience shows that the development     

Regional Economic Growth and Spillover Effects： An Analysis of China＇s Pan Pearl River Delta Area

The Pan Pearl River Delta(PPRD) Regional Co-operation Framework Agreement was signed in 2004.It aims to bring prosperity through partnership among nine Chinese Mainland provinces and China ’s two special administrative regions.In this paper,we use a dynamic panel data model to examine the economic growth of the PPRD economies from 1985 to 2009.Our analysis confirms the existence of regional growth spillover effects in the PPRD area.Our results also show that economic growth spillover effects of non-PPRD regions on the PPRD regions are greater than those among the PPRD members themselves.These findings imply that economic integration between Chinese provinces has generated considerable spillover effects on regional growth.However, the anticipated benefits of the implementation of the PPRD agreement have not been realized thus far.Therefore,greater effort should be made to promote further economic integration among these members so that their local economies can benefit from the positive spillover effects.     

Micro Econometric Analysis of Determinants of Occupational Choice in Algeria

A review of the literature on the issue of labor market participation and occupational choice allows to see that researches on this one turned more on developed countries. In underdeveloped countries, including Algeria, the determinants of participation in economic activity and individuals＇ occupational choice remain understood, despite their economic and social importance, since the degree of economic vulnerability and social development is strongly correlated with the occupied job. This work is not concerned with income from the labor market but rather the process that takes place upstream, that is to say, the integration into the labor market. This paper will study the labor market functioning by analyzing the supply and demand of labor. So the first step is to analyze the participation determinants in economic activity and in a second stage to determine the role of individual characteristics, in particular human capital for the tenure choice. The aim of this work is to answer the following questions： （1） What are the factors that influence individual＇s participation in the labor market？ Is there a difference between men and women？ （2） What are the occupational choice determinants of an individual on the labor market？ Is this the same factors for men and women？ （3） What are the causes of failure in the labor market？ To answer all the concerns, authors have exploited the employment surveys conducted by the National Office of Statistics （NOS） from Algerian households （employment surveys 1997 and 2007）. For processing and data analysis, authors applied several econometric techniques： models of discrete choice （binary logistic regression） and segmentation techniques. Four major findings emerged from this study： First, authors note that women＇s participation in economic activity is following logic quite different from that of men. For women, the education and training determine the participation in the labor market. For men, it is rather the age that determines particip     

Declining Labor Share： Is China＇s Case Different？

This paper explores why labor share in China has declined since the middle of the 1990s. Existing literature usually ascribes the labor share decline in developed countries to biased technological progress. However, our investigation shows that China ＂s case is different. Using a simultaneous equation model estimated with three-stage least squares, we find that FD1, levels of economic development and privatization have negative effects on the labor share. The negative influence of FDl on labor share results from regional competition for FD1, which weakens labor forces＂ bargaining power. A U-shaped relationship exists between labor share and the level of economic development, and China is now on the declining part of the curve. The negative effects of privatization on the labor share stem from the elimination of the so-called ＂wage costs eroding profit ＂ situation and the positive supply shock on the labor market.     

A Study on Current and Future Guanxi Networks of China

Despite the abundant opportunities are presented by Chinese market, many foreign practitioners have commented that operating in China is more complex and time consuming than necessary, and of the 53 companies interviewed by Hong Kong＇s Bank of East Asia, 42% were reported not to be profitable （Economist Intelligence Union （EIU）, 1995）. Given the fact that China＇s potential as a market is unparalleled, while many foreign business practitioners have commented that operating in China is difficult to be profitable, and it is more complex and time consuming than it is necessary （Ewing, Garuana ＆ Wong, 1999）, a large number of researches on doing business hi China recogniZe the concept of Guanxi, a business relationship network, as the key for conducting successful business in China This study co llectsboth primary data and secondary data to explore the issues of Guanxi. The review on the secondary data helps to build the analysis techniques and study instruments. A survey questionnaire is developed after the study on the secondary data, and the primary data is collected from the surveys, which are faxed to sample groups in both Taiwan and Mainland China. The study on the Mainland China senior managers is to find the current Guanxi concept of China, while the Taiwan senior manager group and the Mainland China college student group are chosen to explore the future Guanxi changes. By using statistical techniques of the mean and standard deviation calculations, the t-test for two samples with equal variances, and the correlation test, the findings of this study help to answer the critical questions concerning the study objectives. The practical interpretation and implications of this study of Guanxi are gained from the summary of the statistical results. A conclusion and recommendations of this study on the Guanxi concepts are presented to business practitioners both inside and outside of China.     

Creativity and Innovation as Strategic Resources in International Business Markets

This study focuses on Medium-Sized Multinationals （MSMs） that belong to the sectors of mechanics and electronics, and that operate in dynamic international business markets. This work aims to investigate how international marketing strategies are based and maybe in some cases actually heavily dependent on the capacity to form and enhance skills in design, engineering, and production activities, and on the propensity to invest more resources in research and development （R＆D） activities as well as in activities that are more strictly speaking production based （manufacturing）. Undoubtedly, in a global and dynamic business, creative knowledge is one of the key resources that firms must possess in order to take up international strategies successfully. Creativity and innovation are strategic resources for all firms, including those of a medium size and even more for those that belong to the so-called ＂traditional sectors＂. This study also has the objective of examining the influence of the structure and composition of a technological MSMs international alliance portfolio in order to understand which forms of international collaboration are more opportunities for firms that aspire to increasing their know-how and taking up new and more sophisticated forms of exploratory innovation. The present work highlights the results of an empirical research that were carried out during the years 2000-2009. The research involved more than 80 firms of the mechanical and electronics department in the Marche region in Italy.     

Demand for reinsurance： Evidence from Australian insurers

Reinsurance is widely recognised as important in insurer risk and capital management. This paper examines the factors that determine insurer demand for reinsurance using Australian data. The Australian situation is interesting because of the tax imputation system and the prudential regulations that were in force during the period of the study. As far as the authors are aware, this is the first paper to empirically analyse the demand for reinsurance in Australia. A panel-data set （1996-2001） is used, which provides 543 observations. The authors provide a careful approach to econometric diagnostic testing and the choice of the most appropriate panel-data model and the authors show how failure to do so may generate misleading results. Based on a robust estimation procedure, the authors find strong evidence of a positive relation between variables related to company size and the demand for reinsurance in Australia. The impact of leverage, taxes, and return on investments are not statistically significant.     

The influence of operating cash flow and investment cash flow to the accounting conservatism measurement

This research investigates the influence of cash flow from operating and investing activities to conservative accounting practices. Cash flow from operating activities shows the performance of a firms and its earnings quality. Higher operating cash flow indicates better performance, and it is expected to produce better earnings in the future. Better earnings would be a positive signal for investor as a basic to predict the firm＇s prospect. Investing activities will push or lowering operating assets. For firms that implementing the conservative accounting practices, changes in investment will influence the earnings＇ quality. When the investment goes up, the conservative practices will cause lower reported earnings. The hypothesis for this research is that there is a positive relation between operating and investing cash flow to accounting conservatism practices about whether it uses market value or accrual measurement. The result of the first test using market value accounting conservatism as a proxy has shown a positive relation between operating and investing activities cash flow to accounting conservatism practices, but investing cash flow does not have a significant effect to accounting conservatism practices. The result from the second test, using accrual measurement accounting conservatism has shown a significant positive relation for both operating and investing cash flow to accounting conservatism practices. A positive relation between operating and investing cash flow to accounting conservatism practices indicates that accounting conservatism is one of the tools that can be used to measure firm＇s financial performance and as an investment decision making tool for investor. Nevertheless those effects highly depend on the accounting conservatism proxy measurement used.