Pub Date : 2025-03-01DOI: 10.1016/j.eap.2025.02.033
Khanh Hoang , Cuong Nguyen , Toan Luu Duc Huynh , Hailiang Zhang , Van Thi Thuy Vu
Carbon-intensive firms are increasingly exposed to carbon transition risks stemming from evolving climate policies, forcing them to adapt to a low-carbon economy. While prior research focuses on direct environmental initiatives to mitigate carbon transition risks, limited attention has been given to corporate diversification as an alternative strategy. This study investigates the impact of carbon transition risks on revenue diversification of Chinese listed firms, employing a difference-in-differences framework with the Paris Agreement as an exogenous shock. We find a significant increase in diversification of heavy-emitting firms following the Paris Agreement compared to their counterparts, without a corresponding increase in environmental investments or green technology adoption. This response is notably pronounced among firms with state ownership and is weakened when investment irreversibility is high. The findings align with the real options perspective and provide new insights into corporate responses to climate policy changes within the unique context of China.
{"title":"How does carbon transition risk drive corporate diversification? Evidence from heavy emitter firms in China","authors":"Khanh Hoang , Cuong Nguyen , Toan Luu Duc Huynh , Hailiang Zhang , Van Thi Thuy Vu","doi":"10.1016/j.eap.2025.02.033","DOIUrl":"10.1016/j.eap.2025.02.033","url":null,"abstract":"<div><div>Carbon-intensive firms are increasingly exposed to carbon transition risks stemming from evolving climate policies, forcing them to adapt to a low-carbon economy. While prior research focuses on direct environmental initiatives to mitigate carbon transition risks, limited attention has been given to corporate diversification as an alternative strategy. This study investigates the impact of carbon transition risks on revenue diversification of Chinese listed firms, employing a difference-in-differences framework with the Paris Agreement as an exogenous shock. We find a significant increase in diversification of heavy-emitting firms following the Paris Agreement compared to their counterparts, without a corresponding increase in environmental investments or green technology adoption. This response is notably pronounced among firms with state ownership and is weakened when investment irreversibility is high. The findings align with the real options perspective and provide new insights into corporate responses to climate policy changes within the unique context of China.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"85 ","pages":"Pages 1971-1994"},"PeriodicalIF":7.9,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143519839","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01DOI: 10.1016/j.eap.2025.02.034
Mengying Ni , Zimin Liu , Zhuang Zhang
“The stronger get stronger, the weaker get weaker”? Does the process of urban economic complexity exhibit a preference for green? This research utilizes the reflection iteration method to measure the economic complexity of Chinese cities and examines the impact of economic complexity on urban green development and its underlying mechanisms. The results are as follows: (1) the enhancement of economic complexity promotes the green development of urban economies, with enduring effects; (2) the green impact of economic complexity exhibits an increasing marginal trend, meaning that the higher the urban complexity, the stronger the marginal effect; (3) mechanism analysis indicates that economic complexity, on one hand, optimizes the developmental path of urban industries by squeezing out pollution-intensive and resource-dependent industries; on the other hand, economic complexity contributes to strengthening the urban innovation ecosystem, such as enhancing levels of urban innovation, entrepreneurship, technological advancement, R&D collaboration, and knowledge spillover. Additionally, the impact of economic complexity on urban green development is moderated by external constraints such as energy efficiency, environmental regulations, and public supervision; (4) heterogeneity analysis reveals that the green impact effect of economic complexity varies with the level of talent accumulation, administrative hierarchy, geographical location and industrial layout. This study offers valuable insights for optimizing urban development path and promoting green transformations in urban areas.
{"title":"Greening through economic complexity: New evidence from Chinese cities","authors":"Mengying Ni , Zimin Liu , Zhuang Zhang","doi":"10.1016/j.eap.2025.02.034","DOIUrl":"10.1016/j.eap.2025.02.034","url":null,"abstract":"<div><div>“The stronger get stronger, the weaker get weaker”? Does the process of urban economic complexity exhibit a preference for green? This research utilizes the reflection iteration method to measure the economic complexity of Chinese cities and examines the impact of economic complexity on urban green development and its underlying mechanisms. The results are as follows: (1) the enhancement of economic complexity promotes the green development of urban economies, with enduring effects; (2) the green impact of economic complexity exhibits an increasing marginal trend, meaning that the higher the urban complexity, the stronger the marginal effect; (3) mechanism analysis indicates that economic complexity, on one hand, optimizes the developmental path of urban industries by squeezing out pollution-intensive and resource-dependent industries; on the other hand, economic complexity contributes to strengthening the urban innovation ecosystem, such as enhancing levels of urban innovation, entrepreneurship, technological advancement, R&D collaboration, and knowledge spillover. Additionally, the impact of economic complexity on urban green development is moderated by external constraints such as energy efficiency, environmental regulations, and public supervision; (4) heterogeneity analysis reveals that the green impact effect of economic complexity varies with the level of talent accumulation, administrative hierarchy, geographical location and industrial layout. This study offers valuable insights for optimizing urban development path and promoting green transformations in urban areas.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"85 ","pages":"Pages 2063-2090"},"PeriodicalIF":7.9,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143548267","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01DOI: 10.1016/j.eap.2025.02.027
Olivér Nagy , Gábor Neszveda
This study investigates how sovereign Credit Default Swaps’ (CDS) reactions reflect a country’s financial resilience to military conflicts, specifically analyzing the Russo-Ukrainian War. We find that sovereign CDS offers unique insights compare to equity markets. Sovereign CDS spreads had already started to increase at least two weeks before the outbreak of the war. Second, prior to the war, abnormal sovereign CDS spreads is correlated with financial vulnerability such as the Debt-to-GDP ratio, while after the outbreak of the war NATO membership and distance from Moscow become the significant predictor of abnormal sovereign CDS spreads indicating a shift in risk assessment dynamics towards geopolitical considerations. This divergence between equity market and sovereign CDS responses highlights their ability to capture different aspects of market sentiment and risk, underscoring the importance of sovereign CDS in evaluating the financial implications of geopolitical instability.
{"title":"Assessing geopolitical risk: Sovereign CDS insights from the Russo-Ukrainian War","authors":"Olivér Nagy , Gábor Neszveda","doi":"10.1016/j.eap.2025.02.027","DOIUrl":"10.1016/j.eap.2025.02.027","url":null,"abstract":"<div><div>This study investigates how sovereign Credit Default Swaps’ (CDS) reactions reflect a country’s financial resilience to military conflicts, specifically analyzing the Russo-Ukrainian War. We find that sovereign CDS offers unique insights compare to equity markets. Sovereign CDS spreads had already started to increase at least two weeks before the outbreak of the war. Second, prior to the war, abnormal sovereign CDS spreads is correlated with financial vulnerability such as the Debt-to-GDP ratio, while after the outbreak of the war NATO membership and distance from Moscow become the significant predictor of abnormal sovereign CDS spreads indicating a shift in risk assessment dynamics towards geopolitical considerations. This divergence between equity market and sovereign CDS responses highlights their ability to capture different aspects of market sentiment and risk, underscoring the importance of sovereign CDS in evaluating the financial implications of geopolitical instability.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"85 ","pages":"Pages 1995-2006"},"PeriodicalIF":7.9,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143548371","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01DOI: 10.1016/j.eap.2025.02.039
Hongwen Chen , Jie Dian , Sihan Fan , Ying Fang
Growing concern about climate change and the promotion of green and low-carbon development has led to an increase in attention given to the health effects of Low-Carbon City Pilot (LCCP) policy on adults in developing countries. However, limited research has been conducted in this area. This study employs the difference-in-differences approach to analyse the impact of LCCP policy on adult health and its mechanism. Our results indicate that LCCP policy has significantly improved the health of adults by decreasing the likelihood of residents' illness or injury in the last four weeks, reducing the probability of high blood pressure, and decreasing the prevalence of overnutrition. Robustness tests were conducted, and the results remain consistent. Our mechanism analysis reveals that LCCP policy has improved adult health by reducing pollutant emissions, upgrading industrial structures, and enhancing public services. Heterogeneity analysis suggests that urban areas and higher-income households are significantly impacted by the policy. Our study provides valuable insights into the evaluation of LCCP policy, recommending that policymakers consider implementing targeted measures in similar contexts to promote public health and sustainable development.
{"title":"The effect of low-carbon city pilot policy on public health: An empirical analysis of adult health in China","authors":"Hongwen Chen , Jie Dian , Sihan Fan , Ying Fang","doi":"10.1016/j.eap.2025.02.039","DOIUrl":"10.1016/j.eap.2025.02.039","url":null,"abstract":"<div><div>Growing concern about climate change and the promotion of green and low-carbon development has led to an increase in attention given to the health effects of Low-Carbon City Pilot (LCCP) policy on adults in developing countries. However, limited research has been conducted in this area. This study employs the difference-in-differences approach to analyse the impact of LCCP policy on adult health and its mechanism. Our results indicate that LCCP policy has significantly improved the health of adults by decreasing the likelihood of residents' illness or injury in the last four weeks, reducing the probability of high blood pressure, and decreasing the prevalence of overnutrition. Robustness tests were conducted, and the results remain consistent. Our mechanism analysis reveals that LCCP policy has improved adult health by reducing pollutant emissions, upgrading industrial structures, and enhancing public services. Heterogeneity analysis suggests that urban areas and higher-income households are significantly impacted by the policy. Our study provides valuable insights into the evaluation of LCCP policy, recommending that policymakers consider implementing targeted measures in similar contexts to promote public health and sustainable development.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"85 ","pages":"Pages 2043-2062"},"PeriodicalIF":7.9,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143548266","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01DOI: 10.1016/j.eap.2025.02.009
Carlos J. García
A complementary methodology to traditional econometric analysis is proposed to estimate the economic impact of healthy eating and to evaluate policies against the obesity pandemic in emerging countries. The impact of healthy eating is quantified with a structural model based on stylized facts to define preferences, the relationship between disease and obesity, and agents’ perception of healthy eating. To illustrate the methodology, the model is estimated with Bayesian econometrics for a representative emerging country (Chile). The methodology is complementary to other alternatives, contributing to quantify the second-round benefits of food programs and public policies. Thus, to the extent that evaluation programs indicate that one or another alternative is beneficial, our proposal will show how these benefits are transferred to the entire economy and its productivity. This helps to add another criterion to classify the different policies, reinforcing the design and debate of public policies in this area and, also, with other matters of public interest. The results indicate that an emerging economy may be foregoing a substantial part of its growth if the obesity pandemic is not adequately addressed with policies that change agents’ behavior.
{"title":"Economic impact and policies for the obesity pandemic in emerging economies","authors":"Carlos J. García","doi":"10.1016/j.eap.2025.02.009","DOIUrl":"10.1016/j.eap.2025.02.009","url":null,"abstract":"<div><div>A complementary methodology to traditional econometric analysis is proposed to estimate the economic impact of healthy eating and to evaluate policies against the obesity pandemic in emerging countries. The impact of healthy eating is quantified with a structural model based on stylized facts to define preferences, the relationship between disease and obesity, and agents’ perception of healthy eating. To illustrate the methodology, the model is estimated with Bayesian econometrics for a representative emerging country (Chile). The methodology is complementary to other alternatives, contributing to quantify the second-round benefits of food programs and public policies. Thus, to the extent that evaluation programs indicate that one or another alternative is beneficial, our proposal will show how these benefits are transferred to the entire economy and its productivity. This helps to add another criterion to classify the different policies, reinforcing the design and debate of public policies in this area and, also, with other matters of public interest. The results indicate that an emerging economy may be foregoing a substantial part of its growth if the obesity pandemic is not adequately addressed with policies that change agents’ behavior.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"85 ","pages":"Pages 1949-1970"},"PeriodicalIF":7.9,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143509239","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01DOI: 10.1016/j.eap.2025.02.037
Su Zhang , Yan Xia , Huijuan Wang , Jiaofeng Pan
Digital technology has a profound impact on China's labor market. How does the welfare inequality between formal and flexible workers change under the influence of digital technology? In this paper, theoretical and empirical studies are carried out respectively. In theory, the welfare effect of individual dimension is considered based on building a general equilibrium model including market production sector and household production sector; In the empirical aspect, the pooled four-wave data from the China Family Panel Studies (CFPS) from 2014 to 2020 are used to test the effects of digital technology on the welfare inequality between the formal and flexible workers. The findings reveal that digital technology widens wage disparity and non-wage benefit inequality between formal and flexible workers. Sectoral analysis indicates that digital technology significantly increases wage disparity in high-digitalization sectors, while non-wage benefit inequality is primarily exacerbated in low-digitalization sectors. Mechanism analysis demonstrates that the substitution effect and productivity effect negatively impact wage disparity, whereas the creation effect and the flexibility of flexible workers mitigate it. Regarding non-wage benefit inequality, digital skill gaps caused by digital technology exacerbate inequality, while legal efficiency and regulatory quality help alleviate it. In addition, the wage disparity and non-wage benefits inequality between the formal and flexible workers caused by digital technology are significantly different in different education levels, gender, time and regions.
{"title":"The good, the bad: How digital technology shapes welfare for formal and flexible workers?","authors":"Su Zhang , Yan Xia , Huijuan Wang , Jiaofeng Pan","doi":"10.1016/j.eap.2025.02.037","DOIUrl":"10.1016/j.eap.2025.02.037","url":null,"abstract":"<div><div>Digital technology has a profound impact on China's labor market. How does the welfare inequality between formal and flexible workers change under the influence of digital technology? In this paper, theoretical and empirical studies are carried out respectively. In theory, the welfare effect of individual dimension is considered based on building a general equilibrium model including market production sector and household production sector; In the empirical aspect, the pooled four-wave data from the China Family Panel Studies (CFPS) from 2014 to 2020 are used to test the effects of digital technology on the welfare inequality between the formal and flexible workers. The findings reveal that digital technology widens wage disparity and non-wage benefit inequality between formal and flexible workers. Sectoral analysis indicates that digital technology significantly increases wage disparity in high-digitalization sectors, while non-wage benefit inequality is primarily exacerbated in low-digitalization sectors. Mechanism analysis demonstrates that the substitution effect and productivity effect negatively impact wage disparity, whereas the creation effect and the flexibility of flexible workers mitigate it. Regarding non-wage benefit inequality, digital skill gaps caused by digital technology exacerbate inequality, while legal efficiency and regulatory quality help alleviate it. In addition, the wage disparity and non-wage benefits inequality between the formal and flexible workers caused by digital technology are significantly different in different education levels, gender, time and regions.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"85 ","pages":"Pages 2007-2029"},"PeriodicalIF":7.9,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143548372","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study investigates the impact of Biological Control (BC) methods on Chinese consumer preferences for fresh produce, with a particular focus on enhancing the functional components of pears. A Choice Experiment (CE) was conducted with 758 respondents from China, employing mixed Logit and Latent Class (LC) models to ascertain preference heterogeneity. Results indicate a strong consumer preference for pears enriched with vitamin C and fiber through BC, with consumers demonstrating a higher willingness to pay (WTP) for these functional attributes. Additionally, consumers prioritize food safety and environmental friendliness in their food choices, yet show indifference to the use of BC or other production technologies. The observed preference heterogeneity highlights the importance of market segmentation. Based on these insights, the study recommends leveraging labeling and branding strategies to communicate these quality attributes. The research contributes to understanding the evolving consumer demand for functional and environmentally friendly produce, providing valuable guidance for producers to align their offerings with market expectations and adopt biological control methods in a competitive market.
{"title":"Consumer preference for fresh produce: Does the biological control influence their choices?","authors":"Zhenzhen Liu , Xianhui Geng , Zhifeng Gao , Jingqiu Zhang","doi":"10.1016/j.eap.2025.02.040","DOIUrl":"10.1016/j.eap.2025.02.040","url":null,"abstract":"<div><div>This study investigates the impact of Biological Control (BC) methods on Chinese consumer preferences for fresh produce, with a particular focus on enhancing the functional components of pears. A Choice Experiment (CE) was conducted with 758 respondents from China, employing mixed Logit and Latent Class (LC) models to ascertain preference heterogeneity. Results indicate a strong consumer preference for pears enriched with vitamin C and fiber through BC, with consumers demonstrating a higher willingness to pay (WTP) for these functional attributes. Additionally, consumers prioritize food safety and environmental friendliness in their food choices, yet show indifference to the use of BC or other production technologies. The observed preference heterogeneity highlights the importance of market segmentation. Based on these insights, the study recommends leveraging labeling and branding strategies to communicate these quality attributes. The research contributes to understanding the evolving consumer demand for functional and environmentally friendly produce, providing valuable guidance for producers to align their offerings with market expectations and adopt biological control methods in a competitive market.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"85 ","pages":"Pages 2030-2042"},"PeriodicalIF":7.9,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143548265","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01DOI: 10.1016/j.eap.2025.02.032
Wenyin Cheng , Shenglong Liu , Bo Meng , Yuning Gao
The impact of the countercyclical fiscal policy (CFP) on short-term economic recovery has been extensively studied. Yet, little is known about how it affects total factor productivity (TFP), a determinant of long-term growth. Utilizing unique data on government-approved projects in China and a semi-parametric difference-in-differences approach, we observe an l-shaped negative impact of CFP on TFP in state-owned enterprises (SOEs), particularly local ones. The decline in TFP growth was manifested in slower technological progress and increased resource misallocation, especially in dynamic rather than static allocation. The social burdens placed on SOEs, evident in employment missions and high leverage ratios, drive mission-oriented behaviors during the implementation of CFP, resulting in a decline in TFP growth. Additionally, the principal-agent problems within SOEs, reflected by agency costs and exacerbated by institutional challenges like limited fiscal transparency and corruption, further intensify the negative impact. These highlight the importance of strengthening corporate governance of SOEs.
{"title":"Impact of countercyclical fiscal policy on total factor productivity in state-owned enterprises: A corporate governance perspective","authors":"Wenyin Cheng , Shenglong Liu , Bo Meng , Yuning Gao","doi":"10.1016/j.eap.2025.02.032","DOIUrl":"10.1016/j.eap.2025.02.032","url":null,"abstract":"<div><div>The impact of the countercyclical fiscal policy (CFP) on short-term economic recovery has been extensively studied. Yet, little is known about how it affects total factor productivity (TFP), a determinant of long-term growth. Utilizing unique data on government-approved projects in China and a semi-parametric difference-in-differences approach, we observe an <span>l</span>-shaped negative impact of CFP on TFP in state-owned enterprises (SOEs), particularly local ones. The decline in TFP growth was manifested in slower technological progress and increased resource misallocation, especially in dynamic rather than static allocation. The social burdens placed on SOEs, evident in employment missions and high leverage ratios, drive mission-oriented behaviors during the implementation of CFP, resulting in a decline in TFP growth. Additionally, the principal-agent problems within SOEs, reflected by agency costs and exacerbated by institutional challenges like limited fiscal transparency and corruption, further intensify the negative impact. These highlight the importance of strengthening corporate governance of SOEs.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"85 ","pages":"Pages 1916-1930"},"PeriodicalIF":7.9,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143509238","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01DOI: 10.1016/j.eap.2025.02.024
Ran Xiong , Hui Zhang , Chengcheng Zhang
Multinational corporations' divestments are an important but underexplored phenomenon. This paper examines the impact of foreign divestment on the export domestic value-added ratio (DVAR) of Chinese firms. Utilizing data from the Chinese Annual Survey of Industrial Enterprises from 2011 to 2015, we employ a combination of the difference-in-differences method and propensity score matching to investigate the own-plant-effect of divestment on the export DVAR of foreign-invested enterprises (FIEs). Our analysis leads to several conclusions. Firstly, foreign divestment significantly negatively impacts the FIEs' export DVAR. Secondly, non-Hong Kong, Macao, and Taiwan (HMT) foreign firms, eastern region firms, processing trade firms, and labor-intensive firms are particularly vulnerable to the adverse effects of foreign divestment. Thirdly, the decline in FIEs' export DVAR post-divestment as a consequence of reduced cost markups and increased relative prices of intermediate inputs. Furthermore, we extend our analysis to assess the spillover effects of foreign divestment on domestic firms both within and across industries. The results suggest that foreign divestment negatively affect the export DVAR of local counterparts, especially through horizontal and backward linkages. These findings enhance the understanding of the persistence of benefits from foreign direct investment and the economic impacts of foreign divestment on the host country firms.
{"title":"The impact of foreign divestment on Chinese firms' DVAR in exports","authors":"Ran Xiong , Hui Zhang , Chengcheng Zhang","doi":"10.1016/j.eap.2025.02.024","DOIUrl":"10.1016/j.eap.2025.02.024","url":null,"abstract":"<div><div>Multinational corporations' divestments are an important but underexplored phenomenon. This paper examines the impact of foreign divestment on the export domestic value-added ratio (DVAR) of Chinese firms. Utilizing data from the Chinese Annual Survey of Industrial Enterprises from 2011 to 2015, we employ a combination of the difference-in-differences method and propensity score matching to investigate the own-plant-effect of divestment on the export DVAR of foreign-invested enterprises (FIEs). Our analysis leads to several conclusions. Firstly, foreign divestment significantly negatively impacts the FIEs' export DVAR. Secondly, non-Hong Kong, Macao, and Taiwan (HMT) foreign firms, eastern region firms, processing trade firms, and labor-intensive firms are particularly vulnerable to the adverse effects of foreign divestment. Thirdly, the decline in FIEs' export DVAR post-divestment as a consequence of reduced cost markups and increased relative prices of intermediate inputs. Furthermore, we extend our analysis to assess the spillover effects of foreign divestment on domestic firms both within and across industries. The results suggest that foreign divestment negatively affect the export DVAR of local counterparts, especially through horizontal and backward linkages. These findings enhance the understanding of the persistence of benefits from foreign direct investment and the economic impacts of foreign divestment on the host country firms.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"85 ","pages":"Pages 1901-1915"},"PeriodicalIF":7.9,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143509240","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-03-01DOI: 10.1016/j.eap.2025.02.026
Shi Chen
As a new form of economic organisation, the platform economy has had a significant impact on corporate behaviour. This study takes an incomplete contract perspective and examines whether the corporate platform transformation process incentivises tax compliance by constructing indicators for platform transformation. These results indicate that corporate platform transformation significantly promotes tax compliance behaviour. This conclusion holds, even after a series of robustness tests. The aforementioned effects are also constrained by management incentive levels, tax incentives, corporate nature, and the level of platform economy development. Further mechanism tests reveal that platform transformation generates tax compliance effects by addressing the incompleteness of contracts between shareholders and management, as well as between the enterprise and external investors. The regression results of the moderating effect model suggest that media supervision and executive academic backgrounds positively motivate the relationship between corporate platform transformations and tax compliance. This study provides valuable insights and implications for optimising the internal governance structures of platform enterprises, reducing tax losses, improving the tax system, and promoting the healthy development of the platform econcomy.
{"title":"Research on the tax compliance effects of corporate platform transformation","authors":"Shi Chen","doi":"10.1016/j.eap.2025.02.026","DOIUrl":"10.1016/j.eap.2025.02.026","url":null,"abstract":"<div><div>As a new form of economic organisation, the platform economy has had a significant impact on corporate behaviour. This study takes an incomplete contract perspective and examines whether the corporate platform transformation process incentivises tax compliance by constructing indicators for platform transformation. These results indicate that corporate platform transformation significantly promotes tax compliance behaviour. This conclusion holds, even after a series of robustness tests. The aforementioned effects are also constrained by management incentive levels, tax incentives, corporate nature, and the level of platform economy development. Further mechanism tests reveal that platform transformation generates tax compliance effects by addressing the incompleteness of contracts between shareholders and management, as well as between the enterprise and external investors. The regression results of the moderating effect model suggest that media supervision and executive academic backgrounds positively motivate the relationship between corporate platform transformations and tax compliance. This study provides valuable insights and implications for optimising the internal governance structures of platform enterprises, reducing tax losses, improving the tax system, and promoting the healthy development of the platform econcomy.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"85 ","pages":"Pages 1931-1948"},"PeriodicalIF":7.9,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143509882","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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