Level Of Capital Research Articles

How does the digital economy affect green innovation efficiency: evidence from China

Although the digital economy has emerged as a new impetus for countries to improve green innovation efficiency (GIE), existing research has thus far overlooked the direct relationship between them. Based on data from 30 provinces in China from 2011–2020, this paper investigates the impact of the digital economy on GIE by applying the spatial Durbin model, the mediation effect model, and the threshold effect model. The findings suggest that the digital economy can significantly enhance GIE directly and indirectly by promoting financial development, accumulating human capital, and optimizing industrial structure. Further research shows that non-linear characteristics exist between them at different levels of financial development, human capital, and industrial structure. Moreover, the eastern region experiences a more visible impact of the digital economy on provincial GIE. This study provides empirical evidence for an insightful comprehension of the link between the digital economy and GIE and policy suggestions for governments.

The Bilateral Effects of Population Aging on Regional Carbon Emissions in China: Promotion or Inhibition Effect?

To achieve the high-quality model of green, low-carbon, and sustainable development in China, it is necessary to clarify the relationship between population aging and carbon emissions in regions. Based on the panel data of 30 provinces and cities in China from 2011 to 2020, this article employs a bilateral stochastic frontier model to estimate the promotion, inhibition, and net effects of population aging on regional carbon emissions. The results show that regional carbon emissions are decreased by 15.77% due to the inhibition effect, while they are increased by 10.63% due to the promotion effect. As a result, the net effect is that regional carbon emissions are decreased by 5.14% overall due to the composite action of the above effects. In addition, population aging in eastern, western, and central regions significantly reduces regional carbon emissions. And the inhibition effect of population aging on carbon emissions increases continuously and gradually holds the dominant position during the study period. Moreover, the inhibition effect in the eastern region is stronger than that in the central and western regions, which can be strengthened by improving the level of population aging and human capital, as well as urbanization. The conclusions are conducive to providing new perspectives and empirical evidence for understanding the connection between population aging and carbon emissions, as well as policy recommendations for tackling population aging, carbon emission reduction, carbon peaking, and carbon-neutral strategic goals.

Platform financing vs. bank financing: Strategic choice of financing mode under seller competition

Third-party sellers on online platforms primarily rely on banks to meet their financing requirements and are often constrained by the lack of sufficient working capital. Online platforms such as Amazon and Alibaba have ushered new dynamics in the e-commerce financing landscape by offering working capital loans to these sellers, thereby directly competing with banks and influencing market competition. This paper analytically studies how the competition between third-party sellers on platforms affects the strategic financing choices of sellers, namely, platform financing (P) vs. bank financing (B). We examine how the financing choice influences sellers’ pricing decisions in the competitive product market. Based on the sellers’ financing choices, four lending modes are possible: BB, PP, BP, and PB. Our analyses provide critical insights on the optimal financing choices and uncover the interplay of pricing, product substitution, referral fees, and production costs. We show that any seller deviating from PP to a hybrid mode (BP/PB) leads to a higher platform interest rate and a lower seller profit. We find that the competing sellers choose a hybrid lending mode when the unit production cost is low. However, the platform always prefers PP, leading to an all-win outcome in the supply chain when the production cost is high. Furthermore, for products with low referral fees and high substitution effect, BP/PB emerges as the equilibrium mode, while for products with low referral fees and low substitution effect, PP is the equilibrium outcome. Interestingly, we find that both sellers may choose bank financing when their working capital levels are high.

How does high-speed railway affect green technology innovation? A perspective of high-quality human capital

Green development is the main theme of modern development in China and even the world. Green development depends on green technology innovation (GTI). Therefore, for developing countries like China in the stage of economic transition, it is urgent to accelerate GTI to gain sustained advantages in the new round of international competition. As an important representative of contemporary rapid transportation, high-speed railway (HSR) can not only alleviate the rapidly growing transportation demand of the public, but also have potential benefits to the energy consumption structure and environmental quality. Whether and how HSR affects GTI has become the focus of this paper. Hence, by employing the panel data of 286 cities in China from 2007 to 2018 with the time-varying DID model, this paper verifies that HSR development can contribute to GTI. The main findings of this paper are as follows: (1) The operation of HSR can not only make the incremental development of GTI, but also improve the quality of GTI simultaneously. Moreover, the quality improvement effect of HSR is greater than the quantity increment effect. (2) Heterogeneity analysis shows that the positive effect of HSR on GTI is more significant for cities that have implemented LCCP. (3) This paper verifies the mediating effect of high-quality human capital. The opening of HSR further stimulates GTI by improving the level of high-quality human capital in cities and increasing the opportunities for knowledge exchange and diffusion. Based on the above findings, this paper proposes some policy recommendations to help developing countries achieve GTI with positive externalities.

Disentangling aporophobia from xenophobia in the EU-15

ABSTRACT This paper analyses whether the human capital levels embodied in immigrants can explain xenophobic trends for 126 regions in 14 EU-15 countries from 1998 to 2018. It tests if xenophobic regions may be rejecting immigrants because they are poor, a phenomenon recently defined as ‘aporophobia’. The results indicate that larger inflows of low-educated immigrants working in low-skilled occupations are significantly correlated with a higher rejection of migrants, thus confirming the aporophobia hypothesis. The findings in this paper bring light to the discussion of a powerful concept which underpins the need for a more just society.

Historical institution and corporate Innovation: Evidence from China’s Civil-service Examination

Previous research indicates that historical institutions are crucial to the functioning and development of an economy. However, little is known about whether and how a historical institution affects current entrepreneurial activities. In ancient China, the Civil-service Examination (CSE), also known as keju, was the most important institution for selecting scholar-officials and had long-lasting effects. Using the variation in the historical success in keju across prefectures, this paper empirically examines the impact of the CSE on local corporate innovation. We find that the density of jinshi, which is the highest achievement in keju, is positively correlated with the innovation productivity of local firms as measured by patent applications and citations. To determine causality, we employ an instrumental variable and a quasi-experiment in early Qing period. Further tests suggest that the CSE promotes corporate innovation by fostering a forward-looking stance in firms, enhancing firms’ human capital level, and increasing local social capital. Overall, our results indicate that the CSE has a real and long-lasting impact on today’s firm innovation.

Advertising – a Necessary “Elixir of Life” for Capitalism: On the Critique of the Political Economy of Advertising

This contribution aims to lift the ideological veil of apologetics and pseudo-criticism on advertising with the help of a reality-based systematic analysis that contributes to a materialistic theory of advertising. The content-related and methodological basis of such a theory is a Critique of the Political Economy of Advertising oriented towards the critique of capitalism and academic knowledge originally presented by Karl Marx and current societal analyses based on it. In this context, the academic objective is to consider the economic, political, and societal functions of (media) advertising. In doing so, the elementary economic and ideological functions of advertising for the existence and further development of the market economy and capitalist economic and societal systems become recognisable. Advertising then no longer appears as a necessary evil but as a necessary "elixir of life” for the media industry, the economy, and capitalism as a whole. Based on the applied critical political-economic analysis, it becomes clear that on the level of capitalism as an economic and societal system, advertising thus contributes economically and ideologically to the stabilisation of the systemic foundations of capitalist societies (the capital-labour relationship, the regime of accumulation; the economic, societal, and political [advertising] functions of the media). It is shown that a Critique of the Political Economy of Advertising – especially from the point of view of the necessarily growing importance of advertising for media production – also contributes to the development of a Critique of the Political Economy of the Media.

Strategic investment management in the digital transformation of the economy of the Republic of Kazakhstan

The aims to analyse this issue in the context of the digitalisation of the socio-eco- nomic space of Kazakhstan's regions. The article examined the challenges and op- portunities of digitalisation for industrial enterprises. It emphasises the importance of making rational investment decisions under conditions of budget constraints. The article proposes a financing scheme for digital transformation projects using quasi- monetary and crypto-financial instruments to attract investment. It is concluded that the impact of cost savings and benefits of digital transformation of enterprises is directly reflected in the level of company capitalisation and its market value, and the financial system corresponding to the new technological cycle is a necessary condi- tion for financial sustainability.

Who Will Serve the Reputationally Compromised Boards? Politicians’ Appointment to the Boards of Chinese MNCs in the US

The appointment of politicians to the corporate boards has long been recognized as an important strategy for multinational corporations (MNCs) to navigate the institutional challenges in foreign markets. While extant scholarship acknowledges the firm’s needs in the foreign markets that are served by the resources possessed by the politician, there is limited understanding of a politician’s considerations in a politician’s appointment decision. In this study, we consider both firms’ and politicians’ perspectives and theorize the appointment of politicians to the boards as a mutual selection process in which both firm and politician select each other. Emerging markets multinational corporations (EMNCs) suffer severe legitimacy challenges in developed countries due to the liability-of-origin, therefore, EMNCs are more motivated to bring-in politician directors with high political capital to overcome their legitimacy challenges, but these politicians may not join the EMNCs due to the potential reputational loss of associating with EMNCs. Using politician-year level dataset of politician director appointments made by Chinese MNCs operating in the United States, our Cox hazard regression results find an inverted U-shape relationship between a politician’s political capital and his/her likelihood of joining the board of Chinese MNCs. As such, a politician having a moderate level of political capital is more likely to join the board of a reputationally compromised foreign MNC. This relationship is moderated by firm ownership. Specifically, the effect is stronger when Chinese MNCs are state owned and weaker in the case of joint venture. Our study bears rich implications for theory and practice.

A Multiple Case Study on the Reflection of Cultural Capital on Educational Strategies: Private and Public High School Graduates

The main purpose of this study is to describe the cultural capital possessed by graduates of different types of high schools and how that capital shapes educational processes. Accordingly, the study focuses on the cultural capital of graduates of public and private high schools and the strategies they have implemented throughout their educational processes. The research problem of this study is the elucidation of the inequalities created by cultural capital between private and public high school graduates. The study was conducted with a multiple case design due to the qualitative methodology adopted. The sample of the study was selected using maximum variation sampling in accordance with the chosen qualitative method. A semi-structured interview form was administered to 45 participants, 23 of whom had studied in private high schools and 22 of whom had studied in public high schools. MAXQDA 2022 software was used to analyze the data. As a result, it was concluded that private high school graduates and their parents had more institutional cultural capital than public high school graduates. In terms of educational processes, it was observed that participants with higher levels of familial institutional cultural capital preferred schools providing high-quality education rather than schools located closer to home for enrollment. Therefore, it is recommended that state policies be established to remedy the deficiencies of students with low levels of familial cultural capital.

The Poverty Reduction And Social Capital Relationship: Comparative Findings From Selected OECD Countries

One of the most important elements of the fight against poverty is social capital. Social capital is of critical importance in the fight against poverty because of its ability to activate existing resources in the economic development process of countries and to prevent all resources, opportunities, and, potentials from being idle, especially for the poor. In our study, which aims to analyze the positive effects of social capital on poverty within the scope of new data and samples, analyzes were made within the scope of selected OECD countries RE findings from the econometric analysis indicate that all variables have a positive effect on GDP per capita for the 2012-2019 period in 12 selected countries. In general, our results are consistent with previous studies. The social capital coefficient gives the biggest positive effect on GDP per capita compared to other types of capital. It is important for developing countries to implement policies that increase social capital levels (especially bridging and linking types of social capital) for economic development in terms of increasing their per capita GDP levels.

Can smart city planning enhance the sustainable transition of the E.U. capitals? A project and strategy-based smart, sustainable performance analysis in the programming period 2014-2020

Abstract Cities across the globe perceive their opportunities for digital transition pathways. This paper presents a project and strategy-based assessment of smart city ambitions in the light of sustainable urban development pathways in the European Union capitals considering the programming period 2014-2020. The purpose of the research is to understand better the smart city trends in Europe and identify any correlation between smart city and sustainability ambitions through the European capitals. The basis of the research was the official project result platforms of European funds with priorities related to smart cities. The collected best practices of transnational smart city projects provide statistics from the previous programming period and draw attention to the developing trends of smart city functions and the activity level of European capitals in the digital transition. Results show that between 2014 and 2020 nearly half of the capitals owned a specific smart city strategic document. Evaluating the smart urban performance of the capitals, it can be stated that most smart solutions were implemented related to mobility and environment in the previous period. Furthermore, it was also considered whether smart city projects could facilitate the shift toward sustainability. Based on the assessment of their planning strategies, a complex image of the European capitals has been revealed in their smart city development concepts; their strategic-level planning can be understood better, which is essential for policymaking in the era of digitalisation, identifying synergies with sustainable urban development ambitions, and monitoring the reached targets at the city level.

Smartphone usage patterns and social capital among university students: The moderating effect of sociability

This study investigates the correlation between smartphone usage patterns and social capital among Chinese college students, while also examining the moderating effect of sociability. We conducted a cross-sectional survey in Jiangsu Province, China, sampling 380 college students attending three four-year universities as respondents. After excluding invalid questionnaires, final sample size of 342 participants (108 males and 234 females, average age 20 years) for analysis. To analyze mobile phone usage patterns, the LCA model was utilized, and a multiple regression analysis was conducted to determine the impact of various smartphone usage patterns on college students' social capital. Additionally, the study explores how sociability moderates this relationship. The study revealed that college students' mobile phone usage can be classified into five distinct patterns based on their behavior: low entertainment usage, balanced low-frequency usage, social and convenience-centric usage, balanced high-frequency usage, and entertainment and convenience-centric usage. The group with balanced high-frequency usage had the highest social capital score, followed by the social and convenience-centric usage group, and the entertainment and convenience-centric usage group. Conversely, the groups with balanced low-frequency usage and low entertainment usage had lower social capital scores, with no significant difference between them. social interaction ability had a positive moderating function in the association between social and convenience-centric and balanced high-frequency usage and social capital levels. This research sheds light on the impact of smartphone usage on social interactions and the development of social capital among college students in China.

Do Local Socio-Economic Structures Determine the Spatial Distribution of Human Capital? Analysis of Connections for Rural Areas in Poland

The article has an empirical nature. The subject of detailed analysis is the variations in spatial distribution of human capital in rural areas of Poland and the analysis of the correlation of this phenomenon with local structures of the socio-economic development process. The diagnosis and assessment of variations in the spatial distribution of human capital were performed based on an author’s indicator—a synthetic measure of human capital level (HCI—human capital index). The characterisation of local socio-economic structures was based on the typology of rural areas according to Rural Development Monitoring (RDM 2014 and 2023). The study was conducted for rural areas in Poland defined by the Main Statistical Office based on the administrative criteria of rural and rural-urban municipalities. A total of 2172 municipalities were covered by the study. The data analysis was conducted spatially at the NUTS 5 level and comparatively at the NUTS 2 level for the years 2013–2018. The assumption was verified that the processes of human capital concentration in rural areas in Poland are related to local socio-economic structures of development processes, and the local structure factor that influences the existing differences is the degree of use of agricultural functions. The results of statistical tests positively verify this relationship as statistically significant. Moreover, the article provides strong arguments for shaping regional and rural policy and its implementation. The assumption about the need to change the approach to the study of rural space was positively verified; it is suggested to move away from analyses conducted at the level of the NUTS 2 region to the level of the NUTS 5 municipality. Research on rural areas makes sense only from a local perspective; it allows for a more accurate illustration of the specificity of local communities, revealing their development potentials and barriers, and, as a result, more effective programming of instruments supporting local development, dedicating specific support programs individually for each municipality, while the regional approach presents the state of differences too generally and may often lead to incorrect interpretation. In the empirical part of the article, taxonomic methods of hierarchy (patternless) and classification of multi-featured objects were used. As a result, each object (municipality) was assigned a synthetic measure—the relative human capital level index (HCI). Based on the HCI index, an ex-post hierarchical classification of municipalities was carried out. The main sources of data (diagnostic variables) for the construction of the HCI index were the Local Data Bank of the Central Statistical Office (BDL GUS), the national census of NSP 2011, the Ministry of Finance, the Ministry of Family and Social Policy, and District Examination Boards. The source of data on local socio-economic structures expressed based on the typology of rural areas according to the Rural Development Monitoring (RDM) methodology was the European Fund for the Development of Polish Villages (EFRWP).

Digital infrastructure and cross-regional collaborative innovation in enterprises

This article delves into the role that digital infrastructure plays in facilitating cross-regional collaboration in the innovation processes of enterprises. Collaborative innovation has emerged as a crucial mode of innovation for businesses engaged in technological R&D as the complexity of such R&D grows more sophisticated. In this study, we leveraged the recent nation-wide rollout of China's “Broadband China” strategic pilot program as a natural experiment to empirically investigate the impact of digital infrastructure on cross-regional collaboration in innovation. Our analysis of the financial data of Chinese A-share listed companies from 2008 to 2019 reveals that investments in digital infrastructure have a major impact on encouraging cross-regional collaborative innovation within businesses. Through the study, we examined the mechanisms through which digital infrastructure promotes cross-regional collaboration in innovation and found that the reduction in transaction costs serves as the key rationale for this phenomenon. Moreover, a heterogeneous analysis revealed that businesses with higher levels of technological R&D, industries characterized by rapid technological transformation, and cities with elevated levels of human capital are more likely to benefit from digital infrastructure investments that foster cross-regional collaborative innovation.

Linkages between capital, bank financing and economic growth: the case of Islamic and conventional banks from a panel of Muslim countries

Purpose This study aims to examine the triple relationship between capital regulation, banking lending and economic growth in a dual markets. Specifically, the author seeks to explore how changes in capital regulation can impact banking lending practices and subsequently influence economic growth, while also investigating the reciprocal effects of banking lending on economic growth. Design/methodology/approach The author follows several previous studies such as Shrieves and Dahl (1992), Beck and Levine (2002), Altunbas et al. (2007), Saeed et al. (2020) and Stewart et al. (2021) to identify a system of three equations, regarding economic growth, capital and banking financing growth, respectively. The author estimates the parameters of all equations simultaneously using the seemingly unrelated regression method (Zellner, 1962) for a sample of 46 Islamic banks and 113 conventional banks during 2002–2022. These banks operate in 13 Muslim countries from Middle East and North Africa and Southeast Asia. Findings The author’s findings demonstrate that in the case of Islamic banking, an increase in loan growth stimulates economic growth, while an increasing capital ratio positively influences economic growth but is accompanied by a reduction in loan growth. This result corroborates the findings of Stewart et al. (2021), which indicate that regulatory capital reduces unstable credit while improving gross domestic product growth. However, in the case of conventional banks, the response to an increase in loan growth on Gross Domestic Product Per Capita Growth (GDPCG) is ambiguous, while the capital ratio improves GDPCG and promotes LOANG, which, in turn, increases risk. Practical implications The Islamic banks can continue to significantly contribute to economic growth by effectively directing their available capital toward viable investment opportunities and supporting sustainable financial practices, even in the presence of potential constraints on loan growth. As for conventional banks, they are invited to increase their capital levels to ensure a strong and resilient financial system that can support lending and facilitate economic growth. Originality/value To the best of the author’s knowledge, this paper is the first to explore the triple relationship between capital requirements, Islamic bank lending and economic growth.

Assessing the carbon emission performance of digital greening synergistic transformation: evidence from the dual pilot projects in China.

Digital greening synergistic transformation (DGST) is a new engine for achieving dual carbon targets. Using panel data from 281 Chinese cities between 2003 and 2019, this study investigates the effect and transmission mechanism of the DGST on carbon emission performance. It is based on the quasi-natural experiments of the dual pilot projects "Broadband China" and "Low-carbon City",as well as the multi-period difference-in-difference method. The empirical findings are as follows: (1) DGST, represented by the dual pilot projects, effectively enhances carbon emission performance. Compared to the isolated "Broadband China" and "Low-Carbon City" pilot projects, establishing dual pilot projects generates a more pronounced carbon emission reduction effect through synergistic effects. (2) In terms of dynamic effects, the carbon emission reduction effect in dual pilot cities appears in the first year following initiation, indicating a certain temporal aspect to this effect. (3) Mechanism analysis reveals that the impact of DGST on carbon emission performance is channeled through two pathways: industrial structural adjustment and low-carbon technology innovation. (4) The positive impact of DGST on carbon emission performance exhibits heterogeneity, primarily present in cities with higher levels of financial technology, human capital, and new infrastructure development. It implies that the implementation of DGST necessitates adequate human, financial, and material support. In conclusion, this research contributes empirical evidence for further exploring policy synergies, offering support for achieving dual carbon targets through DGST.

The Relationship between Social Capital, Human Capital, and the Level of Welfare of Farmers in Ponorogo, Indonesia

Community empowerment is one of the solutions to overcome the problem of poverty in an area. Community empowerment can be carried out by utilizing local potential and developing aspects and social capital. Based on the theory of the poverty circle, several factors cause poverty, including income levels, education levels, and the amount of consumption. Ponorogo Regency is one of the top 10 food support districts in East Java, with progress in the agricultural sector capable of supporting regional food security. However, many underprivileged residents have a poverty rate 2022 of 9.32% of the total population. Based on these facts, this study aims to reveal the relationship between social capital, education level, and income level in Ponorogo Regency. This study uses multiple linear regression analysis with independent variables (Xn), including the level of public education (X1) and human capital (X2), as well as the dependent variable (Y), namely the level of welfare of the people of Ponorogo Regency. The analysis results show that in Ponorogo Regency, there is a correlation between social capital and the level of education and community welfare. The level of social welfare is influenced by education and human capital. The higher the education level and human capital, the higher the social welfare and social capital formed. The development of social capital in networks at the educational level of Ponorogo Regency is very closely related, especially to participation in the religious field. Likewise, the relationship with norms on social capital in which the community has no tendency for a certain level of education related to the desire to implement applicable norms. However, participation in traditional activities has a closer relationship only at the elementary to secondary education level. The analysis results also show that the people of Ponorogo Regency with any income level have a close relationship with all elements of social capital, namely trust, social networks, and norms. Low-income people are associated with an increase in social class.

How do local government fiscal revenue targets affect green technology innovation in China?

ABSTRACT The process of economic development in China cannot be separated from the ‘shadow’ of government target intervention. Under the Chinese system of fiscal decentralization, constraints created by local government fiscal revenue targets (CCFRTs) will have a series of influence on development economically and socially. Based on the fiscal revenue target data revealed in the government work reports of 281 prefecture-level cities in China from 2006 to 2019, this paper explores the influence of CCFRTs on green technology innovation (GTI). The findings are as follows: first, CCFRTs significantly inhibits GTI. Second, Spatial Durbin model analysis shows that CCFRTs has significant negative spatial spillover effect on GTI. Third, CCFRTs can affect GTI through the optimization of industrial structure, the level of human capital, and the degree of opening-up, technological progress and economic growth. Fourth, CCFRTs has an obvious threshold effect on GTI. Finally, the influence of CCFRTs on GTI has regional heterogeneity in central, eastern and western China. In the western and central regions, CCFRTs significantly restrains GTI significantly, while in the eastern region, CCFRTs significantly promotes GTI.

Policy effects and mechanisms of ecological civilization demonstration area on carbon efficiency in resource-based cities

The purpose of this study is to investigate the impact of the construction of ecological civilization demonstration areas (CECDA) on the carbon efficiency (CE) of resource-based cities (RCs) and to understand its mechanism. The CE indicator of 114 prefecture-level RCs in China was measured from 2004 to 2018 using the Slack Based Measure (SBM) model. We found that the index showed an overall fluctuating upward trend followed by a fallback phenomenon. Spatially, it exhibits an east-high and west-low distribution pattern. In an empirical study using a multi-period difference-in-differences (DID) model and balanced panel data, we found that CECDA significantly contributes to CE. Resource industry dependence is an important transmission factor of CECDA affecting CE, and the rationalization of the industrial structure level and advanced human capital level are important regulating factors. Simultaneously, compared with the central and northeastern regions, the impact of CECDA on CE is more evident in the eastern and western regions.