China and Central and Eastern European Countries: Regional networks, global supply chain or international competitors?

China has emerged as one of the world's leading recipients of foreign direct investment (FDI). Meanwhile, the successful transition experience of many Central and Eastern European countries (CEECs) also enables them to attract an increasing share of global foreign investment, particularly from the European Union (EU). What is the relationship between inward FDI of China and the CEECs? We conceptualize the relationship according to three alternative paradigms: 1) China and the CEECs each exist in its own regional production network, with no linkage between FDI flows into China and into CEECs; 2) China and the CEECs together comprise a global production network, so that FDI into China is positively related to FDI into CEECs; and 3)FDI into China is a substitute for FDI into the CEECs, so that the correlation between them is negative. In this paper, we employ panel data to study this issue in detail. Specifically, we compare empirical estimates for 15 CEECs over the 15-year period 1990-2004 using four different econometric approaches: FGLS with Random effects, FGLS with fixed effects, EC2SLS and GMM. The result supports the conclusion that China's inward FDI does not crowd out CEECs' inward FDI. In fact, it shows that in some circumstances FDI flows in these two regions are moderately complementary. In addition, our analysis confirms the importance for FDI flows of recipient-country characteristics such as market size, degree of trade liberalization and labor quality, as well as a healthy global capital market.foreign direct investment (FDI); regional networks; global supply chain; China’s FDI; Central and Eastern European Countries’ FDI

China and central and eastern European countries : regional networks, global supply chain, or international competitors?

China has emerged as one of the top recipients of foreign direct investment in the world. Meanwhile, the successful transition experience of many Central and Eastern European countries has also allowed them to attract an increasing share of global foreign direct investment. In this paper, the authors use a panel data set to investigate whether foreign direct investment flows to these two regions are complements, substitutes, or independent of each other. Taking into account the role of host country characteristics - such as market size, degree of trade liberalization, and human capital - the authors find no evidence that foreign direct investment flows to one region are at the expense of those to the other. Instead, the results suggest that foreign direct investment flows are driven by distinct regional production networks (and thus are largely independent of each other) and the development of global supply chains (indicating that foreign direct investment flows are complementary).Debt Markets,Foreign Direct Investment,Emerging Markets,Economic Theory&Research,Investment and Investment Climate

PREDICTABILITY OF HONG KONG STOCK RETURNS BY USING GEARING RATIO

The purpose of our study is to examine the ability of the debt ratio to predict Hong Kong stock market stock returns in long run. Our test period is from Jan 1, 1999 to May 1, 2008. Sixty companies in the Hang Seng Composite Index were included in our samples for the research. We found Leverage ratios could not have been used to predict cumulative abnormal returns or buy-and-hold abnormal returns in our test period. The correlation between Leverage ratios and abnormal returns is not significant. We also found other commonly used ratios, such as price-to-earnings ratio, price-to-book ratio and market value are better indicators of abnormal returns than Leverage ratios

Bank Error in Whose Favor? A Case Study of Decentralized Finance Misgovernance

Decentralized Finance (DeFi) emerged rapidly in recent years and provided open and transparent financial services to the public. Due to its popularity, it is not uncommon to see cybersecurity incidents in the DeFi landscape, yet the impact of such incidents is under-studied. In this paper, we examine two incidents in DeFi protocol that are mainly caused by misgovernance and mistake in the smart contract. By using the synthetic control method, we found that the incident in Alchemix did not have a significant effect on the total value locked (TVL) in the protocol, whereas the incident in Compound caused a 6.13% decrease in TVL. One factor that contributed to the difference in the result could be the incident response in social media platforms, and further study should investigate the possible moderating or mediating effects of public opinions and sentiment

An electroencephalography network and connectivity analysis for deception in instructed lying tasks

10.1371/journal.pone.0116522PLoS ONE102e011652

7H-Chromeno[3,2-h]quinolin-7-one methanol monosolvate

The four-ring system in the title compound, C16H9NO2·CH3OH, is planar (r.m.s deviation = 0.03 Å); the methanol solvent mol­ecule forms a hydrogen bond to the quinoline N atom