Direct Government Intervention Research Articles

Producing Green or Brown? A Game of Green Innovation in an Asymmetric Oligopoly

As consensus grows for low-carbon development, innovation becomes vital for green growth, given the substantial technology adoption needed for long-term environmental targets. This paper explores market-driven incentives for green product innovation in an asymmetric duopoly using a game theory approach without relying on direct government intervention. The roles that market dynamics and rivalry have on the supply of green or brown products are explored in simultaneous and sequential scenarios, considering technology costs, demand-creating effects, rivalry gains, and information availability. Results reveal that a fully green market is contingent on low innovation costs, depending especially on the magnitude of demand creation effects. Notably, product differentiation occurs only under extreme cost asymmetry. Recommendations underscore the importance of incentivising low-cost innovations, assessing the impact of product differentiation and diversity, especially concerning lower-income consumers, and proposing measures to improve the transparency of firms’ strategic choices.

Sino-US Strategic Competition and Cross-Border M&As by Chinese Enterprises: Evidence from Public Opinion Big Data

ABSTRACT This study investigates the effect of bilateral political relations on cross-border M&As in the context of Sino-US strategic competition. Based on 996 cross-border M&A cases of Chinese enterprises over the period 2001–2020, our econometric analysis reveals that, in general, Sino-US strategic competition reduces the completion rate of Chinese enterprises’ cross-border M&As. This effect is stronger for M&As in strategic industries and targets owned by government, suggesting direct government intervention. Moreover, M&As with higher investment irreversibility or in B2C industries are more exposed to this negative impact, suggesting investor and consumer caution with declining political affinity. However, in the long run, such a competition contrarily contributes to the improvement of the performance of Chinese enterprises. These findings challenge policymakers and scholars with a new emerging M&A theoretical framework regarding institutional uncertainty and risk.

Shopping Around for Loot Box Presence Warning Labels: Unsatisfactory Compliance on Epic, Nintendo, Sony, and Microsoft Platforms

Loot boxes are gambling-like products in video games that players can buy with real-world money to obtain random prizes. Many countries are concerned by their potential harms and are considering regulation. Industry self-regulation of companies’ own behavior is an alternative approach to direct government intervention through legislation. The self-regulatory age rating organizations in North America and Europe began assigning a loot box presence warning label (“In-game Purchases (Includes Random Items)”) since April 2020. This consumer protection measure has also been introduced to many digital storefronts. My recent study found that only 29% of popular games containing loot boxes were correctly labeled on the Google Play Store. The age rating organizations have seemingly suggested that other digital storefronts with significantly less content would, in contrast, perform significantly better. The present study found that the compliance rates were indeed higher on the Microsoft (89.1%), Sony (70.3%), and Nintendo (54.2%) stores. However, none met the target 95% compliance rate. Concerningly, the Epic Games Store's compliance rate was only 7.1%. Some remedial actions have been taken following the present study: while appreciated, they have failed to address all outstanding concerns. Companies and platform providers must better comply with and enforce the rules. Besides poor efficacy on mobile platforms, the industry self-regulatory loot box warning label is also not sufficiently reliable on PC and console platforms.

The influencing factors underlying the vicious ecological vulnerability-low productivity-poverty cycle in China and overcoming its related policies

There is often a vicious cycle that occurs in China encompassing ecological vulnerability, low productivity, and poverty. Existing research has not applied multiagent modelling and simulation (MAMS), which is a method suitable for analysing such complex systems. Therefore, the MAMS is here used to explore potential strategies for breaking this cycle. The MAMS method is based on complex adaptive systems and computer programs, and it includes both theoretical and simulation models, which can be used to simulate different scenarios and obtain visualized results. To sample representative poverty-stricken areas in China, the authors designed five breakthrough policy scenarios. The simulation results of these scenarios indicate that increasing the amount of arable land decreases the number of poor people. However, increasing the direct interventions of government does not reduce the number of the poor, nor does it change the Gini coefficient. On the other hand, increasing the number and variety of poverty alleviation opportunities available to the poor leads to a decrease in both the number of poor people and the Gini coefficient. These results of our five scenarios indicate that the optimal policy portfolio could be obtained by increasing the amount of arable land and providing more varied opportunities to help the poor participate in market activities while reducing direct government intervention. The combined design of these policies is conducive to breaking the vicious cycle of poverty.

Research Topic: Evaluating the Venture Capital Growth, Impediments, and Prospects in Sub-Saharan Africa Nations

Purpose: Nowadays, is it internationally acknowledged that access to venture capital (VC) investment is central for market internationalisation, entrepreneurship development, job creation and economic growth. Although VC’s reputation is universally accepted among scholars and in academic literature, there is still a knowledge gap in Africa. The study intended mainly to explore why developing nations in Africa have not been fruitful at stimulating early-venture capital investment compared to the developed nations. We reflect a range of probable reasons that impede both foreign and domestic VC investment, including difficulties faced by the entrepreneurs in obtaining funding from VC firms.
 Design/methodology/approach: Using multiple regression analysis, we examined data from 61 VC companies’ resident in East and Southern Africa from 2015-2021, coupled with in-depth interviews with twelve VC investors.
 Findings: The study revealed that several early-stage firms lack the capacity to manage large tickets of above US$5 million. Second, the results affirm that the absorptive capacity and VCs’ geographical preference all combined significantly influence the growth of the VC industry, and this problem is heightened by government’s limited support to creating supportive policies that enhance SMEs’ growth.
 Practical implications: The study offers good insights by suggesting direct government intervention in the form of instituting tax incentives on capital gains to inspire more foreign investors.
 Paper type: Research paper

The rise and fall of a Swahili tabloid in socialist Tanzania: Ngurumo newspaper, 1959–76

ABSTRACT While historians of East Africa have examined the region’s rich print cultures in the era of decolonisation, they have viewed newspapers primarily in intellectual terms, rather than as businesses embedded in capital networks. Through the Asian-owned Tanzanian tabloid Ngurumo, this article examines the political economy of newspapers and printing during the time of decolonisation in Tanzania. It argues that Randhir Thaker’s printing firm played an essential yet overlooked role in sustaining nationalist expansion in the late 1950s, before then entering the newspaper market in a period marked by racial tensions. However, the same undercapitalised business model which allowed Ngurumo to become Tanzania’s most popular newspaper then constrained its ability to expand its operations. Ngurumo’s demise in the mid-1970s was not caused by direct government intervention, but by its lack of the infrastructural and financial support which sustained the state- and party-owned press through a time of economic hardship.

The role of the state in encouraging the supply of senior housing: a looming welfare crisis?

PurposeAdopting a welfare stance, this paper considers whether the neoliberalist approach which has been adopted by successive UK and Scottish governments will achieve optimal societal outcomes or lead to the under provision of senior housing.Design/methodology/approachData collection centred on informed multi-stakeholder groups that have significant experience working in the retirement and senior housing sector. Core techniques included desk-based study of secondary academic, consultancy and policy documents. Primary data collection techniques involved primary participation of three Scottish taskforce meetings and interviews with key stakeholders from across the sector.FindingsThe paper concludes that without direct government intervention in the market, the welfare ambition to provide adequate housing for an ageing population will not materialise with significant shortfalls in appropriate stock predicted. To prevent this scenario developing, increased public and private sector interaction is essential.Originality/valueThe research follows the growing concern to provide research that has “real world” relevance. The paper conducts a detailed analysis of the Scottish government's housing strategy and reports on the findings of interviewees with key stakeholders. The paper makes recommendations for greater public/private partnerships.

Spurring entrepreneurship with public venture capital in developing industries – evidence from Hungary

PurposeVenture capital (VC) is an essential element in healthy entrepreneurial environments; therefore, many countries in developing entrepreneurial economies support the industry via direct or indirect government interventions. The purpose of this study is to examine through the example of the Hungarian market, whether direct or hybrid state involvement has contributed more to the growth of the invested enterprises. The findings are relevant in the design of government VC schemes and in the contracts mitigating the moral hazards inherent in government funding.Design/methodology/approachThe basis of empirical research is a unique hand-collected database covering Hungarian government-backed VC (GVC) investments. Based on the financial data of investee firms, the authors investigate whether firms financed by hybrid VC involving market participants are able to outperform firms that receive pure public financing using panel regression.FindingsBased on Hungarian evidence, hybrid VC-backed firms generated lower growth and employment than their purely government-backed peers. Both schemes showed meagre innovation activity. The conclusion is that because of the conflict of private and economic policy objectives in hybrid financing, the exposure of hybrid risk capital to moral hazard is higher than that of pure public financing. Private interests in hybrid funds can only improve investment efficiency if they are structured along the lines of market-based independent financial intermediation and the contracts imitate the ones existing amongst limited and general partners in private schemes.Research limitations/implicationsThe research covers the data of Hungarian government-backed firms by tracking the full range of 86 investments made in the purely government scheme and 340 firms that received funding in the hybrid scheme. The research focuses on two government initiatives, and the results are influenced by the specific regulation of the programs; therefore, the results cannot be generalized for all government agendas; they are indicative in the designs of the agendas.Originality/valueThere is a limited number of empirical studies investigating the impact of VC in developing markets, especially in the Central and Eastern Europe region. This firm-level research on the impact of public VC can help improve the effectiveness of development policies. By analysing the entirety of investments of a VC program that is near to its completion, the authors provide new insight into the efficiency and prospects of GVC schemes in the region.

City Symphony

City Symphony

Factors affect the housing prices in China: a systematic review of papers indexed in Chinese Science Citation Database

PurposeThis paper aims to explore the factors that affect housing prices as per Chinese articles indexed in the Chinese Science Citation Database (CSCD). There were different foci regarding what drove housing prices in China in Chinese articles, and international journal articles in English. As most previous English articles only threw light on international research, it motivated the researchers to systematically review Chinese literature’s factors that affected housing prices in China.Design/methodology/approachThis paper reviewed housing price research articles indexed in the two largest Chinese academic research databases: the CSCD and China Knowledge Infrastructure Engineering Database (CNKI.NET). It systematically collected the data and adopted descriptive analysis techniques and synthesis.FindingsThis research reviewed the literature published from 2015 to 2020 and revealed some unique factors affecting China's housing prices. For example, research focused on administrative aspects such as macroeconomic regulation and control (often known as macro control). Authors of Chinese articles suggested that the two-child policy affected housing prices, which differed from that in the English journal articles. The research results implied that researchers should read top Chinese journals on top of good international journals when they study China's real estate market in the future.Research limitations/implicationsBecause the domestic real estate market started late, domestic real estate transaction data and real estate-related statistics are more difficult to obtain. The research is mostly based on the relationship between supply and demand, government policy and individual consumer factors, and the sample has a short time span.Practical implicationsAs China is a planned economy country, administrative factors are one main factor that affects the housing price. There were a significant number of articles in Chinese that considered this factor to be the main driver of the real estate price. It included government investment and macro-control, i.e. direct government intervention to cool down the overheated economy. Yet, there are few English articles that threw light on this factor including the commodity housing supply and government behaviour that affect housing price. The second-child policy, which is unique in China, also played an important role in the determination of the housing price. In the articles indexed in CNKI, the second-child rate, willingness to have a second child or having a second child were mentioned in the Chinese articles but not the English ones.Social implicationsIn this paper, the economic, social, administrative and environmental factors were summarised, which basically covered all the factors affecting housing prices. The administrative factors were a special group of factors that affect the housing price because of the country's planned economic system. Secondly, it provided useful information to real estate development enterprises in China. To make a correct investment and management decision, real estate development enterprises must understand the actual situation and possible problems of the industry. In this study, we analysed the research literature on the real estate industry in China for the period from 2015 to 2020 one by one and determined the influencing factors of the housing price, which provided references for effective cost control. Thirdly, it allows the public to understand and grasp the real estate industry. As the housing price has been continuously increasing, the public pays increasing attention to the real estate industry. Through the literature analysis of the impact of real estate prices, this paper revealed the elements of house price expenses, which makes it convenient for ordinary people to understand the real estate industry.Originality/valueThis study allows foreigners who do not know Chinese to know more about factors that drove housing prices from the Chinese perspective. It also provides insights to overseas developers who wish to enter the property market in China. The results can be generalised to other non-English-speaking real estate research.

Can direct government intervention save the stock market?

With the aim of restoring the investors’ confidence during the 2008 Global Financial Crisis, the Taiwan government bought 47 blue-chip stocks in the Taiwan Stock Exchange. Our study examines the effect of the government intervention across four periods, including the pre-event, event, holding, and selling periods, the first exploring the stock price behavior during the holding period in the literature. During the holding period, the cumulative average daily abnormal returns (CAAR) curves of the intervened stocks sharply rise while its market volatility begins to decrease. Next, the intervention effect does spread to the non-intervened stocks, and the shareholders of the non-intervened stocks do benefit almost as much as those of the intervened stocks. The policy implications of our results are that the government can save the stock market by setting the holding period in its measures and by concentrating on purchasing a limited number of blue-chip stocks.

Ecological Efficiency Evaluation and Spatiotemporal Characteristics Analysis of the Linkage Development of the Logistics Industry and Manufacturing Industry

The logistics and manufacturing industries are basic industries that support social development. First, this study classifies the carbon emissions from the logistics industry and pollution emissions from the manufacturing industry as undesirable outputs and evaluates the ecological efficiency of the logistics and manufacturing industries in the Yangtze River Delta from 2006 to 2016 by using the unexpected slacks-based measure (SBM) model. Second, the study analyzes the spatial differences in industrial correlation efficiency by using the exploratory spatial data analysis method. Third, the spatial econometric model is used to analyze the driving factors of the linkage ecological efficiency between logistics industry and manufacturing industry. Finally, the neural network model is used to predict the linkage ecological efficiency. The results show that the ecological efficiency of the manufacturing industry has steadily improved. The ecological efficiency of the logistics industry presents the rising trend in fluctuation. The level of the linkage development between the logistics and manufacturing industries is high. The results of the spatial heterogeneity analysis show that the spatial differentiation of high–high agglomeration and low–low agglomeration is obvious. The spatial agglomeration characteristics are relatively stable, and the spatial diffusion effect is strong. In space, the linkage ecological efficiency shows a trend of development from multiple agglomeration areas to one agglomeration area. The results of driving factor analysis show that foreign direct investment (FDI), government intervention (GI), and human capital (HP) have positive effects on linkage ecological efficiency, while industrial structure (IS), environmental regulation (ER), and energy intensity (EI) have negative effects on linkage ecological efficiency. The results of the linkage development trend analysis show that the linkage ecological efficiency of the two industries will tend to be stable in the future.

The governance of energy transition: lessons from the Nigerian electricity sector

BackgroundThe rising need for transition towards more sustainable energy sources requires a rethink in the governance of energy systems. Arguably, policy makers have very important roles in governing transitions in any given society through established institutional frameworks. It has also been argued that energy infrastructure choices are determined by institutional dynamics and structures. However, what are the underlying influences required to change energy systems and what lessons can we draw from them for the governance of energy transition? This study focuses on understanding the dynamics of energy transition governance in the Nigerian electricity sector with the aim of drawing lessons that impact on energy transition and energy systems change.MethodsUsing explorative research tools, this study investigates the dynamics of energy transition governance in the Nigerian electricity sector with the aim of drawing lessons that impact on energy transition and energy systems change. Data from primary and secondary sources in documentary archives as well as other published sources that are linked with the provision of the Nigerian historical energy infrastructure were used for the analysis in order to draw lessons on energy transition dynamics in Nigeria.ResultsThe study revealed that there were three important factors that had a direct impact on energy transition and energy systems change in Nigeria’s electricity sector. These are: (1) Changing perceptions and goals (during the period leading up to Nigeria’s independence, 1890–1960s); (2) Direct government interventions in energy infrastructure provisions (1940s–1970s); and (3) Major changes in market rules (from 2005 and beyond).ConclusionsThe study concludes by highlighting that: (1) there is a need for government institutions to tackle energy access issues that address the needs of the poor; (2) it is imperative to explore technological options that are more sustainable; and (3) there is a need to address energy consumption patterns that are more energy intensive. Indeed, available energy resources, technological changes in electricity supply systems, and the ‘geographies of energy’ are major factors that influence energy production and consumption dynamics. All of them needs should be considered, as energy decisions are primarily political choices.

Institutional Deficiencies in Market-Led Residential Redevelopment in Shenzhen, China

Continuous reform efforts in urban China have scaled back direct government intervention by introducing freer land market trials. Anecdotal evidence reveals, however, that the liberal approach has yielded little advantageous result in Shenzhen, where such experiments are pioneered. By building on new institutionalist concepts and analyzing primary and secondary data, this paper demonstrates that deficiencies of formal rules created a policy vacuum, while informal constraints increased project uncertainty. Understanding the interwoven formal and informal institutional deficiencies adds new insights to the literature in explaining project outcomes and urban policy innovations in China’s urban transformation.

Do the national industrial relocation demonstration zones have higher regional energy efficiency?

The National Industrial Relocation Demonstration Zones serve as an important platform for optimizing spatial layout of productivity and promoting coordinated regional development. The impact of the establishment of demonstration zones on regional total factor energy efficiency remains unclear. This paper used dynamic slacks-based measurement method to measure the total factor energy efficiency of prefecture-level cities from 2005 to 2017. A Difference-in-Differences method is used to examine the policy effect of demonostration zones on regional energy efficiency. The results indicate that the average energy efficiency of these regions shows a downward trend within the observation interval. The establishment of the National Industrial Relocation Demonstration Zones has reduced the energy efficiency of the demonstration zones and not promoted the advanced development of industrial structure. Foreign Direct Investment and government intervention are the main reasons for the decline of total factor energy efficiency in the region. These findings have significant implications for the design of future policy which can promote the high-quality development of the central and western regions through industry transfer.

Climate derivatives strategies as an alternative to set up guaranteed prices for agricultural producers in México

ABSTRACT This article proposes climate derivative strategies as an alternative to set up guaranteed prices for agricultural producers with the idea that this market mechanism replaces direct government intervention and traditional insurance. To do that, we apply a bivariate time-varying copula to model temperature behaviour as a shadow price of each degree Celsius above or below a given temperature band. We apply the methodology to a wheat-producing region of Apan Hidalgo in México, where the temperatures may vary from −8 to 33°C in a 7-year sample. The proposed time-varying copula uses the minimum and maximum temperature as risk factors in a normal copula with logistic marginals. This copula acceptably fits the original data with a slight delay to the seasonal regime change, but on average, it acceptably mimics the extreme temperature behaviour. The design of the derivative strategies (long American-Parisian-instalment strangles) with underlying temperatures is carried out through a Monte Carlo simulation valuation. Our proposal is more cost efficient than the current programme, a guaranteed price system, broadening its scope and benefiting more farmers.

User Behavior and Market Developments Towards Data Protection

Contrary to most articles that have been recently written about data protection and dominant technology firms, this paper suggests that no direct government intervention is needed. Market forces are empowering the users who really care about their privacy rights; now users have privacy-oriented alternatives to the apps they were historically dependent upon, and they have been taking advantage of those alternatives. Firms have realized that privacy is a non-price dimension of competition and they can attract users by offering more privacy: the privacy features implemented in the new versions of Apple iOS and Google Android are good examples. Also, privacy-oriented apps have been able to capture users who are not satisfied with the data handling practices of dominant firms, with those dominant firms being a channel for the expansion of their privacy-oriented rivals. Those market developments, which indicate a potential creative destruction, should not be disregarded by legal scholars and policymakers. This article discusses recent trends towards data protection and applicable legal and public policy implications.

Spatiotemporal changes in efficiency and influencing factors of China's industrial carbon emissions.

The industrial sector is the backbone of China's national economy. The industrial carbon emission efficiency (ICEE) of China is directly related to the achievement of carbon emission reduction targets. This paper reports on the use of the minimum distance (min-SBM) method to determine the ICEE of 30 provinces in China during 1998-2015, as well as the use of a spatial econometric method to investigate the convergence and influencing factors of the regional ICEE. The results indicate significant regional differences in the ICEE. The provinces with higher average values of ICEE are located in the eastern coastal areas, whereas the provinces with lower average values of ICEE are located in the central and western inland regions. The results of the spatial autocorrelation index reveal that China's inter-provincial ICEE exhibits significant spatial autocorrelation characteristics, and its spatial distribution demonstrates a certain regularity. The local indicators of spatial association diagram further illustrate that most provinces in China have high and low agglomeration values. With the introduction of the spatial effect, the absolute and conditional convergence rates increase. In addition to the non-significant industrial structure effect, the level of economic development, foreign direct investment, technological progress, and government intervention demonstrate a positive impact on the ICEE convergence, whereas the energy consumption structure has a negative impact. This work investigates the cause for the regional gap in China's current ICEE. Suggestions for improving the efficiency of China's industrial carbon emissions and narrowing the regional gap are provided, which serve as a reference value for China to achieve the peak of carbon dioxide emissions before 2030.

The Economics of Walking About and Predicting Us Downturns

Economic shocks are notoriously difficult to predict but recent research suggests qualitative metrics about economic actors’ expectations are predictive of downturns. We show consumer expectations indices from both the Conference Board and the University of Michigan predict economic downturns up to 18 months in advance in the United States, both at national and at state-level. All the recessions since the 1980s have been predicted by at least 10 and sometimes many more point drops in these expectations indices. A single monthly rise of at least 0.3 percentage points in the unemployment rate also predicts recession, as does two consecutive months of employment rate declines. The economic situation in 2021 is exceptional, however, since unprecedented direct government intervention in the labor market through furlough-type arrangements has enabled employment rates to recover quickly from the huge downturn in 2020. However, downward movements in consumer expectations in the last six months suggest the economy in the United States is entering recession now (Autumn 2021) even though employment and wage growth figures suggest otherwise.

ГОСУДАРСТВЕННОЕ РЕГУЛИРОВАНИЕ АГРАРНОГО СЕКТОРА КАЗАХСТАНА

The main purpose of the work is to justify the need for public regulation of agricultural sector of the Republic of Kazakhstan, without which it is impossible to solve the tasks assigned to it aimed to ensure food security, supply raw materials to processing industries, and protect the domestic market from imports. The article notes that developed countries also support the agricultural industry, which is influenced by natural and climatic factors, dependent on the problems of green environment, the mandatory use of innovative technologies in practice. At the same time, the authors believe that it is necessary to limit direct government intervention in the economy. It should be focused on improving economic instruments: taxes, tariffs, monetary mechanism. The article provides data on the funds allocated from the republican budget for financing and effective functioning of agricultural enterprises for a number of years. It is determined that the development of agro-industrial complex is interconnected with the activities of development institutions. The problems that have arisen in the practice of their functioning are identified, in particular, this concerns financial resources, issues of granting loans to agricultural economies, monitoring the progress of projects that received loans. The difficulties that arose led to understanding of the need to reorganize this structure. As a result, three financial institutions remained: "Agricultural Lending Corporation" JSC, "KazAgroFinance" JSC and "Agricultural Financial Support Fund" JSC. These changes will contribute to improving the management mechanism of the AIC.