Search results

Drawing upon new institutional economics and contracting theory, this chapter extends the concept of headquarter (HQ)–subsidiary relationships to capture unconventional types of subsidiary organizations in transition economies. A conceptual framework is first developed to examine how the interplay between institutions and subsidiaries shapes HQ–subsidiary relations in rapidly changing institutional environments. It is then applied to study contractual joint ventures in China, an important, yet often misunderstood, form of multinational subsidiary operation. The research sheds new light on how parent firms design contract provisions, credible commitments, and contract renegotiation mechanisms for the effective management of joint venture subsidiaries. These findings have important implications for future inquiry into the interplay between institutions and organizations in safeguarding subsidiary operations in transition economies.

In China, more than 80,000 people have been diagnosed with COVID-19, and more than 3,000 people have lost their lives. It seems that there will be more deaths since the epidemic is not over. All the Chinese provinces have reported the COVID-19 cases. This chapter aims to explore the trend of COVID-19 treatment efficiency in Chinese provinces using the data released daily by China Center for Disease Control and Prevention. Since China Center for Disease Control and Prevention began to release data daily from January 24 to March 12, we have more than 40 groups of daily data for 31 provinces in China mainland. In the calculation, we take the daily data of each province as a sample and then we have more than 1,200 samples in this study.

We use additive two-stage data envelopment analysis as an efficiency evaluation tool to calculate the COVID-19 treatment efficiency. In our framework, the first stage is to understand the infection rate and the second stage is to evaluate the treatment efficiency. In the first stage for the tth day, we use total population (p) and number of people infected in the previous day (inf _t−1) as the inputs and cumulative number of people infected in the current day (inf _t ) as the output. In the second stage for the tth day, we use cumulative number of people infected in the current day (inf _t ) as the input and cumulative death in the current day (death _t ) and cumulative recovery in the current day (recov _t ) as the outputs. Some techniques on how to deal with undesirable outputs such as inf _t and death _t are employed in this study.

After we have the infection rate and treatment efficiency for the samples more than 1,200, we analyze the COVID-19 treatment efficiency and its development trend from January 24 to March 12 in 34 regions of China from static and dynamic aspects. The results show that, on the whole, the overall efficiency and phased efficiency of COVID-19 treatment efficiency in all regions of China are relatively high, which reflects the key factor for the Chinese government to quickly control the epidemic in the short term. Relatively speaking, the average efficiency value in the infection stage (first stage) is lower than the average efficiency value in the healing stage (second stage), which shows that the focus of anti-epidemic in China should be early detection and prevention rather than treatment process. In terms of trend, the total efficiency of COVID-19 treatment in each region shows a trend of “increasing first and then decreasing.” Our analysis indicates that in the initial stage, the continuous increase of various resources leads to the rise of the total efficiency, while in the later stage, the rapid decline of the number of infected people leads to the decrease of the total efficiency. Based on the results of the efficiency analysis, this study provides corresponding management implications and policy suggestions, hoping to provide some enlightenment and suggestions for the anti-epidemic work of other countries in the severe environment where the epidemic is spreading rapidly.

This paper examines diverging views on the Chongqing model, the policy experiment led by Bo Xilai from 2007 to 2012 that was famous for its “red songs” and the campaign against organized crime. It has impressed both the supporters of socialist identity of China and the supporters of liberal identity and led to an intense debate concerning China’s path of development. This paper attempts to discuss and clarify to what extent the Chongqing model represented a genuine socialist experiment and the implications of the model for China’s future.

CEO incentive contracts are commonplace in China but their incidence varies significantly across Chinese cities. We show that city and provincial policy experiments help explain this variance. We examine the role of two policy experiments: the use of Special Economic Zones (SEZs) to attract Foreign Direct Investment (FDI), and the privatisation of State-Owned Enterprises (SOEs). The introduction of SEZs is found to be uncorrelated with the prevalence of CEO incentive contracts. However, firms are more likely to use such contracts in areas that saw rapid SOE privatisation, irrespective of the firm’s own current ownership status and irrespective of the size of the SOE sector in the late 1970s. The positive effect of privatisation is robust to various estimation techniques and model specifications. These findings suggest that domestic privatisation policies have been more influential than FDI in driving the expansion of incentive contracts in China.

Most poverty research has explored monetary poverty. This chapter presents and analyzes the global multidimensional poverty index (MPI) estimations for China. Using China Family Panel Studies (CFPS), we find China’s global MPI was 0.035 in 2010 and decreased significantly to 0.017 in 2014. The dimensional composition of MPI suggests that nutrition, education, safe drinking water, and cooking fuel contribute most to overall non-monetary poverty in China. Such analysis is also applied to subgroups, including geographic areas (rural/urban, east/central/west, provinces), as well as social characteristics such as gender of the household heads, age, education level, marital status, household size, migration status, ethnicity, and religion. We find the level and composition of poverty differs significantly across certain subgroups. We also find high levels of mismatch between monetary and multidimensional poverty at the household level, which highlights the importance of using both complementary measures to track progress in eradicating poverty.

This chapter studies the technical efficiencies of Chinese airports by using a meta-frontier production function model which accounts for airports in different regions accessing different technologies. Our empirical results show that the technical efficiency scores of airports and provincial output in the coastal region are higher than their counterparts in the inland region. However, the technical efficiency scores of airports and provincial output in inland region are steadily increasing while the counterparts of airports and provincial output in coastal region are slowly declining. In addition, our analysis of provincial efficiency changes shows that airport productivity has a positive and statistically significant effect on the technical changes of provincial output. Our results partially confirm the success of the government policy of promoting airport construction and development in the western inland region.

A little-known “lottery fever” has spread to many parts of rural China over the past 10 years. This is driven by participation in underground lotteries with local bookies. It is called liuhecai, which is the name of the Hong Kong lottery, and is based on guessing the bonus number of the Hong Kong Mark Six lottery. Such lotteries are illegal, but are an open secret. This chapter seeks to understand the meaning of this apparently irrational lottery fever: why people participate in it, why they believe the conspiracy theory that it is rigged (and yet still participate), and why similar lotteries have emerged in both capitalist Taiwan and post-socialist China at this particular time.

Data has become one of the most significant instruments in e-commerce innovation. Benefits to the entire society can be summarized as following: from the government’s perspective - to assess the impact of e-commerce to the economy; for merchants - to understand consumers’ needs; and for consumers - to be offered with the right product he/she is looking for. The digital revolution in the past five years has shown the need to offer more differentiated services than the physical stores, when consumers are not able to try and touch products. It is for this reason that e-commerce has continuously developed and transformed Research Online, Purchase Offline into a true experience. Considering the future of e-commerce is to enhance economic development and growth, this research will discuss the disruption of Research and Development through big data. The core objective of this research is to propose a predictive model to deeply understand consumer behavior by analyzing new regulations and transaction records.