Impact of natural-resource dependence on foreign contracting projects of China: A spatial panel threshold approach.
TL;DR: The results indicated that China had significant spatial agglomeration effects, natural restraining effects, and spatial spillover effects on the contracting projects along the Belt and Road, and the marginal impact in low-income countries exhibited a “broken line” relationship.
Abstract: The proposal of the "Belt and Road" initiative has had a positive and far-reaching impact on the economic and social development of countries and regions along the route and has provided good opportunities and conditions for the development of China's foreign contracted projects. In the present study, in view of the heterogeneous characteristics and spatial correlation of countries along the Belt and Road, panel data of 46 contracted projects in China along the Belt and Road from 2008 to 2017 were used to empirically study the spatial characteristics of resource heterogeneity and outsourcing projects in the host country from the perspectives of spatial correlation and spatial heterogeneity. The results indicated that China had significant spatial agglomeration effects, natural restraining effects, and spatial spillover effects on the contracting projects along the Belt and Road, and the marginal impact in low-income countries exhibited a "broken line" relationship. Corresponding suggestions were provided for Chinese enterprises contracting projects involving Belt and Road countries. The databases of BRI need to be established, and ensure green investment efficiency.
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TL;DR: Wang et al. as mentioned in this paper analyzed the effect and mechanism of internet development on China's haze pollution on the basis of provincial panel data in China from 2006 to 2017, and the results indicated that there is an inverted “U” curve between internet development and haze pollution in China.
Abstract: With the continuous development of cloud computing and internet of things technology, the integration of internet and haze governance has broad prospects and infinite potential. Through the internet platform and technology, environmental monitoring can be done by the internet, and realize the intellectualization of environmental management, improve the early warning ability of environmental pollution emergencies, and facilitate the public's in-depth participation in environmental supervision. The dynamic spatial Durbin model and the quantile regression model are employed to analyze the effect and mechanism of the internet development on China's haze pollution on the basis of provincial panel data in China from 2006 to 2017. The results indicate that there is an inverted “U” curve between internet development and haze pollution in China, and the conclusion is still valid after a series of robustness tests. There is significant heterogeneity between direct and indirect spillover effects. Meanwhile, from the perspective of different regions in China (such as the east-central region and western regions), the inverted “U” curve between internet development and air pollution still exists. Besides, quantile regression results also show that the suppression effect of the internet on haze pollution is getting stronger with the increase of haze concentration. The regression results of the mediation effect indicate that internet development mainly affects haze pollution by improving technological innovation and environmental governance efficiency.
121 citations
9 citations
TL;DR: Wang et al. as mentioned in this paper analyzed the panel data of 30 provinces in China from 2011 to 2019 by the spatial measure model and the threshold regression model, and the results showed that the air quality level is positively correlated with green finance, but there is no spatial effect.
Abstract: In this paper, the panel data of 30 provinces in China from 2011 to 2019 are analyzed by the spatial measure model and the threshold regression model. The results show that the air quality level is positively correlated with green finance, but there is no spatial effect. The spatial effect of the three influencing factors, including the degree of openness, the level of infrastructure, and the level of education, is the crowding-out effect. At the same time, variables such as human resource level, air quality, and infrastructure construction level all have threshold effects in the relationship between green finance and economic development. The research conclusions suggested that local governments at all levels should formulate policies according to the actual situation to promote the development of provinces’ intensive, intelligent, and green development, and build a regionally-linked green finance development model, thereby promoting the improvement of green finance.
7 citations
01 Jan 2010
TL;DR: Wang et al. as mentioned in this paper discussed the issue on highway survey and design of domestic enterprises to participate in the international EPC turnkey project analysis, introduced the basic international project contracting responsibilities and the basic model and the EPC contract status and prospects at home and abroad, to guide the construction enterprises in China to meet market mechanism for integration with the international norm model.
Abstract: This paper discusses the issue on highway survey and design of domestic enterprises to participate in the international EPC turnkey project analysis,introduces the basic international project contracting responsibilities and the basic model and the EPC contract status and prospects at home and abroad,to guide the construction enterprises in China to meet market mechanism for integration with the international norm model.
1 citations
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TL;DR: In this paper, the authors studied the impact of trade and foreign direct investment on the productivity of domestic firms in the manufacturing sector in the country of Lithuania and found that a 10 percent increase in the foreign presence in downstream sectors is associated with a 0.38 percent rise in output of each domestic firm in the supplying industry.
Abstract: Many countries compete against one another in attracting foreign investors by offering ever more generous incentive packages and justifying their actions with the productivity gains that are expected to accrue to domestic producers from knowledge externalities generated by foreign affiliates. Despite this being hugely important to public policy choices, there is little conclusive evidence indicating that domestic firms benefit from foreign presence in their sector. It is possible, though, that researchers have been looking for foreign direct investment (FDI) spillovers in the wrong place. Multinationals have an incentive to prevent information leakage that would enhance the performance of their local competitors in the same industry but at the same time may want to transfer knowledge to their local suppliers in other sectors. Spillovers from FDI may be, therefore, more likely to take place through backward linkages - that is, contacts between domestic suppliers of intermediate inputs and their multinational clients - and thus would not have been captured by the earlier literature. This paper focuses on the understudied issue of FDI spillovers through backward linkages and goes beyond existing studies by shedding some light on factors driving this phenomenon. It also improves over existing literature by addressing several econometric problems that may have biased the results of earlier research. Based on a firm-level panel data set from Lithuania, the estimation results are consistent with the existence of productivity spillovers. They suggest that a 10 percent increase in the foreign presence in downstream sectors is associated with 0.38 percent rise in output of each domestic firm in the supplying industry. The data indicate that these spillovers are not restricted geographically, since local firms seem to benefit from the operation of downstream foreign affiliates on their own, as well as in other regions. The results further show that greater productivity benefits are associated with domestic-market, rather than export-oriented, foreign affiliates. But no difference is detected between the effects of fully-owned foreign firms and those with joint domestic and foreign ownership. The findings of a positive correlation between productivity growth of domestic firms and the increase in multinational presence in downstream sectors should not, however, be interpreted as a call for subsidizing FDI. These results are consistent with the existence of knowledge spillovers from foreign affiliates to their local suppliers, but they may also be a result of increased competition in upstream sectors. While the former case would call for offering FDI incentive packages, it would not be the optimal policy in the latter. Certainly more research is needed to disentangle these two effects. This paper - a product of Trade, Development Research Group - is part of a larger effort in the group to study the contribution of trade and foreign direct investment to technology transfer.
3,013 citations
"Impact of natural-resource dependen..." refers background in this paper
...However, studies have also revealed a negative spillover effect [26]....
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TL;DR: This paper found that foreign equity participation is positively correlated with plant productivity (the "own-plant" effect), but this relationship is only robust for small enterprises and that the gains from foreign investment appear to be entirely captured by joint ventures.
Abstract: Governments often promote inward foreign investment to encourage technology 'spillovers' from foreign to domestic firms. Using panel data on Venezuelan plants, the authors find that foreign equity participation is positively correlated with plant productivity (the 'own-plant' effect), but this relationship is only robust for small enterprises. They then test for spillovers from joint ventures to plants with no foreign investment. Foreign investment negatively affects the productivity of domestically owned plants. The net impact of foreign investment, taking into account these two offsetting effects, is quite small. The gains from foreign investment appear to be entirely captured by joint ventures.
2,799 citations
"Impact of natural-resource dependen..." refers background in this paper
...[27] called this negative effect of foreign capital flows on local productivity “market theft....
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TL;DR: This article used Extreme Bound Analysis (EBA) to examine if any of the conclusions from the existing studies is robust to small changes in the conditioning information set and found that the relation between FDI and many of the controversial variables (namely, tax, wage, openness, exchange rate, tariff, growth, and trade balance) is highly sensitive to small alterations in the condition information set.
Abstract: A vast empirical literature has used ad hoc linear cross-country regressions to search for the determinants of FDI. The literature is extensive and controversial. Can policy-makers use this body of research to learn anything that can help them stimulate FDI? The author uses Extreme Bound Analysis (EBA) to examine if any of the conclusions from the existing studies is robust to small changes in the conditioning information set. The EBA upholds the robustness of the correlation between FDI and market-size, as measured by per-capita GDP, but indicates that the relation between FDI and many of the controversial variables (namely, tax, wage, openness, exchange rate, tariff, growth, and trade balance)bare highly sensitive to small alterations in the conditioning information set. The author also studies the distribution of the estimated coefficients of the controversial explanatory variables to rank them in order of their likelihood of their being correlated with FDI.
1,109 citations
TL;DR: Wang et al. as discussed by the authors examined China's savings rate, corporate ownership structures, and bank-dominated capital allocation and found that the most active players have incentives to conduct excessive outward FDI while capital constraints limit players that most likely have value-creating FDI opportunities.
Abstract: Recent economic data reveal that, at the infant stage, China's outward foreign direct investment (FDI) is biased towards tax havens and Southeast Asian countries and are mostly conducted by state-controlled enterprises with government sanctioned monopoly status. Further examination of China's savings rate, corporate ownership structures, and bank-dominated capital allocation suggests that, although a surge in China's outward FDI might be economically sensible, the most active players have incentives to conduct excessive outward FDI while capital constraints limit players that most likely have value-creating FDI opportunities. We then discuss plausible firm-level justifications for China's outward FDI, its importance, and promising avenues for further research.
760 citations
"Impact of natural-resource dependen..." refers background in this paper
...As the market size increases, the resource utilization efficiency and opportunities for developing economies of scale and scope increase, and more investment opportunities exist for foreign investors [22,23]....
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TL;DR: In this article, a method is presented that determines optimum bids in a competitive-bidding situation where each competitor submits one closed bid and the number of bidders may be large or may be unknown.
Abstract: A method is presented that determines optimum bids in a competitive-bidding situation where each competitor submits one closed bid. The number of bidders may be large or may be unknown. This method makes use of the previous “bidding patterns” of all possible opposition bidders and in the case where the bidding is on contracts, the estimated probability distribution of the cost of fulfilling the contract. The case where a number of bids are to be submitted simultaneously is also discussed.
439 citations