Does going abroad lead to going green? Firm outward foreign direct investment and domestic environmental performance

This study examines whether and how outward foreign direct investment (OFDI) affects firms' domestic environmental performance. We use both the reverse knowledge transfer and resource crowding perspectives to predict the association. Using a sample of Chinese firms, we find that firms' environmental performance improves after the initiation of OFDI, which is consistent with the reverse knowledge transfer perspective. Furthermore, we find that when the host countries of OFDI are developed countries, have stricter environmental regulations, and are characterized by higher values for the long-term orientation and masculinity dimensions of national culture, firms enjoy a further improvement in environmental performance. Our channel tests show that firms' domestic green patent applications and their investment in research and development increase after the initiation of OFDI.     

Impacts of switching from business households to enterprises on the financial performance

Portuguese Economic Journal - This study aims to elucidate whether switching from business households to enterprises brings higher financial performance than not switching. The study was carried...     

eWOM processing from receiver perspective: Conceptualising the relationships

Electronic word-of-mouth (eWOM) communication is considered an important source of information for consumers. In existing frameworks and empirical studies, factors that lead to eWOM influence have been categorised into three essential elements equivalent to the three elements of communication processing: source, receiver and message. eWOM requires a more elaborate form of information processing, given the many-to-many nature of such communications and that the types of information processing differ between novice and experienced consumers. However, there is no conceptualisation that demonstrates the relationships among the factors of eWOM from this critical information processing perspective. Further, there is limited discourse on the situation and communication channel, although the situation and platform characteristics shape the nature of communication in the digital age. This paper reports insights obtained from an extensive literature review and presents a broader categorisation encompassing the factors of source, receiver, message, situation, task involvement and channel. Research propositions and recommendations for further research into eWOM processing are offered.     

Shareholder litigation and toxic releases

We examine the environmental impact of the staggered adoption of universal demand laws by 23 U.S. states between 1989 and 2005. Universal demand laws impede derivative lawsuits and thus undermine shareholder oversight of corporate environmental performance. We find that weakened litigation rights for shareholders are positively associated with the release of toxic chemicals by firms. The effect is stronger for firms with weak governance, and environmental mismanagement by firms after the passage of the laws lead to poorer financial performance. Overall, our findings imply that derivative lawsuits by shareholders are not frivolous, as is often asserted. Rather, they act as an effective mechanism of corporate governance.     

Internet use and agricultural productivity in rural Vietnam

The use of the internet is growing rapidly and has become an engine for economic development. However, few studies have examined the impact of internet use on agricultural production, and the results are not yet conclusive. Employing a dataset of more than 2000 observations in rural Vietnam, our study analyses the impact of internet use on agricultural productivity using the heteroscedasticity-based instrument approach suggested by Lewbel, Journal of Business and Economic Statistics, 2012, 30, 67–80 and examines the heterogeneity and distribution of the impact using quantile regressions. Our results show that internet use has significant and positive effects on agricultural productivity. However, these effects are heterogeneous across population groups. The positive effects of internet use are stronger for households with a lower level of education, with a young and female head, and from ethnic minorities. The benefits are also found to be skewed towards the group of farmers at the bottom of the productivity distribution. Therefore, we propose facilitating the diffusion of the internet, since it not only boosts agricultural productivity, but also reduces productivity inequality. In addition, we recommend promoting rural education, supporting local markets, investing more in irrigation systems, and facilitating farm mechanisation as these factors are found to contribute to increasing agricultural productivity.     

National Food Consumption Patterns: Converging Trends and the Implications for Health

Worldwide, obesity almost tripled between 1975 and 2016 and is now prevalent in both rich and poor countries. Using annual food availability data produced by the Food and Agriculture Organisation of the United Nations (FAO) covering half a century in 118 countries, this article explores the diets that are central to the problem of obesity, identifying groups of countries with similar consumption patterns. Applying algorithms from the fuzzy clustering literature, five distinct consumption patterns are revealed whose dietary composition broadly corresponds to diets that we label ‘Western’, ‘Traditional’, ‘Mediterranean’, ‘Tropical’ and ‘Vegetarian’. Despite differences in dietary characteristics, all five share two common themes: rising total calories and declining healthiness, both of which are linked to the substitution of plant-based foods with food derived from animals. That the evidence points to a convergence on the ‘Western’ diet, the most obesogenic and least healthy of all the diets we consider, is a cause for concern. The key message is that in a future where people are predicted to live longer – but not necessarily healthier – lives, recent efforts to address the challenge are prescient, and as the results in the article imply, need to be heeded globally.     

Impacts of fiscal decentralization on local development in Vietnam: A disaggregated analysis

After the Doi Moi reforms, Vietnam pursued fiscal decentralization to strengthen the autonomy and governance capacity of local governments. While several empirical studies analysed the impact of fiscal decentralization on the economic growth of Vietnamese provinces, very few studies examined its impact on their social development. This study represents an initial effort to fill this gap. The empirical analysis applied the panel corrected standard errors (PCSE) estimation and stochastic frontier analysis (SFA) to an updated panel data of 63 Vietnamese provinces, spanning the period from 2011 to 2019. The results indicate a positive impact of fiscal decentralization on both economic and social development as well as efficiency of resource utilization for development targets. However, realizing the full potential of fiscal decentralization requires the fulfilment of certain conditions.