Analyzing regional economic development patterns in a fast developing province of China through geographically weighted principal component analysis

Understanding the spatial structure of regional economic development is of importance for regional planning and provincial development strategy making. Taking Jiangsu Province in the economically richest Yangtze Delta as a case study, this paper aims to explore regional economic development level on a provincial scale. Using the data sets from provincial statistical yearbook of 2010, eleven variables are selected for statistical and spatial analyses at a county level. Both the traditional principal component analysis (PCA) and its local version—geographically weighted PCA (GWPCA)—are employed to these analyses for the purpose of comparison. The results have confirmed that GWPCA is an effective means of analyzing regional economic development level through mapping its local principal components. It is also concluded that the regional economic development in Jiangsu Province demonstrates spatial inequality between the North and South

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

Crowds in or crowds out? The effect of foreign direct investment on domestic investment in Chinese cities

This study investigates the empirical relationship between foreign direct investment (FDI) and domestic investment (DI) in China using a comprehensive city-level panel over the period from 2003 to 2011. System-generalized method-of-moment estimation reveals mixed results. At the national level, FDI neither crowds in nor crowds out DI, indicating a neutral FDI–DI nexus. However, when the full sample is segmented by geographical topology, a positive and significant FDI–DI nexus can be found in eastern and, to a lesser extent, central cities. A negative, although insignificant, association is reported among western cities. Further, the empirical nexus is conditional on several local absorptive capacities including human capital, financial development, and institutional quality. These findings suggest that a region-based FDI strategy in general and local governments should strengthen their absorptive capacities to fully internalize FDI spillovers

‘Attract FDI!’ — A universal golden rule? Empirical evidence for OECD and selected non-OECD countries

Dans cet article nous étudions les effets des investissements directs étrangers (IDE) sur le pays d’accueil. Nous aprofondissons la litérature existante sur le sujet de trois façons: premièrement, nous admettons explicitement une endogénéité potentielle dans la relation entre la performance économique d’un pays (mesurée par la productivité du travail) et les IDE, en estimant un système d’équations simultanées. Deuxièmement, nous prenons en compte dans la conclusion, les effets directs et les effets additionnels indirects dont on peut suivre la trace à travers le système d’équations. Troisièmement, nous basons nos estimations sur un échantillon incluant aussi bien des pays de l’OCDE que des pays non membres de l’OCDE, pour sept industries manufacturières, sur la période 1981–2000. Les résultats suggèrent une relation positive entre les IDE et la production ainsi que la productivité et la croissance des exportations, alors qu’il y a, par ailleurs, des preuves d’une pression à la baisse sur la croissance des salaires due aux IDE. Cependant, l’ampleur des effets est curieusement faible.European Journal of Development Research (2009) 21, 95–111. doi:10.1057/ejdr.2008.1

From Software Services to R&D Services: Local Entrepreneurship in the Software Industry in Bangalore, India

In this paper we analyze the emergence of R&D services in Bangalore, India, by focusing on the process of technological upgrading in the Indian software industry. The development trajectory of the Indian software industry and the upgrading it has experienced, from providing low-skill software services to providing high-skill R&D services, are examined using evidence from interviews with Indian firms in Bangalore. Whereas most research on the Indian software industry thus far has emphasized the role of the state and multinational corporations, in this paper we argue that active local entrepreneurship is playing an increasingly important role in technological upgrading and in the shift from low-skill to high-skill services in Bangalore. These shifts are being facilitated by growing institutional thickness, as evidenced by the accumulation of local expertise, increasing local entrepreneurship addressing specific market niches, and the development of a local technical community