{"title":"Investment policy reform as a driver of foreign direct investment: Evidence from China","authors":"Markus Leibrecht, Christian Bellak","doi":"10.1111/ecot.12364","DOIUrl":"10.1111/ecot.12364","url":null,"abstract":"<p>A longstanding concern has been the proposition that the international investment treaty system lacks reform. Governments forgo Foreign Direct Investment (FDI) and thus forgo a driver of economic growth, employment and innovation. We assess the validity of this concern in the context of a major home and host country for global foreign direct investment, China, and the major reform of its Bilateral Investment Treaties (BITs). Besides other innovations, the so-called ‘third-generation’ BITs of China introduce a strong dispute resolution mechanism, which makes Chinese BITs more investor-friendly. Our evidence suggests that more investor-friendly BITs exert a positive impact on FDI in China. We argue that the positive impact of reforming BITs in a country like China, which offers a high degree of stability of the legal and political system and a strong culture of informal dispute resolution, points towards the relevance of the enforceability of property rights for investments.</p>","PeriodicalId":40265,"journal":{"name":"Economics of Transition and Institutional Change","volume":"31 4","pages":"1035-1053"},"PeriodicalIF":0.9,"publicationDate":"2023-04-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43872402","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The effects of India's bilateral investment treaties termination on foreign direct investment inflows","authors":"Elena Kotyrlo, Hryhorii M. Kalachyhin","doi":"10.1111/ecot.12363","DOIUrl":"10.1111/ecot.12363","url":null,"abstract":"<p>India initiated the unilateral mass termination of bilateral investment treaties (BIT termination) in 2016. We consider it a natural experiment to clarify the issue of whether BITs attract foreign direct investment (FDI) to a developing country. We evaluate the effect of BIT termination on the FDI inflows using the double and triple difference approaches (DD and DDD) and the synthetic control (SCM) methods. Our study finds that BIT termination led to a significant decrease in FDI inflows from the country with which India terminated the agreement. Thus, the study confirms that BIT is an essential mechanism for attracting FDI.</p>","PeriodicalId":40265,"journal":{"name":"Economics of Transition and Institutional Change","volume":"31 4","pages":"1007-1033"},"PeriodicalIF":0.9,"publicationDate":"2023-03-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46880255","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Association between state ownership participation and the performance of private firms: Evidence from China","authors":"Feng Niu, Liuzhen Zhang, Wunhong Su","doi":"10.1111/ecot.12362","DOIUrl":"10.1111/ecot.12362","url":null,"abstract":"<p>The mixed ownership reform aims to improve the performance of firms, which is important for optimizing the overall economic layout and promoting firms to sustainable development. Therefore, an important issue is whether state ownership participation in private firms improves their performance in the context of the mixed ownership reform. This study investigates whether and how state ownership participation affects the performance of private firms using Chinese listed private firms from 2010 to 2020. The results of this study indicate that state ownership participation significantly eliminates the performance of private firms. Further results show that there is a U-shaped relationship between the mixed ownership model and the performance of private firms. At the same time, firm transparency and financing constraints play a negative moderating role in the relationship between the mixed ownership model and the performance of private firms. The findings of this study enrich the literature on factors influencing the performance of private firms, provide empirical evidence for mixed ownership reforms in China, and further reveal the characteristics of Chinese accounting practices and the logical rules behind the operation of these practices.</p>","PeriodicalId":40265,"journal":{"name":"Economics of Transition and Institutional Change","volume":"31 4","pages":"979-1006"},"PeriodicalIF":0.9,"publicationDate":"2023-03-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46529845","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Trade costs and tax transition reform in developing countries","authors":"S. Gnangnon","doi":"10.1111/ecot.12359","DOIUrl":"https://doi.org/10.1111/ecot.12359","url":null,"abstract":"","PeriodicalId":40265,"journal":{"name":"Economics of Transition and Institutional Change","volume":"22 1","pages":""},"PeriodicalIF":0.9,"publicationDate":"2023-02-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"62958330","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Trade costs and tax transition reform in developing countries","authors":"Sèna Kimm Gnangnon","doi":"10.1111/ecot.12359","DOIUrl":"https://doi.org/10.1111/ecot.12359","url":null,"abstract":"<p>Developing countries are striving to reform their tax revenue structure to reduce its dependence on international trade tax revenue. The present study has investigated the effect of trade costs on this type of tax revenue structure reform (also referred in the present analysis to as ‘Tax transition Reform’—TTR) through the trade openness channel in developing countries. The analysis has used a set of 124 countries over the period from 1996 to 2019 and several econometric estimators. It shows that higher overall trade costs (notably non-tariff costs) undermine the TTR process, notably in countries that enjoy high degrees of openness to international trade. In other words, countries that wish to pursue their TTR process, while concurrently further opening up their economies to international trade, have to reduce their trade costs.</p>","PeriodicalId":40265,"journal":{"name":"Economics of Transition and Institutional Change","volume":"31 4","pages":"941-977"},"PeriodicalIF":0.9,"publicationDate":"2023-02-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50145140","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"How does e-commerce demonstration city improve urban innovation? Evidence from China","authors":"Cai Zhou, Bowen Li","doi":"10.1111/ecot.12361","DOIUrl":"10.1111/ecot.12361","url":null,"abstract":"<p>This paper provides a feasible way to realize urban innovation through the e-commerce pilot. Based on the data of 289 cities in China from 2002 to 2019, we examine the impact of the National E-commerce Demonstration City pilot on urban innovation with a staggered difference-in-differences method. The results show that after becoming a pilot city of National E-commerce Demonstration Cities (NEDC), the quantity and quality of urban innovation have improved. Further, NEDC policy plays a greater role in promoting innovation in economically agglomerated areas, first-and third-tier cities and areas with a higher degree of marketization. Finally, NEDC policy can affect the level of urban innovation by optimizing the allocation of innovation factors, improving the efficiency of credit resource allocation and forming the logistics scale effect.</p>","PeriodicalId":40265,"journal":{"name":"Economics of Transition and Institutional Change","volume":"31 4","pages":"915-940"},"PeriodicalIF":0.9,"publicationDate":"2023-02-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45756049","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Contingent impacts of COVID relief policies under global value chain shortage","authors":"Ruohan Wu","doi":"10.1111/ecot.12360","DOIUrl":"10.1111/ecot.12360","url":null,"abstract":"<p>This paper empirically investigates how governments' COVID-19 relief policies have affected firms in 14 post-communist economies under the global value chain shortage between May 2020 and January 2022. We construct a panel dataset with firms that were continuously observed in three rounds of the World Bank's COVID-19 survey to comprehensively evaluate the dynamic changes in the firms' value chains, production, and finances. We further estimate the determinants of these changes, especially the roles played by the government. We find that under the impact of COVID-19, (1) reduced production capacity or reduced supply significantly increased the likelihood of reduced production and finances, whereas reduced demand had the opposite impact; (2) receiving support from the government augmented the impacts of affected production capacities and value chains; (3) among firms with restricted capacity or supplies, receiving government support increased the likelihood of reduced production and finances; and (4) among firms with abundant capacity and supplies, receiving government support lowered the likelihood of reduced production and finances. Other variables, such as firms' size, remote workforce, online businesses, and exports, also exhibit significant influences.</p>","PeriodicalId":40265,"journal":{"name":"Economics of Transition and Institutional Change","volume":"31 4","pages":"877-914"},"PeriodicalIF":0.9,"publicationDate":"2023-02-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46246204","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"State ownership and zombie firms: Evidence from China's 2008 stimulus plan","authors":"Jiani Li, Jie Li, Tianhang Zhou","doi":"10.1111/ecot.12358","DOIUrl":"10.1111/ecot.12358","url":null,"abstract":"<p>Whether and how are zombie firms associated with a crisis-rescue plan? We examine this issue through the channel of state-owned enterprises (SOEs). We find that, after China's 2008 stimulus plan, a firm in the city with a high SOE share is more likely to become a zombie firm. This result may be driven by the fact that government-led investment, through SOEs, tends to focus more on employment-related projects than efficient ones, particularly during the crisis period. Resource misallocation associated with the crisis-rescue plan may cause production inefficiency, which leads to the emergence of zombie firms.</p>","PeriodicalId":40265,"journal":{"name":"Economics of Transition and Institutional Change","volume":"31 4","pages":"853-876"},"PeriodicalIF":0.9,"publicationDate":"2023-02-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43449455","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Syed Hasan, Tasnima Akter, Musharrat Jahan, Ashraf Dewan
{"title":"Proximity to healthcare centres and service use: The case of Community Clinics in Bangladesh","authors":"Syed Hasan, Tasnima Akter, Musharrat Jahan, Ashraf Dewan","doi":"10.1111/ecot.12357","DOIUrl":"https://doi.org/10.1111/ecot.12357","url":null,"abstract":"<p>We investigate how distance from healthcare centres affects service utilization for women and children. Relying on five rounds of recent nationally representative demographic and health survey data from Bangladesh, our logistic regression analyses reveal that proximity to healthcare centres barely affects the utilization of healthcare services for women and children, even in rural areas. Interestingly, this indicates that the government's preferred Community Clinics have not significantly contributed to the country's uptake of healthcare services. The low-service utilization may result from their poor standard at the local health centres indicating that improving the service quality can help Bangladesh raise the uptake of healthcare services.</p>","PeriodicalId":40265,"journal":{"name":"Economics of Transition and Institutional Change","volume":"31 3","pages":"819-849"},"PeriodicalIF":0.9,"publicationDate":"2023-01-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/ecot.12357","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50144631","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":"Do industrial robots affect the labour market? Evidence from China","authors":"Lihua Zhang, Tian Gan, Jiachen Fan","doi":"10.1111/ecot.12356","DOIUrl":"10.1111/ecot.12356","url":null,"abstract":"<p>The industrial robot is an essential part of modern manufacturing. Using micro-level data, this study investigates the effects of industrial robots on the labour market in China. The results show that the adoption of industrial robots increases firm-level employment by 31.65%. Using the Bartik method, we construct robot penetration as an instrumental variable of robot adoption to tackle endogenous problems. Our results stand up to a series of robustness checks. Moreover, the effects of robots are mainly owing to the expansion of the output scale, increased productivity, and upgraded products. We also find the skill-biased impact of robots and the spillover effect of industrial robots through production networks.</p>","PeriodicalId":40265,"journal":{"name":"Economics of Transition and Institutional Change","volume":"31 3","pages":"787-817"},"PeriodicalIF":0.9,"publicationDate":"2023-01-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48863627","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}