How Does Financial System Efficiency Affect the Growth Impact of FDI in China?

In spite of being the second largest recipient of FDI in the world, China shows limited evidence of considerable FDI benefits on growth (Fan and Hu 2007; Luo 2007; Ran et al. 2007). Motivated by Alfaro et al.s (2003) model, this study tests whether poor financial market development might be responsible for the relatively low benefits of FDI on growth in China. We apply BlundellBond system GMM estimators to a panel of Chinese provinces. Our results indicate that poor financial intermediation does indeed limit the transmission of FDI benefits within the Chinese economy. Moreover, the study reveals preliminary evidence that banks credits to unproductive State Owned Enterprises (SOEs) constitute poor financial intermediation with negative growth implications. In contrast, credits to small private enterprises are associated with a positive impact of FDI on growth.foreign direct investment, FDI spill-overs, financial development, credit misallocation, economic growth

Understanding Svocs

Semi-volatile organic compounds (SVOCs) are an important class of indoor pollutants that are of great health concern. However, they have not received much attention within the ASHRAE community. This column provides an overview of the sources, sinks, transport mechanisms, and potential health effects, and discusses how HVAC systems may affect occupants' exposure to SVOCs.Mechanical Engineerin

Reconstructing propagation networks with natural diversity and identifying hidden sources

Our ability to uncover complex network structure and dynamics from data is fundamental to understanding and controlling collective dynamics in complex systems. Despite recent progress in this area, reconstructing networks with stochastic dynamical processes from limited time series remains to be an outstanding problem. Here we develop a framework based on compressed sensing to reconstruct complex networks on which stochastic spreading dynamics take place. We apply the methodology to a large number of model and real networks, finding that a full reconstruction of inhomogeneous interactions can be achieved from small amounts of polarized (binary) data, a virtue of compressed sensing. Further, we demonstrate that a hidden source that triggers the spreading process but is externally inaccessible can be ascertained and located with high confidence in the absence of direct routes of propagation from it. Our approach thus establishes a paradigm for tracing and controlling epidemic invasion and information diffusion in complex networked systems.Comment: 20 pages and 5 figures. For Supplementary information, please see http://www.nature.com/ncomms/2014/140711/ncomms5323/full/ncomms5323.html#