State banks and economic development in China

Laurenceson, James; Chai, Joseph C.H.

doi:10.1002/jid.727

Cited by 12 publications

(6 citation statements)

References 17 publications

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“…Secondly, this model can be appropriate for the limited data and provide robust results over the other methods (Abbasi & Riaz, 2016; He et al, 2019; Pesaran et al, 2000). Thirdly, ARDL captures a large number of lags than other time series models (Laurenceson & Chai, 2003). Finally, the re-parameterized ARDL-ECM allows for assessing short and long-run impacts of parameters in the study (He et al, 2019).…”

Section: Methodsmentioning

confidence: 99%

Economic Impact of Transport Infrastructure in Ethiopia: The Role of Foreign Direct Investment

Badada

Delina

Sun³

et al. 2023

Sage Open

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This article examines the relevant relationship between transport infrastructure and foreign direct investment (FDI) in explaining economic growth from the road and air transport perspectives in Ethiopia over the period 1981 to 2017. To determine the economic effect of transport infrastructure, first, we assess the co-integration between transport infrastructure and economic growth using the autoregressive distributed lag bound test model. Once co-integration is established, the elasticity of economic growth is estimated using Ordinary Least Square estimation techniques. Second, we perform the hierarchical multiple regression to estimate the mediation impact of FDI in the association between transport infrastructure and economic growth. Initially, we have standardized all variables. Then, we estimate the mediating effect of FDI. To validate the consistency of our method, we check the robustness of our model. The obtained result shows that transport infrastructure has a significant long-term economic effect, and the short-run dynamics show the speed of adjustment is corrected by 81% each year toward the long-run path, and thereby transport infrastructure attracts FDI in Ethiopia. Moreover, FDI plays a significant mediating role, thereby increasing the economic growth performance of the country in Ethiopia. The study extends previous research and increases the validity of the findings by investigating the economic impact of transport infrastructure in the Ethiopian context. Moreover, this study is the first research study that explores the mediating role of FDI in the relationship between transport infrastructure and economic growth in Ethiopia.

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Section: Methodsmentioning

confidence: 99%

Economic Impact of Transport Infrastructure in Ethiopia: The Role of Foreign Direct Investment

Badada

Delina

Sun³

et al. 2023

Sage Open

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“…One of the seminal papers by Narayan (2005) iterated that even if there are some endogenous regressors, the bounds testing approach would still derive unbiased long-run coefficients (with valid t -statistics). Besides, Laurenceson and Chai (2003) reassure that for recording the data generating process in general to specific econometric models, the ARDL model is most suited for incorporating maximum lags. Lastly, according to Pesaran and Shin (1999), a simple linear transformation can be derived from the error correction model (ECM) for the dynamic ARDL model without losing any long-run information; ECM would integrate short-run estimates with the long-run results.…”

Section: Methodsmentioning

confidence: 99%

Disentangling the Nexus Between Exchange Rate Volatility, Exports, and FDI: Empirical Evidence from the Indian Economy

Jamal

Bhat

2022

Global Journal of Emerging Market Economies

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The primary objective of the study was to scrutinize the effect of exchange rate volatility on foreign direct investment (FDI) inflows and Indian exports during the flexible exchange rate period. The bounds testing procedure confirmed the presence of a single (stable) long-run relationship between exports, conditional exchange rate volatility, and unconditional exchange rate volatility. The autoregressive distributed lag model verified that volatility in Indian rupee vis-à-vis USD had a significant (negative) impact on Indian exports and FDI inflows. Besides, trade openness and gross domestic product, in the long run, were positive and significant in explaining the exports and FDI inflows. Based on the empirical results, India should devise suitable macroeconomic policies to reduce exchange rate volatility to make the export-led growth strategy a success. Moreover, emerging and progressive economies like India should strengthen and streamline their domestic foreign exchange markets without compromising the level of trade openness. More precisely, the forward exchange markets’ coverage should be broadened, as they provide protection (hedging) against the exchange rate volatility in the long run.

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“…We categorized state‐owned banks as government shareholding because state‐owned banks have a strong social objective to develop state‐owned enterprises, with profit maximization existing as a subsidiary goal (Laurenceson and Chai, 2001). This development objective is justified by the Commercial Bank Law (CBL), which regulates the business activities of the banks.…”

Section: Refined Ownership Classification Schemementioning

confidence: 99%

“…In addition, the managers of these companies were largely government officials who ran the ministries, and this remained largely unchanged post-restructuring (Dharwadkar et al, 2000). We categorized state-owned banks as government shareholding because state-owned banks have a strong social objective to develop state-owned enterprises, with profit maximization existing as a subsidiary goal (Laurenceson and Chai, 2001). This development objective is justified by the Commercial Bank Law (CBL), which regulates the business activities of the banks.…”

Section: Ownership Identities and N E W Ownership Categoriesmentioning

confidence: 99%

A New Perspective on Ownership Identities in China's Listed Companies

2006

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We introduce a new perspective on the conceptualization and measurement of ownership identities of China's listed companies. Previous work analyzing the strategy and performance implications of the ownership structure in Chinese firms has used the official categorization provided by state bodies in China. In this categorization, state shareholding, legal person shareholding and A‐shares dominate. This official categorization, however, obscures the ultimate identity of a shareholder; this can confound conceptual and empirical work on the strategy and performance implications of ownership identity. We refine the existing classification by recategorizing shareholders into 16 types, which can then be regrouped into relevant categories of shareholders, such as government or private, to enable analysis of ownership identity and ownership concentration issues in China's listed companies. Our new classification can help provide consistency in the burgeoning research on the strategy and performance implications of the concentration and identity aspects of ownership structure in China's listed companies.

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State banks and economic development in China

Cited by 12 publications

References 17 publications

Economic Impact of Transport Infrastructure in Ethiopia: The Role of Foreign Direct Investment

Economic Impact of Transport Infrastructure in Ethiopia: The Role of Foreign Direct Investment

Disentangling the Nexus Between Exchange Rate Volatility, Exports, and FDI: Empirical Evidence from the Indian Economy

A New Perspective on Ownership Identities in China's Listed Companies

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