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Open Access
Article
Publication date: 11 April 2024

Shiwen Gu and Inkyo Cheong

In this paper, we evaluated the impact of the US “Chip Act” on the participation of the Chinese electronics industry in the global value chain based on the dynamic CGE model. This…

Abstract

Purpose

In this paper, we evaluated the impact of the US “Chip Act” on the participation of the Chinese electronics industry in the global value chain based on the dynamic CGE model. This is a meaningful attempt to use the GTAP-VA model to analyze the electronics industry in China.

Design/methodology/approach

We employ a Dynamic GTAP-VA Model to quantitatively evaluate the economic repercussions of the “Chip Act” on the Chinese electronic industries' GVC participation from 2023 to 2040.

Findings

The findings depict a discernible contraction in China’s electronic sector by 2040, marked by a −2.95% change in output, a −3.50% alteration in exports and a 0.45% increment in imports. Concurrently, the U.S., EU and certain Asian economies exhibit expansions within the electronic sector, indicating a GVC realignment. The “Chip Act” implementation precipitates a significant divergence in GVC participation across different countries and industries, notably impacting the electronics sector.

Research limitations/implications

Through a meticulous temporal analysis, this manuscript unveils the nuanced economic shifts within the GVC, substantially bridging the empirical void in existing literature. This narrative accentuates the profound implications of policy regulations on global trade dynamics, contributing to the discourse on international economic policy and industry evolution.

Practical implications

We evaluated the impact of the US “Chip Act” on the participation of the Chinese electronics industry in the global value chain based on the dynamic CGE model. This is a meaningful attempt to use the GTAP-VA model to analyze the electronics industry in China.

Social implications

The interaction between policy regulations and global value chain (GVC) dynamics is pivotal in understanding the contemporary global trade framework, especially within technology-driven sectors. The US “Chips Act” represents a significant regulatory milestone with potential ramifications on the Chinese electronic industries' engagement in the GVC.

Originality/value

The significance of this paper is that it quantifies for the first time the impact of the US Chip Act on the GVC participation index of East Asian countries in the context of US-China decoupling. With careful consideration of strategic aspects, this paper substantially fills the empirical gap in the existing literature by presenting subtle economic changes within GVCs, highlighting the profound implications of policy regulation on global trade dynamics.

Details

Journal of International Logistics and Trade, vol. 22 no. 1
Type: Research Article
ISSN: 1738-2122

Keywords

Open Access
Article
Publication date: 16 April 2024

Chris Brueck

The purpose of this study is to shed light on the twin transition in China in the organization of innovation processes in artificial intelligence (AI) and green technology (GT…

Abstract

Purpose

The purpose of this study is to shed light on the twin transition in China in the organization of innovation processes in artificial intelligence (AI) and green technology (GT) development and to understand the role of foreign multinationals in Chinese innovation systems.

Design/methodology/approach

A qualitative research approach is used by interviewing executives from German multinationals with expertise in AI and GT development and organization of innovation processes in China. In total, 11 semi-structured interviews were conducted with companies, and the data were analysed with a thematic qualitative text analysis.

Findings

The findings show that AI applications for GT are primarily developed in cross-company projects that are led by local and regional authorities through the organization of industrial districts and clusters. German multinationals are either being integrated, remaining autonomous or being excluded from these twin transition innovation processes.

Originality/value

This paper aims to fill the gap in the literature by providing one of the first qualitative approach towards twin transition innovation processes in China and exploring the integration of multinational enterprises in cluster organizations. To the best of the author’s knowledge, this is one of the first twin transition studies from this perspective in emerging economies.

Details

Competitiveness Review: An International Business Journal , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1059-5422

Keywords

Open Access
Article
Publication date: 8 April 2024

Anita Meena

This paper aims to examine and compare the export performance and competitiveness of Indian and Chinese textile and clothing industry in post-multifibre arrangement (MFA) era.

Abstract

Purpose

This paper aims to examine and compare the export performance and competitiveness of Indian and Chinese textile and clothing industry in post-multifibre arrangement (MFA) era.

Design/methodology/approach

Balassa’s revealed comparative advantage Index is used to assess the competitiveness of Indian and Chinese textile and clothing exports.

Findings

The results indicate that China’s textiles and garments sector holds a greater proportion of the global market compared with India. India has a robust comparative advantage in silk, carpets and cotton post-MFA. Vegetable textile fibers, paper yarn and woven fabrics of paper yarn are also competitive. China had a strong comparative advantage in silk and fabrics; special woven fabrics, tafted textile fabrics, lace, tapestries, trimmings and embroidery in 2005. China also recorded comparative advantage in silk, man-made filaments: strip and the like of man-made textile materials, fabrics; special woven fabrics, tafted textile fabrics, lace, tapestries, trimmings and embroidery and fabrics; knitted or crocheted in 2021.

Research limitations/implications

This study’s results and recommendations could assist the Indian and Chinese Governments develop policies to upgrade their garment industries.

Originality/value

Though vast literature reviews are available for textile and apparel export performance in India and China separately, there are few studies on comparisons. This study is a significant attempt to evaluate India and China’s competitiveness in the global market.

Details

Vilakshan - XIMB Journal of Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0973-1954

Keywords

Open Access
Article
Publication date: 29 March 2024

James Caporaso

Trade relations between China and the USA have been marked by conflict, especially since China’s membership in the World Trade Organization (WTO). These conflicts have been…

Abstract

Purpose

Trade relations between China and the USA have been marked by conflict, especially since China’s membership in the World Trade Organization (WTO). These conflicts have been analyzed from a variety of perspectives, including the loss of jobs in the USA due to Chinese imports, competition in high technology sectors and the balance of trade. Conceptual frameworks have employed models of domestic differences as well as models of international power distribution. Among domestic differences examined are the existence of state-owned enterprises in China compared to the domination of the USA economy by private firms, the large role of the Communist Party in China and the influence of labor and environmental and labor groups in the USA. Power distribution theories focus on the systemic effects of the distribution of power on trade openness and on the pattern of intra-bloc versus between-bloc trade. This paper aims to examine the role of macroeconomic policy factors in China and the USA, in particular, the role of national patterns of savings, investment and consumption (both private and government). The paper concludes that insofar as the balance of trade is an important component of the trade conflict, domestic macroeconomic factors continue to be important. The resolution of the conflict will have to take into account the respective macroeconomic policies of China and the USA.

Design/methodology/approach

The design is an analytic case study of US–China trade relations with a particular focus on the balance of trade. The conceptual framework employed involves an analysis of macroeconomic policy categories, especially the overall pattern of savings (household, firm and government), investment and consumption. Process tracing over time since China's membership in the WTO is carried out with an eye toward the relationship between the balance of trade and macroeconomic policy.

Findings

The main findings are that there is a strong relation between the respective macroeconomic policies of the USA and China and their trade relations. The domestic political economy of the USA encourages consumption and a low rate of savings. The opposite is true of China where household income is low by design and national savings are high. China depends on the USA to consume what is not consumed domestically. The USA depends on Chinese imports for additional consumption encouraged by its low rate of savings. The two economies are locked in a mutual dependence.

Research limitations/implications

Key research implications are that there should be more focus on domestic macroeconomic policies since these are the root causes of the trade imbalance. This is not to say that trade frictions centering on jobs, subsidies and competition in high technology are unimportant. However, without the resolution of differences in the management of macroeconomic policies, trade conflicts between the USA and China will continue.

Practical implications

Practical implications are huge, in some ways much more important than the academic implications. Macroeconomic policy differences in savings, investment, government spending, taxation and infrastructure are important. Furthermore, there are available tools in both China and the USA to manage the macroeconomy, particularly, monetary and fiscal policy.

Social implications

One implication of this paper is that satisfaction or dissatisfaction of workers is dependent on income distribution which in turn affects trade. Treatment of people in different socioeconomic categories, such as the elderly, the young, and those at working age are a function of macroeconomic policies.

Originality/value

Many people have written about macroeconomics. It is a conventional subfield of economics. The originality of this paper lies in its advocacy of a shift of focus and attention and in the argument that traditional macroeconomics is related to trade. Despite its importance, macroeconomics has not been the center of attention for most political scientists, though economists have made it more central.

Details

International Trade, Politics and Development, vol. 8 no. 1
Type: Research Article
ISSN: 2586-3932

Keywords

Open Access
Article
Publication date: 12 December 2023

Gideon Kimaiyo

This article examines the effect of China's soft power projection through the Chinese media in Africa on the African audiences' perception of China's national image through a case…

Abstract

Purpose

This article examines the effect of China's soft power projection through the Chinese media in Africa on the African audiences' perception of China's national image through a case study of the residents of Nairobi. It adopted Joseph Nye's soft power model and sought to address three fundamental questions : What is the extent and objective of China's media diplomacy in Africa? How has China's media “offensive” in Africa impacted African audiences' imagery of China? What are the implications, if any, of China's media diplomacy on the Kenyan public view of China?

Design/methodology/approach

This article used a mixed-methods research design, which deployed elements of positivism and interpretivism. It used a deductive approach and deployed the survey strategy, which entailed the collection of data from Nairobi city residents. The secondary data were collected from relevant academic literature sources. The primary data were analyzed empirically using the Statistical Package for the Social Sciences (SPSS), while the secondary data were analyzed using discourse analysis.

Findings

China's soft power projection through the Chinese media in Africa is aimed at addressing the “misinformation” about China. China seeks its share of representation among the African public to correct negative perceptions of China. Kenyans had a generally positive attitude toward China. South Africa and Angola have “Fairly” positive perceptions of the Chinese media. However, this study did not reveal whether the perception was due to the influence of Chinese media. These findings implied that the African public's positive imagery of China cannot be fully attributed to Chinese media's influence.

Originality/value

This study is groundbreaking in that it is one of the few studies that have focused on China's public diplomacy in Africa and assessed the impact of Chinese media on the African public’s perception of China.

Details

Review of Economics and Political Science, vol. 9 no. 2
Type: Research Article
ISSN: 2356-9980

Keywords

Open Access
Article
Publication date: 28 November 2023

Qian Qin

This research explores the intricate dynamics of national interests realised through Japan's official development assistance (ODA) to China. It aims to deepen the understanding of…

Abstract

Purpose

This research explores the intricate dynamics of national interests realised through Japan's official development assistance (ODA) to China. It aims to deepen the understanding of these mechanisms, detailing the extent to which Japan has accomplished its national interests.

Design/methodology/approach

The paper applies the role theory and narrative analysis to elucidate Japan's national role conception and its categories of national interests with regards to its ODA policy. It utilises both qualitative and quantitative methods to examine the success rate in achieving Japan's diplomatic objectives and how those interests have manifested over time.

Findings

The findings suggest a mixed outcome. Whilst Japan's ODA to China has helped in expanding trade and fostering mutual understanding and cooperation, it has been less successful in promoting democratic governance in China or effectively counterbalancing China's regional power. Hence, the realisation of national interests through ODA is a complex process contingent upon numerous factors.

Originality/value

This study stands out for its multifaceted approach in examining Japan's ODA policy towards China, integrating both quantitative and qualitative methodologies and applying the role theory in the context of international development aid. It fills a significant gap in the literature by analysing the interplay between national interests and foreign aid, providing nuanced insights into the successes and challenges of Japan's pursuit of its diplomatic objectives. The study's findings have important implications for understanding the complexity of international aid dynamics and can inform future policy decisions in the realm of international relations and foreign aid.

Details

International Trade, Politics and Development, vol. 8 no. 1
Type: Research Article
ISSN: 2586-3932

Keywords

Open Access
Article
Publication date: 18 February 2020

Danah Ali Alenezi

This study aims to examine the nexus of the US rebalance strategy to Asia and the US–China rivalry in the South China Sea (SCS) from the perspective of the offensive realism…

10867

Abstract

Purpose

This study aims to examine the nexus of the US rebalance strategy to Asia and the US–China rivalry in the South China Sea (SCS) from the perspective of the offensive realism theory.

Design/methodology/approach

The study depends on the descriptive approach that deals with the analysis and description of the phenomenon. Also, the study uses the qualitative method to analyze the primary sources concerning the rebalance.

Findings

The study has found four results: first, the rebalance strategy to Asia is a comprehensive strategy to contain China’s rise. Second, China’s offensive strategy in the SCS since 2008 has been the main driver of launching the rebalance. Third, offensive realism presents a convenient analysis to understand the rebalance, China’s offensive strategy in the SCS, and the US–China rivalry in the SCS. Forth, SCS is one of the most important venues of the US–China rivalry for global hegemony.

Research limitations/implications

Limited to the period from 2009 to 2016. The Obama Era.

Originality/value

This study highlights the centrality of the SCS in the US–China global rivalry that has not been yet well researched.

Details

Review of Economics and Political Science, vol. 9 no. 2
Type: Research Article
ISSN: 2356-9980

Keywords

Open Access
Article
Publication date: 25 April 2024

Da Huo, Rihui Ouyang, Aidi Tang, Wenjia Gu and Zhongyuan Liu

This paper delves into cross-border E-business, unraveling its intricate dynamics and forecasting its future trajectory.

Abstract

Purpose

This paper delves into cross-border E-business, unraveling its intricate dynamics and forecasting its future trajectory.

Design/methodology/approach

This paper projects the prospective market size of cross-border E-business in China for the year 2023 using the GM (1,1) gray forecasting model. Furthermore, to enhance the analysis, the paper attempts to simulate and forecast the size of China’s cross-border E-business sector using the GM (1,3) gray model. This extended model considers not only the historical trends of cross-border E-business but also the growth patterns of GDP and the digital economy.

Findings

The forecast indicates a market size of 18,760 to 18,934 billion RMB in 2023, aligning with the consistent growth observed in previous years. This suggests a sustained positive trajectory for cross-border E-business.

Originality/value

Cross-border e-commerce critically shapes China’s global integration and traditional industry development. The research in this paper provides insights beyond statistical trends, contributing to a nuanced understanding of the pivotal role played by cross-border e-commerce in shaping China’s economic future.

Details

Journal of Internet and Digital Economics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2752-6356

Keywords

Open Access
Article
Publication date: 30 April 2024

Qiuqin Li and Xuemei Jiang

This article summarizes the international scientific research output of global forest product models, infers future research trends and provides reference for quantitative…

Abstract

Purpose

This article summarizes the international scientific research output of global forest product models, infers future research trends and provides reference for quantitative analysis and mathematical modeling of Chinese forest product problems, with the aim of contributing to promoting domestic production of Chinese forest products and strengthening international trade competitiveness of forest products.

Design/methodology/approach

In 1999, Joseph Buongiorno, a scholar at the University of Wisconsin in the United States of America, proposed the global forest products model (GFPM), which was first applied to research in the global forestry sector. GFPM is a recursive dynamic model based on five assumptions: macroeconomics, local equilibrium, dynamic equilibrium, forest product conversion flow and trade inertia. Using a certain year from 1992 to present as the base period, it simulates and predicts changes in prices, production and import and export trade indicators of 14 forest products in 180 countries (regions) through computer programs. Its advantages lie in covering a wide range of countries and a wide variety of forest products. The data mainly include forest resource data, forest product trade data, and other economic data required by the model, sourced from the Food and Agriculture Organization (FAO) of the United Nations and the World Bank, respectively.

Findings

Compared to international quantitative and modeling research in the field of forest product production and trade, China's related research is not comprehensive and in-depth, and there is not much quantitative and mathematical modeling research, resulting in a significant gap. This article summarizes the international scientific research output of global forest product models, infers future research trends, and provides reference for quantitative analysis and mathematical modeling of Chinese forest product problems, with the aim of contributing to promoting domestic production of Chinese forest products and strengthening international trade competitiveness of forest products.

Originality/value

On the basis of summarizing and analyzing the international scientific research output of GFPM, sorting out the current research status and progress at home and abroad, this article discusses potential research expansion directions in 10 aspects, including the types, yield and quality of domestic forest product production, international trade of forest products, and external impacts on the forestry system, in order to provide new ideas for global forest product model research in China.

Details

Forestry Economics Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2631-3030

Keywords

Open Access
Article
Publication date: 26 April 2024

Shijie Li

This study considers the “technology creation” characteristic of technical knowledge-intensive business services (T-KIBS) and examines how human capital and intellectual property…

Abstract

Purpose

This study considers the “technology creation” characteristic of technical knowledge-intensive business services (T-KIBS) and examines how human capital and intellectual property rights (IPR) protection affect the location choice of foreign direct investment (FDI) in China for two types of T-KIBS: (1) information transmission, software and information technology (ICT) services and (2) scientific research and technology (SCI) services.

Design/methodology/approach

Our empirical analysis is based on panel data on 22 Chinese provinces from 2009 to 2017. We use the generalized method of moments estimation for the regression analysis.

Findings

FDI in ICT services prefers regions with high human capital, while FDI in SCI services favors regions with good IPR protection.

Research limitations/implications

Future research could use more comprehensive data and qualitative interviews to enhance the findings.

Practical implications

These findings provide a foundation for China’s future policy on attracting FDI into T-KIBS, especially in areas related to human capital and IPR protection.

Originality/value

This study bridges the research gap on the FDI location choice of T-KIBS in China by clarifying the influences of human capital and IPR protection and providing theoretical support for the location choice of T-KIBS FDI.

Details

Journal of Asian Business and Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2515-964X

Keywords

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