This study investigates the impact of Chinese senior leaders’ diplomatic visits on outward and inward foreign direct investment (OFDI and IFDI, respectively). Additionally, it…
Abstract
Purpose
This study investigates the impact of Chinese senior leaders’ diplomatic visits on outward and inward foreign direct investment (OFDI and IFDI, respectively). Additionally, it aims to discern the differential impacts of diplomatic visits on FDI across different Chinese administrations.
Design/methodology/approach
We utilize data about the diplomatic visits of Chinese senior leaders to 146 host countries. The dataset was divided into two leadership eras: the tenure of President Hu Jintao and Prime Minister Wen Jiabao from 2003 to 2012 and the period from 2013 to 2021 under President Xi Jinping and Prime Minister Li Keqiang. We employ generalized least squares, lagged effect, and two-stage least squares methods to estimate the econometric model. This analytical framework assesses the influence of high-level diplomatic visits on FDI flows, addressing potential time-serial and endogeneity concerns.
Findings
The findings reveal that senior leaders’ diplomatic visits significantly boost Chinese OFDI. The effect on IFDI in China is not statistically significant. The administrations of Hu and Xi played positive roles in promoting OFDI. However, only Hu’s administration showed a statistically significant positive relationship with IFDI. The result suggests a potential increase in IFDI between China and host countries within two to three years following diplomatic visits.
Originality/value
This study contributes to the understanding of how Chinese senior leaders’ diplomatic activities affect foreign direct investment. It provides a deeper understanding of Chinese senior leaders’ diplomatic efforts to compensate for investment across two administration periods. It offers insights into the potential influence of diplomatic efforts on FDI, enriching the understanding of diplomacy’s role in international business contexts.
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This study aims to assess the enduring lack of citizenship for rural migrants coming to cities to work, and the extent to which there has been any progress in altering their…
Abstract
Purpose
This study aims to assess the enduring lack of citizenship for rural migrants coming to cities to work, and the extent to which there has been any progress in altering their status in past decades.
Design/methodology/approach
This study uses a narrative approach, relying on documentary sources. It takes a chronological approach in evaluating signs of progress but mainly tells a story of long-term continuity in the treatment of outsiders – even though they are from their own country – by urban officials and citizens.
Findings
The main finding is that the management of rural migrants in China’s cities has not fundamentally improved in the 40-plus years since they were released from the communes and permitted to come to cities to work. This is despite various pronouncements of change, most of which mattered little, if at all, in the implementation.
Originality/value
This study applies the concept of “citizenship” to what has been done and, mostly not done, for migrants over the past decades.
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Raghuvir Kelkar and Kaliappa Kalirajan
Most economic growth is concentrated in the eastern and coastal provinces of China, while the western and central provinces have not yet experienced the expected economic growth…
Abstract
Purpose
Most economic growth is concentrated in the eastern and coastal provinces of China, while the western and central provinces have not yet experienced the expected economic growth. This study aims to address the following crucial research questions: Do the central and western provinces achieved potential efficiency in economic growth? Have China’s provinces used their resources effectively in implementing economic growth strategies?
Design/methodology/approach
The research design concerns the use of a panel dataset on province-specific economic growth in China over the years to 2000–2020. The methodology used was a stochastic frontier gross domestic product (GDP) model with time-varying technical efficiency over time. The approach uses the existing literature to identify the important variables influencing economic growth at the provincial level to model the stochastic frontier GDP model for empirical analysis.
Findings
This study concludes that the central provinces show the highest rate of efficiency in economic growth, though not 100%, followed by the Eastern and Western provinces. By increasing and improving skilled education institutes and intensifying supply chain opportunities through foreign direct investment (FDI), the central provinces achieving 100% growth efficiency may not be ruled out.
Research limitations/implications
The modes of economic governance and policies to improve GDP growth have been rapidly changing from increasing incentives to improving competition. Thus, more unique avenues and expansion of the horizon for impending research on provincial, national and international macroeconomics would emerge that would make current methodologies of the growth analysis outdated.
Practical implications
The empirical analysis highlights the importance of improving skilled education institutes and intensifying supply chain opportunities through FDI for achieving sustained economic growth.
Social implications
The empirical analysis facilitates finding ways to reduce income inequality across provinces in China.
Originality/value
To the authors' knowledge empirical analysis examining the Chinese province-specific economic growth efficiency explicitly has not been carried out using the recent Chinese panel dataset.