Abstract
Purpose
This study aims to examine the spatial spillover effect and its mechanism of the impact of China–US relations on Chinese enterprises’ OFDI.
Design/methodology/approach
This study takes the relations between China and the United States (China–US relations), one of the most important great power relations in the 21st century, as the research object, employing a spatial spillover perspective informed by bilateral and multilateral theory, information transfer theory and realism and institutionalism. This study utilizes micro-level data on Chinese firms’ outward foreign direct investment (OFDI) for 2008–2023 to study the spatial spillover effects and mechanism involved in the impact of China–US relations on Chinese firms’ OFDI.
Findings
Results show that China–US relations increase Chinese enterprises’ OFDI in countries other than the US, demonstrating spatial spillovers in the impact of China–US relations on Chinese firms’ OFDI. This spatial spillover effect is characterized by a full cycle, time variation and imbalance. The mechanism analysis shows that this spatial spillover is realized through the neighboring country effects and great power demonstration effects. Heterogeneity analysis shows that firms’ independent research and development (R&D) capabilities, China’s economic power and the cultural distance between China and the host country can buffer the impact of changes in China–US relations on Chinese firms’ OFDI.
Practical implications
This study provides a comprehensive understanding of the role of international relations in influencing OFDI and offers useful insights for developing countries to promote high-level opening-up.
Originality/value
First, this study examines the spatial spillover effects of China–US relations on Chinese firms’ OFDI, expanding the perspective of the impact of diplomatic relations on cross-border economic activities. Second, this study enriches the research on the mechanism by which diplomatic relations affect OFDI by arguing that this spatial spillover is realized through the neighboring country effect and the great power demonstration effect. Third, this study confirms the role of enhancing the competitiveness of multinational corporations (MNCs), upgrading the country’s comprehensive national strength, and promoting cultural exchanges in buffering exogenous shocks of changes in China–US relations.
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Keywords
Yang Yi, Yang Sun, Saimei Yuan, Yiji Zhu, Mengyi Zhang and Wenjun Zhu
The purpose of this paper is to provide a fast and accurate network for spatiotemporal action localization in videos. It detects human actions both in time and space…
Abstract
Purpose
The purpose of this paper is to provide a fast and accurate network for spatiotemporal action localization in videos. It detects human actions both in time and space simultaneously in real-time, which is applicable in real-world scenarios such as safety monitoring and collaborative assembly.
Design/methodology/approach
This paper design an end-to-end deep learning network called collaborator only watch once (COWO). COWO recognizes the ongoing human activities in real-time with enhanced accuracy. COWO inherits from the architecture of you only watch once (YOWO), known to be the best performing network for online action localization to date, but with three major structural modifications: COWO enhances the intraclass compactness and enlarges the interclass separability in the feature level. A new correlation channel fusion and attention mechanism are designed based on the Pearson correlation coefficient. Accordingly, a correction loss function is designed. This function minimizes the same class distance and enhances the intraclass compactness. Use a probabilistic K-means clustering technique for selecting the initial seed points. The idea behind this is that the initial distance between cluster centers should be as considerable as possible. CIOU regression loss function is applied instead of the Smooth L1 loss function to help the model converge stably.
Findings
COWO outperforms the original YOWO with improvements of frame mAP 3% and 2.1% at a speed of 35.12 fps. Compared with the two-stream, T-CNN, C3D, the improvement is about 5% and 14.5% when applied to J-HMDB-21, UCF101-24 and AGOT data sets.
Originality/value
COWO extends more flexibility for assembly scenarios as it perceives spatiotemporal human actions in real-time. It contributes to many real-world scenarios such as safety monitoring and collaborative assembly.
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Keywords
Baowen Sun, Wenjun Jing, Xuankai Zhao and Yi He
This paper aims to clear whether the monopoly structure of the internet industry has produced market power and discussed the welfare change of the internet industry monopoly.
Abstract
Purpose
This paper aims to clear whether the monopoly structure of the internet industry has produced market power and discussed the welfare change of the internet industry monopoly.
Design/methodology/approach
By using new empirical industrial organization methods and taking the e-commerce market as an example, the authors measured market power and economies of scale of the internet platform companies.
Findings
Internet platform enterprises have formed scale economy, but it has not had market power, and the industry still maintains high levels of competition; also, the emergence of large enterprises may increase the welfare of consumers.
Originality/value
The conclusion of this paper clarified actual competition status of internet industry and provided a new foothold for regulation and ideas for the traditional industry to crack the Marshall Conflict.
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Keywords
Wenjun Jing, Xuan Liu, Linlin Wang and Yi He
Aiming at the lack of explanatory power of traditional industrial organization theory in cross-border competition, by introducing the idea of ecological niche, the authors aim to…
Abstract
Purpose
Aiming at the lack of explanatory power of traditional industrial organization theory in cross-border competition, by introducing the idea of ecological niche, the authors aim to explore the competitive situation of platform-based enterprises when they operate in multiple fields.
Design/methodology/approach
With the help of ecological niche theory, construct the niche width and niche overlap index of typical enterprises in the platform economy, and find out the advantages and the intensity of competition through comparative analysis.
Findings
In an environment of cross-border competition, large enterprises have significant competitive advantages, and the fierce competition is concentrated among medium-sized enterprises.
Originality/value
The conclusions of this paper not only provide new insights for explaining the phenomenon of cross-border competition in the platform economy, but also provide theoretical reference for the anti-trust enforcement practice in the platform economy.
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Youwei Yang, Wenjun Long and Calum G. Turvey
This paper investigates Chinese agricultural insurance agents willingness to offer (WTO) livestock insurance based on the variations of eight main attributes of livestock…
Abstract
Purpose
This paper investigates Chinese agricultural insurance agents willingness to offer (WTO) livestock insurance based on the variations of eight main attributes of livestock insurance.
Design/methodology/approach
This study implements discrete choice experiments (DCE) with actual insurance agents who design, sell and operate livestock insurance in China. The choice experiment of this study is based on the D-optimal approach, a six-block design, with 15 cards per block and two choices per card. The sample size was 211. Econometrics results are based on conditional and mixed logit models.
Findings
The authors find that the subsidy effect is enormous; a one level increase of subsidy leads to 3.166 times higher probability to offer. This subsidy effect is important as it confirms the endogenous structure between price and quantity in insurance offering, where subsidy does not only incentivize demand but also the supply. Another main factor of insurance investigated is the impact of different coverage types on agents' WTO. The authors find that agents prefer mortality insurance the most, followed by revenue insurance and profit insurance, while Index-Based Livestock Insurance (IBLI) is the least preferred to offer. Agents' knowledge about these newer types of insurance supports their WTO as well; thus, proper education is necessary to promote the more advanced types of livestock insurance.
Research limitations/implications
A limitation is that in the presence of COVID 19, and administrative issues at the local level, the sample was not randomly drawn. Nonetheless, the authors believe that there is enough diversity across participants, insurers and provinces and have done sufficient robustness checks to support results and conclusions.
Practical implications
This study provides further validation for the DCE research method that could potentially be applied to different analyses: using choice experiments to study insurers and reveal their preferences, through combinations of various levels of core attributes for insurance products. The findings and contribution are critical to the reform and improvement of livestock insurance in China and for insurance markets more broadly. The authors find that insurers do not place equal weights or values on insurance product attributes and do not view types of insurance equally. In other words, while farmers may hold different preferences about the type of insurance they demand, the results suggest that insurers also hold preferences in the type of insurance they sell.
Originality/value
So far as the authors are aware, this is the first DCE designed around the supply of insurance products with the subjects being insurance agents, marketers and executives.
Details
Keywords
Wenjun Wang, Yi Lin and Jubo Zhu
This paper aims to focus on the rise and decline of the Qing dynasty in Chinese history, and tries to explain the evolutionary phenomenon that when a dynasty became strong, it…
Abstract
Purpose
This paper aims to focus on the rise and decline of the Qing dynasty in Chinese history, and tries to explain the evolutionary phenomenon that when a dynasty became strong, it replaced the former established but deteriorating one, and then at the end of its development, it disappeared eventually by using interest models developed herein.
Design/methodology/approach
Systemic interest models are introduced to the study of Chinese history quantitatively. First, by briefly going over the history of Qing, the reasons for its rise and fall are analyzed qualitatively. Second, the concept of interest is generalized under some proper assumptions so that several interest models are established. At the end, intriguing conclusions are drawn by analyzing the numerical solutions of these interest models.
Findings
Comparing this paper's results of numerical solutions with the Qing's history, we can see that the stability of a country was essentially an external appearance of the conflict of interests between the ruling and ruled classes. Usually, the eventual social turbulence happened when the balance of interests deteriorated and was tilted excessively to one social class, and ended when the imbalance reached another state of equilibrium. Moreover, the stability of a country always appeared to be a cycle of “turbulence→peace→turbulence→ċ” which is similar to the evolutionary characteristics of general systems indicated by the systemic yoyo model. Furthermore, the cycle can be found in all the feudal dynasties throughout Chinese history.
Practical implications
The interest models presented in this article can be applied to the study of other social problems, such as corporation governance, the analysis of the national economic relationships, and others.
Originality/value
The concept of interest is generalized in this paper, and the relevant interest models provide good conclusions in our analysis of social and historical phenomena.
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Wenjun Cai, Jianlin Wu and Jibao Gu
Innovation has been identified as a critical element to achieve firms' growth. The purpose of this study is to investigate the impact of chief executive officer (CEO) passion on…
Abstract
Purpose
Innovation has been identified as a critical element to achieve firms' growth. The purpose of this study is to investigate the impact of chief executive officer (CEO) passion on firm innovation, including exploratory and exploitative innovation and examine the moderating roles of market and technological turbulence.
Design/methodology/approach
This study adopts the methodology of survey and uses multisource and time-lagged data of 146 firms in China. Seemingly unrelated regression (SUR) is used to test the hypotheses of this study.
Findings
This study finds that CEO passion promotes exploratory and exploitative innovation. Results also indicate that market turbulence strengthens the effect of CEO passion on exploratory and exploitative innovation, whereas technological turbulence weakens such an effect.
Originality/value
CEO passion is an important, positive affect which inspires CEOs to work for firms, but it has not yet received enough attention in the innovation literature. This study contributes to examining the impact of CEO passion on firm innovation and contributes to the contingency under which CEO passion influences firm innovation. Furthermore, this research finds that the moderating effects of market and technological turbulence are different in the relationship between CEO passion and firm innovation.
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Yi He, Zhanyu Wang, Sha Liu and Xinle Du
As China’s e-commerce and cross-border e-commerce rapidly develop, the cross-border e-commerce supply chain exhibits characteristics of globalized development scale, collaborative…
Abstract
Purpose
As China’s e-commerce and cross-border e-commerce rapidly develop, the cross-border e-commerce supply chain exhibits characteristics of globalized development scale, collaborative multiparty participation, streamlined management processes, digitalized production and trade and flexible strategic choices. It tends toward data-driven intelligence, interoperable information collaboration, personalized order responses, sustainable supply chain management and secure blockchain technology. These characteristics and trends provide critical references for businesses, governments and investors.
Design/methodology/approach
In response to issues such as inconsistent legal regulations, imbalanced logistics and transportation, imperfect payment settlements and opaque supply chains.
Findings
It is recommended to take measures to strengthen cooperation and communication, optimize logistics, reduce customs clearance difficulties, reinforce safeguard measures and promote sustainable development, collectively fostering the healthy growth of cross-border e-commerce.
Originality/value
With the rapid development of cross-border e-commerce, green and low-carbon initiatives have become a significant trend in this sector. The cross-border e-commerce supply chain refers to the mechanism that reduces environmental impacts and enhances resource efficiency from manufacturers to consumers. It primarily involves manufacturers, e-commerce platforms, logistics companies and payment and settlement processes. The cross-border e-commerce supply chain is gradually becoming a highlight in China’s foreign trade, supporting the concept of “buying globally and selling globally” and connecting the “world’s factory” with the “world’s market.”
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Rihui Ouyang, Wenjun Jing, Zhongyuan Liu and Aidi Tang
China has fully capitalized on the opportunities presented by the latest wave of technological revolution and industrial transformation, paving the way for a path with Chinese…
Abstract
Purpose
China has fully capitalized on the opportunities presented by the latest wave of technological revolution and industrial transformation, paving the way for a path with Chinese characteristics in the development of the digital economy. This paper analyzes the development of China’s digital economy, outlining its path, advantages and challenges. It aims to provide insights into how China capitalized on technological and industrial transformation to foster a digital economy with distinct Chinese characteristics.
Design/methodology/approach
This paper adopts a descriptive analytical approach to outline the evolution of China’s digital economy through various stages of development. It highlights the pivotal role of market demand, the intricate government-market relations and technological advancements in shaping this evolution. The approach also identifies key factors that have contributed significantly to China’s success in digital economy development.
Findings
The key findings reveal that China’s digital economy has grown rapidly, driven by market demand, technological innovation and government support. The “Chinese path” prioritizes consumer internet, leverages scale advantages and emphasizes data-driven development. However, challenges exist in balancing governance systems, endogenous growth and external environments.
Originality/value
This paper offers original insights into the unique development path of China’s digital economy, highlighting its advantages and challenges. It provides valuable insights for other countries seeking to foster their own digital economies, especially in managing government-market relations and leveraging domestic market demand.
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Yu Hu, Xiaoquan Jiang and Wenjun Xue
This paper investigates the relationship between institutional ownership and idiosyncratic volatility in Chinese and the USA stock markets and explores the potential explanations.
Abstract
Purpose
This paper investigates the relationship between institutional ownership and idiosyncratic volatility in Chinese and the USA stock markets and explores the potential explanations.
Design/methodology/approach
In this paper, the authors use the panel data regressions and the dynamic tests of two-way Granger causality in the panel VAR model to examine the relationship between institutional ownership and idiosyncratic volatility in Chinese and the USA stock markets.
Findings
The authors find that the institutional ownership in the Chinese (the USA) stock market is significantly and positively (negatively) related to idiosyncratic volatility through various tests. This paper indicates that institutional investors in the USA are more prudent and risk-averse, while the Chinese institutional investors are not because of high risk-bearing capacity.
Originality/value
This paper deepens the authors’ understanding on the relationship between institutional ownership and idiosyncratic volatility and in the USA and the Chinese stock markets. This paper explains the opposite relationships between institutional ownership and idiosyncratic volatility in the stock markets in China and USA.