Openness and economic growth

The themes of this thesis are that international trade and foreign direct investment (FDI) are closely related and that they have varying impacts on economic growth in countries at different stages of development. The thesis consists of three empirical studies. The first one examines the causal relationship between FDI and trade in China. The empirical study is based on a panel of bilateral data for China and 19 home countries/regions over the period 1984-98. The specific feature of the study is that econometric techniques designed specially for panel data are applied to test for unit roots and causality. The results indicate a virtuous procedure of development for China. The growth of China’s imports causes growth in inward FDI from a home country/region, which in turn causes the growth of exports from China to the home country/region. The growth of exports causes the growth of imports. This virtuous procedure is the result of China’s policy of opening to the outside world. China has been encouraging export-oriented FDI and reducing trade barriers. Such policy instruments should be further encouraged in order to enhance economic growth. In the second study, an extended gravity model is constructed to identify the main causes of recent trade growth in OECD countries. The specific features include (a) the explicit introduction of R&D and FDI as two important explanatory variables into an augmented gravity equation; (b) the adoption of a panel data approach, and (c) the careful treatment of endogeneity. The main findings are that the levels and similarities of market size, domestic R&D stock and inward FDI stock are positively related to the volume of bilateral trade, while the geographical distance, exchange rate and relative factor endowments, has a negative impact. These findings lend support to new trade, FDI and economic growth theories. The third study evaluates the impact of openness on growth in different country groups. This research distinguishes itself from many existing studies in three aspects: first, both trade and FDI are included in the measurement of openness. Second, countries are divided' into three groups according to their development stages to compare the roles of FDI and trade in different groups. Third, the possible problems of endogeneity and multicollinearity of FDI and trade are carefully dealt with in a panel data setting. The main findings are that FDI and trade are both beneficial to a country's development. However, trade has positive effects on growth in all country groups but FDI has positive effects on growth only in the country groups which have had moderate development. The findings suggest FDI and trade may affect growth under different conditions

Sub-national locations and FDI spillovers : theory and evidence

The welfare-enhancing role of spillovers from foreign direct investment (FDI) in a host country generates significant interests and debates among policymakers, long after a wide range of regulatory changes in favour of FDI in the late 1980s and the 1990s. The expectation of positive spillovers reinforces the development of government policies to attract multinational enterprises (MNEs) to the host country. However, as is documented in surveys of the literature on FDI spillovers (Görg and Strobl, 2001; Havránek and Irsová, 2012; Meyer and Sinani, 2009; Wooster and Diebel, 2010), the empirical evidence on FDI spillovers is rather mixed. The surveys highlight two important factors that might offer the explanations of mixed findings. First, the degree of foreign ownership is a primary factor in determining the strength of linkages between domestic and foreign firms and thereby affects spillovers (Javorcik and Spatareanu, 2008). As argued by Görg and Greenaway (2004), MNEs may be effective at preventing spillover effects of firm-specific assets. This is connected to the ownership strategies of MNEs that often use wholly owned subsidiaries (WOS) to better control the technologies they transfer to their foreign locations. Second, absorptive capacity of domestic firms and the strength of linkages between domestic and foreign firms are critical for spillovers. However, studies taking these factors into consideration are sparse. According to Havránek and Irsová (2012), among 1205 horizontal spillover estimates from 52 studies, only 5.7 per cent and 7.8 per cent control for absorptive capacity of domestic firms and the strength of linkages between domestic and foreign firms, respectively

Factors contributing to the strength of national patent protection and enforcement after TRIPS

YesIn this paper we study the determinants of the strength of patent enforcement in 43 member countries of the World Trade Organization (WTO) between 1998 and 2011, a period after the signing of the Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement. We do so by building on and expanding the seminal work of Ginarte and Park (1997) on the pre-TRIPS determinants of patent rights in the years 1960-1990. We find that in the years after TRIPS was signed, the strength of patent enforcement of a country is positively determined by two variables that signify the usage of the patent and intellectual property system, and the number of patent and trademark applications. We also find that the level of research and development expenditure, the quality of human capital, and the level of development of a country have positive effects on the strength of the enforcement of patent law in practice. Intellectual property rights enforcement is one of the key investment-related policies included in the United Nations Conference on Trade and Development (UNCTAD) Investment Policy Framework for Sustainable Development. Identifying the determinants of strong patent systems will help policymakers at the national and supranational levels to design and implement effective policies that strengthen national patent systems, thereby enhancing economic benefits such as greater levels of commercialization of intangible assets and greater levels of international trade and investment

Financing constraints, intellectual property rights protection and incremental innovation: Evidence from transition economy firms

YesDespite a growing literature, the relationship between financing constraints (FC), intellectual property rights (IPR) protection and firm innovation remains unclear within the transitional country context. Drawing on endogenous growth theory and extending the Gorodnichenko and Schnitzer (2013) framework, we hypothesize that in addition to firm-specific factors, country-level variables manifested within FC hamper incremental innovation, albeit in varying degrees due to industry heterogeneity. Secondly, as opposed to previous studies that solely focus on FC affecting firm innovation, we propose that due to resource constraints, firms in transition economies tend to follow an imitational innovation strategy, and therefore, from this perspective, IPR protection can be crucial for firm-level innovation within those economies. Using data from the World Bank Enterprise Survey (WBES) consisting of information for about 21,960 firms from 27 Eastern European and Central Asian transition countries and employing a two-step probit model with endogenous regressors, we find that adverse effects of FC and IPR on firms' innovation activities are driven from within as well as between industries. Focusing on the differential impacts of FC and IPR protection across industries, we direct potential causal pathways from easing FC and optimal IPR protection to encourage firms' innovation. Based on the findings, while very strict IPR protection is detrimental to firms' product and process innovation in industries with limited resource and skill capabilities, it is nevertheless helpful for research and development (R&D) activities in industries characterised by strong R&D and IP capacities. Our results offer useful insights for policymakers to support incremental innovation as well as boost invention. IPR protection policies require to be customised to the industries and firms, since invariably tight or lax IPR enforcement can be discouraging to both incremental and radical innovation, causing all industries suffering from the same treatment

IPR Law Protection and Enforcement and the Effect on Horizontal Productivity Spillovers from Inward FDI to Domestic Firms: A Meta-Analysis

YesWe study the role of the strength of Intellectual Property Rights (IPR) law protection and enforcement in influencing horizontal productivity spillovers from inward FDI to domestic firms in host countries. While most WTO countries adopted strong IPR legislation due to exogenous pressure resulting from the signing of the Trade-Related Aspects of IPR (TRIPS) agreement, public IPR enforcement strength continues to vary significantly between countries. We meta-analyse 49 studies and find that public IPR enforcement strength has a direct positive effect on horizontal productivity spillovers from inward FDI to domestic firms and a negative moderating effect on the relationship between IPR law protection strength and horizontal productivity spillovers from inward FDI to domestic firms

Transparent Perfect Microwave Absorber Employing Asymmetric Resonance Cavity

The demand for high‐performance absorbers in the microwave frequencies, which can reduce undesirable radiation that interferes with electronic system operation, has attracted increasing interest in recent years. However, most devices implemented so far are opaque, limiting their use in optical applications that require high visible transparency. Here, a scheme is demonstrated for microwave absorbers featuring high transparency in the visible range, near‐unity absorption (≈99.5% absorption at 13.75 GHz with 3.6 GHz effective bandwidth) in the Ku‐band, and hence excellent electromagnetic interference shielding performance (≈26 dB). The device is based on an asymmetric Fabry–Pérot cavity, which incorporates a monolayer graphene and a transparent ultrathin (8 nm) doped silver layer as absorber and reflector, and fused silica as the middle dielectric layer. Guided by derived formulism, this asymmetric cavity is demonstrated with microwaves near‐perfectly and exclusively absorbs in the ultrathin graphene film. The peak absorption frequency of the cavity can be readily tuned by simply changing the thickness of the dielectric spacer. The approach provides a viable solution for a new type of microwave absorber with high visible transmittance, paving the way towards applications in the area of optics.A general strategy is presented to design a new type of microwave absorber based on an asymmetric Fabry–Pérot resonant cavity by employing monolayer graphene, transparent spacer, and ultrathin doped Ag film. This asymmetric cavity is demonstrated with microwaves near‐perfectly and exclusively absorbs in the ultrathin graphene layer at resonances and maintains high visible transmittance.Peer Reviewedhttps://deepblue.lib.umich.edu/bitstream/2027.42/151816/1/advs1299-sup-0001-S1.pdfhttps://deepblue.lib.umich.edu/bitstream/2027.42/151816/2/advs1299.pdfhttps://deepblue.lib.umich.edu/bitstream/2027.42/151816/3/advs1299_am.pd

Epidemiological investigation and analysis of Clostridium perfringens food poisoning caused by food delivery

Objective To find out the suspicious food, pathogenic factors and risk factors of a foodborne disease outbreak in a factory, and to discuss the problems exposed in the investigation of the incident, so as to provide reference for the prevention, control and investigation of similar incidents in the future. Methods A case was defined as the onset of abdominal pain or diarrhea (≥3 times/24 hours) or vomiting in a person who worked in M factory from March 3 to March 4 in 2019. Case interviews and retrospective research was carried out using descriptive and analytical epidemics pathological method. Stool specimens of the cases, leftover food and related environmental samples were gathered for pathogen isolation and toxin gene detection using polymerase chain reaction (PCR). Results 106 cases were identified with a attack rate of 73.6% (106/144). The symptoms were diarrhea (78.3%, 83/106), abdominal cramps (78.3%, 83/106), abdominal gas pains (9.4%, 10/106), and no fever. The epidemic curve showed a point source exposure pattern. The median incubation time was 10 hours (range: 2-22 h). Illness were associated with three food items of the lunch on March 3 in 2019 by univariate analysis and Logistic regression analysis: braised fish pieces [relative risk (RR)=1.55, 95% confidence interval (95%CI): 1.29-1.85], pork stir-fried with garlic sprouts (RR=1.26, 95%CI: 1.01-1.57) and duck blood stir-fried with pickles (RR=1.47, 95%CI: 1.16-1.87). Alpha toxin and enterotoxin CPE genes were positive and beta toxin genes was negative in the Clostridium perfringens strain isolated in anal swabs of three patients, three environmental samples and two leftover food samples. There were possible bacterial contamination and reproduction in the processing and preparation of enterprise D, which delivered food. Conclusion This incident was caused by the food poisoning of Clostridium perfringens caused by the consumption of a meal provided by a catering company. After the meal was delivered, it should be cooled quickly and stored at low temperature. If it cannot be eaten immediately, it should be heated sufficiently before eating

Human Hepatocytes with Drug Metabolic Function Induced from Fibroblasts by Lineage Reprogramming

SummaryObtaining fully functional cell types is a major challenge for drug discovery and regenerative medicine. Currently, a fundamental solution to this key problem is still lacking. Here, we show that functional human induced hepatocytes (hiHeps) can be generated from fibroblasts by overexpressing the hepatic fate conversion factors HNF1A, HNF4A, and HNF6 along with the maturation factors ATF5, PROX1, and CEBPA. hiHeps express a spectrum of phase I and II drug-metabolizing enzymes and phase III drug transporters. Importantly, the metabolic activities of CYP3A4, CYP1A2, CYP2B6, CYP2C9, and CYP2C19 are comparable between hiHeps and freshly isolated primary human hepatocytes. Transplanted hiHeps repopulate up to 30% of the livers of Tet-uPA/Rag2−/−/γc−/− mice and secrete more than 300 μg/ml human ALBUMIN in vivo. Our data demonstrate that human hepatocytes with drug metabolic function can be generated by lineage reprogramming, thus providing a cell resource for pharmaceutical applications

Behind film performance in China’s changing institutional context:The impact of signals

Grounded in signaling theory, this paper investigates the signals reflecting product quality, innovativeness, reputation and cultural background which influence film performance, i.e. film survival (duration on cinema screen) and box office success, in China’s changing institutional context. This market has grown substantially and still possesses potential for further development. However, China’s unique institutional context presents challenges. By examining an expanded range of potential signals, two of which have not previously been examined in the literature, namely imported films and enhanced format film formats such as 3D and IMAX, we develop a conceptual framework and argue that signaling theory needs to be combined with institutional context. Similar to findings for film industries in other countries, we find quality and reputational signals including budget, star power, sequels, and online consumer reviews to be important in China. However, unique results are also revealed. Chinese consumers react to an innovativeness signal in that they are specifically attracted to enhanced format films. Film award nominations and prizes are insignificant reputational signals. Once other signals are taken into account, imported films on average do not perform as well as domestic films. We link these findings to China’s unique institutional setting and offer important implications for management, recognizing the challenges to film companies of competing in an increasingly globalized market. The paper is also of relevance to policymakers given their continued efforts in shaping the development of China’s film industry