Search results

1 – 10 of over 9000
To view the access options for this content please click here
Book part
Publication date: 26 April 2014

Nikolaos Giannellis and Georgios P. Kouretas

The aim of this study is to examine whether China’s exchange rate follows an equilibrium process and consequently to answer the question of whether or not China’s…

Abstract

Purpose

The aim of this study is to examine whether China’s exchange rate follows an equilibrium process and consequently to answer the question of whether or not China’s international competitiveness fluctuates in consistency with equilibrium.

Design/methodology/approach

The theoretical background of the paper relies on the Purchasing Power Parity (PPP) hypothesis, while the econometric methodology is mainly based on a nonlinear two-regime Threshold Autoregressive (TAR) unit root test.

Findings

The main finding is that China’s price competitiveness was not constantly following a disequilibrium process. The two-regime threshold model shows that PPP equilibrium was confirmed in periods of relatively high – compared to the estimated threshold – rate of real yuan appreciation. Moreover, it is implied that the fixed exchange rate regime cannot ensure external balance since it can neither establish equilibrium in the foreign exchange market, nor confirm that China’s international competitiveness adjustment follows an equilibrium process.

Practical implications

The results do not imply that China acts as a currency manipulator. However, a main policy implication of the paper is that China should continue appreciating the yuan to establish external balance.

Originality/value

This paper is the first which accounts for a nonlinear two-regime process toward a threshold, which is defined to be the rate of change in China’s international competitiveness. Consequently, the paper draws attention to the role of China’s international competiveness in accepting the PPP hypothesis.

Details

Macroeconomic Analysis and International Finance
Type: Book
ISBN: 978-1-78350-756-6

Keywords

To view the access options for this content please click here
Article
Publication date: 6 September 2013

Amy Hilland and Stephen Devadoss

Though an undervalued Yuan is not the only factor that contributes to the US bilateral trade deficit with China, it is widely accepted as being one of the leading factors…

Abstract

Purpose

Though an undervalued Yuan is not the only factor that contributes to the US bilateral trade deficit with China, it is widely accepted as being one of the leading factors. The heightened debate over the value of the Yuan may lead to “beggar thy neighbour” retaliation. The purpose of this paper is to provide a historical review of the Y/$ exchange rate movements, review the US congressional bills to revalue the Y/$ exchange rate and Chinese Government's reactions, presents a conceptual analysis of the effect of the undervalued Yuan on trade between China, the USA, and competitors, and discuss the arguments for and against revaluation of the Yuan.

Design/methodology/approach

Conceptual analysis graphically illustrates how the undervalued Yuan affects world trade and shows the benefits and losses for various countries.

Findings

Though an undervalued Yuan is not the only factor that contributes to the US bilateral trade deficit with China, it is widely accepted as being one of the leading factors. Due to its effects on production, consumption, and trade, a solution is needed. Although measuring the exact misalignment of the Chinese currency has led to various results, it is generally agreed that the Yuan is undervalued, and the US Congress has been persistent in introducing various bills to tackle the problems arising from the undervalued Yuan. Arguments for and against revaluation has heightened debate which may lead to “beggar thy neighbour” retaliation.

Originality/value

This paper outlines very timely and pretentious trade issues between China and the USA and contributes to the area of research of exchange rate effects on international trade.

Details

Journal of International Trade Law and Policy, vol. 12 no. 3
Type: Research Article
ISSN: 1477-0024

Keywords

To view the access options for this content please click here
Book part
Publication date: 1 October 2014

Ike Mathur and Soumen De

The Dim Sum bond market in Hong Kong, which allows China to regulate the amount of offshore yuans that flow back into the mainland, has grown steadily since its inception…

Abstract

The Dim Sum bond market in Hong Kong, which allows China to regulate the amount of offshore yuans that flow back into the mainland, has grown steadily since its inception in 2007 and is expected to surpass in 2013 the threshold level that would attract insurers and long-term issuers to the market. Yet, the market has not matured sufficiently relative to the yuan deposit market in Hong Kong that has grown at a much faster pace on account of trade liberalization and the use of yuans in China’s international trade settlements. Even though Hong Kong has fulfilled its role as an offshore currency center for the yuan, it is being challenged by Taiwan, Singapore, and London in terms of being the premier location for the issuance of yuan-denominated bonds outside of Mainland China.

Details

Risk Management Post Financial Crisis: A Period of Monetary Easing
Type: Book
ISBN: 978-1-78441-027-8

Keywords

To view the access options for this content please click here
Book part
Publication date: 18 December 2016

Fanzheng Yang

This paper is a study of how people with heterogonous individual characteristics self-select into different compensation schemes. A laboratory experiment is designed in…

Abstract

This paper is a study of how people with heterogonous individual characteristics self-select into different compensation schemes. A laboratory experiment is designed in which “workers” can join “companies” that pay according to various schemes: piece rate, revenue sharing, individual tournament, and team tournament. The main findings are: (1) Subjects with high relative performance always prefer individual tournament. (2) Risk-averse subjects are less likely to choose competitive schemes. (3) Individual tournament attracts fewer women than men, which is partially explained by gender-specific social preferences. (4) Compared to people with siblings, only children are less likely to accept any team-based schemes without information about their teammates. (5) The provision of feedback about relative performance can adjust individuals’ biased self-beliefs and then influence their self-selections.

Details

Experiments in Organizational Economics
Type: Book
ISBN: 978-1-78560-964-0

Keywords

To view the access options for this content please click here
Article
Publication date: 6 April 2012

Tze‐Wei Fu and Monli Lin

The purpose of this paper is to discuss the change in China's exchange rate regime during the 2001‐2009 period, when both the pegged and floating exchange rates were…

Abstract

Purpose

The purpose of this paper is to discuss the change in China's exchange rate regime during the 2001‐2009 period, when both the pegged and floating exchange rates were adopted in the country, offering a rare opportunity to address the issue. The effects of China's interest rate differential (IRD) and unemployment rate on the exchange rate are also discussed in this paper.

Design/methodology/approach

Given the economic variables are non‐stationary, this paper adopts cointegration analysis to evaluate the long‐term equilibrium in China's economy, with the unit root test, cointegrating test and a vector error correction model also used to scrutinize China' exchange rate regime for different time periods.

Findings

The time series data – including the exchange rate, IRD and unemployment rate – are used in the unit root test and Johansen test to verify the long‐term equilibrium between real exchange rate and unemployment rate in specific periods of time. Since the findings indicate no correlation between the exchange rate and IRD, it is possible to predict the value of Chinese yuan based on China's unemployment rate, but not IRD. China's government slows down the appreciation of its currency when the lagged unemployment rate is high.

Originality/value

The paper provides a fresh perspective on the long‐term equilibrium among China's exchange rate, IRD and unemployment by dividing the sample period into several parts, according to the exchange rate policy. The findings indicate that the unemployment rate plays an important role in China's exchange rate regime.

Details

International Journal of Emerging Markets, vol. 7 no. 2
Type: Research Article
ISSN: 1746-8809

Keywords

To view the access options for this content please click here
Article
Publication date: 6 November 2017

Tao Ye, Ming Wang, Wuyang Hu, Yangbin Liu and Peijun Shi

Understanding farmers’ preferences for crop insurance attributes is crucial in designing better insurance products and guiding government policies but such research is…

Abstract

Purpose

Understanding farmers’ preferences for crop insurance attributes is crucial in designing better insurance products and guiding government policies but such research is lacking, particularly in developing countries. The paper aims to discuss these issues.

Design/methodology/approach

This study uses a survey featuring a discrete choice experiment and policy simulation.

Findings

Overall, crop insurance has positive values to farmers, although preference is heterogeneous based on socioeconomic characteristics and risk position. Policy simulation confirms the roles of liability in strengthening insurance participants’ welfare and premium subsidy in encouraging participation. Introducing one more product into the market can accommodate farmers’ diverse needs and lead to increases in both aggregated social welfare and participation while maintaining the current level of government expense in subsidy – a potential Pareto improvement.

Research limitations/implications

Methodology employed is not the most novel in the choice experiment literature as many of the advances in choice experiment design could not be applied due to the actual condition in rural China and Chinese farmers’ capability in understanding the experiment.

Practical implications

The results indicate that the current single-product market structure using “low liability with high premium subsidies” cannot accommodate the diverse needs among farmers. Providing more varieties of liability-subsidy combinations, e.g. a high liability with low premium subsidy insurance product, can substantially improve participants’ welfare with little impact to the probability of participation.

Originality/value

The authors believe that this is one of the very few studies that that analyze farmers’ preferences and willingness to pay for the attributes of crop insurance products. It also shows how crop insurance product design can build upon farmers’ choices to achieve a potential Pareto improvement in aggregated social welfare in the context of a fast-developing crop insurance market.

Details

China Agricultural Economic Review, vol. 9 no. 4
Type: Research Article
ISSN: 1756-137X

Keywords

To view the access options for this content please click here
Article
Publication date: 1 February 2016

Qihua Cai, Yuchun Zhu and Qihui Chen

– The purpose of this paper is to examine the roles social networks play in households’ contribution to the provision of small hydraulic facilities (SHFs) in rural China.

Abstract

Purpose

The purpose of this paper is to examine the roles social networks play in households’ contribution to the provision of small hydraulic facilities (SHFs) in rural China.

Design/methodology/approach

This paper adopts a sample-selection ordered probit model (Greene and Hensher, 2010) to estimate the impacts of overall social-network intensity, of the number of strong ties (relatives), and of the number of weak ties (friends), using data on 1,064 representative households collected from three provinces (Inner Mongolia, Ningxia, and Shandong).

Findings

The numbers of strong ties and weak ties both have significant impacts on households’ willingness to contribute to SHFs provision, but only the latter has a significant impact on their level of contribution. More specifically, a one standard deviation increase in the number of weak ties (i.e. friends) is associated with a 6.6 percent increase in households’ propensity of contributing more than 550 yuan and a 8.2 percent decrease in their propensity of contributing less than 100 yuan.

Originality/value

This paper is the first to examine the impacts of social networks on households’ contribution to SHFs provision in rural China. Its finding is of great policy relevance-fostering and maintaining social networks (e.g. through rural cooperatives) can significantly increase households’ contribution to public-good provision.

Details

China Agricultural Economic Review, vol. 8 no. 1
Type: Research Article
ISSN: 1756-137X

Keywords

To view the access options for this content please click here
Book part
Publication date: 31 March 1996

Robert Michael Field

Abstract

Details

International Comparisons of Prices, Output and Productivity
Type: Book
ISBN: 978-1-84950-865-0

To view the access options for this content please click here
Book part
Publication date: 30 November 2020

Wang Hong and Ding Shuai

In recent years, especially after the 2008 global financial crisis, the global economic recovery has been struggling. The trend of anti-globalization with populism and…

Abstract

In recent years, especially after the 2008 global financial crisis, the global economic recovery has been struggling. The trend of anti-globalization with populism and protectionism around the world is on the rise. As the largest developing country, China will engage in promoting global economic integration for common development of the world to promote the sustainable development and globalization. This paper will focus on the global operations of Chinese MNCs and explore their social responsibility to go global under the B&R Initiative, study their performance of social responsibility, analyze the potential risks and put forward countermeasures. Based on the report of the Top 100 Chinese MNCs released by China Entrepreneurs Association in 2016, we select 35 corporations related to the B&R, use their comparatively complete data and conduct a statistical analysis of their CSR data. To study the economic, social and environmental performance of CSR and sustainable development, we focus on three major indicators, including employee, environment and the public. Data from 2012 to 2016 are considered, for a total of five years. Through the analysis of CSR data, this paper points the social responsibility development status of major Chinese MNCs under the B&R Initiative and reveals some problems and risks that still exist in the fulfillment of social responsibility. In response to these issues, we make analysis from the perspective of stakeholders, so as to provide ideas for the development of social responsibility of the related corporations. At the initial stage of China's initiative of the Belt and Road, it is a new attempt to launch a research on the social responsibility of Chinese MNCs. Traditionally, research on CSR tends to make horizontal comparison of corporations in different countries and focuses on a certain year. Based on the traditional research and differ from them, we extend the time interval of research beyond a certain year and adopt the trend analysis to CSR data. In addition, case introduction is also used. According to the stakeholder theory and the comprehensiveness of the data, the research is focused on three main aspects, namely, employee, environment and the public. And, we have made a relative conversion of these indicators. These thoughts can examine the social responsibility development of related corporations in a given period and help promote the B&R Initiative.

Details

CSR in an age of Isolationism
Type: Book
ISBN: 978-1-80043-268-0

Keywords

To view the access options for this content please click here
Book part
Publication date: 28 August 2013

Hung-Gay Fung, Derrick Tzau and Jot Yau

This chapter provides a review of the Chinese government policies that promote the internationalization of the Chinese currency, the renminbi or RMB, which include the RMB…

Abstract

This chapter provides a review of the Chinese government policies that promote the internationalization of the Chinese currency, the renminbi or RMB, which include the RMB swap arrangements between the central banks, trading of the RMB across different markets, and establishment of the dim sum bond market. In particular, we update the development of the dim sum bond market in terms of the size, amount of the issues, coupon and tenor characteristics, issuers, and investment bankers of dim sum bond issues. The dim sum bond market appears to be a promising global asset class for investors.

Details

International Financial Markets
Type: Book
ISBN: 978-1-78190-312-4

Keywords

1 – 10 of over 9000