Economic Growth In China Research Articles

Development of Digital Financial Inclusion in China's Regional Economy: Evidence from Panel Threshold Models

This study aims to investigate the effect of digital financial inclusion and air pollution on economic growth for 31 Chinese provinces between 2003 and 2022 using Panel Threshold Auto-Regressive (PTAR) and Panel Smooth Transition Auto-Regression (PSTAR) models. The results show that there is a nonlinear link between digital financial inclusion and economic growth in China. For PTAR, the LnDFII thresholds are 4.264 (i.e., DFII = 71.094), and for PSTAR are 4.563 (i.e., DFII = 95.871). Below these thresholds, digital financial inclusion significantly boosts economic growth by 0.061 and 0.063 in the PTAR and PSTAR models, respectively. However, above these thresholds, the positive impact diminishes, with coefficients dropping to 0.015 and 0.004 in the PTAR and PSTAR models, respectively. Additionally, both models indicate that digital financial inclusion positively affects reducing air pollution, thereby potentially fostering economic growth. Hence, authorities should strategically implement digital technologies and strengthen collaborative efforts at the regional level to maximize these benefits.

How can urban economic complexity promote green economic growth in China? The perspective of green technology innovation and industrial structure upgrading

The essence of China's contemporary green economic transition is to enhance the capacity of the green production system, emphasizing regional technological and intellectual capabilities as the primary force of green economic growth (GEG). Economic complexity can reflect hidden regional production capacity, providing a new analytical tool for exploring GEG. Using a city–year panel dataset from 2000 to 2016, this study incorporates economic complexity and GEG into a unified research framework, adopting a fitness–complexity algorithm to measure Chinese urban economic complexity to empirically examine the influence and mechanisms of economic complexity on GEG. The results show that increased economic complexity promotes GEG by enhancing green technological innovation capacity and facilitating industrial structure upgrading, with one standard deviation increase in economic complexity followed by a 2.1% rise in GTFP. In addition, we emphasize the moderating effect of the government and the public, arguing that increased government environmental attention and public environmental concern reinforce the contribution of economic complexity. Finally, the findings reveal that public policies focusing on improving the economic complexity of low-complexity areas can strike a good balance between fairness and efficiency.

Social responsibility, information technology, and high-quality development of mining enterprise using structural equation modeling (SEM)

In the post-epidemic era, the geopolitical landscape is poised to impact global dynamics, with mineral supply emerging as a potential bottleneck for China's economic growth. Addressing this challenge requires Chinese mining enterprises to align mineral resources with domestic demand while bolstering their global influence. Despite this imperative, outdated technology, safety lapses, and inadequate measures have led to frequent mining accidents. This study explores the intricate relationship between corporate social responsibility (CSR) and information technology (IT) in the mining industry's high-quality development. Employing literature analysis, qualitative and quantitative methods, and structural equation modeling (SEM), we analyze data from 6334 mining companies listed on the Shenzhen Stock Exchange (2011–2018). Findings emphasize the substantial impact of both CSR and IT on high-quality development. While CSR fosters industry development, IT integration enhances social responsibility fulfillment, propelling high-quality development. As China shifts to high-quality development, this research highlights the pivotal role of CSR, surpassing IT, in driving the mining sector's evolution. These insights contribute to understanding the intricate dynamics between social responsibility and high-quality development, offering innovative perspectives for governance and technological advancement in the mining sector.

Research on the spatial and temporal impact of commercial banks’ spatial agglomeration on PM2.5 pollution in China

Commercial banks are the main body of the finance industry in China. It is of great significance to study the impact of commercial banks’ spatial agglomeration on PM2.5 for China to develop a green economy. This article selects data from 30 provinces in China, covering 2000 to 2021. This study innovatively utilizes commercial banking institutions’ longitude and latitude geographic coordinate information to build a new indicator to characterize the spatial agglomeration degree of commercial banks. Then, we use the geographically and temporally weighted regression model to investigate the spatio-temporal heterogeneous effect of commercial bank agglomeration on PM2.5. The theoretical mechanism concludes that financial agglomeration exacerbates PM2.5 pollution through the scale effect and can also reduce PM2.5 pollution through technique effect and composition effect. Financial agglomeration and PM2.5 have obvious temporal and spatial differences as well as spatial autocorrelation characteristics. The geographically and temporally weighted regression model's results show that from a national perspective, financial agglomeration can inhibit PM2.5 pollution, but the inhibitory effect is gradually diminishing, indicating that it is imminent for China to further deepen its green financial reform. From the provincial level, the influence of financial agglomeration on PM2.5 has obvious temporal and spatial differences. The inhibitory effects of Beijing, Tianjin, and Hebei are becoming stronger, and these areas have the best situations. The promoting effects of the three northeastern provinces and Shanxi and other central and western provinces are becoming larger and larger, and these areas have the worst situations. Shanghai and other eastern provinces and Guangxi and other western provinces have respectively brought inhibitory effects and promoting effects, but the effects are all weakening, and the situations are in the middle. The scientific value of this study lies in the following: First, this study combines the environmental Kuznets curve theory for mechanism analysis, providing a scientific theoretical basis for subsequent related research. Second, the financial agglomeration index constructed in this study provides a scientific reference for academic circles to more accurately investigate the relationship between financial agglomeration and environmental pollution. Third, this study reveals the temporal and spatial differences in the impact of financial agglomeration on PM2.5 pollution by using the geographically and temporally weighted regression model for the first time, pointing out the focus and direction for decoupling economic growth and PM2.5 pollution under the influence of financial agglomeration in China provinces. With China's efforts to achieve green sustainable development, this study provides new ideas and valuable insights into the driving factors of green economic growth in China.

Measuring the impacts of the two-child policy on industrial structure and economic growth in china using a CGE model

Facing the challenge of population aging and labor force shrinking, the Chinese government has been trying to reform its family planning policy since 2015. This paper analyzes the impacts of China’s Two-child policy on economic growth and industrial structure from 2020 to 2060 using a dynamic Computable general equilibrium (CGE) model. This paper constructs an effective labor input index accounting for changes in educational attainment and labor force participation rates by age and sex to simulate the effects of the demographic changes on labor supply and economic growth, rather than using simple working-age measures. This paper sets two policy scenarios, the One-child policy and the Two-child policy, to simulate the changes in the employment structure, industrial structure, and main macroeconomic indicators under different population policies. The main finding is that under the Two-child policy, the average GDP growth rate is expected to be 0.3% and 1.0% points higher than the One-child policy in the period of 2015–2030, and 2045–2060; the employment growth rates of the manufacturing and service industries are higher than that under the One-child policy; the shift of industrial structure from manufacturing to service industry will be slightly slower than the One-child policy. The positive impacts of the Two-child policy on China’s economic growth are not significant in the short run. From the perspective of the quantity, structure and quality of labor supply, this paper reveals how a more relaxed family planning policy will affect labor supply, and ultimately affect economic structure and growth in a long run.

Economic growth in China and India: The potential role of population

From 1980 through 2020, the rate of population growth declined in both China and India, but the decline was far more pronounced in China. During the same period, per capita income increased substantially in both China and India, but the increase was far more pronounced in China. The fact that China and India are similar in many important respects (ancient cultures, large populations, etc.), but implemented substantially different population control policies during the 1980–2020 interval, suggests an equivalence to a quasi-controlled experiment, of the sort that very rarely occurs in the real world. The control would be India, with a relatively conventional population control policy, and the experiment would be China, with its relatively drastic population control policy. This research investigates the possibility of a causal relation between differential population growth and differential economic growth in China and India. It is shown that the simulation of a basic economic growth model in which population growth is a key exogenous determinant, and which utilizes the same economic relationships and numerical parameter values for both China and India, produces time paths of growth in per capita income that closely resemble the empirical Chinese and Indian time paths. This finding supports the hypothesis that a significant factor in China's remarkable economic growth over the last four decades has been its equally remarkable population control policy.

Çin'in Ekonomik Gelişiminde Dış Ticaret ve Doğrudan Yabancı Yatırımların Etkisi: Ampirik Bir Yaklaşım

China achieved rapid economic development as a result of the reforms implemented in 1978. It is widely believed that foreign direct investments and foreign trade, which increased alongside these reforms, had a significant impact on this rapid economic progress. Consequently, this study sought to examine the effectiveness of foreign direct investments and foreign trade in facilitating China's rapid economic growth between 1978 and 2016, utilizing the SVAR method. Within the scope of the study, three variables were utilized: the growth rate, the ratio of foreign direct investments in GDP, and the ratio of foreign trade volume in GDP. In the initial part of the study, the growth process, foreign direct investments, and foreign trade of China were evaluated using graphical representations. In the following section, in the empirical part, initially crisis periods were incorporated into the model as a dummy variable in order to prevent crisis periods to affecting the results. Following this, unit root tests were conducted, and it was concluded that the series were non-stationary at the level but became stationary after taking their first differences. Therefore, in this study, the first differences of the series were utilized for analysis. In the subsequent part, autocorrelation and heteroskedasticity tests were applied to the model. The results of these tests indicated that the model is suitable for evaluation. Consequently, in the next part, the study proceeded to evaluate the impulse-response functions and variance decomposition results of the model. As a result of these analyses, it was concluded that both foreign direct investments and foreign trade, but especially foreign direct investments, have a significant impact on China's economic growth.

Health and growth in China: Greater investment in both soft- and hard-ware are needed

The purpose is to study the relationship between health investment and economic growth in China. The research design involves empirical research using semi parametric regression models and instrumental variable methods. The results indicate that on the one hand, Chinese health investment can promote economic growth, and its promoting effect on economic growth is non-linear; On the other hand, healthcare investment in the form of human capital is more conducive to promoting regional economic growth than healthcare investment in the form of material capital. The conclusion is that it is necessary to increase health investment in the form of human capital such as the number of health personnel in the eastern region, as well as in the form of material capital such as the number of beds in the central and western regions, in order to better promote regional economic growth.

Research on Talent Cultivation of Local Applied College Students and Local Economic Development

With the transformation of China's economic growth mode from rough to intensive, from the emphasis on scale and speed to the pursuit of high quality and efficiency, and from factor investment-driven to innovation-driven, the local applied universities should develop in synergy with the regional economy and make progress in a coordinated manner. The concept of synergistic development of applied university education and regional economy points out the positioning of innovation and entrepreneurship talent cultivation objectives and reform direction of applied universities, based on the actual problems of innovation and entrepreneurship talent cultivation in local applied universities, from positioning the innovation and entrepreneurship talent cultivation objectives to serve the regional economic development, constructing the curriculum content system coordinated with the development of regional economy, and coordinating regional resources to build a diversified entrepreneurship practice platform. It discusses the path of innovation and entrepreneurship talent cultivation in local applied universities which is deeply connected with regional economy, positively interacted and synergistically developed.

Research on the impact of human capital on economic growth in China 's provinces based on panel data model

Because human capital can promote economic development, promote social progress and achieve sustainable development, it plays an important role in Chinese modernization. Therefore, it is of great significance to study the impact of human capital on economic growth. This paper first constructs the index system, and uses the Topsis entropy weight method to comprehensively score the indicators ; then, a 25-year panel data model of 31 provinces ( cities ) in China from 1997 to 2021 is established. Through F test, Breusch-Pagan test and Hausman test, a variety of panel data models are selected. It is found that the individual time point double fixed effect model has a good regression fitting effect on the relevant data. Therefore, this model is selected to analyze the impact of education human capital and health human capital on economic growth, and it is found that both education human capital and health human capital have a significant role in promoting economic growth, but the role of education human capital is more obvious. When education human capital changes 1 unit, China 's economic growth will change 0.105 units. When health human capital changes 1 unit, China 's economic growth will change 0.09 units.

Between the Superpowers: Gulf States and Israel Navigate the New Mideast Dynamics

AbstractChina has become increasingly active in the Middle East over the past decade, both economically and politically. Its strategy aims to expand its reach and influence, while warily avoiding the region's chronic instability. The Gulf states and Israel have sought to leverage China's economic growth and global influence to advance their interests. This article explores the strategies of key Gulf countries, Israel, and Iran toward China in their efforts to manage the fast‐changing regional dynamics. It first examines their economic ties with Beijing and then discusses their political relations. The analysis also reviews how the intensifying superpower competition between the United States and China is shaping both the region and the foreign policies of its constitutive states. This article is part of a special issue on the responses of Gulf countries to rising Sino‐American competition, edited by Andrea Ghiselli, Anoushiravan Ehteshami, and Enrico Fardella.

Mechanism testing of the empowerment of green transformation and upgrading of industry by the digital economy in China

With the continuous advancement of industrialization, global environmental problems are becoming increasingly severe. Maintaining economic growth while improving the environment has been an important issue for many countries, especially developing countries. As industry is a major source of environmental pollution, industrial green transformation and upgrading have become particularly important. In the era of the digital economy (DE), there is a new path for industrial green transformation and upgrading. Based on provincial data on industry from 2008 to 2021, a difference-in-differences (DID) model was constructed to analyze the environmental and economic benefits. New pathways for trade-offs between environmental improvement and economic growth in China are presented. In addition, new ideas are concerning global environmental issues and economic issues in the DE are presented. The present study indicates that the DE has reduced the intensity of pollution emissions and elevated total factor productivity (TFP), which has helped to promote industrial green transformation and upgrading. Further mechanism testing showed that the DE has promoted industrial green transformation and upgrading by improving the utilization of energy and resources and promoting technological innovation. Considering the utilization of energy and resources, the DE has decreased China’s total industrial consumption of energy and coal, reduced industrial water consumption, and reduced the share of coal consumption and increased the share of clean energy consumption in China’s total industrial energy consumption; these effects have optimized the efficiency and structure of China’s energy utilization to contribute to the green transformation and upgrading of industry. Regarding technological innovation, the development of the DE has increased industrial innovation output and R&D input. Furthermore, it has promoted innovation with respect to green processes, accelerating technological innovation, and realized industrial green transformation and upgrading.

Investing in disadvantaged children for common prosperity in China

Despite rapid economic growth in China since 1978, rural-urban inequality has widened. High levels of socioeconomic inequality can have profound implications for child development and lifelong educational equity. Using a dataset containing early childhood development (ECD) outcomes of 0- to 3-year-olds (N = 9,053) from study sites in Eastern, Central, and Western China, the study finds that the risks of cognitive, language, and motor delay are, respectively, 43.2, 18.3, and 20.7 percentage points higher in rural study sites than in urban Shanghai (ps < .01). Impact evaluation of cluster-randomized experiments shows that parental training (focusing on child psychosocial stimulation and caregiver-child interaction) can improve parenting beliefs and practices (or investments) and ECD outcomes of disadvantaged rural children (p<.01). Such programs can play an important role in advancing progress toward more social equality and economic equity, the stated goals of China’s “Common Prosperity” policy.

The potential of China's tea trade and how it affects China's economic growth

Tea is an essential commodity for China's agriculture trade, which faces fierce competition in the global tea trade. The export share of tea in China has a smaller proportion than other products, which means that it can influence on the economic growth or otherwise. This study aims to examine the potential destination countries for China's tea trade in the international market and its impact on economic growth. In this study, the panel-based gravity model was applied by identifying the potential destination countries for tea by using data of bilateral trade between China and 78 importing countries from 2010 to 2020. The Autoregressive Distributive Lag (ARDL) from 1991 to 2020 was used to evaluate the effect of China's tea export on economic growth. The result confirmed that 39 countries were identified as a potential destination for China's tea trade. A positive and significant effect of the tea trade on the country's economic growth in the long and short run was also found, particularly through export activity. China needs to increase the production of tea and to establish relations with the identified potential destination countries for tea exports in order to achieve a higher level of economic growth.

Promoting sustainable and high‐quality economic development in China via regional innovation poles

AbstractUsing a panel data set comprising 284 prefecture‐level and above cities in China during 2005–2018, this study develops a theoretical mechanism harnessing the spatial Durbin model (SDM) to accumulate evidence and explain how innovation affects China's economic growth. It is found that regional economic growth is facilitated by local innovation activities as well as the absorption capacity of innovation and technology spilled over from other regions. This study also identifies 12 regional innovation poles across the country, which are found to have played a significant role in promoting urban economic development within a physical distance range of 150 km of a given region. This finding attests to the radiation effect from regional innovation poles in cultivating more such poles for China, to promote sustainable high‐quality economic growth, suggesting a route for China to avoid the curse of the middle‐income trap.

Creating shared value in China: The case of Austrian businesses

AbstractThe objective of this study is to investigate the state of creating shared value (CSV) in China, where a number of societal pressures and issues, appear to offer businesses plentiful opportunities to apply the CSV model. The focus here lies on foreign businesses in China, which are commonly referred to as a key driving force behind China's economic growth. Following a review of relevant literature discussing both, the global as well as the Chinese context of companies “doing good,” this study utilizes online and in‐person interviews to gather additional data to derive more insight into recent business practices, specifically analyzing which level of “doing good” foreign businesses in China are currently engaging in. For this empirical component of the study, Austrian businesses in China serve as the target population. The study's findings show, that while “doing good” has been a relevant topic for foreign businesses in China, many are still engaging in simpler ways of “doing good,” such as philanthropy or Corporate Social Responsibility. Only few companies currently follow a CSV approach in China, yet a larger number find CSV a suitable approach for businesses in China, indicating that CSV does have potential as China continues her economic growth. The study concludes with recommendations for both, academia and business practice, and could potentially also serve as an inspiration for regulatory policies for foreign businesses in China.

Intensity of economic relationships: a spatial econometric analysis of regional economic growth in China

Intensity of economic relationships: a spatial econometric analysis of regional economic growth in China

Role of eco-innovation and financial globalization on ecological quality in China: A wavelet analysis

Today, pressing environmental concerns such as addressing climate change and countering global warming have taken center stage among policymakers and diverse organizations. The 2016 Paris Agreement underscores the urgency of decarbonization and the criticality of reducing CO2 emissions for fostering sustainable development. Given that environmental policies can yield diverse impacts across short-, medium-, and long-term periods, it becomes pivotal for policymakers to grasp the underlying causes of ecological footprint by scrutinizing their effects across these different timeframes and periods. Consequently, our investigation delved into the correlation and lead/lag interrelationship between ecological footprint, financial globalization, urbanization, eco-innovation, and economic growth in China spanning from 1985q1 to 2022q4. Leveraging on series of wavelet tools, our study aimed at formulating precise policies. The economic perspective derived from the wavelet analysis indicated a negative correlation between urbanization and eco-innovation with the ecological footprint, whereas economic growth and financial globalization exhibited a positive correlation with the ecological footprint. Consequently, we advocate for the implementation of appropriate policy measures to ensure that the Chinese economy charts a course toward sustainability.

Impact of global value chain embedding on decoupling between China's CO2 emissions and economic growth: Based on Tapio decoupling and structural decomposition

With the increasing fragmentation of global production, China's participation in cross-border production sharing activities has had a considerable impact on the nation's economy and carbon dioxide (CO2) emissions. This study applied the Tapio model to quantitatively evaluate the decoupling between CO2 emissions and economic growth in China, dividing the decoupling index based on global value chains (GVCs) and domestic production within the IO framework, and introducing structural decomposition analysis (SDA) to analyze the GVC-related factors to the decoupling. The relevant research results are fourfold. (1) From 2000 to 2018, China achieved weak decoupling between emissions and economic growth. Domestic and GVC effects each had a negative impact on the decoupling; however, after 2008, the GVC effect had a promotional effect and the negative domestic effect declined. (2) Emission intensity was the primary factor promoting decoupling through domestic and GVC effects, while the scale of final demand was the main hindrance. And the negative effects of GVC-related factors declined following the economic crisis. (3) The regional and sectoral structures of GVC production (58.44 % and 56.08 %) had promotional roles in the changes in GVC effects, while GVC production linkages (−20.19 %) had hindering effects. Various factors contributed to the hindering effect from the 2008 to 2011 index, whereas from the 2011 to 2018 index, all factors contributed to the promotional effect. (4) From 2000 to 2018, the average annual global value chain effect promoted the low-carbon development of China's labor-intensive and knowledge-based manufacturing. In order for GVCs to play a positive role in decoupling, China should promote trade facilitation through international platforms, support the advancement of production technology, reasonably guide China's industries to participate in the regional and industrial links of GVCs, and develop strategic emerging industries.

A Study on the Differences in Economic Development between East and West China

This study probes into the root cause of the economic development gap between East and West China. In the background, China's vast geographical conditions, historical investment patterns, and policy support have led to significant differences in development between the eastern and western regions. The objective of this paper is to analyze in depth how these factors interact and affect the economic development of the two regions. The research focuses on geographical factors, industrial structure, productivity, and education level. The study found that the eastern region's geographical advantages, policy support, and industrial diversity promoted its economic prosperity, while the western region's geographical barriers, resource dependence, and educational shortcomings restricted its development. In the future, comprehensive measures, including infrastructure construction, policy support, innovation promotion, and education reform, are needed to close this gap. Balanced and sustainable economic growth in China requires the coordinated development of the eastern and western regions, which will also help improve the living standards of the people throughout the country and promote the overall prosperity of the country.