ABSTRACT We evaluate the impact of the 2003 SARS‐CoV‐1 epidemic on inbound cross‐border M&As in China. Provinces that experienced high levels of SARS infection rates also suffered a significant decline in cross‐border M&A activity, both in terms of the number of transactions and the overall dollar volume. The negative impact is entirely driven by a decline in deals for non‐state‐owned targets. The large, negative effect was short‐lived, and it largely dissipated by 2005, but deals lost during the epidemic were not recouped. The negative impacts were larger and longer lasting for provinces whose neighbours were not affected much by SARS, suggesting that good substitutes in nearby unaffected provinces exacerbated the negative effects in areas deeply affected by SARS‐CoV‐1.

ABSTRACT The aim of this article is to analyse the effects of adoption, spread, characteristics and location of special economic zones (SEZs) on the volume of foreign direct investment (FDI) in Africa, and the channels through which the SEZs affect FDI inflows. Using an original dataset covering the period from 1973 to 2019 and employing dynamic panel data estimation methods, the results reveal that countries that have adopted SEZs have been successful in attracting more FDI compared to those that have not. Similarly, the greater the number of SEZs in a country, the higher the volume of FDI received. A more specific analysis highlights certain characteristics of SEZs that are beneficial for increasing the volume of incoming FDI. These include the adoption of special or free zones, multisectoral functionality, an area of more than 500 ha and a public–private partnership governance model. Also , the results reveal that human capital, technological development, robust legal framework and the quality of regulations are initial conditions that have enabled economies to ensure the positive effect of SEZs on attracting FDI. However, the availability of electricity access infrastructure, the proximity to port areas and the ease of administrative procedures are factors that have so far prevented some countries from benefiting from the adoption of SEZs.

ABSTRACT In this study, we apply the Buffered Threshold Panel Data model developed by Belarbi et al., to explore the effect of economic complexity (EC) on growth and human development. We use a panel data set from 92 developed and developing countries from 2002 to 2016. Our findings reveal a nonlinear relationship between EC growth and human development, contingent on the studied countries' institutional quality and resource dependence. Contrary to previous research, we demonstrate that the effects of EC on growth and human development are heterogeneous and could be negative both in the short, medium or long term in some growth regimes. We also provide evidence supporting the convergence hypothesis for growth while suggesting a divergence for human development. A noteworthy finding of our study is that the extent of the negative impact of EC on growth varies based on a country's resource dependency. Furthermore, we observe a dual effect of institutional quality on growth, as measured by the Rule of Law, when Oil Rents is used as a threshold variable. Specifically, improvements in institutional quality have a positive impact on growth in economies less reliant on natural resources, particularly oil. Conversely, the effect is negative in economies significantly reliant on oil exploitation.

ABSTRACT The lack of consensus in academic research on the environmental effects of foreign ownership prompts us to re‐examine this issue. Using 3847 foreign acquisition cases in China from 1998 to 2013, we employ the PSM‐DID method to investigate the impact of foreign acquisitions on the pollution emissions of acquired plants. Our findings reveal an increase in sulphur dioxide (SO 2 ) emissions for acquired plants, a result that remains consistent when considering SO 2 emission intensity. We attribute this finding primarily to pollution offshoring: following foreign acquisitions, target plants shift their operations towards exporting intermediate goods, particularly pollution‐intensive ones. To support this shift, acquired plants tend to reduce R&D investments and expand production capacity by adding more production lines, which realigns their production structure towards pollution‐intensive industries. Consequently, the acquired plants are unlikely to gain positive environmental spillovers from the acquisition. Finally, we also evaluate the economic performance of the acquired plants and the impact of foreign divestment, finding that foreign investment primarily benefits the host country through financial channels rather than (green) technological channels.

ABSTRACT In the context of the Industry 4.0 revolution, it is a critical period to enhance technological capabilities and innovation. On the basis of matched data from the Customs database and the Annual Survey of Industrial Firms in China, we employ panel fixed effects and instrumental variable methods to investigate the impact of firms' robot imports on their export product adjustments. Our study finds that importing robots significantly increases the variety and value of both new and existing products exported, while also facilitating the exit of obsolete products from the market. This process promotes the renewal and iteration of firms' export products. These results remain robust after a series of robustness checks. Mechanism tests indicate that the promotion effect of robot imports on firms' export product adjustments mainly stems from improvements in innovation capabilities, labour productivity and financial performance.

ABSTRACT This paper provides cross‐country firm‐level evidence on productivity spillovers from foreign direct investment (FDI), separately for greenfield FDI and cross‐border mergers and acquisitions (M&As). The granularity of bilateral sector‐level FDI datasets allows for addressing possible endogeneity issues by applying a two‐step approach whereby an exogenous FDI measure is constructed from a gravity‐type regression of bilateral FDI flows. When looking at the effects of greenfield FDI on firm labour productivity we find: (i) positive intra‐industry spillover effects for firms located in advanced countries, consistent with knowledge diffusion and increased competition from foreign firm and (ii) positive backward spillover effects for firms located in emerging and developing countries, consistent with foreign firms' higher demand for local inputs. These spillovers are driven entirely by FDI from advanced countries. The results from cross‐border M&As are noisier, but suggestive of positive intra‐industry spillovers in advanced countries and negative backward spillovers in emerging markets and developing countries.

ABSTRACT This paper examines the macroeconomic effects of disruptions in global food commodity markets on China, the largest developing country. Using a structural VAR model with unanticipated harvest shocks as an external instrument, we find that a 10% exogenous increase in international food prices results in a persistent 1.5% decline in China's real GDP. The CPI rises by 1.2% at its peak but falls below its original level after three years. Both consumption and investment experience significant declines, highlighting the sensitivity of China's economy to international food price shocks. These shocks account for over 10% of output fluctuations, underscoring their critical role in China's economic dynamics. Extending the analysis to a time‐varying parameter VAR model with stochastic volatility, we discover that the transmission of international food price shocks was particularly pronounced during the high‐inflation period of the late 1980s. Over time, however, this transmission weakened, stabilising after the millennium. These findings shed light on the evolving macroeconomic implications of global food price disruptions for China's economy.