Win-win? Assessing the global impact of the Chinese economy

Herrala, Risto; Orlandi, Fabrice

doi:10.1016/j.aglobe.2021.100006

Cited by 2 publications

(2 citation statements)

References 15 publications

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“…Without analyzing the spillover effects on the real economy and financial sectors, we cannot evaluate the implications of spillover effects on commodity prices. For example, Herrala and Orlandi (2021) use a forecast error model and find that an increase in economic growth in China had a negative impact on most other economies 1 to 2 years ahead, mainly through its accelerating effect on global commodity prices. However, the story is different for commodity exporters, particularly emerging economies, that rely on commodity exports to China as an engine of growth.…”

Section: Introductionmentioning

confidence: 99%

Impact of China on commodity exporters

Chatterjee,

Saraf

2024

Rev International Economics

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We compare the effect of a domestic shock in China and the US on the real economy and financial markets of various commodity‐exporting countries. To obtain a reliable indicator for China's macroeconomic conditions, we estimate a Bayesian dynamic factor model using block‐exclusion restrictions to identify a China factor and a US factor from monthly macroeconomic data for China and the US. We, then, assess the implications of a negative shock to both factors on the macroeconomy of a commodity‐exporting nation using Bayesian FAVARs based on recursive identification. A negative China shock leads to output loss and a fall in stock prices in these countries. China shock affects the output of only a subset of countries in our sample compared to the US shock, which affects all countries. China shock has a larger, quicker and more persistent impact on the stock markets of commodity‐exporting countries compared to the US shock. Countries with weaker institutional or business environments experience a larger negative real effect of the China shock, whereas countries with less stable financial systems demonstrate stronger financial effects. Using historical decomposition, we establish a growing role of the China factor over time, in particular for large emerging economies such as Brazil and Russia.

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Section: Introductionmentioning

confidence: 99%

Impact of China on commodity exporters

Chatterjee,

Saraf

2024

Rev International Economics

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“…Given that China has played an important role in global economy [37,38], the impact of new changes in China's corporate governance on innovation has attracted scholars' attention [39,40]. In September 2000, the Organization Department of the Central Committee of the CPC proposed a document titled "Views on reinforcing the Party Construction in Non-Public Enterprises including Individual and Private Enterprises (Trial Version)" that non-public enterprises should establish grassroots-party organizations.…”

Section: Introductionmentioning

confidence: 99%

The Influence of Party Organization Involvements in Corporate Governance on Innovation: Evidence from China’s Private-Owned Enterprises

Liu

Zhou

et al. 2022

Sustainability

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As the grassroots-party organizations of the Communist Party of China (CPC) are increasingly involved in the governance of private-owned enterprises (POEs), whether this new pattern promotes corporate innovation is still a research gap. Therefore, based on the data of 1357 POEs’ party-organization involvements and their patent applications from 2003 to 2017, this paper analyzes the impact of the party-organization involvements on corporate innovation by using the multiple regression model. The results include: (1) party-organization involvements including party organization activities and senior executives’ participation can significantly promote innovation, especially after 2012; (2) party-organization activities improve innovation by increasing research and development (R&D) investment and reducing operating risk, while the senior executives’ participation only influences on R&D investment; (3) the party-organization involvements have a stronger promotion on non-invention patent applications, especially for the utility-model-patent applications, than invention-patent applications; (4) the promotion is more pronounced for family businesses, technology-intensive and capital-intensive enterprises, as well as those located in the northern, Beijing-Tianjin-Hebei region and Yangtze River delta. After applying PSM sampling and difference-in-differences (DID) analyses, and substituting the dependent variables, the results remain robust. This paper provides Chinese evidence for party construction and corporate innovation, and also provides references about political connection and corporate innovation for other countries to some extent.

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Win-win? Assessing the global impact of the Chinese economy

Cited by 2 publications

References 15 publications

Impact of China on commodity exporters

Impact of China on commodity exporters

The Influence of Party Organization Involvements in Corporate Governance on Innovation: Evidence from China’s Private-Owned Enterprises

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