China’s exchange rate system remains a public concern. This paper aims to investigate the effects of the appreciation of the US dollar (or depreciation of Chinese Yuan) under…
Abstract
Purpose
China’s exchange rate system remains a public concern. This paper aims to investigate the effects of the appreciation of the US dollar (or depreciation of Chinese Yuan) under China’s “managed floating exchange rate system” on the US bilateral trade deficit with China, the US exports to China and the US imports from China.
Design/methodology/approach
The author uses quarterly data from 2005Q3 to 2017Q3 and applies autoregressive distributed lags model to carry out the empirical analysis.
Findings
The results suggest that both the US and Chinese income are important determinants of the US bilateral trade deficit with China, the US exports to China and the US imports from China. Further, the appreciation of the US dollar with respect to Chinese currency may discourage the US exports to China, but will not considerably promote the US imports from China in the long run. Finally, the appreciation of the US dollar does not contribute significantly to the US trade deficit with China in the long run.
Originality/value
Policymakers may want to pay attention to the results of currency depreciation on bilateral trade flows and trade balance in both the short and the long run. The results are different. Policymakers may also want to keep the following in mind: both the US and Chinese income are vital factors of bilateral trade balance, exports and imports.
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This paper aims to investigate asymmetric long-run effects of bilateral exchange rate on US trade imbalances with China and to examine if the effects are the same under China’s…
Abstract
Purpose
This paper aims to investigate asymmetric long-run effects of bilateral exchange rate on US trade imbalances with China and to examine if the effects are the same under China’s fixed and managed floating exchange rate systems.
Design/methodology/approach
The authors estimate both linear autoregressive distributed lag (ARDL) model assuming symmetric effect and nonlinear ARDL model assuming asymmetric effect of exchange rate on US trade deficit with China. The authors use data from 1994Q1 to 2005Q2 (under Chinese fixed exchange rate system), from 2005Q3 to 2021Q3 (under Chinese managed floating exchange rate regime), and from 1994Q1 to 2021Q3 (overall data).
Findings
The Chow test indicates 2005Q3 is a structure break point. Further, the results suggest the effects of bilateral exchange rate on US trade deficit with China are not the same under different exchange rate systems. The asymmetric long-run effect of bilateral exchange rate does exist. The results also demonstrate the depreciation of Chinese currency will not significantly affect US trade imbalances with China.
Research limitations/implications
Based on the results, the Chinese Government should embrace a more transparent and flexible exchange rate system. It will not significantly hurt Chinese trade balance, but it will help to reduce the tension between the USA and China.
Originality/value
All previous literature (except two papers) related to the effect of Chinese exchange rate on US trade deficit with China assume the effect is symmetric, and all (except one) use data under different Chinese exchange rate systems. To the best of the authors’ knowledge, this is the first paper that studies the possible asymmetric long-run effect of bilateral exchange rate under different Chinese exchange rate regimes.
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It is a common view to Trump administration and public that devaluation of Chinese currency is the origin of the US trade deficit. However, the previous literature does not…
Abstract
Purpose
It is a common view to Trump administration and public that devaluation of Chinese currency is the origin of the US trade deficit. However, the previous literature does not support this common view. To better understand the causes of the US trade imbalances with China, this study aims to review the previous literature focusing on the causes of bilateral trade imbalances between the USA and China.
Design/methodology/approach
Review previous literature according to the different reasons that each paper studies.
Findings
Based on the previous literature, the Chinese exchange rate is not the main reason for the US trade imbalances. The official US trade figures overestimate the amount of deficit. The actual causes for the US trade deficit with China perhaps should be the relocation of production to China, low saving in the USA and high saving in China, and the US dollar as the international currency and reserve.
Originality/value
By reviewing previous literature, the authors could better understand the puzzle of the US trade deficit with China.
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Drawing on the time compression diseconomies perspective and business network theory, this study examines how the international expansion of a business group’s pace, scope and…
Abstract
Purpose
Drawing on the time compression diseconomies perspective and business network theory, this study examines how the international expansion of a business group’s pace, scope and rhythm affects its performance.
Design/methodology/approach
Panel data (1999–2013) from the top 100 Taiwanese business groups investing in globalization were collected.
Findings
The results show that international pace and rhythm have an inverse U-shaped relationship with business group performance, while the relationship between international scope and business group performance is U-shaped. This study highlights that international expansion is multidimensional and nonlinear and that the factors that shape nonlinear relationships between international processes and performance are different. Furthermore, family group involvement positively moderates the link between international scope and performance and negatively affects the relationship between international pace and performance. However, no significant effect is observed between rhythm and performance. High family business group involvement mitigates the impact of outsiders’ liability and managerial costs; moreover, it enhances the positive effects of location-specific advantages and business network resources.
Originality/value
This study combined the time compression diseconomies perspective and business network theory to explain why and how internationalization may not always lead to good performance by examining the effects of different international expansion processes and the interactive effect of family group involvement.
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The main purpose of paper is to analyse the political, military and strategic significance of China’s rising power and its influence on Sino-Indian relations, while addressing the…
Abstract
Purpose
The main purpose of paper is to analyse the political, military and strategic significance of China’s rising power and its influence on Sino-Indian relations, while addressing the question as to why India has not been able to develop a long-term, stable and friendly relationship with China.
Design/methodology/approach
The paper is structured as follows: historical overview of India-China relations; various tools of China’s policy in Indian sub-continent; and India’s response. The paper employs a qualitative analysis of secondary literature, with media reports, official documents and public statements providing important sources for understanding the dynamics underlying bilateral relationship.
Findings
India needs to be prepared to face challenges as China’s charm offensive in India’s neighbourhood is primarily aimed at establishing a new Asian order in which Beijing would play the leading role. As China institutionalizes its military presence in South Asia and the Indian Ocean, India should adopt an innovative response mechanism, also involving counter-presence in areas considered China’s traditional sphere of influence.
Originality/value
The primary value of the paper lies in the fact that it covers most of the key dimensions of bilateral ties that impair a stable relationship between India and China. A proper understanding of the dynamics underlying bilateral ties may help the policymakers, scholars and academics to suggest ways to reduce sources of tensions, while also helping the Indian Government to prepare effective countermeasures.
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Xiaoyuan Wang, Yongqing Guo, Chen Chen, Yuanyuan Xia and Yaqi Liu
This study aims to analyze the differences of electrocardiograph (ECG) characteristics for female drivers in calm and anxious states during driving.
Abstract
Purpose
This study aims to analyze the differences of electrocardiograph (ECG) characteristics for female drivers in calm and anxious states during driving.
Design/methodology/approach
The authors used various materials (e.g. visual materials, auditory materials and olfactory materials) to induce drivers’ mood states (calm and anxious), and then conducted the real driving experiments and driving simulations to collect driver’s ECG signal dynamic data. Physiological changes in ECG during the stimulus process were recorded using PSYLAB software. The paired T-test analysis was conducted to determine if there is a significant difference in driver’s ECG characteristics between calm and anxious states during driving.
Findings
The results show significant differences in the characteristic parameters of female driver’s ECG signals, including (average heart rate), (atrioventricular interval), (percentage of NN intervals > 50ms), (R wave average peak), (Root mean square of successive), (Q wave average peak) and ( S wave average peak), in time domain, frequency domain and waveform in emotional states of calmness and anxiety.
Practical implications
Findings of this work show that ECG can be used to identify driver’s anxious and calm states during driving. It can be used for the development of personalized driver assistance system and driver warning system.
Originality/value
Only a few attempts have been made on the influence of human emotions on physiological signals in the transportation field. Hence, there is a need for transport scholars to begin to identify driver’s ECG characteristics under different emotional states. This study will analyze the differences of ECG characteristics for female drivers in calm and anxious states during driving to provide a theoretical basis for developing the intelligent and connected vehicles.
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Weidong Wang, Yongqing Dong, Renfu Luo, Yunli Bai and Linxiu Zhang
The purpose of this paper is to examine the role of education in the labor market and to understand how returns to education change over time in rural China.
Abstract
Purpose
The purpose of this paper is to examine the role of education in the labor market and to understand how returns to education change over time in rural China.
Design/methodology/approach
Using nationally representative survey data from 2004 to 2015, this study provides insights on wage determination in the labor market and examines how the returns to education in rural China differ with time and educational endowment. This study applies ordinary least squares estimation and the Heckman selection model to estimate the returns to education.
Findings
The returns to education decreased during the observed years from more than 6 percent in 2004 to only about 3 percent in 2011, rising to nearly 4 percent in 2015. The overall trend is robust and observed within groups defined by education. Additionally, the returns to education vary greatly with educational endowment. Tertiary education has always maintained a high rate of returns at nearly 10 percent, while returns to senior high school education and below have gradually diminished.
Originality/value
The authors believe that the results will not only enrich studies on the returns to education in rural China, but also provide a basis for diagnosing the changes of rural labor market in the early twenty-first century.
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Yu Jia, Yongqing Ye, Zhuang Ma and Tao Wang
This study aims to verify the respective and interactive effects of subnational formal and informal institutions (i.e. legal effectiveness and social trust) on foreign firm…
Abstract
Purpose
This study aims to verify the respective and interactive effects of subnational formal and informal institutions (i.e. legal effectiveness and social trust) on foreign firm performance, and further identify the contingent factor (i.e. institutional experience) that moderates these relationships.
Design/methodology/approach
Drawing on the institutional-based view, this study develops several hypotheses that are tested using a comprehensive dataset from four main data sources. The authors’ unit of analysis is foreign firms operating in China. The authors ran ordinary least squares (OLS) regression model to investigate the effects. A series of robustness tests and endogeneity tests were performed.
Findings
The results show that both legal effectiveness and social trust at subnational level positively affect foreign firm performance respectively. Legal effectiveness and social trust at subnational level have complementary effect in promoting the performance of foreign firms. Foreign firm's institutional experience in target region of emerging economies host country strengthens the positive impact of subnational legal effectiveness on performance, but weakens the positive impact of subnational social trust on performance.
Practical implications
It is important to fully understand the impact of heterogeneous institutional environments of subnational regions in emerging economies on foreign firm performance, which would help foreign firm make a more suitable secondary choice decision of investment destinations at the subnational regional level.
Originality/value
First, drawing on institutional-based view, the authors incorporate the subnational formal and informal institutional factors to investigate their impacts on foreign firm performance by switching the attention from national level to subnational level in emerging economy host countries. Second, this research furthers existing studies by bridging a missing link between both subnational formal and informal institutional environments and foreign firms' outcomes. Third, the authors prove that the model of subnational formal and informal institutions in influencing foreign firms' performance is contingent on their institutional experience in target subnational region of emerging economy host country.
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Yongqing Ma, Yifeng Zheng, Wenjie Zhang, Baoya Wei, Ziqiong Lin, Weiqiang Liu and Zhehan Li
With the development of intelligent technology, deep learning has made significant progress and has been widely used in various fields. Deep learning is data-driven, and its…
Abstract
Purpose
With the development of intelligent technology, deep learning has made significant progress and has been widely used in various fields. Deep learning is data-driven, and its training process requires a large amount of data to improve model performance. However, labeled data is expensive and not readily available.
Design/methodology/approach
To address the above problem, researchers have integrated semi-supervised and deep learning, using a limited number of labeled data and many unlabeled data to train models. In this paper, Generative Adversarial Networks (GANs) are analyzed as an entry point. Firstly, we discuss the current research on GANs in image super-resolution applications, including supervised, unsupervised, and semi-supervised learning approaches. Secondly, based on semi-supervised learning, different optimization methods are introduced as an example of image classification. Eventually, experimental comparisons and analyses of existing semi-supervised optimization methods based on GANs will be performed.
Findings
Following the analysis of the selected studies, we summarize the problems that existed during the research process and propose future research directions.
Originality/value
This paper reviews and analyzes research on generative adversarial networks for image super-resolution and classification from various learning approaches. The comparative analysis of experimental results on current semi-supervised GAN optimizations is performed to provide a reference for further research.
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Linxiu Zhang, Yongqing Dong, Chengfang Liu and Yunli Bai
The purpose of this paper is to evaluate the trend of off-farm employment in rural China over the past four decades since the reform and opening-up.
Abstract
Purpose
The purpose of this paper is to evaluate the trend of off-farm employment in rural China over the past four decades since the reform and opening-up.
Design/methodology/approach
Using two sets of panel survey data, the China National Rural Survey conducted in 2000 and 2008, and the China Rural Development Survey conducted in 2005, 2008, 2012 and 2016, this study offers a re-visit of China’s off-farm employment to give us the latest information about its evolution and whether rural labor markets have developed in a way that will allow them to facilitate the transformation of China’s economy more effectively. The evolution of off-farm employment is further examined through decomposition of types, destinations, industries, and population sub-groups as well as the change in the wage rate.
Findings
The data show the rapid increase in rural labor activities over the whole study period. Most notably, the authors findnd that a rapid rise in off-farm employment has continued even until after 2008 and into the mid-2010s, which is a time when some feared that macroeconomic conditions might keep rural residents on the farm or drive them back to the farm. In the disaggregation of labor market trends, the authors show that labor markets are acting consistently with an economy that is in transition from being dominated by agriculture to being dominated by other forms of production and with a population that is consistently becoming more urban.
Originality/value
The authors believe that the results will contribute positively to the exploration of answers to the question whether or not rural labor markets have developed in a way that will allow them to facilitate the transformation of China’s economy more effectively over the last four decades.