Two-way Fixed Effects Model Research Articles

The Impact of Education Level on Real Estate Asset Allocation

As an important asset class, the allocation decision of real estate is of great significance to the wealth accumulation of individuals and families. This paper builds a theoretical framework based on the theoretical perspective of human capital, takes the CHFS database in 2015,2017 and 2019 as the benchmark, and constructs the Probit model, two-way fixed effect model and intermediary effect model to carry out empirical testing, revealing the causal relationship and mechanism between education level and real estate asset allocation. The results show that the education level significantly increases the individual real estate asset allocation, and this causality is still significantly established under multiple robustness tests. Financial information attention and financial knowledge play an important intermediary role in this process. In addition, the impact of educational level on real estate asset allocation was more obvious in the urban sample than in the rural groups. This study not only enriches the theoretical basis of relevant fields, but also provides a scientific basis for policy makers, which helps to optimize the allocation of resources in the real estate market and promote the sustainable economic development.

Fintech, financing constraints and corporate green innovation

This study comprehensively analyzes the panel data of 4195 listed companies in the A-share market during the period from 2011 to 2022, aiming to explore the mechanism of fintech's influence on corporate green innovation. The study adopts a two-way fixed effects model to confirm the positive association between fintech and corporate innovation, and reveals the role of fintech in promoting corporate innovation output by alleviating financing constraints with the help of a mediated effects model. The findings suggest that FinTech not only directly promotes firms' innovation activities, but also provides important support for firms' innovation by reducing financing constraints, a finding that is confirmed by a series of robustness tests.On this basis, this paper emphasizes that, in the face of market changes brought about by fintech, firms should proactively adapt to and take advantage of these changes to mitigate the pressure of high costs of external financing by maintaining good credit records and reducing information asymmetry. Such a strategy not only helps firms obtain more funds for R&D and innovation, but is also key to achieving sustainable development goals. In addition, policymakers should also recognize the important role of fintech in promoting business innovation and green transformation and take measures to encourage its development and application for the long-term health of the economy.

How Socialized Services Affect Agricultural Economic Resilience—Empirical Evidence from China

Socialized services are crucial for addressing the issue of “who will farm the land” and subsequently enhancing agricultural economic resilience (AER). However, few studies have examined the mechanisms and effects of socialized services on AER. Consequently, this study aims to elucidate the impact and mechanisms of socialized services on AER, with the objective of providing new policy recommendations for enhancing AER and ensuring food security. Based on provincial panel data from China spanning 2009 to 2021, this paper examines the impact and mechanisms of socialized services on AER using a two-way fixed effects model, a mediated effects model, and a panel threshold model. The findings reveal that socialized services significantly enhance AER. Mechanism analysis indicates that socialized services enhance AER by accelerating the substitution of machinery for manpower and promoting the efficiency of labor division. Heterogeneity analysis indicates that in regions with high grain cropping ratios and high internet penetration rates, the enhancement effect of socialized services on AER is stronger. Further analysis uncovers a significant nonlinear threshold effect of socialized services on AER. The impact becomes more pronounced when AER surpasses 0.4689. Consequently, this study argues that in the process of constructing a modern agricultural business system, it is essential to focus on improving the differentiated socialized service system and accelerating the development of rural digital infrastructure.

Internal Drive or External Pull: Independent Innovation and Sustainable Growth of Chinese Agricultural Enterprises

The independent innovation of agricultural enterprises ensures national food security through enhancing food production efficiency and optimizing food nutritional quality. Independent innovation is an important way for the sustainable growth of agricultural enterprises. However, in this process, there are issues such as long cycles and high risks. Based on this, using the panel data of China’s listed agricultural enterprises from 2007 to 2021, this study empirically examined the impact of independent innovation on the sustainable growth of agricultural enterprises, as well as the moderating effects of internal drivers (digital transformation) and external pull factors (government subsidies) through a two-way fixed effects model. The findings are the following: (1) The impact of independent innovation on the sustainable growth of agricultural enterprises exhibits an “inverted U-pattern”. When the R&D investment of agricultural enterprises accounts for 77.85% of operating income, the sustainable growth ability of agricultural enterprises is the highest. (2) Compared with large agricultural enterprises, small and medium-sized agricultural enterprises reach the threshold of independent innovation ability later, and the incentive effect range of independent innovation is longer. (3) Independent innovation exerts a more significant “inverted U” effect on the sustainable growth of non-state-owned agricultural enterprises and agricultural enterprises in the mature stage, while its impact on the sustainable growth of state-owned agricultural enterprises and agricultural enterprises in the growth and decline stages is not significant. (4) Government subsidies can help enhance the positive impact of independent innovation on the sustainable growth of agricultural enterprises when it does not exceed the threshold but cannot alleviate the negative impact of independent innovation on the sustainable growth of agricultural enterprises when it exceeds the threshold; investment in digital transformation not only helps to enhance the positive impact of independent innovation on the sustainable growth of agricultural enterprises when it does not exceed the threshold but also helps to alleviate the negative impact of independent innovation on the sustainable growth of agricultural enterprises when it exceeds the threshold. The research results provide data support for agricultural enterprises to carry out innovation activities under internal drive and external pull. At the same time, it is of great significance for the national implementation of the strategy of storing food in technology and food security strategy.

How educational inequality affects family multichild behavior—evidence from super high schools

In a context characterized by the dual issues of educational inequality and problems with fertility, the internal relationship between these two factors requires further in-depth exploration. On the basis of data drawn from the China Family Panel Studies (CFPS) from 2010 to 2018, this paper investigates whether “super high schools” in cities represent a form of educational inequality, uses a combination of a two-way fixed effect model with the instrumental variable method to discuss the influence of this situation on family fertility and the corresponding transmission mechanism, develops a proportional risk regression model, and expands our understanding of the influence of educational inequality on the second-child birth interval. This study reveals that educational inequality significantly suppresses the number of family births and that the paths of action associated with this effect include both the explicit and implicit costs of education. The inhibitory effect of educational inequality on the number of family births varies according to urban grade, urban or rural classification, and the education levels attained by women. In addition to decreasing the number of family births, educational inequality increases the second-child birth interval. This paper not only enriches related research on family multichild behavior but also provides an educational reference for attempts to address the issue of continuously low fertility rates in China and establish a connection between population and educational economics.

Temporal and spatial convergence: the major depressive disorder burden attributed to intimate partner violence against women

ABSTRACT Background: There is a strong causal relationship between intimate partner violence and major depressive disorder, which partly endangers women's safety across the life course and potentially affects the development of future generations. The international community has placed a high priority on addressing the intimate partner violence and the resulting burden of mental illness. Data collection needs to be captured across the temporal trend and spatial distribution for major depressive disorder attributed to intimate partner violence, to reflect the priorities and expectations of survivors. Method: This research obtained raw disability-adjusted life years (DALYs) information for major depressive disorder attributed to intimate partner violence from the Global Burden of Disease 2019. Using estimated annual percentage change and two-way fixed effects models, a secondary spatio-temporal analysis of the age-standardized DALYs rate from 1990 to 2019 was performed. Results: In 2019, DALYs lost among women experiencing major depressive disorder (3.16 million) accounted for 37.18% of the DALYs lost worldwide due to intimate partner violence. The age-standardized DALYs rate of major depressive disorder attributed to intimate partner violence was 108.57 per 100,000. The highest was concentrated in the menopausal transition (45-55), with 133.61 per 100,000, and particularly distributed in Uganda (429.31 per 100,000). The early reproductive period (15–19) showed the increasing age-standardized DALYs rate from 1990 to 2019, which was mainly driven by Malaysia (3.73% per year). Furthermore, countries with higher initial levels of the age-standardized DALYs rate were growing faster than those with lower levels. Conclusions: The burden of major depressive disorder attributed to intimate partner violence showed biological and spatial inequality, prioritized intervention should be targeted at vulnerable stage women in their early reproductive period and menopausal transition. Combined political, socio-cultural as well as medical measures to prevent violence and treat major depressive disorder should be implemented and developed.

The Impact of Air Pollution Risk on the Sustainability of Crop Insurance Losses

Climate change poses significant risks to natural and economic environments, particularly through its interaction with air pollution. As agriculture is vital for national production, and crop insurance supports social security, it is crucial to examine how air pollution affects crop insurance. Here, we quantify the impact of air quality on crop insurance claims from an actuarial perspective and evaluate the implications for the industry. Utilizing claims data from the U.S., we explore the potential of particulate matter (PM2.5) as a predictor of insurance claims, building on literature that highlights its economic damage to crops. Through the application of a generalized additive model (GAM) and extreme gradient boosting, we found that PM2.5 is indeed a factor influencing crop insurance indemnity in both models, with the GAM demonstrating superior predictive performance. Furthermore, we employed Bai and Perron breakpoint analysis to elucidate the relationship between PM2.5 levels and crop insurance claims over time, alongside two-way fixed effects models to investigate its correlation with various crop types. Our findings highlight the need for crop insurance managers to integrate air quality considerations into their risk processes to ensure sustainability of the industry and pricing strategy in the face of evolving environmental challenges.

Research on the impact and mechanism of digital economy on China’s urban green total factor productivity

Green and sustainable development is unstoppable. The digital economy has driven great changes in production methods and has become a key strength in reshaping global economic structure and achieving sustainable development. Cities are both the mainstay of economic growth and the main source of various environmental pollution problems. Therefore, studying the relationship between urban digital economy and urban green total factor productivity is of great significance. Based on panel data from 252 cities in China 2011–2019, a two-way fixed effects model was used to examine the impact of urban digital economy on urban green total factor productivity. The empirical results indicate that: (1) Urban digital economy has a significant positive impact on urban green total factor productivity. (2) Urban technological-innovation-level and human-capital-structure of play a mediating role in the impact. (3) This impact has regional heterogeneity and resource-based type heterogeneity. The research conclusions are not only valuable supplements to previous research, but also providing reliable instructions for implementing a flexible digital economy policy.

Producer services agglomeration and low-carbon economic transition: the role of economic growth target constraint

Abstract Objective. Producer services are an intermediate input factor that permeates every link in the industrial production chain and is essential to the growth of a low-carbon economy. This study aims to elucidate the connection between producer services agglomeration (PSA) and low-carbon economic transition. Methods. Based on China’s provincial panel data from 2004 to 2021, we empirically test the influence of PSA on low-carbon economic transition using a two-way fixed effects model, and utilize government work reports to construct an indicator of economic growth target constraints and its characteristics to further explore its moderating effect. Results. PSA contributes to enhancing low-carbon economic transition. The heterogeneity test finds that PSA significantly helps low-carbon economic transition in the east and west regions, but not in the central region. The quantile regression findings demonstrate that PSA is more effective at raising the level of low-carbon economic transition at the 10th and 90th quantiles, which indicates that the carbon reduction and efficiency enhancement effects of PSA play a greater role in regions with lower and higher low-carbon economic transition levels. Further research presents that the economic growth target constraint negatively moderates PSA’s impact on low-carbon economic transition, but this constraint characterized by soft constraints strengthens the positive effect of PSA on low-carbon economic transition. Implications. In view of this, the government can foster PSA in accordance with local conditions, optimize agglomeration area layout, and establish a scientific and reasonable government target management system to strengthen low-carbon and high-quality economic development.

Does rising land price promote the circulation industry development? An analysis of internet-based moderating effects

With the rapid development of the Internet, digital technology is increasingly integrating into the modern circulation system. The influence mechanisms of land prices on the development of the circulation industry are gradually transforming. Using data from 104 major cities in China from 2003 to 2021, this study uses the panel two-way fixed effects model, moderating effects model and threshold regression method to examine the mechanisms by which land prices affect the circulation industry development and the moderating role of Internet development. The results show that elevated land prices significantly stimulate the growth of the circulation industry, leading to an expansion in the circulation industry scale, optimization of its structure, and enhancement of its facilities. The findings remain robust even after addressing endogeneity concerns and conducting various robustness tests. Moreover, the impact of high land prices on the circulation industry is more pronounced in small and medium-sized cities group as well as central region cities group. Real estate investment and industrial structure upgrading are the key channels through which high land prices promote the development of the circulation industry. Additionally, Internet development has a positive moderating effect on the promotion that high land prices stimulate the development of the circulation industry. Notably, only when Internet development surpasses a certain threshold that the promotional effect of land prices on the circulation industry development be fully realized. Based on the above conclusions, the government should continue to deepen the market-oriented reform of land elements, implement precise industrial policy support for the circulation industry and promote circulation digital transformation.

Does digital technology promote ecological civilization construction? Evidence from China.

With the rapid development of digital technology, it is of great significance to make good use of digital technology to accelerate the green transformation of production and lifestyle and promote the ecological civilization construction (ECC). This study first analyzes the impact mechanism of digital technology on ECC. Secondly, this study constructs evaluation index systems and measures the level of digital technology and ECC in 31 provinces of China, from 2011 to 2022. Thirdly, using a two-way fixed effect model, spatial spillover effect model, and threshold effect model, this study explores the promoting effect of digital technology on ECC. The main research conclusions include the following: (1) digital technology significantly promotes ECC, and regional heterogeneity exists in the promoting effect, manifested as western > central > eastern. (2) The promoting effect of digital technology on ECC has a significant spatial spillover effect. (3) When the three threshold variables of industrial structure, education level, and R&D investment cross the threshold value, the promoting effect of digital technology is significantly enhanced. However, when fiscal decentralization crosses the threshold value, the promoting effect of digital technology is significantly weakened. Based on the above research conclusions, this study identifies some policy implications.

Assessing the Effects of Chinese Foreign Direct Investment on Green GDP Development in North and South American Regions

This study aims to investigate the impact of foreign direct investment (FDI) on the growth of green GDP (GGDP) in North America and South America. The research is based on a comprehensive dataset covering the period from 2009 to 2019, drawn from multiple countries. By employing a two-way fixed-effects model, the study analyzes the effects of key factors, including FDI, trade openness, economic development level, urbanization level, population size, and industrial structure on GGDP growth.The findings indicate that, in North America, both FDI and the level of economic development exert a significant positive influence on GGDP growth, whereas trade openness demonstrates a negative impact, suggesting that increased trade activities may exacerbate environmental pressures. In South America, while the level of economic development shows a significant positive correlation with GGDP, the effect of FDI is not statistically significant. The study recommends that policymakers focus on enhancing the effectiveness of foreign investment and implement stricter environmental protection policies to ensure that trade activities do not adversely affect the environment. Furthermore, there is an urgent need to adjust the current industrial structure to promote a transition toward more sustainable development models. Ultimately, this research emphasizes the importance of ensuring environmental sustainability while fostering foreign investment and economic growth to achieve long-term growth in green GDP.

New energy products going global: The impact of digital transformation amid trade frictions

New energy industry is the key field in which China has suffered from trade frictions. It remains to be explored whether digital transformation can enhance export resilience and alleviate the negative shock of trade frictions. Based on the export data of new energy products, this paper uses a panel two-way fixed effects model to explores whether digital transformation can alleviate the negative shock of trade frictions on the exports of new energy products. We find that (1) trade frictions lead to an average decrease of 11.45% in the export value of new energy enterprises and an average increase of 0.84% in the probability of exiting the export market. (2) Digital transformation can buffer the negative shock of trade frictions. For enterprises undergoing digital transformation, the negative shock of trade frictions on exports are relatively limited. (3) Mechanism test indicates that digital transformation accelerates the export products conversion and export markets transfer, thereby alleviating the negative shock of trade frictions. From the digital transformation perspective, this paper provides targeted policy implications for enhancing the export resilience of new energy enterprises and forming a sustained buffering mechanism to alleviate trade friction shocks.

E-commerce operations and technology perceptions in promoting farmers' adoption of green production technologies: Evidence from rural China

Agricultural green production is vital for ensuring product quality, safety, and mitigating environmental issues. E-commerce operations have emerged as a key driver of green production transformation. Based on a sample of 704 farm households in Jiangsu Province, this study employs a two-way fixed-effects model, Propensity Score Matching (PSM), Instrumental Variable Probit (IVProbit), and Extended Regression Model (ERM) to address endogeneity, alongside stepwise regression to test the mediating role of technology cognition. The results show that e-commerce operations significantly and positively influence the adoption of green production technologies among farmers, with technology cognition acting as a positive mediator. The impact of e-commerce on technology adoption varied across different age groups and geographical terrains, with older farmers and those in plain regions benefiting the most. Additionally, e-commerce played a crucial role in the adoption of green technologies, particularly in the use of organic fertilizers. To promote the broader adoption of green technologies among farmers, it is recommended that governments strengthen e-commerce support systems, enhance technical training for farmers, improve the inclusivity of e-commerce platforms, and address gaps in the availability of green production technologies.

Digital technology innovation and corporate resilience

This study identifies over 220,000 digital invention patent applications for digital invention and creates an index of enterprise-level digital technology innovations. Using an empirical analysis based on a two-way fixed-effects model, this study examines the impact of digital technology innovation on enterprise resilience. Results show that digital technology innovations improve enterprise resilience. This improvement is mainly achieved by reducing internal and external information asymmetry, reducing operating costs, improving management levels and operational efficiency, and increasing market profitability and sustainable earning capacity. Moreover, this study extracted all announcements containing phrases such as “strategic alliance,” “strategic co-operation,” and “business alliance” from 3.208 million announcements on the JUCHAO website and further filtered them to select those strategic alliances in digital technology as their content of collaboration and identified them as digital technology strategic alliances. The findings show that companies that join digital technology strategic alliances have a greater impact on improving enterprise resilience. Furthermore, this study found that digital technology innovation can significantly improve the enterprise resilience with better network infrastructure and a more comprehensive intellectual property protection system. This study expands the research scope of the microlevel effects of the digital economy and provides valuable insights for governments to optimize digital economy policies and enterprises to develop digital innovation strategies.

The Impact of Supply Chain Finance on the Investment Efficiency of Publicly Listed Companies in China Based on Sustainable Development

The development and utilization of supply chain finance play a pivotal role in both enhancing financial structures and delivering substantial support for the sustainable progress of the real economy. This assistance is essential for promoting high-quality economic growth and ensuring stable, long-term development. This study empirically examines the effects of supply chain finance on investment efficiency, exploring the underlying mechanisms involved. Additionally, it assesses whether financing constraints and information asymmetry serve as mediating variables in the relationship between supply chain finance and investment efficiency among enterprises. The analysis is based on data from publicly listed companies in China covering the period from 2013 to 2022. The results indicate that supply chain finance effectively addresses both overinvestment and underinvestment issues, leading to a notable improvement in overall investment efficiency. Utilizing a two-way fixed effects model to analyze the role of financing constraints and information asymmetry as mediating variables, the study demonstrates that both factors significantly mediate the relationship between supply chain finance and investment efficiency within enterprises. Supply chain finance improves investment efficiency by mitigating financing constraints and lessening information asymmetry between enterprises and external stakeholders. The heterogeneity analysis reveals that the positive impact of supply chain finance on investment efficiency is notably greater in non-state-owned enterprises and in regions with more advanced development.

Digital Inclusive Finance Supports the Modernization of Agriculture Development

In the process of financial development, the high threshold and credit asymmetry not only increase the difficulty and cost of financing in rural agriculture, but also hinder the upgrading of agricultural industrial structure and delay the development of agricultural modernization. With the development of information technology and the wide application of big data, digital inclusive finance has become an important path and inevitable choice to promote the upgrading and modernization of China's agricultural industrial structure. The project intends to use the entropy method to measure the development level of agricultural modernization; Based on the two-way fixed effect model, the paper explores the effect of digital inclusive finance on agricultural modernization. With the help of the intermediary effect model, this paper explores the internal mechanism of the influence of the digital inclusive financial policy on the development of rural modernization from the level of "the upgrading of agricultural industrial structure". Based on the empirical results, this paper analyzes the heterogeneity of the effects of digital financial inclusion policies from the two dimensions of rural location and rural characteristics, and explores an effective path to promote digital financial inclusion and industrial upgrading in rural areas with prominent internal differences, with a view to providing reference and basis for the formulation and implementation of future digital financial inclusion and agricultural modernization development policies.

The Functional Mechanisms through Which Artificial Intelligence Influences the Innovation of Green Processes of Enterprises

Green process innovation is an important strategy in the high-quality development of enterprises. Digital technology is becoming a key factor in helping businesses address environmental issues and contributes to their green process innovation and sustainable growth. Nevertheless, there is a lack of studies on how particular digital technology categories affect corporate green process innovation. Artificial intelligence (AI) is an important part of digitalization as it can provide new technical means and guidance for enterprise’s innovation of green processes. This study aims to fills this research gap by revealing the logical relationship between digital technology and the green development of enterprises. Using China’s A-share-listed companies as the research object from 2013 to 2022, this study employed a two-way fixed-effects model and investigated the impact of artificial intelligence (AI) on corporate green process innovation and the moderating effect of multidimensional intellectual capital. The results revealed that AI positively impacts corporate green process innovation. Human capital, structural capital, employed capital, and relational capital strengthen this positive effect. Robustness tests validated these conclusions. This study expands the literature on digital technology and corporate green innovation and provides a reference for enterprises to implement green practices using digital technology.

Top Management Team Heterogeneity, Top Management Incentives, and ESG Performance: Evidence from Chinese Listed Companies

The challenge of balancing economic and social benefits has emerged as a critical issue for corporate sustainable development. Environmental, social, and governance (ESG) criteria are key considerations for enterprises aiming to enhance both social and economic benefits simultaneously. Based on the upper echelons theory, differences in cognitive foundations and values brought about by top management team heterogeneity can influence corporate decisions. Taking A-share listed companies in China from 2011 to 2022 as samples, we construct a two-way fixed-effects model by firm and year to explore the impact of top management team heterogeneity on corporate ESG performance, and we introduce top management incentives as a moderating variable to further analyze the underlying mechanisms. Our results demonstrate that the gender heterogeneity, functional background heterogeneity, and overseas background heterogeneity of top management teams have significant positive impacts on corporate ESG performance, and monetary compensation incentives and control incentives to top management teams play a positive moderating role, while equity incentives exhibits a negative moderating effect. These findings remain robust across alternative measures of corporate ESG ratings and monetary and control incentives, and through the SYS-GMM model test and instrumental variable approach to address endogeneity. This research contributes to the literature on corporate ESG by validating and extending the understanding of how top management team characteristics affect organizational outcomes, and it provides practical guidance for enhancing corporate ESG practices. The implications of this study suggest that to enhance corporate ESG performance, enterprises should prioritize the promotion of top management team heterogeneity and tailor their incentive mechanisms accordingly.

The impact of economic agglomeration on China's urban public health.

This study aims to explore the impact of economic agglomeration on the urban prosperity through economies of scale and agglomeration, it may also affect the public health of the agglomeration area. This paper takes 280 cities in China as the research object, and explores the impact of economic agglomeration on public health through a two-way fixed effects model, instrumental variable method, and generalized moment estimation. The results indicate that: (1) the improvement of China's economic agglomeration can significantly promote urban public health, and economic agglomeration is a prerequisite for the improvement of urban public health, but there is no reverse causal relationship. (2) The enhancement of economic agglomeration in Northeast China has the greatest promotion effect on public health, followed by the eastern, western, and central regions; The economic agglomeration enhancement of the pilot medical group in closely connected cities has a greater promoting effect on public health than the pilot medical group in non-closely connected cities. (3) Empirical results based on micro sample data show that the improvement of economic agglomeration will also promote the increase of the number of public hospitals in cities. This study emphasizes the important role of economic accumulation in the improvement of urban public health and provides empirical support for future economic development policies and practices.