Economics of China's Joint-Stock Co-operatives

Joint-stock co-operatives, Ownership and governance, China

International Listing as a Means to Mobilize the Benefits of Financial Globalization: Micro-Level Evidence from China

This paper proposes a micro-level framework to account for how firms in developing economies overcome domestic institutional constraints. It illustrates that the mechanisms enabling those firms to benefit from financial globalization are more complex than the “direct” financial channels outlined in the neo-classical approach. China provides an important example in this context, as its capital market liberalization has been limited and neither the legal nor financial system is well developed. Yet micro-level evidence from China’s internationally listed enterprises indicates that innovative firms can overcome institutional thresholds, secure access to international capital, and benefit and learn from international capital markets. This can in turn induce market-level improvements through regulatory competition and demands for a more standardized system of economic regulation

Dynamics of Internationalization and Outward Investment: Chinese Corporations' Strategies

China's success in attracting the inflow of foreign direct investment (FDI) has been well documented. Less known is the initial success of China's "going out" strategy, which encourages domestic enterprises to participate in international capital market and to directly invest overseas. This article assesses the aggregate dynamics of China's outward FDI in a comparative prism. It traces the strategic shift of Chinese overseas investment in both arenas of government policy and corporate entrepreneurship. An emphasis is on the particularistic policies of the government and active responses of enterprises to the challenges and opportunities offered by globalization and the deepening reform. The article also discusses the strategic implications of emerging Chinese multinationals for their Western counterpart

International Listing as a Means to Mobilize the Benefits of Financial Globalization: Micro-Level Evidence from China

This paper proposes a micro-level framework to account for how firms in developing economies overcome domestic institutional constraints. It illustrates that the mechanisms enabling those firms to benefit from financial globalization are more complex than the “direct” financial channels outlined in the neo-classical approach. China provides an important example in this context, as its capital market liberalization has been limited and neither the legal nor financial system is well developed. Yet micro-level evidence from China’s internationally listed enterprises indicates that innovative firms can overcome institutional thresholds, secure access to international capital, and benefit and learn from international capital markets. This can in turn induce market-level improvements through regulatory competition and demands for a more standardized system of economic regulation

How do sub-national institutional constraints impact foreign firm performance?

This paper examines the impact of sub-national institutions on the performance of foreign firms in China. Building on institutional theory, we envisage that the negative effect of sub-national institutional constraints is moderated by firm size and age, entry mode, and market orientation. Our hypotheses are tested on a large-firm-level dataset of about 29,000 foreign firms in 120 cities in China within the period of 1999–2005. We find that firm size and age both have a diminishing positive impact on foreign firm performance; moreover, there is a U-shaped relationship between firm age and foreign firm performance in cities with higher level institutional constraints. We also find that joint ventures help mitigate the negative impact of sub-national institutional constraints on foreign firm performance when the level of institutional constraints is higher

China’s agricultural prospects and challenges: Report on scenario simulations until 2030 with the Chinagro welfare model covering national, regional and county level

The report describes prospects and challenges for Chinese agriculture until 2030 under different scenarios, using the Chinagro welfare model. A scenario is defined as a coherent set of assumptions about exogenous driving forces (farm land, population, non-agricultural growth, world prices etc.), derived from the literature and own assessments. Under these assumptions, simulations with the Chinagro model analyze the price-based interaction between the supply behavior of farmers, the demand behavior of consumers and the determination of trade flows by merchants. The outcomes from the Baseline scenario seem reassuring in that foreign imports remain moderate relative to China’s size, though quite large as fraction of world trade. It would be possible to feed people as well as animals without excessive imports. There is even a potential for significant export flows of vegetables and fruits. Regarding concerns, the trends in per capita agricultural value added are problematic, because they stay in all regions behind per capita value added outside agriculture, albeit that they are rising steadily. This leads to growing disparity in per capita incomes within and across regions. The mounting environmental pressure from fertilizer losses and unused manure surpluses is another cause of concern. The second scenario, the Trade liberalization scenario, appears to hurt farm incomes more than it benefits them and to raise the gap with non-agriculture, also because food becomes cheaper in urban areas. Hence, it highlights the difficult choice between economic efficiency and poverty alleviation that agricultural policy makers often face. The High income growth scenario reinforces the national food self-sufficiency result of the baseline simulation. Even with meat demand higher than under the baseline, levels of imports remain manageable. The High R&D scenario shows that a considerable reduction in dependence on agricultural imports is possible. However, a substantial part of the gains will accrue to consumers rather than to farmers, due to price reductions. Finally, the Enhanced irrigation scenario shows outcomes similar to those of the high R&D scenario. Here also the agricultural trade balance improves and consumer welfare improves, but farmers have to cope with drops in prices, and those who do not benefit from land improvement, only experience losses through falling prices. The present report is written at the onset of the CATSEI-project that will analyze policy packages with more specificity and detail after implementing the following model improvements. First, the impact of China’s imports and exports on world markets will be represented explicitly. Second, the developments outside agriculture in rural areas will be accounted for endogenously, particularly to represent farm revenue from off-farm employment. Third, the trade and transportation margins between farm-gates and markets will be made dependent on the relative flexibility of the actors (farmers, processors, traders) along the chain. Finally, the various techniques to identify more efficient and more sustainable use of scarce water and nutrients and to address health risks will appear more explicitly

Inequalities in Global Trade: A Cross-Country Comparison of Trade Network Position, Economic Wealth, Pollution and Mortality

In this paper we investigate how structural patterns of international trade give rise to emissions inequalities across countries, and how such inequality in turn impact countries’ mortality rates. We employ Multi-regional Input-Output analysis to distinguish between sulfurdioxide (SO2) emissions produced within a country’s boarders (production-based emissions) and emissions triggered by consumption in other countries (consumption-based emissions). We use social network analysis to capture countries’ level of integration within the global trade network. We then apply the Prais-Winsten panel estimation technique to a panel data set across 172 countries over 20 years (1990–2010) to estimate the relationships between countries’ level of integration and SO2 emissions, and the impact of trade integration and SO2 emission on mortality rates. Our findings suggest a positive, (log-) linear relationship between a country’s level of integration and both kinds of emissions. In addition, although more integrated countries are mainly responsible for both forms of emissions, our findings indicate that they also tend to experience lower mortality rates. Our approach offers a unique combination of social network analysis with multiregional input-output analysis, which better operationalizes intuitive concepts about global trade and trade structure

Household carbon and energy inequality in Latin American and Caribbean countries

Reducing inequality, eradicating poverty and achieving a carbon-neutral society are recognized as important components of the United Nations’ Sustainable Development Goals. In this study, we focus on carbon and energy inequality between and within ten Latin American and Caribbean (LAC) countries. Detailed carbon and energy footprint were estimated by combining the consumption profiles (2014) in ten LAC countries with environmental extended multi-regional input-output (MRIO) analysis. Our results show significant inequality of regional total and per capita carbon and energy footprint across the studied LAC countries in 2014. The top 10% income category was responsible for 29.1% and 26.3% of the regional total carbon and energy footprint, and their per capita carbon and energy footprint were 12.2 and 7.5 times of the bottom 10% earners in that region. The average carbon footprint of studied LAC countries varied between 0.53 and 2.21 t CO2e/cap (ton of CO2 equivalent, per capita), and the energy footprint ranged from 0.38 to 1.76 t SOE/cap (ton of Standard Oil Equivalent, per capita). The huge difference in total and per capita carbon emissions and energy consumption of different income groups suggests notable differences in climate change responsibility, and supports policies for achieving sustainable consumption in terms of carbon tax, renewable energy subsidy, and decarbonizing the consumption structure in different LAC countries

The Water-Energy-Food Nexus in East Asia: A Tele-connected Value Chain Analysis Using Inter-Regional Input-Output Analysis

Population and economic growth pose unique challenges in securing sufficient water, energy, and food to meet demand at the sub-national (regional), national, and supra-national level. An increasing share of this demand is met through trade and imports. The unprecedented rapid growth, extent, and complexity of global value chains (GVCs) since the 1980s have reshaped global trade. The GVCs – and new economic patterns of regionalization – affect the demands on water, energy, and food within countries and across global supply chains. East Asia is of particular interest due to the region’s rapid economic growth, substantial population size, high interdependence of the region’s economies, and varying degree of resource availability. While greater interdependence across the region has increased the efficiency of production and trade, these activities require the input of water-energy-food and generate disturbances in the environment. The transnational inter-regional input-output approach is utilized in a tele-connected Water-Energy-Food Nexus (WEFN) analysis of the East Asia GVC to assess competing demands for these resources and environmental outcomes. This analysis demonstrates the hidden virtual flows of water, energy, and food embodied in intra-regional and transnational inter-regional trade. China’s current national export oriented economic growth strategy in East Asia is not sustainable from the WEFN perspective. In terms of water-energy-food, China is a net virtual exporter to Japan and South Korea. China’s prioritization of economic growth and trade in low value added and pollution intensive sectors consumes a great amount of water-energy-food within its territory to satisfy consumers’ demands in Japan and South Korea. Japan’s Kanto and Kinki regions and South Korea’s Sudokwon region were the major beneficiaries while China bore the environmental burden associated with the production of exports. For example, net virtual exports from China’s East region included over 1.2 billion m3 of scarce water and 61.3 million metric (CO2 equivalent) tons of greenhouse gases (i.e. CO2, NH4, and N2O) and 2 million metric tons of SOx emissions. Trade is an important mechanism for overcoming resource bottlenecks, but, taking into account environmental linkages, regional specialization is not necessarily mutually beneficial. This analysis demonstrates a mismatch between regional water-energy-food availability and final resource consumption and the lack of attention for environmental impacts in national economic growth strategies. Resource scarce countries like China must, therefore, incorporate trade-off decisions between pursuing national economic growth, incurring environmental degradation, and food security into strategic regional development policies

Land‐cover and land‐use change trajectory hopping facilitates estate‐crop expansion into protected forests in Indonesia

Protected areas (PAs) have been regarded as a critical strategy to protect natural forest (NF) and biodiversity. Estate‐crop expansion is an important driver of deforestation in Indonesia. Yet, little is known regarding the temporal dynamics of PA effectiveness in preventing estate‐crop expansion into NF. We employ Cox proportional hazard models and their extensions to characterize the dynamics of estate‐crop expansion into NF in Indonesia during 1996–2015. The results show that PA effectiveness in Sumatra decreased over time and became insignificant in 2012–2015. A multistate modeling analysis shows that hopping in land‐cover and land‐use change (LCLUC) trajectories with shrub and/or bare ground as intermediates has decreased PA effectiveness and facilitated the expansion. Preventing LCLUC trajectory hopping becomes crucial to biodiversity conservation because it tends to occur at lowland forest, diminishing natural habitat area and increasing NF isolation