Data Of Industrial Enterprises Research Articles

Firm’s outward foreign direct investment and efficiency loss of factor price distortion: Evidence from Chinese firms

This paper investigates whether China’s outward foreign direct investment (OFDI) can solve the problem of low productivity caused by factor price distortions and the marketization of China’s factor market. For this analysis industrial enterprise data, covering a period of 5 years from 2003 to 2007, is used. To reveal the relationship between efficiency loss caused by factor price distortion and OFDI the trend score matching method is applied. The results of the analysis are threefold. First of all, the price distortion of elements inhibits the increase of total factor productivity, and labor price or capital price distortion has a significant negative impact on firm productivity. Second, foreign direct investments can mitigate the negative impact of factor price distortions on total factor productivity. Finally, from the perspective of different investment liberalization, there is a heterogeneous impact on the relationship between foreign direct investments and factor price distortions affecting the total factor productivity of enterprises.

The Global Production Chain Embedding and Chinese Firms’ Outward Foreign Direct Investment

In the last few years, one of the fundamental changes in international trade is the emergence of global value chains（GVCs）, and the increasingly fragmentation of production. Under this background, Chinese firms’ going global” for foreign direct investment（FDI）might mean going global” for embedding GVCs. However, few researches investigate firms’ FDI behaviors from the perspective of GVCs, especially from the impact of embedding in GVCs on FDI decision-making and location choice.This paper uses industrial enterprise data compiled by China’s National Bureau of Statistics, import and export trade data collected by China’s General Administration of Customs, FDI data from Ministry of Commerce and WIOD data. We calculate upstreamness initiated by Antras, et al.（2012）and Chor, et al.（2014）, which measures the position of Chinese manufacturing firms in GVCs. We also examine how this position determines the decision of outward foreign direct investment（OFDI）. We find that firms at both ends of GVCs are more likely to invest overseas. That is to say, firms with upstream import embedding position and downstream export embedding position are more likely to invest abroad. These results are robust when using alternative measures, considering the endogeneity and the rare event issues. Furthermore, we also find that firms’ different investment motivations and regional choices are followed in light of firms’ GVC position.This paper contributes to the existing literature in two aspects: First, we take a further step to investigate Chinese firms’ going out” reasons from a new perspective such as GVCs; Second, different from the existing researches focusing on calculating the added-value of exports at the national or industry level, this paper measures the embedding position of global production chains at the firm level. It empirically analyzes the different characteristics of firms with different production chain embedding locations in their OFDI, and further discusses the impact of trade-based specialization in GVCs on global production networks such as OFDI motivations and OFDI location selections, based on the heterogeneity of OFDI.Our research, to a certain extent, reveals the inherent logic of Chinese firms participating in global trade and global production networks, helps the government make more targeted going out” policies under the B&R” initiative, provides differentiated policy support to firms with different GVC divisions when going out”, and gives better guidance to firms on FDI.

Neural networks application in managing the energy efficiency of industrial enterprise

The article is devoted to the creation of a method for using of neural networks approach in solving problems of energy efficiency management at the industrial enterprise. The method allows to obtain an approximate expected value of the energy intensity of production, depending on the values of the main factors affecting it. The multilayer perceptron was chosen as the type of neural network, synthesis of which was carried out by using the genetic algorithm. When sampling for the synthesis of a neural network, we used the results that were obtained by means of a priori ranking, correlation and regression analysis based on the statistical data of industrial enterprises in machine-building profile. The recommendations of the use of the method and the application of its results in the practical implementation at the industrial enterprise are given. Calculations based on the aforementioned method ensured a high precision of prediction of energy intensity values for industrial enterprises that were included in the sample during the synthesis of the neural network, and an acceptable error while testing on industrial enterprises from a test sample.

Effects of Environmental Regulations on Technological Innovation Efficiency in China’s Industrial Enterprises: A Spatial Analysis

China’s traditional industrial model is characterized by high energy consumption and high pollution, which results in many environmental problems that cannot be ignored. To achieve sustainable development, the Chinese government has proposed five development concepts of “innovation, coordination, green, openness, and sharing”. This initiative highlights the urgency of China’s efforts to strengthen environmental regulation. Based on the panel data of industrial enterprises in China from 2006 to 2015, this study not only investigates the spatial features of technological innovation efficiency, but also examines the relationship between technology innovation efficiency and environmental regulations from a spatial perspective. The results indicate that first, China’s provincial-level technological innovation efficiencies are uneven in space. Second, voluntary regulation positively affects the technological innovation efficiency of industrial enterprises at the provincial level, while mandatory regulation has no significant impact. Third, there is a spatial spillover effect in voluntary regulation at the provincial level. One highlight implication is that the government should promulgate environmental regulations based on each province’s technological innovation potential, due to the spatial differences in technological innovation activities.

Experience in the management of business processes with the use of digital technologies by Russian companies of a petrochemical complex

This article discusses the prospects for the introduction of modern technologies in the business processes of industrial enterprises in the framework of the fourth industrial revolution. The factors determining the vector of development of modern technologies are revealed. The classification of tasks of the enterprises of non-resource sector of economy under which high technologies of “Industry 4.0” are introduced is given. The article also considers the impact of modern technologies on the business processes of industrial enterprises in the context of types of technologies. The analysis of the data of industrial enterprises, which are part of the largest petrochemical holding of the Russian Federation for compliance of the implemented technologies with the tasks of the considered enterprises is given. The study presents data on the possibilities of modern technologies and the results of the impact of technology on the business processes of enterprises.

What Is the Focus of Structural Reform in China?—Comparison of the Factor Misallocation Degree within the Manufacturing Industry with a Unified Model

The misallocation of production factors, with structural misallocation as an important aspect, is a key instigator of low total factor productivity (TFP) growth rate in China, but one important question is which structural misallocation of what factor is more serious in China. Using China’s manufacturing industrial enterprise data from 1998 to 2013, we calculated and compared the factors misallocation degree among industries, ownerships and regions. The results indicated that, the misallocation among industries was most serious, which led to a TFP loss of 8.12% annually. The misallocation among ownerships ranked second, which led to a TFP loss of 5.49%. The least degree of the misallocation recorded among provinces led to TFP loss of 3.05%. By using the relative severity index, the rank is the same. As to the capital, the misallocation among ownerships was most serious, which led to TFP loss of 4.62%. But as to the labor, the misallocation among industries was most serious, which led to TFP loss of 4.58%. Moreover, the misallocation among ownerships alleviated rapidly from 1998 to 2007, while alleviated slower among industries and regions. However, from 2008 to 2013, all three types of structural misallocation have become worse, especially in labor. These conclusions are important to identify the focus of structural reform in China.

Can environmental regulation promote the governance of excess capacity in China's energy sector? The market exit of zombie enterprises

Zombie enterprises, which seriously impede the sustainable development of China's economy and have become a major obstacle to the structural reform of China's supply side, exist throughout the Chinese traditional economy. Based on Chinese industrial enterprise data, this paper identifies zombie enterprises in the energy industries with a modified method used by Fukuda and Nakamura (2011) and uses the survival analysis model to test the impact of environmental regulation on the market exit of zombie enterprises. The empirical results show that environmental regulation can speed up the exit of zombie enterprises to achieve the governance of excess capacity for energy enterprises. Moreover, the effect of environmental regulation is influenced by the regional institutional environment. With the increase in the degree of decentralization and the corruption of officials, the influence of environmental regulation on the overcapacity of energy enterprises is weakened. Finally, the mediating effect model reveals that environmental regulation has a “following cost effect” and “innovation compensation effect” in the energy industry, and the “innovation compensation effect” is dominant.

The Efficiency Improvement in Low-carbon Technology Innovation of Chinese Enterprises under CDM: An Empirical Study based on DEA Assessments

The Clean Development Mechanism (CDM) with financial incentives and technical transfer brings about potential improvement in the efficiency of Chinese enterprises’ low-carbon technology innovation. Based on DEA models and data of industrial enterprises, we assess the efficiencies and their improvement under CDM. We then estimate the effects of CDM on the probability of efficiency improvement using a logit model. The effects of CDM on the improvement rate are also estimated. It is found that the undertaking of CDM would benefit Chinese enterprises to achieve more significant efficiency improvement in their low-carbon technology innovation, by raising not only the probability but also the rate of efficiency improvement.

On the Effect of Housing Price Rise on Firm Size Distribution

The firm size distribution is an important content of industrial organization characteristics. Uniform firm size distribution can reflect not only the allocation of scarce resources among enterprises and dynamic evolution process of enterprises in a country, but also competition and cooperation relationships between enterprises and industrial development pattern within a certain industry. Besides, it generates an important impact on economic growth and an adjustment to economic structure in a country, such as firm size distribution & innovation, and firm size distribution & productivity. In the academia, the analysis of factors affecting firm size distribution is mainly based on financing constraints, institutions and so on, but pays little attention to the intrinsic correlation between sharp housing price rise and firm size distribution in recent years.Under the background of rapid housing price rise from 1999 to 2007 in China, this paper empirically investigates the effect of housing price rise at the provincial level on firm size distribution by using the data of industrial enterprises. In order to test the influence of housing price rise on firm size distribution, this paper constructs the Pareto exponent to measure firm size distribution. The results show that as a whole, housing price rise is not conducive to the formation of uniform firm size distribution, and the estimation based on modified Pareto exponent remains robust. Furthermore, the mediation effect model is used to test the mechanism concerning the effect of housing price rise on firm size distribution. It finds that cost effect, credit effect and crowding-out effect could be counted as three paths to the role of housing price rise in firm size distribution, and the above paths show different influences on enterprises with different scale. The cost effect of housing price rise pushes up the production costs of industrial enterprises, but generates a greater impact on SMEs. The credit effect of housing price rise leads to the appreciation of the collateral assets of industrial enterprises, such as land and plant building, thus alleviating the financing constraints of enterprises. But compared with SMEs, housing price rise is more favorable to large enterprises. The housing price rise induces a great deal of capital into the real estate field. Because of their strong strength, large enterprises have the ability to break through the necessary capital barriers, the land resources access barriers and the administrative barriers to real estate development market. Obviously, crowding-out effect has a greater impact on large enterprises.This paper not only is a useful supplement to the theoretical research of firm size distribution, but also provides a new perspective for understanding the impact of housing price rise on the real economy, and even a scientific basis for the policy formulation of governments, to mitigate the shock of housing price rise to the real economy. The relevant government departments should accelerate the development of long-term public rental housing market, promote the reform of housing subsidy form and the pilot of the common property right housing, and make great efforts to reduce the housing expenses of low and middle-income earners, new employees without housing and migrant workers. We should perfect the dynamic monitoring mechanism of the real estate collateral, and further standardize & tighten the housing mortgage loans. A monitoring and warning mechanism for brick-and-mortar enterprises investing in the real estate market should be established, and the flow of credit funds into the real estate field should be strictly prohibited.

Industry strategic variety and performance

Purpose – Market‐based theories assume that firms’ different strategic commitments to businesses lead to different strategic positions within the industry. While the institutional perspective from organization theory emphasizes the institutional pressures which lead to legitimacy and firm isomorphism, it is not clear yet how intra‐industry organizations behave during institutional transitions. The purpose of this paper is to combine the insights of these theories by examining the role of market and institutional forces in affecting industry strategic variety and its impact on average industry performance in transitional China, based on the strategic view of neoinstitutional theory. Design/methodology/approach – Empirical tests are carried out using industrial enterprise data of China from 2000 to 2006. Findings – Empirical results using industrial enterprise data of China from 2000 to 2006 suggest that: industry competitiveness has a strong positive influence on strategic variety; the weakening relationship between government and market leads to increased strategic variety; and indicators of strategic variety have complicated effects on industry performance. Originality/value – The strategic view of neoinstitutional theory was used to gain a better understanding of intra‐industry strategic variety during the institutional transition of China. Thus this paper combines seemingly contradictory theories in our understanding of how intra‐industry organizations behave in response to institutional change.

Regional total factor energy efficiency: An empirical analysis of industrial sector in China

The rapid growth of the Chinese economy has resulted in great pressure on energy consumption, especially the energy intensive sector – the industrial sector. To achieve sustainable development, China has to consider how to promote energy efficiency to meet the demand of Chinese rapid economic growth, as the energy efficiency of China is relatively low. Meanwhile, the appeal of energy saving and emission reduction has been made by the Chinese central government. Therefore, it is important to evaluate the energy efficiency of industrial sector in China and to assess efficiency development probabilities. The framework of total factor energy efficiency index is adopted to determine the discrepancy of energy efficiency in Chinese industrial sector based on the provincial statistical data of industrial enterprises above designated size in 30 provinces from 2005 to 2009, with gross industrial output as the output value and energy consumption, average remaining balance of capital assets and average amount of working force as the input values. Besides, in considerate of the regional divide of China, namely eastern, central, and western, and economic development differences in each region, energy efficiency of each region is also analysed in this paper. The results show that there is room for China to improve its energy efficiency, especially western provinces which have large amount of energy input excess. Generally speaking, insufficient technological investment and fail of reaching best scale of manufacture are two factors preventing China from energy efficiency promotion. Based on our findings, some policy implications on the improvement of energy efficiency, particularly for economically underdeveloped regions in China, are also discussed.