Chi Wei Su, Xian-Li Meng, Ran Tao and Muhammad Umar
This research examines the dynamic interrelationship between economic policy uncertainty (EPU) and the inflows of foreign direct investment (IFDI) in China.
Abstract
Purpose
This research examines the dynamic interrelationship between economic policy uncertainty (EPU) and the inflows of foreign direct investment (IFDI) in China.
Design/methodology/approach
This research used the Granger causality and sub-sample time-varying rolling window causality method.
Findings
The empirical results reveal that EPU tends to have a negative impact on the IFDI in most periods that have been taken into consideration. However, there has been a positive relationship observed between the periods of the US subprime crisis. That is to say that the uncertainty of the Chinese economic policy does not always impede the IFDI. These results are supported by the general equilibrium model, which states that there are certain influences that come into play when moving from EPU to IFDI. On the other hand, the IFDI exert a positive influence on EPU during times of economic crisis and trade war, which indicates that the uncertainty in the economy may increase due to the sudden soar of foreign investment.
Originality/value
During tense global trade situations and complicated economic scenarios, the results suggest the Chinese government should dedicate itself to expanding its initiatives to open up and improve the domestic business environment in order to increase the foreign investors' confidence and prevent the decline in the IFDI. In addition to this, it also suggests that multinational companies pay attention to the policy environment of the host country, especially when they decide to invest there.
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Zheng-Zheng Li, Chi Wei Su and Ran Tao
This study aims to examine the unemployment hysteresis effects from the perspective of the heterogeneity of genders within Asian countries.
Abstract
Purpose
This study aims to examine the unemployment hysteresis effects from the perspective of the heterogeneity of genders within Asian countries.
Design/methodology/approach
The authors use the annual unemployment rate dataset of 12 Asian countries ranging from 1991–2020. Traditional unit root tests are initially employed to investigate the unemployment hysteresis effect. Considering the structural break and cross-section dependence problems, the sequential panel selection method (SPSM) and the Kapetanios–Snell–Shin (KSS) panel unit root test with Fourier functions have proven to be more applicable.
Findings
The empirical results indicate that the unemployment rate is stationary in most Asian regions for both females and males, which confirms the mean reversion process of the natural unemployment hypothesis. This suggests that these countries' unemployment rates are flexible to quickly revert to its long-run equilibrium determined by the labor markets. However, only the female unemployment rate in Pakistan and Nepal and adult female unemployment rates in these two economies present non-stationary series. In line with the unemployment hysteresis effect, it means shocks will leave a permanent impact on their labor market.
Practical implications
On the one hand, in most of the Asian countries, it can be inferred that the trade-off between inflation and unemployment is temporary because the natural unemployment hypothesis holds. Therefore, policymakers may consider using monetary policy as a tool to control inflation and stimulate growth during a recession. Such policy measures should not have a long-run impact on unemployment or cause a permanent shift in the natural unemployment rate. On the other hand, the government should implement active labor protective programs such as education or training schemes, job search assistance programs and maternity protection, especially for female adults, to reduce the negative shocks in the economic downturn, which is beneficial for them away from being long-term unemployed. It is also necessary to improve the labor unions to reduce the discrimination between female and male labors.
Originality/value
This paper innovatively concentrates on the heterogeneity performances between genders about the unemployment hysteresis effect within Asian countries. Furthermore, taking into account the age-specific characteristics, the youth and adult unemployment rates have been investigated. Additionally, the approximation of bootstrap distribution and the advanced panel KSS unit root test with a Fourier function are employed. Thereby, targeted policies for the government can be applied to reduce the discrimination and negative shocks on female adults in the labor market.
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Wu He, Weidong Zhang, Xin Tian, Ran Tao and Vasudeva Akula
Customer knowledge from social media can become an important organizational asset. The purpose of this paper is to identify useful customer knowledge including knowledge for…
Abstract
Purpose
Customer knowledge from social media can become an important organizational asset. The purpose of this paper is to identify useful customer knowledge including knowledge for customer, knowledge about customers and knowledge from customers from social media data and facilitate social media-based customer knowledge management.
Design/methodology/approach
The authors conducted a case study to analyze people’s online discussion on Twitter regarding laptop brands and manufacturers. After collecting relevant tweets using Twitter search APIs, the authors applied statistical analysis, text mining and sentiment analysis techniques to analyze the social media data set and visualize relevant insights and patterns in order to identify customer knowledge.
Findings
The paper identifies useful insights and knowledge from customers and knowledge about customers from social media data. Furthermore, the paper shows how the authors can use knowledge from customers and knowledge about customers to help companies develop knowledge for customers.
Originality/value
This is an original social media analytics study that discusses how to transform large-scale social media data into useful customer knowledge including knowledge for customer, knowledge about customers and knowledge from customers.
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Youyang Ren, Yuhong Wang, Lin Xia, Wei Liu and Ran Tao
Forecasting outpatient volume during a significant security crisis can provide reasonable decision-making references for hospital managers to prevent sudden outbreaks and dispatch…
Abstract
Purpose
Forecasting outpatient volume during a significant security crisis can provide reasonable decision-making references for hospital managers to prevent sudden outbreaks and dispatch medical resources on time. Based on the background of standard hospital operation and Coronavirus disease (COVID-19) periods, this paper constructs a hybrid grey model to forecast the outpatient volume to provide foresight decision support for hospital decision-makers.
Design/methodology/approach
This paper proposes an improved hybrid grey model for two stages. In the non-COVID-19 stage, the Aquila Optimizer (AO) is selected to optimize the modeling parameters. Fourier correction is applied to revise the stochastic disturbance. In the COVID-19 stage, this model adds the COVID-19 impact factor to improve the grey model forecasting results based on the dummy variables. The cycle of the dummy variables modifies the COVID-19 factor.
Findings
This paper tests the hybrid grey model on a large Chinese hospital in Jiangsu. The fitting MAPE is 2.48%, and the RMSE is 16463.69 in the training group. The test MAPE is 1.91%, and the RMSE is 9354.93 in the test group. The results of both groups are better than those of the comparative models.
Originality/value
The two-stage hybrid grey model can solve traditional hospitals' seasonal outpatient volume forecasting and provide future policy formulation references for sudden large-scale epidemics.
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Wu He, Xin Tian, Ran Tao, Weidong Zhang, Gongjun Yan and Vasudeva Akula
Online customer reviews could shed light into their experience, opinions, feelings, and concerns. To gain valuable knowledge about customers, it becomes increasingly important for…
Abstract
Purpose
Online customer reviews could shed light into their experience, opinions, feelings, and concerns. To gain valuable knowledge about customers, it becomes increasingly important for businesses to collect, monitor, analyze, summarize, and visualize online customer reviews posted on social media platforms such as online forums. However, analyzing social media data is challenging due to the vast increase of social media data. The purpose of this paper is to present an approach of using natural language preprocessing, text mining and sentiment analysis techniques to analyze online customer reviews related to various hotels through a case study.
Design/methodology/approach
This paper presents a tested approach of using natural language preprocessing, text mining, and sentiment analysis techniques to analyze online textual content. The value of the proposed approach was demonstrated through a case study using online hotel reviews.
Findings
The study found that the overall review star rating correlates pretty well with the sentiment scores for both the title and the full content of the online customer review. The case study also revealed that both extremely satisfied and extremely dissatisfied hotel customers share a common interest in the five categories: food, location, rooms, service, and staff.
Originality/value
This study analyzed the online reviews from English-speaking hotel customers in China to understand their preferred hotel attributes, main concerns or demands. This study also provides a feasible approach and a case study as an example to help enterprises more effectively apply social media analytics in practice.
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Jiahao Lu, Ran Tao, Di Zhu and Ruofu Xiao
This study focuses on the CFD numerical simulation and analysis of the vortex stacking problem at the top of the impeller of a high-speed fuel pump, mainly using LCS and entropy…
Abstract
Purpose
This study focuses on the CFD numerical simulation and analysis of the vortex stacking problem at the top of the impeller of a high-speed fuel pump, mainly using LCS and entropy production theory to visualize the vortex at the top of the impeller as well as quantitatively analyzing the energy loss caused by the vortex at the top of the impeller. By combining the two methods, the two are well verified with each other that the stacking problem of the vortex at the top of the impeller and the location of the energy loss caused by the vortex are consistent with the vortex location. Such a method can reveal the problem of vortex buildup at the top of the lobe well, and provide a novel guidance idea for improving the performance of high-speed fuel pumps.
Design/methodology/approach
Based on CFD numerical simulation and analysis, this study mainly uses LCS and entropy production theory to visualize the top vortex of the impeller. Through the combination of the two methods, the accumulation problem of the top vortex of the impeller and the location of the energy loss caused by the vortex can be well revealed.
Findings
(1) The CFD numerical simulation analysis of the high-speed fuel pump is carried out, and the test is conducted to verify the numerical simulation results. The inlet and outlet pressure difference? P is used as the validation index, and the error analysis shows that the error between numerical simulation and test results is within 10%, which meets our requirements. Therefore, we carry out the next analysis with the help of CFD numerical simulation. By analyzing the full working condition simulation, its inlet and outlet differential pressure? P and efficiency? Are evaluated. It is found that its differential pressure decreases with the flow rate and its efficiency reaches its maximum at Qv = 9.87 L/s with a maximum efficiency of 78.32%. (2) We used the LCS in the analysis of vortices at the top of the impeller blades of a high-speed fuel pump. One of the metrics used to describe the LCS in fluid dynamics is the FTLE. The high FTLE region represents the region with the highest and fastest particle trajectory stretching velocity in the fluid flow. We performed a cross-sectional analysis of the FTLE field on the different height surfaces of the impeller on 25% Plane, 50% Plane, and 75% Plane, respectively. And a quarter turn of the rotor rotation was analyzed as a cycle divided into 8 moments. It is found that on 25% Plane, the vortex at the top of the lobe is not obvious, but there are high FTLE values on the shroud surface. On 50% Plane, the lobe top vortex is relatively obvious and the number of vortices is three. The vortex pattern remains stable with the rotating motion of the rotor. At 75% Plane, the lobe top vortex is more visible and its number of vortices increases to about 5 and the vortex morphology is relatively stable. The FTLE ridges visualize the vortex profile. This is a good guide for fluid dynamics analysis. (3) At the same time, we use the entropy production theory to quantitatively analyze the energy loss, and define the entropy production rate Ep. Through the entropy production analysis of the impeller shroud surface and the suction surface of the pressure surface of the blades at eight moments, we find that the areas of high energy loss are mainly concentrated in the leading and trailing edges of the blades as well as in the shroud surface close to the leading edge of the blades, and the value of the entropy production rate is up to 106 W/m3/K. The areas of high energy loss in the leading edge of the blades as well as the trailing edge show a curved arc, and the energy loss is decreasing as it moves away from the shroud surface and closer to the hub surface. The high energy loss areas at the leading and trailing edges of the blades are curved, and the energy loss decreases as they move away from the shroud surface and closer to the hub surface. The energy loss at the pressure surface of the blade is relatively small, about 5 × 105 W/m3/K, which is mainly concentrated near the leading edge of the blade near the shroud surface and the trailing edge of the blade near the hub surface. Such energy loss corresponds to the vortex LCS at the top of the impeller, and the two mirror each other.
Originality/value
This study focuses on the CFD numerical simulation and analysis of the vortex stacking problem at the top of the impeller of a high-speed fuel pump, mainly using LCS and entropy production theory to visualize the vortex at the top of the impeller as well as quantitatively analyzing the energy loss caused by the vortex at the top of the impeller. By combining the two methods, the two are well verified with each other that the stacking problem of the vortex at the top of the impeller and the location of the energy loss caused by the vortex are consistent with the vortex location. Such a method can reveal the problem of vortex buildup at the top of the lobe well, and provide a novel guidance idea for improving the performance of high-speed fuel pumps.
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This research analyzes borrowers' credit utilization through prepayment behavior in peer-to-peer (P2P) lending. The authors investigate factors influencing the decision to prepay…
Abstract
Purpose
This research analyzes borrowers' credit utilization through prepayment behavior in peer-to-peer (P2P) lending. The authors investigate factors influencing the decision to prepay and assess the role of P2P lending as an alternative source of consumer credits.
Design/methodology/approach
The authors use individual loan-level data from the LendingClub, one of the largest P2P platforms in the USA. The authors use a Logit model and a sample selection model estimated by the two-stage Heckman method. The empirical analysis considers borrower-specific and loan-specific characteristics as well as macroeconomic factors.
Findings
The authors present a number of significant findings that can enhance understanding consumers' financing decisions. The authors offer evidence that borrowers are able to take advantage of cheaper loans offered by P2P lending to better manage credit card balance and consolidate debt. The authors find that borrowers tend to prepay P2P loans quickly when the aggregate cost of borrowing is low, suggesting that P2P lending offers an efficient alternative to obtain credit. This is particularly true for creditworthy borrowers that are able to take advantage of competing sources of finance. The authors' results provide evidence that P2P lending can improve consumers' optimal credit utilization.
Originality/value
P2P lending has grown exponentially and has become a significant credit supplier to consumers and small businesses. While the existing literature mostly focuses on default risks, prepayment has received much less attention. This research fills in the gap and investigates borrowers' prepayment behavior in P2P loans and the role of P2P lending as an alternative source of consumer credits.
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Jing-Ping Li, Zheng-Zheng Li, Ran Tao and Chi Wei Su
The purpose of this paper is to investigate the non-linear threshold effects between trade openness and female labours to participate in the labour markets.
Abstract
Purpose
The purpose of this paper is to investigate the non-linear threshold effects between trade openness and female labours to participate in the labour markets.
Design/methodology/approach
The authors consider data for nine Asian countries from 1990 to 2016 period and perform the panel threshold regression method.
Findings
Empirical results indicate that the threshold value is occurred. With the increase of trade openess, the female labour force participation rate shows a trend of rising first and then declining. Furthermore, exports also have an asymmetric threshold effect on female labour force participation, which is partly in accordance with the discrimination model (Becker, 1957). On the other hand, imports dependency will hinder female labour force participation regardless of a threshold effect. The authors obtain similar results when the authors consider the female employment rate as substitution.
Practical implications
Specifically, increased trade openness may contribute positively or negatively towards overall female labour force participation rate (FLFPR), attributed to the relative importance of these opposing effects. Thus, when the cost reduction effect, resulting from intensified competitive pressure and comparative advantages would enhance the participation rate, the technology channel operates in the opposite direction. Therefore, from the perspective of female employment, trade openness is not the more the better.
Originality/value
This study innovatively discusses the non-linear correlation between trade openness and FLFPR and distinguishes the different contributions from exports and imports. The advanced threshold regression model assumes the existence of threshold value from trade to female employment. Thereby, targeted policies for the government should be applied to promote active female in the labour market.
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Maria Belen Cuadros Carrion, Zofia Joanna Czarnik, Robert J. Lemke and Ran Tao
The study aims to determine whether P2P lending serves as a complement or substitute to traditional bank lending, particularly in the context of decreasing bank branch…
Abstract
Purpose
The study aims to determine whether P2P lending serves as a complement or substitute to traditional bank lending, particularly in the context of decreasing bank branch availability. This research investigates how local banking competition, and demographic factors influence P2P loan activity. We aim to provide insight into the potential of P2P lending to enhance access to credit and present new evidence through 2023.
Design/methodology/approach
We utilize a unique, comprehensive dataset that integrates data from the Census, financial institutions, and peer-to-peer (P2P) loans issued by Prosper, the first marketplace lending platform in the USA. This dataset covers over 5,000 US cities from 2018 to 2023. AI (ChatGPT) is employed to help merge approximately 166,000 P2P loans per year with the other datasets. Our analysis considers local banking market access and competition, demographics and P2P loan usage. We apply panel fixed-effect models to control for both city-specific and year-specific effects.
Findings
We find that access to financial institutions is positively related to P2P borrowing, with more Prosper loans issued in competitive banking markets and areas with a greater presence of small banks. P2P lending complements traditional bank lending, but it does not significantly benefit the lowest-income households or areas with high unemployment rates. P2P activity increases with income up to a median threshold of $75,000 and is not significantly affected by cities’ racial, educational and age compositions or population sizes. These findings suggest maintaining a competitive banking market that includes both traditional and P2P lending to promote broader credit access.
Originality/value
This research offers original insights by analyzing the interplay between traditional banking and peer-to-peer (P2P) lending. Prior research in this area is limited. Furthermore, we provide new evidence on the dynamics of this relationship through 2023. Utilizing a comprehensive dataset from Prosper, financial institutions and the Census, this study uniquely explores how local banking competition and demographic factors influence P2P loan activity. The study contributes to existing literature by highlighting that P2P lending complements, rather than substitutes for, traditional banking. Our findings underscore the importance of maintaining a competitive banking market that includes both traditional and Fintech lenders to enhance credit access.
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Russell D. Kashian, Ran Tao and Robert Drago
The purpose of this paper is to identify bank deserts in the USA in 2009 and 2015, separately for inner city, suburban, and rural areas. It also identifies correlations between…
Abstract
Purpose
The purpose of this paper is to identify bank deserts in the USA in 2009 and 2015, separately for inner city, suburban, and rural areas. It also identifies correlations between bank deserts, population characteristics, market competition, and payday lending restrictions, both cross-sectionally and over time.
Design/methodology/approach
FDIC data on bank office locations are used to identify bank deserts, defined as the 5 percent of census tracts with the greatest distance from the centroid to the nearest office. Those data are matched to both American Community Survey data to identify population characteristics, to a list of states with payday lending prohibitions, and to levels of market competition. An alternative measure of bank deserts corrects for population density. Geography is analyzed, mean characteristics compared, and random effects regressions capture static and dynamic correlates.
Findings
Population density explains approximately half of bank distance variance. Bank deserts appear more often in southern and western states, and expanded significantly in inner cities while contracting in rural areas. Regression results suggest that African Americans were overall and increasingly likely to live in bank deserts and Native Americans were overall more likely to live in rural bank deserts. Rural poverty is linked to bank deserts, and the effects of competition are complex.
Practical implications
The space for policy intervention exists in African American inner cities and Native American rural communities.
Originality/value
The relative measure of bank deserts is novel, as are dynamic estimates and random effects analysis of correlates.