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This paper aims to explore the impact of domestic market fragmentation on the innovation performance of enterprises and its mechanism from the perspective of market segmentation, a government behavior with Chinese characteristics.

In order to verify the theoretical hypothesis proposed in the previous article, that is, whether domestic market fragmentation can effectively improve the innovation performance of enterprises, this paper bases on the data of listed companies from 2010 to 2016, empirically testing the theoretical hypothesis by constructing a measurement model.

Domestic market fragmentation has a significant inhibitory effect on enterprise innovation performance. Domestic market fragmentation has heterogeneous effects on innovation performance of enterprises and regions. It is undeniable that domestic market fragmentation does have a certain support effect on state-owned enterprises but the support effect is achieved by distorting regional resource allocation and creating an unfair market environment.

Firstly, this paper explores the impact mechanism of domestic market fragmentation on corporate innovation performance from the perspective of market segmentation, a government behavior with Chinese characteristics, so as to expand and enrich the relevant research on enterprise innovation. Secondly, from the perspective of corporate innovation performance, this paper provides new evidence for the “curse effect” of domestic market fragmentation. Thirdly, this paper tries to shake the domestic market fragmentation support theory from the perspective of distortion effect brought by the “hand of support” of domestic market fragmentation.

The purpose of this paper is to explore challenges and opportunities in knowledge management (KM) research trends in China.

The literature review presents the status quo of China KM research from a world‐wide perspective and China's economy today. Then the paper explains theoretical analysis of KM development and future trend in the West. The third part of literature review addresses the debate of KM practices followed by the way how KM trend is discussed in Western research. Empirical evidences from the journal literature, the web sites of consultancy companies, and in the presentation of research centres are examined. A triangulated methodology include data from two well known management database searching results for “China” and “Knowledge Management”; two KM surveys in China and other web site and journals.

The paper is an initial exploration of the KM research trends in China. The research explains the opportunities and challenges facing KM researchers and provides useful guidance for KM practice in China. In general, China has relatively newly developed KM awareness. The importance of KM, however, has not yet been fully explored in research. One the one hand, the lack of access to China practitioners, the scarceness of related comparative study and the arguable KM domain are three major reasons that lead to insufficient research in KM. On the other hand, given the rapid development of China's economy today, there are questions and phenomena with specific Chinese characters need to be examined from KM perspective. Two major challenges of China economy, i.e. reforming in the process of development, and the privatization as well as the regional difference need to be reflected in China KM research. Comparative approaches in the research are needed. Although KM is arguably undergoing fast development in recently years and China is becoming one of the important spotlights, China‐related KM research is still at its very early stage. Challenges and opportunities are presented for further research guidance.

This paper shows that KM research in China has its own characters if compare with the West. Future directions and opportunities for China‐related KM researches are discussed by a triangulated approach. The findings present future trends of KM research in China that help practitioner to reinforce KM practice. This paper suggests important areas that researchers need to address as new challenges and opportunities in the KM trends in China context.

Improving the agricultural products market integration is conducive to developing provincial comparative advantage, optimization of agricultural and industrial organization and enhanced competitiveness. The relationship between the emergencies and the agricultural products market integration in the production and consumption provinces is of great significance for stabilizing market prices and improving the efficiency of agricultural resource allocation.

The authors reviewed the literature on the market integration of agricultural products. Then, they adopted a two-way fixed effect model to investigate the impact of emergencies on the poultry market integration in the production and consumption provinces in China.

Highly pathogenic avian influenza (HPAI) caused abnormal fluctuations in the poultry market price and decreased the poultry market integration. The negative impact of HPAI on poultry market integration was strengthened in the main production provinces and weakened in the main consumption provinces.

This is the first study that applies empirical analysis to identify the emergencies’ impact on the poultry market integration considering production and consumption characteristics. The results indicate that the impact of avian influenza is more serious in production provinces than in consumption provinces. Due to the heterogeneity of production and consumption provinces, the government implements precise compensation policies to resume production quickly after the disaster. It can be conductive to market integration and promote the development of agricultural products market.

The purpose of this paper is to consider competition’s issues between European market firms, such as Euronext, and multilateral trading facilities, following Markets in Financial Instruments Directive’s enforcement. This new domestic competition is adding to the existing international competition among financial centers. While diversification of local trading services can improve the international competitiveness of a financial center, the fragmentation of order flows can harm its attractiveness.

The theoretical setting analyzes the interaction between heterogeneous who experiment network externalities, and heterogeneous local trading services providers (alternative platforms and incumbent) in an international context. The authors compare two forms of organizations of the market: a consolidated market, and a fragmented market with alternative platforms – in both cases, in competition with a foreign universe.

The results of this study point out the importance of the trade-off between diversification and externalities. With alternative platforms entry, enhanced competition decreases fees and redistributes informed investors between the foreign market and the domestic one. The increase of domestic platforms’ number then has more complex effects on externalities (of information and liquidity). When the liquidity externalities are low, the diversification of financial platforms increases the number of investors on domestic centers. When liquidity externalities are not negligible, despite the decrease of fees, this same diversification orientates more informed investors to the foreign center.

This model is the first to analyze jointly the internal and international competition of trading platforms with heterogeneous investors.

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

The purpose of this paper is to assess the impact of the impact of the single currency on the institutional design of the banking union, through evidence on the financial integration process.

Data analysis uses multiple sources of data on key drivers of financial fragmentation. The paper starts from a snapshot the status of financial integration and then identifies the main components of this trend.

Evidence shows that financial integration in the euro area between 2010 and 2014 retrenched at a quicker pace than outside the monetary union. Home bias persisted. Under market pressures, governments compete on funding costs by supporting “their” banks with massive state aids, which distorts the playing field and feed the risk-aversion loop. This situation intensifies frictions in credit markets, thus hampering the transmission of monetary policies and, potentially, economic growth. Taking stock of developments in the euro area, this paper discusses the theoretical framework of a banking union in a single currency area with decentralised fiscal policy sovereignty. It concludes that, when a crisis looms over, a common fiscal backstop can reduce pressures of financial fragmentation, driven by governments’ moral hazard and banks’ home bias.

Additional research is required to deepen the empirical analysis, with econometric modelling, on the links between governments’ implicit guarantees and banks’ home bias. This is an initial data analysis.

Under market pressure, governments in a single currency area tend to be overprotective (more than countries with full monetary sovereignty) towards their own banking system and so trigger financial fragmentation (enhancing banks’ home bias). To revert that, a common fiscal backstop is an essential element of the institutional design. The paper shows empirical evidence and theory, as well as it identifies underlying market failures. It links the single currency to the institutional design of a banking union. This important dimension is brought into a coherent framework.

The fragmentation can either lead to an all-out civil war as in Sri Lanka or a frozen conflict as in Georgia. One of the main characteristics of fragmentation is the control of group members by their respective leaders. The chapter applies standard models of non-cooperative game theory to explain the endogenous fragmentation, which seeks to model the equilibrium formation of rival groups. Citizens become members of these rival groups and some sort of clientelism develops in which political leaders control their respective fragments of citizens. Once the divisions are created, the inter-group rivalry can trigger violent conflicts that may seriously damage the social fabric of a nation and threaten the prospect of peace for the people for a very long time. In other words, our main goal in this chapter is to understand the formation of the patron–client relationship or what is called clientelisation.

The purpose of this paper is to explore the value added of exports of services, which increasingly involve intermediate inputs to manufacturing and are indirectly embodied in intermediate and finished good exports to the global market earned by Taiwan and South Korea.

This paper uses the World Input-Output Database to examine and compare the competitiveness of service industry between Taiwan and South Korea in China from 1995 to 2011. The author measures the value added of export in two ways: value added in trade (VAiT) and trade in value added (TiVA).

The proportion of domestic (intermediate and final demand) VAiT was created by Taiwanese and South Korean exports to China. The services amount share of value added embodied in Taiwanese electrical and optical equipment (ELE) exports to China increased gradually (38.0–45.7 percent) from 1996 to 2011, that was more than that of South Korea (26.7–23.3 percent). Taiwanese financial and business (F&B) service contributed to Taiwanese ELE production exported to China. In service sectors, the proportion of VAiT of Taiwanese F&B service embodied in ELE exports to China increased annually (9.8–11.5 percent), that was similar to that of South Korea (12.2–11.3 percent). Thus, F&B sector played an increasingly important role in service sectors. Taiwanese F&B promotes the ELE export to China with higher efficiency than South Korea does.

Over the past two decades, the development of information technology and the growth of international specialization and fragmentation of production processes have brought about a global value chains (GVCs) phenomenon in services, which has already been taking place in manufacturing for a long time. Intangible value added of services increasingly involved intermediate inputs from manufacturing and were indirectly embodied in intermediate and finished goods exported to the global market. The focus of this paper is to analyze how the service industry participates in the development of the GVC, with emphasis on the export of ELE production to China in the bilateral trade of Taiwan and Korea with China. In addition to the value-added components, the exports of F&B intermediate products to China have been increasing year by year, and Taiwanese is higher than South Korean. In the bilateral trade between Taiwan or Korea and China, for ELE production exported to China, double counted part of intermediate products is increasing year by year. In terms of the value added of the double counting of F&B exports to China, Taiwan is higher (PDC, 31.23–17.26 percent) than South Korea. (PDC, 8.7–15.12 percent). South Korea and China are not as closely related as Taiwan and China.

One of the most important economic processes in the world economy over the recent decades has been increasing fragmentation of international production that resulted in expansion of global value chains (GVCs). National economies started to get involved in GVCs in order to get value-added gains from this participation; Russia is not an exception. To analyze Russia’s GVCs participation, we need to adopt new statistical methodology based on input–output approach that allows estimating trade flows in terms of value added, including foreign and domestic value added as parts of gross exports. The author comes to the conclusion that Russia’s participation in GVCs was growing during the last decades mostly by forward participation connected with supply of oil and gas along GVC; moreover, Russia had net gains from this participation. Future trends in Russia’ involvement in GVCs can be described by two scenarios. The first one is based on expanding forward manufacturing participation in order to increase and diversify nonoil exports. This scenario is strongly supported by Russian Federation Ministry for Economic Development. The second scenario covers the continuation of mineral participation in GVCs that Russia implements till now. Both scenarios have their pro and contra. The author argues that the first scenario is better correlated with long-term economic interests and possibilities for sustainable development in Russia.