{"title":"The transmission mechanism analysis of the impact of economic policy uncertainty on household consumption","authors":"Yanwei Gu, Guancheng Jiang, Xiao Liang","doi":"10.1002/ise3.21","DOIUrl":"10.1002/ise3.21","url":null,"abstract":"<p>Economic policy uncertainty is proven to have an important effect on household consumption. However, the literature on its transmission mechanism and on comparing the consumption response of urban and rural households, especially in China, is limited. In this paper, we propose two channels through which economic policy uncertainty affects household consumption, the precautionary saving channel and the investment-employment channel. Then, we use the household survey data (China Health and Nutrition Survey) to explore the heterogeneous effect among urban and rural households. We verify that an increase in economic policy uncertainty can significantly reduce household consumption through both channels. Further, the precautionary saving channel is more important in the urban household sample, while the investment-employment channel is more pronounced in the rural household sample. In addition, the heterogeneous effect also exists across households in different regions. Our results are robust with consideration of different estimation methods, the lagged effect of the uncertainty, and other characteristics of households.</p>","PeriodicalId":29662,"journal":{"name":"International Studies of Economics","volume":"17 3","pages":"371-393"},"PeriodicalIF":0.0,"publicationDate":"2022-07-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/ise3.21","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83689405","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Does foreign aid reduce the country's risk of OFDI? The Chinese experience","authors":"Haijun Wang, Hu Yang, Fengya Li, Min Zhang","doi":"10.1002/ise3.20","DOIUrl":"https://doi.org/10.1002/ise3.20","url":null,"abstract":"<p>Using a sample of 124 countries assisted by China from 2000 to 2019, this paper examines the impact of foreign aid on outward foreign direct investment (OFDI) and the mitigation mechanism of risk. The research finds that, first, foreign aid can significantly reduce the country risk of recipient countries, especially political risk and financial risk, and thus play a role in promoting the inflow of OFDI of donor countries, and there is a lagged effect of this role; Second, foreign aid from other countries has a negative impact on China's OFDI to recipient countries, indicating that foreign aid is nonaltruistic and exclusive; Third, the mitigation effect of foreign aid on country risk is achieved through five channels: compensation effect, synergistic effect, pioneer effect, assimilation effect, and redistribution effects.</p>","PeriodicalId":29662,"journal":{"name":"International Studies of Economics","volume":"18 2","pages":"238-258"},"PeriodicalIF":0.0,"publicationDate":"2022-07-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/ise3.20","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50149298","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Would central government's direct supervisions enhance local environmental qualities? Evidence from China","authors":"Zhilin Hu","doi":"10.1002/ise3.14","DOIUrl":"10.1002/ise3.14","url":null,"abstract":"<p>With the construction of ecological civilization, central government's direct inspections have become the new norm of environmental protection supervision. Since 2016, the central government has been dispatching supervision teams, one batch after another, to conduct environmental protection supervision in the provinces. In this paper, the regression discontinuity designs were used to study the impact of central environmental protection supervision on the quality of air and water. Our results indicate that air quality was improved significantly during the supervision, while water quality was improved significantly during the rectification period after the supervision. A heterogeneity analysis shows that supervision had a significant impact on highly polluted areas. The results further suggest that for the continuous improvement of environmental quality, it is necessary to build a long-term governance mechanism.</p>","PeriodicalId":29662,"journal":{"name":"International Studies of Economics","volume":"17 2","pages":"261-275"},"PeriodicalIF":0.0,"publicationDate":"2022-07-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/ise3.14","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82004344","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Does individual educational attainment affect educational homogamy?—Evidence from CGSS","authors":"Congjia Huo, Lingming Chen","doi":"10.1002/ise3.9","DOIUrl":"10.1002/ise3.9","url":null,"abstract":"<p>Family is the basic unit that constitutes social relations, and marriage-matching determines the development trajectory of a household. Education has become one of the most important ingredients of marriage in modern society, and the proportion of homogamy is increasing day by day. This article employs the data from the Chinese General Social Survey to research the mechanism of educational attainment on the educational homogamy. To eliminate the effect of endogeneity, we use the Probit model and instrumental variables for testing. The empirical results indicate that social members with higher educational backgrounds are more likely to choose educational homogamy. After controlling for other variables, social members and female members with lower ages are more likely to choose spouses with similar educational backgrounds.</p>","PeriodicalId":29662,"journal":{"name":"International Studies of Economics","volume":"17 1","pages":"82-107"},"PeriodicalIF":0.0,"publicationDate":"2022-07-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/ise3.9","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90673720","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"How much between-group wage gaps can be explained by talent allocation frictions in China?","authors":"Zhe Li, Qingyu Peng","doi":"10.1002/ise3.16","DOIUrl":"10.1002/ise3.16","url":null,"abstract":"<p>What explains huge wage gaps between different <i>hukou</i> and gender groups in China? This paper uses an overlapping generation model with human capital investment and occupational choices to quantify how much wage gaps between these groups can be imputed to two types of talent allocation frictions, labor market discrimination, and human capital accumulation barriers. The calibrated model indicates that the two types of talent allocation frictions can explain a significant proportion (four-fifths, one-third, and three-fifths) of the wage gap between each non-urban-men group (urban women, rural men, and rural women) and urban men in 2013. Our counterfactual exercise also shows that eliminating these two frictions since 1995 would result in about half a percentage point increase in China's economic growth rate between 1995 and 2013.</p>","PeriodicalId":29662,"journal":{"name":"International Studies of Economics","volume":"17 2","pages":"183-215"},"PeriodicalIF":0.0,"publicationDate":"2022-07-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/ise3.16","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76816932","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Belt and Road Initiative, political involvement, and China's OFDI","authors":"Haoyuan Ding, Yi Li, Liang Wang, Chang Xue","doi":"10.1002/ise3.15","DOIUrl":"10.1002/ise3.15","url":null,"abstract":"<p>The Belt and Road Initiative (BRI) is an important strategy for China. This study examines the effect of political involvement on firms' outward foreign direct investment (OFDI) in belt-road countries after the BRI. Using merged Chinese nonfinancial listed firm data, the fDi Markets database, and the Thomson One database (formerly known as SDC Platinum) for the period 2008–2018, we find that political involvement has positive effect on firms' OFDI in belt-road countries after the BRI. Furthermore, we find that the positive effect is heterogeneous across state-owned enterprises (SOEs) and non-SOEs. Political involvement has a positive effect on M&A for SOEs and Greenfield investment for non-SOEs in belt-road countries after the BRI. Our findings suggest that political involvement promotes firms' OFDI in belt-road countries after the BRI and is helpful to the macro-policy implementation.</p>","PeriodicalId":29662,"journal":{"name":"International Studies of Economics","volume":"17 4","pages":"459-483"},"PeriodicalIF":0.0,"publicationDate":"2022-07-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/ise3.15","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"84936979","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Does Chinese policy banks' overseas lending favor Belt Road Initiative countries?","authors":"Xin Chen, Heyang Fang, Yun Liu, Yifei Zhang","doi":"10.1002/ise3.8","DOIUrl":"10.1002/ise3.8","url":null,"abstract":"<p>This paper examines how Chinese policy banks responded to China's Belt Road Initiative (BRI) using transaction-level international syndicated loan data. Employing a difference-in-differences (DID) estimation, we show that Chinese policy banks increased aggregate lending (number of loans and loan amounts) to firms from the BRI countries compared to those from the non-BRI countries after the initiative. This increase was more pronounced among firms along the continental route and in the infrastructure sectors. We also find that Chinese policy banks' loans to the BRI borrowers were associated with reduced spread, lowered collateral requirement, and extended maturity. Moreover, our results suggest that Chinese policy banks gave more support to firms from the BRI countries with weaker economic performance, more fragile institutional quality, and closer political interests. Overall, our study highlights the supportive role played by Chinese policy banks in implementing a national globalization strategy.</p>","PeriodicalId":29662,"journal":{"name":"International Studies of Economics","volume":"17 4","pages":"430-458"},"PeriodicalIF":0.0,"publicationDate":"2022-07-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/ise3.8","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"72851215","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"China's global value chain linkage and logistics performances in emerging ASEAN economies","authors":"Hiroyuki Taguchi, Jun Zhao","doi":"10.1002/ise3.12","DOIUrl":"10.1002/ise3.12","url":null,"abstract":"<p>This paper aims to evaluate the extent of China's forward linkage of global value chains (GVCs) with emerging market economies of the Association of Southeast Asian Nations (ASEAN) compared to those with the United States and Japan, and also to examine the nexus of China's forward GVC linkage with logistics performances in emerging ASEAN economies as China's trade partners. This study uses the UNCTAD-Eora Database and applies a structural gravity trade model for empirical analysis. The statistical observations identified the major position of China's GVC, which has transformed from a backward linkage to a forward linkage since the mid-2000s. The empirical estimation verified that there is less linkage in China's forward GVC with emerging ASEAN economies than with the United States and Japan, and demonstrated that the lack of logistics performances in emerging ASEAN economies has been a significant factor in explaining the less linkage in China's forward GVC with them.</p>","PeriodicalId":29662,"journal":{"name":"International Studies of Economics","volume":"17 2","pages":"126-155"},"PeriodicalIF":0.0,"publicationDate":"2022-07-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/ise3.12","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85394769","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The role of socio-political factors in public debt accumulation: Evidence from CEMAC countries","authors":"Ulrich M. Ekouala","doi":"10.1002/ise3.17","DOIUrl":"https://doi.org/10.1002/ise3.17","url":null,"abstract":"<p>The analysis of public debt determinants is well documented in the literature. However, previous studies give more focus to the economic determinants neglecting the role played by socio-political factors. The purpose of this study is to fill that gap observed in the literature by investigating the impact of socio-political factors on CEMAC countries' public debt accumulation in a bivariate relationship. The paper employs the OLS and GLS as baseline models using panel data covering the period from 1980 to 2021. The study uses as alternative techniques the FE, FE-IV, and the GMM for robustness checks. The empirical findings highlight the system (both presidential and legislative), corruption, Electoral openness and Competitiveness for legislative election (Liec), and fraud as the main driving factors of public debt in CEMAC countries. This paper suggests further studies to give a particular interest to socio-political factors while investigating the determinants of public debt in developing countries.</p>","PeriodicalId":29662,"journal":{"name":"International Studies of Economics","volume":"18 3","pages":"306-325"},"PeriodicalIF":0.0,"publicationDate":"2022-07-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/ise3.17","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50135927","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Subsidy and product diversity in the presence of buyer power","authors":"Zhiqi Chen, Hong Ding","doi":"10.1002/ise3.10","DOIUrl":"10.1002/ise3.10","url":null,"abstract":"<p>This paper analyzes the effectiveness of government subsidies in promoting product diversity when a downstream firm has buyer power. Using an extension of the Dixit-Stiglitz model of monopolistic competition, we compare the effects of subsidies on the equilibrium number of differentiated products and social welfare in the case where products are sold directly to consumers versus the case where they are distributed through a monopoly retailer with buyer power. We find that a production subsidy promotes product diversity in both cases, but the mechanisms through which a subsidy raises the number of products are different. Compared with the case where products are distributed directly to consumers, retailer buyer power reduces product diversity and social welfare. Furthermore, it weakens the effectiveness of the subsidy in promoting product diversity. At any given subsidy rate the equilibrium number of products is smaller, and a rise in the subsidy rate leads to a smaller increase in the number of products.</p>","PeriodicalId":29662,"journal":{"name":"International Studies of Economics","volume":"17 3","pages":"278-295"},"PeriodicalIF":0.0,"publicationDate":"2022-07-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1002/ise3.10","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76015030","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}