Promoting technological innovations by environmental regulation is one of the essential means to achieve green transformation. This study investigates the effect of environmental regulation on ...technological innovations based on the provincial panel data of industrial sectors in China during the years 2005–2015. The two-way fixed-effect panel data model is used to investigate the marginal and heterogeneous impacts empirically. Results indicate a U-shaped relationship between environmental regulation and technological innovations. In the short-term, environmental regulation has an “offsetting effect” on the research and innovation capacity of China's industrial sector. However, with the deepening of environmental regulation, it forces the industry to reduce the cost of pollution control by improving technological innovation capacity, thus creating a “compensation effect”. Results also show that environmental regulation policies changed the location and industry selection of foreign capital, which weakened the positive effect of FDI on technological innovations, indicating the “pollution shelter” effect. From the perspective of different types of enterprises, due to the higher cost of energy conservation and emission reduction, environmental regulation is detrimental to the technological innovations of state-owned enterprises. In particular, we find that industries with a higher degree of market competition and higher human capital investment tend to have stronger technological innovation capabilities.
•There is a U-shaped relationship between environmental regulation and technological innovations.•FDI and market competition promotes technological innovations.•Environmental regulation has heterogeneous impacts on technological innovation.
We theorize how an ideological imprint—ideology formed through past events—serves as an information filter that persistently affects individuals’ decision making and how subsequent behaviors of the ...imprinter—the entity that established the imprint—may alter it. We test our model with a longitudinal dataset of Chinese private entrepreneurs from 1993 to 2012, investigating the influence of a founder’s communist ideological imprint, which characterizes foreign capitalism as evil, and subsequent dynamics introduced by the imprinter—the Communist Party–led government of China—on two internationalization strategies that deal with foreign investors and markets: firms’ efforts to attract foreign capital and to expand globally. Our findings show that Chinese entrepreneurs’ communist ideological imprint negatively affects the internationalization of their ventures, while available and credible information contradicting communism—coming from the government directly, government-created industry social networks for entrepreneurs, or observing governmental support of internationalization—weakens the influence of the imprint. Our study contributes to a better understanding of imprinting and its decay, the effects of corporate decision makers’ political ideology, and the internationalization of firms.
Background
The Sub-Saharan African (SSA) region has notably been in the limelight of infrastructural deficit discussions over the decades. Although the region’s infrastructural development is ...gradually improving, the levels and pace of development remain generally poor compared to the rest of the world.
Objectives
This study thus aims to empirically examine the roles of governance and institutions in infrastructural developments in the Sub-Sahara African (SSA) region toward addressing the pressing needs for critical infrastructures for the region.
Research Designs
The empirical strategies utilized in the study include the Common Correlated Efficient Mean Group (CCEMG) and Dynamic CCEMG methods among others. These empirical approaches were applied to analyze data on governance and institutional quality proxies for the SSA region to achieve the study’s objectives while controlling for the effects of industrial value-added, foreign capital inflow (FDI), and overall economic growth for the understudied period (1990–2019).
Results
The results reflect the essence of governance and institutional quality as these variables significantly boost infrastructural development in SSA. In addition, industrialization and growth also show a favorable impact on the development of infrastructure thus reflecting that the transition from agrarian to industrial economies occurs in parallel with infrastructure development in the SSA. However, FDI inflows were not found to be significantly instrumental to infrastructural development in the region.
Conclusions
Hence, the SSA must strive to strengthen institutions and harmonize their industrial and economic push with infrastructural developments while encouraging potential foreign investors to diversify investments to infrastructural projects beyond the usual primary sector/resource-based activities.
We show that foreign capital liberalization reduces capital misallocation and increases aggregate productivity for affected industries in India. The staggered liberalization of access to foreign ...capital across disaggregated industries allows us to identify changes in firms' input wedges, overcoming major challenges in the measurement of the effects of changing misallocation. Liberalization increases capital overall. For domestic firms with initially high marginal revenue products of capital (MRPK), liberalization increases revenues by 23%, physical capital by 53%, wage bills by 28%, and reduces MRPK by 33% relative to low MRPK firms. The effects of liberalization are largest in areas with less developed local banking sectors, indicating that inefficiencies in that sector may cause misallocation. Finally, we propose an assumption under which a novel method exploiting natural experiments can be used to bound the effect of changes in misallocation on treated industries' aggregate productivity. These industries' Solow residual increases by 3–16%.
We examine the idea that aid and foreign direct investment (FDI) are complementary sources of foreign capital. We argue that the relationship between aid and FDI is theoretically ambiguous: aid ...raises the marginal productivity of capital when used to finance complementary inputs (like public infrastructure and human capital investments), but aid may crowd out private investments when it comes in the shape of pure physical capital transfers. Empirically, we find that aid invested in complementary inputs draws in FDI, while aid invested in physical capital crowds it out. The paper shows that the composition of aid matters for its overall level of efficiency.
This study examines the effect of foreign capital inflow on domestic credit to the private sector in sub‐Saharan Africa (SSA). Estimates based on the system‐generalized method of moments, Pooled Mean ...Group and fully modified OLS estimators using panel data on 33 SSA countries from 1996 to 2019 establish the following results. First, foreign direct investment (FDI) positively affects domestic credit in the short and long run. Second, the effect of official credit on domestic credit is negative in the short and long run. Third, the US Treasury Bill rate negatively relates to domestic credit to the private sector in the short and long run. Improving policies to enhance the favourable effect of FDI on domestic credit may reduce borrowing from official sources to eliminate its undesirable effect.
Identifying the effects of “flights to safety” on asset prices using pure time-series methods is difficult because crises are infrequent. We develop a new cross-sectional identification approach, ...motivated by the insight that investors may differ in their “preferred habitats” within a broad asset class. We apply the method to the question of whether foreign capital is responsible for residential real estate price movements in global cities such as London and New York, especially during crises. Using large data sets of housing transactions, we find that foreign risk strongly affects London house prices. The effects are long-lasting, and are associated with both safe-haven effects and immigration.
Purpose
The purpose of this paper is to provide a survey of the empirical literature on environmental Kuznets curve (EKC) estimation of carbon dioxide (CO2) emissions over the period of 1991–2017.
...Design/methodology/approach
This survey categorizes the studies on the basis of power of income in empirical models of EKC. It has been hypothesized that the EKC shows an inverted U-shaped association between economic growth and CO2 emissions.
Findings
For all the contexts, the results of EKC estimation for CO2 emissions are inconclusive in nature. The reasons behind this discrepancy can be attributed to the choice of contexts, time period, explanatory variables, and methodological adaptation.
Research limitations/implications
The future studies in this context should not only consider new set of variables (e.g. corruption index, social indicators, political scenario, energy research and development expenditures, foreign capital inflows, happiness, population education structure, public investment toward alternate energy exploration, etc.), but also the data set should be refined, so that the EKC estimation issues raised by Stern (2004) can be addressed.
Originality/value
By far, no study in the literature of ecological economics has focused on the empirical estimation of EKC for CO2 emissions. This particular context has been used for this study, as CO2 is one of the highest studied pollutants in the ecological economics, and especially within the EKC hypothesis framework.
The unipolar international order led by the USA has given way to a multipolar order with the emergence of China as a great power competitor. According to many commentators, the deterioration of ...Sino–US relations in recent years heralds a “new Cold War.” The new Cold War differs from its namesake in many respects, and in this paper we focus on its novel territorial logic. Containing the USSR was the overriding objective of American foreign policy for nearly four decades, but in contrast, the USA and China are engaged in geopolitical‐economic competition to integrate territory into value chains anchored by their domestic lead firms through the financing and construction of transnational infrastructure (e.g., transportation networks and regional energy grids). We show this competition poses risks as well as opportunities for small states to articulate and realise spatial objectives. We present cases from Nepal and Laos that demonstrate that by hedging between China and the USA and its partners, their governments are able to pursue spatial objectives. In order to achieve them, however, they must implement significant reforms or state restructuring. The result is the emergence of what we term the 21st‐century infrastructure state, which seeks to mobilise foreign capital for infrastructure projects designed to enhance transnational connectivity.
The “rise” of China has precipitated a multipolar international order and, according to some commentators, heightened US–China tension heralds a “new” Cold War. In this context, small states hedge between the USA and its partners and China, as they pursue longstanding state spatial objectives. This necessitates state restructuring, which in some cases leads to the emergence of the 21st‐century infrastructure state.
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