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This research is designed to study the Granger causality between climate risk, economic stability, and tourism. It uses the heterogeneous panel Granger approach developed by Dumitrescu and Hurlin (2012). This approach is particularly useful for data with cross-sectional dependence and heterogeneity. The findings suggest that, on the one hand, tourism development will be beneficial to national economic stability and, on the other hand, it will contribute to the national climate crisis.
Wanhai You; Yue Zhang; Chien-Chiang Lee. Climate Risk, Economic Stability, and Tourism: A Cross-Sectionally Dependent Heterogeneous Panel Causality Analysis. Energy RESEARCH LETTERS 2021, 2, 25723 .
AMA StyleWanhai You, Yue Zhang, Chien-Chiang Lee. Climate Risk, Economic Stability, and Tourism: A Cross-Sectionally Dependent Heterogeneous Panel Causality Analysis. Energy RESEARCH LETTERS. 2021; 2 (2):25723.
Chicago/Turabian StyleWanhai You; Yue Zhang; Chien-Chiang Lee. 2021. "Climate Risk, Economic Stability, and Tourism: A Cross-Sectionally Dependent Heterogeneous Panel Causality Analysis." Energy RESEARCH LETTERS 2, no. 2: 25723.
The unfortunate price paid by the rapid growth of the global economy is the destruction of the ecological environment, yet financial development represented by the establishment of regional financial institutions may have a positive effect on environmental improvement. Based on data of 284 prefecture-level and above cities in China from 1998 to 2018, this research takes the establishment of China's City Commercial Banks (CCBs) as a quasi-natural experiment and constructs a difference-in-differences (DID) model to explore the impact of these regional banks on regional environmental pollution in China. The results are as follows. First, the establishment of CCBs significantly reduces regional pollution, and the pollution reduction effect of CCBs that have been established for several years and opened branches is more obvious. Second, the establishment of CCBs cuts environmental pollution by improving the innovation capacity, attracting more foreign direct investment (FDI), and upgrading the industrial structure. Third, the higher the economic strength, population size, and degree of marketization a city exhibits, the stronger is the pollution reduction effect of CCBs. Further analysis finds that the effect of CCBs in reducing pollution is higher in cities with strong economic power and large populations, which mainly relates to the innovation promoting effect. When cities have a high degree of marketization, the pollution reduction effect of CCBs generally comes from the innovation promoting effect and the FDI attracting effect. Therefore, cities should continue to improve the operating efficiency of regional banks, properly handle the relationship between regional banks and local governments, optimize the allocation of financial resources, and improve environmental quality through green finance.
Yang Chen; Liang Cheng; Chien-Chiang Lee; Chang-Song Wang. The impact of regional banks on environmental pollution: Evidence from China's city commercial banks. Energy Economics 2021, 102, 105492 .
AMA StyleYang Chen, Liang Cheng, Chien-Chiang Lee, Chang-Song Wang. The impact of regional banks on environmental pollution: Evidence from China's city commercial banks. Energy Economics. 2021; 102 ():105492.
Chicago/Turabian StyleYang Chen; Liang Cheng; Chien-Chiang Lee; Chang-Song Wang. 2021. "The impact of regional banks on environmental pollution: Evidence from China's city commercial banks." Energy Economics 102, no. : 105492.
The quality of public service transportation highly depends on the country's context, including investment, infrastructure development, and technology-based innovation in the transport sector. The core innovation of the present study is the asymmetric impacts of the airline, railway, waterway, and road on environmental pollution in China. This research analyzed and highlighted the most susceptible transportation system in China, using the newly developed Non-linear Autoregressive Distributed Lag (NARDL) model from 1985 to 2018. The results of the NARDL are positive shock and negative shock between CO2 emission and four mode-specific transportation development that led to an increase in environmental cost in the short run. The study findings divulged that airline, road, and waterway operational mileage per capita of both positive and negative transportation shocks had worsened the environmental pollution in China. On the other hand, the railway is successfully improving environmental quality in China. In order to enforce policies, local authorities should be supportive of urban public services (e.g., buses and metro) and improve public transportation services. Simultaneously, policymakers may also introduce new creative ideas for a sharing economy, such as shared bicycles and automobiles to reduce the use of private vehicles. These insights of the study could assist policymakers to improve policies for the four specific modes of transportation to better adapt to climate change and associated environmental stressors in China.
Syed Tauseef Hassan; Bangzhu Zhu; Chien-Chiang Lee; Paiman Ahmad; Muhammad Sadiq. Asymmetric impacts of public service “transportation” on the environmental pollution in China. Environmental Impact Assessment Review 2021, 91, 106660 .
AMA StyleSyed Tauseef Hassan, Bangzhu Zhu, Chien-Chiang Lee, Paiman Ahmad, Muhammad Sadiq. Asymmetric impacts of public service “transportation” on the environmental pollution in China. Environmental Impact Assessment Review. 2021; 91 ():106660.
Chicago/Turabian StyleSyed Tauseef Hassan; Bangzhu Zhu; Chien-Chiang Lee; Paiman Ahmad; Muhammad Sadiq. 2021. "Asymmetric impacts of public service “transportation” on the environmental pollution in China." Environmental Impact Assessment Review 91, no. : 106660.
In this paper, we estimate the price and income elasticities for gasoline demand in selected energy gluttons—China, India, USA, Russia, and Japan. Specifically, we employ a time-varying parameter approach which adequately deals with potential parameter instabilities and nonlinearities and effectively captures price and income elasticity variations over time, with each time period having its own set of coefficients. Our empirical findings reveal the following: gasoline consumption is price-inelastic and income-inelastic, there are movements in both the price and income elasticities, and the movements generally correspond with business cycle patterns of each of the countries; overall, sensitivity to price and income changes increase during periods of economic crises. Constant elasticity models overestimate price and income elasticities, and income is predominantly more elastic than price. Our conclusion is that policy mechanisms that are price-based such as gasoline taxes are likely to be unsuccessful in achieving consumption-cum-pollution reduction objectives in the energy gluttons. Such policies may, however, be effective if they ensure that gasoline prices rise at a greater rate than income. Such policies may also be useful for revenue-raising purposes.
Chien-Chiang Lee; Godwin Olasehinde-Williams. Gasoline demand elasticities in the world’s energy gluttons: a time-varying coefficient approach. Environmental Science and Pollution Research 2021, 1 -18.
AMA StyleChien-Chiang Lee, Godwin Olasehinde-Williams. Gasoline demand elasticities in the world’s energy gluttons: a time-varying coefficient approach. Environmental Science and Pollution Research. 2021; ():1-18.
Chicago/Turabian StyleChien-Chiang Lee; Godwin Olasehinde-Williams. 2021. "Gasoline demand elasticities in the world’s energy gluttons: a time-varying coefficient approach." Environmental Science and Pollution Research , no. : 1-18.
The purpose of this research is to show the regional gap, spatial pattern, and the trend evolution of China's green finance development. Based on provincial data from 2010 to 2019, we construct a policy- and market-oriented green financial development index system with the help of a local green financial development index and assessment report in 2019 and then calculate the green financial development index by using time and space ranges via the entry-weight method. We further employ Dagum's Gini coefficient decomposition method, Kernel density estimation, Markov chain, and spatial Markov chain, presenting results that first show that the overall development index of green finance in China is on the rise, but its overall level is not high. Second, the overall regional gap is on the decline, and the inter-regional gap is the main source of the development gap of green finance in the country. Third, the development of green finance shows a polarization trend, characterized by a ladder distribution of initially east China, central China, west China, and then northeast China. Finally, the development of green finance in China shows a club convergence phenomenon. This revelation of the evolution trend and source of the development gap of China's green finance provide a basis for narrowing this gap and for promoting the coordinated development of green finance in China's economic regions.
Chengchao Lv; Baocheng Bian; Chien-Chiang Lee; Zhiwen He. Regional gap and the trend of green finance development in China. Energy Economics 2021, 102, 105476 .
AMA StyleChengchao Lv, Baocheng Bian, Chien-Chiang Lee, Zhiwen He. Regional gap and the trend of green finance development in China. Energy Economics. 2021; 102 ():105476.
Chicago/Turabian StyleChengchao Lv; Baocheng Bian; Chien-Chiang Lee; Zhiwen He. 2021. "Regional gap and the trend of green finance development in China." Energy Economics 102, no. : 105476.
This research analyzes the convergence of the world’s inflation rates, spanning 98 countries during the 1970–2016 period. Compared to previous studies, this study’s contribution is its analysis of the convergence sequence of different countries from a nonlinear perspective and its examination of the factors influencing the convergence order. We find that most countries’ inflation rates tend to converge with one another, with the exceptions of Japan, Poland, Chile, Sweden, and Burundi. The results also show that the inflation levels of high-income countries converge faster to the mean value than those of low-income countries. We show that countries that have volatile inflation rates are more likely to converge earlier than other countries. The robust results of the econometric analysis show that countries with improving per capita Gross Domestic Product (GDP) levels and growing globalization levels are more prone to earlier convergence than countries with lower level per capita GDP values or lower globalization levels. The results demonstrate that most of the countries in the world conform to the law of one price, and the money illusion hypothesis is invalid in the long run.
Tie-Ying Liu; Chien-Chiang Lee. Global Convergence of Inflation Rates. The North American Journal of Economics and Finance 2021, 58, 101501 .
AMA StyleTie-Ying Liu, Chien-Chiang Lee. Global Convergence of Inflation Rates. The North American Journal of Economics and Finance. 2021; 58 ():101501.
Chicago/Turabian StyleTie-Ying Liu; Chien-Chiang Lee. 2021. "Global Convergence of Inflation Rates." The North American Journal of Economics and Finance 58, no. : 101501.
This article employs the non-linear autoregressive distributed lag model in analysing the environmental impact of tourism in China from 2002Q1 to 2018Q4, while controlling for non-renewable energy consumption, trade openness, urbanisation, per capita GDP and its quadratic form. The approach permits the simultaneous testing of non-linearities in the short and long run. This is achieved through negative and positive partial sum decompositions of the regressor of interest. Findings from the article indicate the following: (i) long-run co-movements exist between tourism activities and environmental performance in China, (ii) tourism activities considerably damage the environment in China, (iii) the environment responds to tourism in an asymmetric manner, such that the damage caused by increasing tourism is smaller than the positive environmental effect of decline in tourism. Thus, less tourism protects the environment faster than more tourism damages it. A supplementary non-parametric test for non-linear causality was also performed. The result further provides strong evidence of a non-linear feedback causality between tourism activities and environmental performance in China in the first moment (mean) and second moment (variance). Tourism (environmental performance) is thus a significant predictor of China’s environmental performance (tourism).
Chien-Chiang Lee; Godwin O. Olasehinde-Williams; Joseph Afolabi Ibikunle. An asymmetric examination of the environmental effect of tourism in China. Tourism Economics 2021, 1 .
AMA StyleChien-Chiang Lee, Godwin O. Olasehinde-Williams, Joseph Afolabi Ibikunle. An asymmetric examination of the environmental effect of tourism in China. Tourism Economics. 2021; ():1.
Chicago/Turabian StyleChien-Chiang Lee; Godwin O. Olasehinde-Williams; Joseph Afolabi Ibikunle. 2021. "An asymmetric examination of the environmental effect of tourism in China." Tourism Economics , no. : 1.
Should firms decrease or increase their debt capacity after professional CEO succession? Examining a sample of all publicly traded firms from 1991 to 2016 in Taiwan, this research finds that firms with professional CEO successors tend to raise less debt and consider the succession of professional managers to be more conservative because they are afraid of being monitored more severely. From the perspectives of firms’ characteristics, those with professional CEO successors and high cash holdings and investment levels are more likely to increase their debt capacity, while those of a larger size and higher post-succession profitability volatility decrease their ability at raising debt. Finally, we hand-collect data and develop a novel method to identify the real founders and reconfirm our empirical evidence. Our findings present financial implications for boards of directors which they can evaluate firms’ cash holdings, investment level, firm size, and profit volatility before deciding on whether to name a CEO successor to take over their firms.
Chien-Chiang Lee; Chih-Wei Wang; Chi Yin; Min-Rui Choo. Do firm characteristics affect debt capacity? Evidence in CEO succession. Applied Economics 2021, 1 -17.
AMA StyleChien-Chiang Lee, Chih-Wei Wang, Chi Yin, Min-Rui Choo. Do firm characteristics affect debt capacity? Evidence in CEO succession. Applied Economics. 2021; ():1-17.
Chicago/Turabian StyleChien-Chiang Lee; Chih-Wei Wang; Chi Yin; Min-Rui Choo. 2021. "Do firm characteristics affect debt capacity? Evidence in CEO succession." Applied Economics , no. : 1-17.
Despite the increasing use of digital technology in industrial production, how industrial digitalization affects the environmental performance of production activities remains unclear. This research contributes to the literature on the relationship between industrial digitalization and enterprise environmental performance by employing a large sample of Chinese manufacturing enterprises. Results indicate that the environmental performance of manufacturing enterprises has been significantly improved in the process of industrial digital transformation. Structural and technology effects are the transmission channels; additionally, structural effect is the main contributor to the positive environmental effects of information and communications technology (ICT) penetration. Industrial digitalization reduces the production scale of heavy-polluting enterprises and improves product innovation and green total factor productivity, but it has an insignificant effect on total factor productivity. Moreover, industrial digitalization improves enterprise environmental performance by introducing front-end cleaner production technologies, rather than by increasing pipe-end pollutant treatment facilities.
Huwei Wen; Chien-Chiang Lee; Ziyu Song. Digitalization and environment: how does ICT affect enterprise environmental performance? Environmental Science and Pollution Research 2021, 1 -16.
AMA StyleHuwei Wen, Chien-Chiang Lee, Ziyu Song. Digitalization and environment: how does ICT affect enterprise environmental performance? Environmental Science and Pollution Research. 2021; ():1-16.
Chicago/Turabian StyleHuwei Wen; Chien-Chiang Lee; Ziyu Song. 2021. "Digitalization and environment: how does ICT affect enterprise environmental performance?" Environmental Science and Pollution Research , no. : 1-16.
This research presents a full picture of the rationale behind China's infrastructure investment under the Belt and Road Initiative (BRI), which was formally initiated in 2013. In this paper, we argue that the main reason for China to conduct infrastructure investment under BRI is to strategically respond to the emergence of the “New Normal,” which pushes the country to sustain economic growth through further structural transformation. We come up with three relevant factors for why infrastructure projects under BRI could be conducive to structural transformation in China's economy, as it (1) provides a much better alternative to the existing poor logistic conditions and can create accessibility among regions, (2) enables the smooth flow of factor endowments of production that significantly reduce production costs, and (3) indirectly strengthens the influence of the debt provider's home currency. This paper also provides three theoretical pillars: the comparative advantage following (CAF) and defying (CAD) development strategies, the late development theory with antineoliberalism characteristics, and the new international division of labor, from which these three factors might potentially explain how BRI could enhance the structural transformation of this second‐largest economy in the world.
Longcan Zou; Jim Huangnan Shen; Jun Zhang; Chien‐Chiang Lee. What is the rationale behind China's infrastructure investment under the Belt and Road Initiative. Journal of Economic Surveys 2021, 1 .
AMA StyleLongcan Zou, Jim Huangnan Shen, Jun Zhang, Chien‐Chiang Lee. What is the rationale behind China's infrastructure investment under the Belt and Road Initiative. Journal of Economic Surveys. 2021; ():1.
Chicago/Turabian StyleLongcan Zou; Jim Huangnan Shen; Jun Zhang; Chien‐Chiang Lee. 2021. "What is the rationale behind China's infrastructure investment under the Belt and Road Initiative." Journal of Economic Surveys , no. : 1.
This paper investigates how asset reversibility affects the sensitivity of firm’s cash holding to economic policy uncertainty in China. Using the 2012 national input-output table for 139 industries, we measure the industry-level asset reversibility and match them with nonfinancial publicly listed firms over 2007−2017. The results show that asset reversibility has a significant and negative effect on the positive uncertainty-cash holding sensitivity, especially for firms with more severe financial constraints. Furthermore, we find that firms with higher asset reversibility invest more in fixed assets, suggesting that real investment is an important mechanism. In addition, baseline results are robust to potential endogeneity and alternative measures of asset reversibility and economic policy uncertainty. Our findings reveal that asset market friction is a critical determinant of firm’s cash holding.
Yuanyuan Liu; Jing Li; Guanchun Liu; Chien-Chiang Lee. Economic policy uncertainty and firm’s cash holding in China: The key role of asset reversibility. Journal of Asian Economics 2021, 74, 101318 .
AMA StyleYuanyuan Liu, Jing Li, Guanchun Liu, Chien-Chiang Lee. Economic policy uncertainty and firm’s cash holding in China: The key role of asset reversibility. Journal of Asian Economics. 2021; 74 ():101318.
Chicago/Turabian StyleYuanyuan Liu; Jing Li; Guanchun Liu; Chien-Chiang Lee. 2021. "Economic policy uncertainty and firm’s cash holding in China: The key role of asset reversibility." Journal of Asian Economics 74, no. : 101318.
The rapid development of the world economy has been accompanied by a significant increase in ecological footprint. Represented by population agglomeration, urbanization has exacerbated environmental pressure, but the improvements in the levels of human capital may offset this negative impact. This research thus uses cross-country data from 110 economies over the period 1990–2016 to explore the correlations among human capital, urbanization, and ecological footprint. The findings show that first, from a global perspective, human capital initially increases and then reduces ecological footprint. The analysis based on sub-samples shows that human capital of the high-income group decreases ecological footprint, whereas human capital of the low-income group and that of countries with large populations raise ecological footprint. Second, urbanization plays a linear moderating role in human capital’s impact on the ecological footprint. The higher the level of urbanization is, the higher is the turning point of human capital that is needed to improve environmental quality. Third, when the population size is larger or ecological footprint is greater, the turning point of human capital is higher under the same urbanization level. Therefore, countries should continue to enhance human capital to promote the upgrading of industrial structure, green technology innovation, and changes in energy-saving lifestyle. Moreover, it is beneficial for countries to pay close attention to the negative impact of population size or accelerated urbanization on environmental quality.
Yang Chen; Chien-Chiang Lee; Ming Chen. Ecological footprint, human capital, and urbanization. Energy & Environment 2021, 1 .
AMA StyleYang Chen, Chien-Chiang Lee, Ming Chen. Ecological footprint, human capital, and urbanization. Energy & Environment. 2021; ():1.
Chicago/Turabian StyleYang Chen; Chien-Chiang Lee; Ming Chen. 2021. "Ecological footprint, human capital, and urbanization." Energy & Environment , no. : 1.
Despite the increasing use of digital technology in industrial production, how industrial digitalization affects the environmental performance of production activities remains unclear. This research contributes to the literature on the relationship between industrial digitalization and enterprise environmental performance by employing a large sample of Chinese manufacturing enterprises. Results indicate that the environmental performance of manufacturing enterprises has been significantly improved in the process of industrial digital transformation. Structural and technology effects are the influencing mechanisms. Industrial digitalization reduces the production scale of heavy polluting enterprises and improves product innovation and green total factor productivity, but it has an insignificant effect on total factor productivity. Moreover, industrial digitalization improves enterprise environmental performance by introducing front-end cleaner production technologies, rather than by increasing pipe-end pollutant treatment facilities.JEL Classification: Q56, O13, L86
Huwei Wen; Chien-Chiang Lee; Ziyu Song. How Does Industrial Digitalization Affect Enterprise Environmental Performance? 2021, 1 .
AMA StyleHuwei Wen, Chien-Chiang Lee, Ziyu Song. How Does Industrial Digitalization Affect Enterprise Environmental Performance? . 2021; ():1.
Chicago/Turabian StyleHuwei Wen; Chien-Chiang Lee; Ziyu Song. 2021. "How Does Industrial Digitalization Affect Enterprise Environmental Performance?" , no. : 1.
This research combines the DEA-SBM (Data Envelopment Analysis-Super Slack Based Measure) model and GML (Global Malmquist-Luenberger) index to measure the efficiency of green technology innovation in 30 provinces of China from 2003 to 2017. It uses financial structure, financial scale, and financial efficiency to describe the degree of financial development and examines the relationship between financial development and green technology innovation. We further analyze the moderating effect of environmental regulation and the mediating effect of innovation output, first offering evidence that there are differences in the impact of financial structure, financial scale, and financial efficiency on green technology innovation. Second, financial structure is conducive to the development of green technology innovation, while financial scale and financial efficiency have a negative impact on green technology innovation. Third, environmental regulation plays a positive role as a moderating effect between financial structure and green technology innovation, but a negative role as a moderating effect between financial efficiency and green technology innovation. Fourth, innovation output has a mediating role between financial development and green technology innovation. Finally, there is an integrated boundary role that environmental regulation has between financial development, innovation output, and green technology innovation.
Chengchao Lv; Changhua Shao; Chien-Chiang Lee. Green technology innovation and financial development: Do environmental regulation and innovation output matter? Energy Economics 2021, 98, 105237 .
AMA StyleChengchao Lv, Changhua Shao, Chien-Chiang Lee. Green technology innovation and financial development: Do environmental regulation and innovation output matter? Energy Economics. 2021; 98 ():105237.
Chicago/Turabian StyleChengchao Lv; Changhua Shao; Chien-Chiang Lee. 2021. "Green technology innovation and financial development: Do environmental regulation and innovation output matter?" Energy Economics 98, no. : 105237.
As the literature has studied the financing method of Chinese-listed firms for a long time, but with inconclusive indications, this research thus adopts non-financial Chinese-listed firms’ data from 2003 to 2015 to investigate the relationship between long-term debt financing and financing deficit. We pay particular attention to three channels (ownership concentration, market timing, and state ownership) that potentially affect the adoption of long-term debt financing when there is a financing deficit. The empirical analysis documents a positive relationship between financing deficit and changes in the long-term debt ratio in our sampled firms for both static and dynamic panel models. Moreover, among the three channels we show that state ownership has the strongest positive impact on the adoption of long-term debt financing, followed by ownership concentration, while the weakest channel is the market timing’s negative effect. In general, our empirical analysis finds that the important external financing method of long-term debt is most likely to be impacted by the state ownership aspect.
Xiaochen Jiang; Jim Huangnan Shen; Chien-Chiang Lee. Toward an empirical investigation of the long-term debt and financing deficit nexus: evidence from Chinese-listed firms. Applied Economics 2021, 53, 3832 -3853.
AMA StyleXiaochen Jiang, Jim Huangnan Shen, Chien-Chiang Lee. Toward an empirical investigation of the long-term debt and financing deficit nexus: evidence from Chinese-listed firms. Applied Economics. 2021; 53 (33):3832-3853.
Chicago/Turabian StyleXiaochen Jiang; Jim Huangnan Shen; Chien-Chiang Lee. 2021. "Toward an empirical investigation of the long-term debt and financing deficit nexus: evidence from Chinese-listed firms." Applied Economics 53, no. 33: 3832-3853.
The purpose of this paper is to introduce the idea of shift-share analysis, where local inflation is decomposed into the national factor, structural stickiness (with sectoral and regional aspects), and a localized pricing power effect in order to gain a better understanding of the inflation dynamics. We apply price-level data in China as a dual economy, which has historically been separated into urban and rural areas. The results show that sectoral differences in inflation are the most important factor explaining inflation in China, while local pricing power must be seriously considered in many sectors in rural areas.
Shu-Hen Chiang; Chien-Chiang Lee; Ying Liao. Exploring the sources of inflation dynamics: New evidence from China. Economic Analysis and Policy 2021, 70, 313 -332.
AMA StyleShu-Hen Chiang, Chien-Chiang Lee, Ying Liao. Exploring the sources of inflation dynamics: New evidence from China. Economic Analysis and Policy. 2021; 70 ():313-332.
Chicago/Turabian StyleShu-Hen Chiang; Chien-Chiang Lee; Ying Liao. 2021. "Exploring the sources of inflation dynamics: New evidence from China." Economic Analysis and Policy 70, no. : 313-332.
Outward foreign direct investment (OFDI) in an open economy has gradually become an important source of green innovation (GI). With the rapid development of China’s OFDI, this research studies the impact of OFDI on the country’s GI, employing panel data of 30 provinces from 2006 to 2017. We first use the Super-SBM model to measure GI performance and then test the impact of OFDI on GI with the system GMM model. Evidence finds that the negative impact of OFDI on GI is not significant on the whole, but the results of regional regression show that impact of OFDI on GI exhibits obvious regional differences. We then utilize the dynamic threshold panel model to determine the non-linear relationship between OFDI and GI through the perspective of environmental regulation in order to avoid the bias caused by ignoring the impact of institutional factors and time dynamic change. After dividing environmental regulations into command control environmental regulation and market incentive environmental regulation, the research results show that the double threshold effects of both environmental regulations are significant. Command control environmental regulation does not play a role in promoting the effect of OFDI on GI. When the intensity of market incentive environmental regulation is low, OFDI negatively affects GI. Moreover, only when the market incentive regulation shows high intensity can OFDI significantly promote GI. With the continuous growth of China’s OFDI, it is therefore necessary to determine the appropriate environmental regulation to improve the reverse spillover effect of OFDI enterprises on the country’s GI.
Lihua Dai; Xiuru Mu; Chien-Chiang Lee; Wei Liu. The impact of outward foreign direct investment on green innovation: the threshold effect of environmental regulation. Environmental Science and Pollution Research 2021, 28, 34868 -34884.
AMA StyleLihua Dai, Xiuru Mu, Chien-Chiang Lee, Wei Liu. The impact of outward foreign direct investment on green innovation: the threshold effect of environmental regulation. Environmental Science and Pollution Research. 2021; 28 (26):34868-34884.
Chicago/Turabian StyleLihua Dai; Xiuru Mu; Chien-Chiang Lee; Wei Liu. 2021. "The impact of outward foreign direct investment on green innovation: the threshold effect of environmental regulation." Environmental Science and Pollution Research 28, no. 26: 34868-34884.
The effect of COVID-19 on stock market performance has important implications for both financial theory and practice. This paper examines the relationship between COVID-19 and the instability of both stock return predictability and price volatility in the U.S over the period January 1st, 2019 to June 30th, 2020 by using the methodologies of Bai and Perron (Econometrica 66:47–78, 1998. 10.2307/2998540; J Appl Econo 18:1–22, 2003. 10.1002/jae.659), Elliot and Muller (Optimal testing general breaking processes in linear time series models. University of California at San Diego Economic Working Paper, 2004), and Xu (J Econ 173:126–142, 2013. 10.1016/j.jeconom.2012.11.001). The results highlight a single break in return predictability and price volatility of both S&P 500 and DJIA. The timing of the break is consistent with the COVID-19 outbreak, or more specifically the stock selling-offs by the U.S. senate committee members before COVID-19 crashed the market. Furthermore, return predictability and price volatility significantly increased following the derived break. The findings suggest that the pandemic crisis was associated with market inefficiency, creating profitable opportunities for traders and speculators. Furthermore, it also induced income and wealth inequality between market participants with plenty of liquidity at hand and those short of funds.
Hui Hong; Zhicun Bian; Chien-Chiang Lee. COVID-19 and instability of stock market performance: evidence from the U.S. Financial Innovation 2021, 7, 1 -18.
AMA StyleHui Hong, Zhicun Bian, Chien-Chiang Lee. COVID-19 and instability of stock market performance: evidence from the U.S. Financial Innovation. 2021; 7 (1):1-18.
Chicago/Turabian StyleHui Hong; Zhicun Bian; Chien-Chiang Lee. 2021. "COVID-19 and instability of stock market performance: evidence from the U.S." Financial Innovation 7, no. 1: 1-18.
Given the continuous debate about the foreign direct investment (FDI)‐inequality nexus, there is an acknowledged need for reconsidering their relationship from a new perspective. Therefore, applying balanced panel data composed of 60 countries from 1998 to 2014, this research estimates a finite mixture model with country risk as a concomitant variable to explore the interrelationships among FDI, inequality, and country risk so as to offer fresh insight into the FDI‐inequality nexus. We present evidence that shows a significant role of compositing country risk on this. Specifically speaking, FDI deteriorates inequality under the condition of high risk, whereas it alleviates inequality in a country with low country risk. Moreover, we can also obtain the similar findings by considering the role of components of country risk (economic risk, financial risk and political risk) as a determinant for the FDI‐inequality nexus. FDI deteriorates inequality under the condition of high political, economic and financial risks, whereas it alleviates inequality in a country with low political, economic and financial risks.
En‐Ze Wang; Chien‐Chiang Lee. Foreign direct investment, income inequality and country risk. International Journal of Finance & Economics 2021, 1 .
AMA StyleEn‐Ze Wang, Chien‐Chiang Lee. Foreign direct investment, income inequality and country risk. International Journal of Finance & Economics. 2021; ():1.
Chicago/Turabian StyleEn‐Ze Wang; Chien‐Chiang Lee. 2021. "Foreign direct investment, income inequality and country risk." International Journal of Finance & Economics , no. : 1.
Geopolitical risks have been widely linked to oil price movements in the past. Our study as an addition to this debate shows that geopolitical threats particularly play a significant role in the volatility experienced in global oil markets with attendant policy suggestions. In this study, we employed the newly developed geopolitical threats index to examine whether threats of war, terrorism, and ethnic and political violence within and between countries are powerful enough to predict volatility in global oil prices. Monthly data on global geopolitical threats index and global prices of crude were drawn upon for causality between the periods 1990:01 and 2020:04. To this effect, two volatility indices were constructed using the deviations of Brent and WTI prices from their Hodrick-Prescott filters. The ability of the geopolitical threats index to predict volatilities was examined through a battery of causality methodologies—Granger causality test in frequency domain, nonparametric test for nonlinear causality, leveraged bootstrap causality test, and Fourier Toda-Yamamoto causality test. Through various causality methodologies, we were able to ensure robustness against various problems associated with the classical linear Granger causality testing approach and ascertain that geopolitical threats are powerful and useful predictors of volatility in global oil prices.
Chien-Chiang Lee; Godwin Olasehinde-Williams; Seyi Saint Akadiri. Are geopolitical threats powerful enough to predict global oil price volatility? Environmental Science and Pollution Research 2021, 28, 28720 -28731.
AMA StyleChien-Chiang Lee, Godwin Olasehinde-Williams, Seyi Saint Akadiri. Are geopolitical threats powerful enough to predict global oil price volatility? Environmental Science and Pollution Research. 2021; 28 (22):28720-28731.
Chicago/Turabian StyleChien-Chiang Lee; Godwin Olasehinde-Williams; Seyi Saint Akadiri. 2021. "Are geopolitical threats powerful enough to predict global oil price volatility?" Environmental Science and Pollution Research 28, no. 22: 28720-28731.