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1 |
ID:
108532
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Publication |
2011.
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Summary/Abstract |
It is widely known that China's influence on Southeast Asia has been growing
rapidly since the Asian financial crisis of 1997. However, determining the true
dimensions of China's influence in this region is still controversial. It seems quite
conspicuous that the growing economic relations between China and the region
give China more bargaining power, due to the expanding role of the bilateral trade
and China's foreign aid in promoting the regional economic growth. However,
this does not give us a clear picture of how China has been able to exercise its
influence on the behavior of the states in the region for its own interests. Therefore,
this paper tries to assess China's influence on Southeast Asia by analyzing the
specific case of Taiwan. Recently, China's rising influence has significantly
affected Southeast Asia's relations with Taiwan. Southeast Asian states are paying
more attention to the cross-Strait relations when considering attempting to improve
relations with Taiwan. This research defines "influence" as the capability of state
A to affect the behavior of state B, either directly or indirectly, to comply with state
A's policy interests. If the diplomatic behavior of state B changes accordingly
due to the action, then it can be said that state A has illustrated its influence over
state B. By studying the Taiwan issue, this paper reveals that China has been
quite successful in exercising its influence on Southeast Asian states to comply
with China's policy toward Taiwan.
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2 |
ID:
180120
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Summary/Abstract |
What are the effects of power grid infrastructure investment on the regional economy, and what explains these effects? This paper uses the restricted profit model and a seemingly unrelated regression (SUR) to estimate the short-term and long-term effects of power grid infrastructure on regional economic growth in 30 provinces in China from 1998 to 2017. Our results show that (1) power grid infrastructure investment has a significant positive effect on regional economic growth; (2) the associated long-term impact on the economy is greater than the short-term impact; (3) regions with high energy demands and good industry fundation benefit more from power grid infrastructure in the long term; (4) the output elasticity of power-importing and balancing regions maintained an upward trend after an electricity shortage problem had been solved, while the elasticity in power-exporting regions was positive but steadily decreased because of the resource curse effect. This paper suggests that in the current stage, the power grid infrastructure is a good policy tool to drive regional economies. However, there are differences in investment priorities among different regions.
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3 |
ID:
161890
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Summary/Abstract |
Intangible capital is treated as an important determinant of economic growth in the age of knowledge economy. It has however attracted less attention in China largely due to measurement impediment. This study aims to measure intangible investment and examine its contribution to regional economic growth in China. The results show that both the coastal and interior regions in China enjoyed high growth in intangible investment during 2003–2014, especially after the year 2008. Moreover, it is found that regional disparity in intangible capital is widening and that this trend is mainly driven by the enlarging gap in investment in computer software and architecture designs. In addition, it is observed that economic competency capital is neglected in both regions, implying generally poor enterprise management in China. When intangible capital is considered, growth accounting exercises show higher labor productivity growth together with a larger effect of capital deepening in both regions. Coastal regions tend to benefit more from intangible capital due to the advancement of computerization. If the contribution of computer software in the interior region was as large as that in the coast region, labor productivity growth of the interior would be 0.5 percentage points higher than its current level. Finally, the estimates of the contribution of total factor productivity to economic growth would be biased if intangible capital is not considered.
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4 |
ID:
148693
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Summary/Abstract |
Using data for the period 2000–2011, we construct province-level real effective exchange rate (REER) indices for China and test the effect of REER depreciation on regional economic growth in a generalized method of moments regression framework. Our results show that REER depreciation, in general, promotes regional economic growth, through increasing net exports and lowering FDI costs. After dividing the full sample into coastal and inland subsamples, we find that REER depreciation influences economic growth in inland areas but not in coastal areas. This is due to the fact that the inland areas have more surplus labor or other resources to expand their production capacity when REER depreciation leads to increased world demand. Furthermore, compared to inland areas, processing-and-assembly trade comprises a larger share of trade in the coastal areas, where traders import more raw materials and intermediate goods to process and assemble goods. When the exchange rate depreciates, the costs of imported materials and immediate goods increase. In this case, the benefits from REER depreciation in coastal areas are offset to some extent and are thus lower than in inland areas.
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5 |
ID:
116520
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Publication |
2012.
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Summary/Abstract |
This paper investigates the spatial structure of the provincial economic growth and the spatial spillover in China from 1998 to 2008. First, we apply Moran's index to detect the positive spatial autocorrelations across the provinces of China. Second, we build a new economic geography model and the role of market potential in promoting regional income growth is highlighted. Third, two measures of market potential are constructed and a spatial error model is adopted to obtain the estimations, considering spatial autocorrelation. Controlling for major inputs, such as labor, capital, and human capital, the market potential continues to promote substantial regional growth. On average, an increase of 10 percentage points in the market potential increases the regional GDP per capita growth by 3-5 percentage points.
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6 |
ID:
126392
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