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Foreign direct investment (FDI) from emerging markets to developing countries has increased significantly for recent decades. Such the South-South FDI tends to behave differently from the North-South FDI. The rise of China's FDI (C-FDI) in Africa has generated considerable controversy. While the popular opinion in Africa about C-FDI is positive, the Western reaction often is highly negative. How does C-FDI affect Africa's economies? Do C-FDI and the North-FDI have different impacts on Africa? This paper studies the issues by using the cross-country panel data in 2003–2018. We find that benefits from C-FDI to African economies are greater than those from the North FDI, and that the promoting effects of C-FDI concentrate on host-country's exports and industrialization. Uniquely the large Chinese investment in Africa's infrastructure not only contributes overall economic growth, but also enhance host-country's absorptive capacity in attracting and utilizing foreign capital.
Kevin H. Zhang. How does South-South FDI affect host economies? Evidence from China-Africa in 2003–2018. International Review of Economics & Finance 2021, 75, 690 -703.
AMA StyleKevin H. Zhang. How does South-South FDI affect host economies? Evidence from China-Africa in 2003–2018. International Review of Economics & Finance. 2021; 75 ():690-703.
Chicago/Turabian StyleKevin H. Zhang. 2021. "How does South-South FDI affect host economies? Evidence from China-Africa in 2003–2018." International Review of Economics & Finance 75, no. : 690-703.
The rise of China’s outward foreign direct investment (OFDI) in Africa has promoted the continent’s economic growth but generated controversy in the West. What drives Chinese investment in the continent with abundant natural resources but poor institutions/governance? While the topic is important, studies on the issue in the literature have been limited. This paper attempts to close the gap by testing hypotheses of the role of resources and institutions with panel data in 2003–2013. Estimates suggest that the Chinese investment is not biased toward resource-rich and institution-poor countries but similar to Western investment, and China’s OFDI is largely profit-driven, just like investors from other countries. Institutional supports from the Chinese government, however, seems to be important to China’s OFDI in Africa.
Yan Chen; Ruirui Zhai; Kevin H. Zhang. Natural Resources and Foreign Direct Investment in Africa: Evidence from Chinese Firms. Sustainability 2020, 12, 9616 .
AMA StyleYan Chen, Ruirui Zhai, Kevin H. Zhang. Natural Resources and Foreign Direct Investment in Africa: Evidence from Chinese Firms. Sustainability. 2020; 12 (22):9616.
Chicago/Turabian StyleYan Chen; Ruirui Zhai; Kevin H. Zhang. 2020. "Natural Resources and Foreign Direct Investment in Africa: Evidence from Chinese Firms." Sustainability 12, no. 22: 9616.
Industrial policy (IP) toward technology innovation (TI) is a focus of the US trade war against China. The US is forcing China to stop IP uses in promoting TI that directly threaten the US technology leaders, like its reaction to China’s plan of “Made in China 2025”. Does China have too many IP? Does the US use IP? What TI patterns affect IP? This paper develops the following points as conclusions: (a) Due to market failures, all countries implement IP in their economic development; (b) original innovation (OI) involves a lot of risks and uncertainties such that entrepreneurship rather than government plays a key role, while imitation innovation (II) is much less risky and uncertain so that more rooms are left for IP; (c) technology-leading countries like the US has to conduct OI to maintain their advantages, and catching-up countries like China do more II, thus more IP are adopted in China than the US; and (d) the US engaged substantially IP in the history and is deploying various IP to meet challenges from China; and (e) economic and political institutions matter.
Kevin Honglin Zhang. Industrial Policy and Technology Innovation under the US Trade War against China. The Chinese Economy 2020, 53, 363 -373.
AMA StyleKevin Honglin Zhang. Industrial Policy and Technology Innovation under the US Trade War against China. The Chinese Economy. 2020; 53 (5):363-373.
Chicago/Turabian StyleKevin Honglin Zhang. 2020. "Industrial Policy and Technology Innovation under the US Trade War against China." The Chinese Economy 53, no. 5: 363-373.
For an impoverished area to employ rural tourism (RT) as an avenue of poverty alleviation, there are two main challenges: building competitiveness with a very limited endowed resource base, and targeting the poor who generally lack financial capital or key capabilities as the main beneficiaries. With a case of Zhuanshui in China, an impoverished village without prominent tourism resource endowment, this paper has shown that the two challenges can be met through an innovation to construct a multi-industries integration network. This paper explores the development of the network, examines its characteristics, and analyzes its operation mechanisms. Results indicate that (1) the common objective of poverty alleviation and the same fundamental resource, combine RT and its extension industries tightly into an integration network; (2) sufficient evidence has been found for the embeddedness, endogeneity and empowerment of the network, but for empowerment, the poor’s participation is just the first stage to make appropriate decisions about the development due to their inadequate capabilities; and (3) vision developing, demonstration driving and centralized decentralization governance are three vital operational mechanisms to encourage the participation and collaboration of stakeholders. We also discussed the possible challenges for sustainability, being replicability of established competitive advantages, temporality of the major leader, and potential environmental degradation.
Nanping Feng; Fenfen Wei; Kevin H. Zhang; Dongxiao Gu. Innovating Rural Tourism Targeting Poverty Alleviation through a Multi-Industries Integration Network: the Case of Zhuanshui Village, Anhui Province, China. Sustainability 2018, 10, 2162 .
AMA StyleNanping Feng, Fenfen Wei, Kevin H. Zhang, Dongxiao Gu. Innovating Rural Tourism Targeting Poverty Alleviation through a Multi-Industries Integration Network: the Case of Zhuanshui Village, Anhui Province, China. Sustainability. 2018; 10 (7):2162.
Chicago/Turabian StyleNanping Feng; Fenfen Wei; Kevin H. Zhang; Dongxiao Gu. 2018. "Innovating Rural Tourism Targeting Poverty Alleviation through a Multi-Industries Integration Network: the Case of Zhuanshui Village, Anhui Province, China." Sustainability 10, no. 7: 2162.
Innovation talents, as a most active and important resource in innovation activities, are receiving increasing attention in the enhancement of innovation capability. It seems that areas with strong innovation capability are more attractive to innovation talents. To explore the impact of innovation capability—measured by innovation environment input efficiency—on the distribution of innovation talent, and given the heavy-tailed distribution of talents, a quantile regression approach is adopted for Chinese data covering 2001–2015. The results show that: (a) at the country level, the innovation environment and innovation talents are surprisingly negatively related due to pre-reform special regional strategies and the immature innovation environment in China, while both innovation input and efficiency facilitates the agglomeration of innovation talent; and (b) at the regional level, some different influences on talents appear: the strongest negative impact of the innovation environment is in the areas with a low level of talents, moderate positive effects of innovation input and efficiency can be seen in areas with a medium level of talents, and significantly positive contributions from innovation input and efficiency can be seen in the areas that already have a high level of talents. The results offer some suggestions for managers and the government, which are beneficial for the guidance of the ordered flow of innovation talents and the enhancement of regional innovation capability and sustainability.
Fenfen Wei; Nanping Feng; Kevin H. Zhang. Innovation Capability and Innovation Talents: Evidence from China Based on a Quantile Regression Approach. Sustainability 2017, 9, 1218 .
AMA StyleFenfen Wei, Nanping Feng, Kevin H. Zhang. Innovation Capability and Innovation Talents: Evidence from China Based on a Quantile Regression Approach. Sustainability. 2017; 9 (7):1218.
Chicago/Turabian StyleFenfen Wei; Nanping Feng; Kevin H. Zhang. 2017. "Innovation Capability and Innovation Talents: Evidence from China Based on a Quantile Regression Approach." Sustainability 9, no. 7: 1218.
Over the period 1978–2016, more than 550 million migrants moved to China’s cities, resulting in a large rise of urbanization from 18 to 57%. While urbanization is influenced by many factors, this study focuses on industrialization, a key structural determinant of urban development. How does industrial development affect China’s urbanization? Does China’s industrialization lead to its urbanization? Is China under- or over-urbanized? How does China manage urban development so that the virtuous circle between urbanization and industrialization could realize? This chapter offers explanations to the questions as follows: China’s rapid industrialization is the key driver of its urbanization; China’s urban development is at the right speed, avoiding many problems of over-urbanization in developing countries; and China successfully guided urbanization to promote economic growth through agglomeration and consumption effects.
Kevin H. Zhang. Urbanization and Industrial Development in China. China’s Urbanization and Socioeconomic Impact 2017, 21 -35.
AMA StyleKevin H. Zhang. Urbanization and Industrial Development in China. China’s Urbanization and Socioeconomic Impact. 2017; ():21-35.
Chicago/Turabian StyleKevin H. Zhang. 2017. "Urbanization and Industrial Development in China." China’s Urbanization and Socioeconomic Impact , no. : 21-35.
China seems to emerge as a global industrial player in terms of manufacturing capacity and technology upgrading. Is China really an industrial power or merely a manufacturing giant? If it is truly a significant power, what accounts for China’s manufacturing success? First, we assess China’s manufacturing performance through global comparisons along three dimensions (manufacturing capacity, intensity, and quality). Then we analyze the main structural macro- and micro-drivers of manufacturing development in China, and finally we provide empirical estimations of the drivers. We find that China’s manufacturing success is real, primarily in terms of manufacturing capacity and intensity, but not yet in quality. The main drivers include China’s well-designed developmental strategy and industrial policy, large domestic and foreign investments, and increasingly improved infrastructures.
Kevin H. Zhang. Macro- and Micro-Drivers of Manufacturing Performance of China. The Chinese Economy 2015, 48, 399 -412.
AMA StyleKevin H. Zhang. Macro- and Micro-Drivers of Manufacturing Performance of China. The Chinese Economy. 2015; 48 (6):399-412.
Chicago/Turabian StyleKevin H. Zhang. 2015. "Macro- and Micro-Drivers of Manufacturing Performance of China." The Chinese Economy 48, no. 6: 399-412.
Export competitiveness (XC) is a country's ability to compete globally through expanding export capacity and upgrading export sophistication. How does foreign direct investment (FDI) affect XC? This article studies the issue based on evidence from Chinese manufacturing. Using data on 21 manufacturing sectors for 31 regions over 2005–2011, we construct the XC index and its three composite indicators, following the Organization for Economic Co‐operation and Development (OECD) and United Nations Industrial Development Organization (UNIDO). Four findings emerge from the estimates: (a) FDI is a key driver of China's export success; (b) China's absorptive capacity reinforces the effects of FDI through domestic learning efforts; (c) FDI seems to contribute more to export capacity than export upgrading, especially in labor‐intensive/low‐tech products; and (d) high‐tech FDI from the western world seems to be more conducive to export upgrading than low‐tech FDI from developing economies. (JEL F21, F23, O14, O53)
Kevin Honglin Zhang. WHAT DRIVES EXPORT COMPETITIVENESS? THE ROLE OF FDI IN CHINESE MANUFACTURING. Contemporary Economic Policy 2014, 33, 499 -512.
AMA StyleKevin Honglin Zhang. WHAT DRIVES EXPORT COMPETITIVENESS? THE ROLE OF FDI IN CHINESE MANUFACTURING. Contemporary Economic Policy. 2014; 33 (3):499-512.
Chicago/Turabian StyleKevin Honglin Zhang. 2014. "WHAT DRIVES EXPORT COMPETITIVENESS? THE ROLE OF FDI IN CHINESE MANUFACTURING." Contemporary Economic Policy 33, no. 3: 499-512.
Kevin Honglin Zhang. Globalization and regional industrial performance: Evidence from China. Papers in Regional Science 2013, 93, 269 -280.
AMA StyleKevin Honglin Zhang. Globalization and regional industrial performance: Evidence from China. Papers in Regional Science. 2013; 93 (2):269-280.
Chicago/Turabian StyleKevin Honglin Zhang. 2013. "Globalization and regional industrial performance: Evidence from China." Papers in Regional Science 93, no. 2: 269-280.
How does foreign direct investment (FDI) affect China's industrial productivity? While the topic is important, the relevant empirical studies in the literature have been limited. This paper attempts to close the gap by investigating the issue with panel data in the period 2001–06. Empirical models for both productivity level and growth are developed, in which two channels are identified through which FDI may affect industrial productivity directly and indirectly. The estimates suggest that FDI has positive direct and spillovers effect on China's industrial productivity level and growth, and the contribution of FDI to productivity is enhanced by its interaction with China's human capital. While labor‐intensive industries benefit more from FDI direct effects, capital‐intensive industries gain more from FDI spillover effects.
Zhongxiu Zhao; Kevin Honglin Zhang. FDI and Industrial Productivity in China: Evidence from Panel Data in 2001-06. Review of Development Economics 2010, 14, 656 -665.
AMA StyleZhongxiu Zhao, Kevin Honglin Zhang. FDI and Industrial Productivity in China: Evidence from Panel Data in 2001-06. Review of Development Economics. 2010; 14 (3):656-665.
Chicago/Turabian StyleZhongxiu Zhao; Kevin Honglin Zhang. 2010. "FDI and Industrial Productivity in China: Evidence from Panel Data in 2001-06." Review of Development Economics 14, no. 3: 656-665.
Industrial competitiveness (IC), reflecting a country's ability to produce and export manufactures competitively, is closely associated with economic growth. How does globalization affect IC? While the topic is of great importance, empirical studies on the issue in the literature have been limited. This article attempts to close the gap by estimating the role of foreign direct investment (FDI) and international trade with cross‐country data in 1985 and 1998. Taking advantage of a recently constructed IC index, we estimate several regression models of effects of FDI and trade on industrial performance. Results suggest that FDI and trade have a positive impact on IC, and increasing integration with the world economy through FDI and trade contributes to better industrial performance. (JEL F02, F10, F21, L60)
Kevin Honglin Zhang. HOW DOES GLOBALIZATION AFFECT INDUSTRIAL COMPETITIVENESS? Contemporary Economic Policy 2010, 28, 502 -510.
AMA StyleKevin Honglin Zhang. HOW DOES GLOBALIZATION AFFECT INDUSTRIAL COMPETITIVENESS? Contemporary Economic Policy. 2010; 28 (4):502-510.
Chicago/Turabian StyleKevin Honglin Zhang. 2010. "HOW DOES GLOBALIZATION AFFECT INDUSTRIAL COMPETITIVENESS?" Contemporary Economic Policy 28, no. 4: 502-510.
Kevin Honglin Zhang. Does International Investment Help Poverty Reduction in China? The Chinese Economy 2006, 39, 79 -90.
AMA StyleKevin Honglin Zhang. Does International Investment Help Poverty Reduction in China? The Chinese Economy. 2006; 39 (3):79-90.
Chicago/Turabian StyleKevin Honglin Zhang. 2006. "Does International Investment Help Poverty Reduction in China?" The Chinese Economy 39, no. 3: 79-90.
China has been transforming from a rural to an urban economy over the past century, especially since 1978 when economic reforms were initiated and rapid economic growth began. This paper attempts to investigate what factors contributed to the rising urbanisation in the period 1978-2000, based on time-series and cross-section analyses. We find that the main driving-forces behind urbanisation, besides changes in urban policy, are economic growth, structural changes and especially inflows of foreign direct investment (FDI). The causal link runs from economic growth to urbanisation and not vice versa. FDI inflows contribute greatly to the coast-inland differences in the rate of urbanisation. Geographical and historical factors have a significant impact on regional urbanisation levels and a high initial level of urbanisation curtails a province's subsequent urban growth.
Kevin Honglin Zhang. What Explains China's Rising Urbanisation in the Reform Era? Urban Studies 2002, 39, 2301 -2315.
AMA StyleKevin Honglin Zhang. What Explains China's Rising Urbanisation in the Reform Era? Urban Studies. 2002; 39 (12):2301-2315.
Chicago/Turabian StyleKevin Honglin Zhang. 2002. "What Explains China's Rising Urbanisation in the Reform Era?" Urban Studies 39, no. 12: 2301-2315.
China has been experiencing rapid urbanisation since the economic reform starting in 1978. The number of cities increased from 191 in 1978 to 667 in 1999, while the urban share of the national population increased from 18 to 31 per cent. This paper examines China's urbanisation and the evolution of its city system. It uses city-level data from 1991 and 1998 to investigate China's city size distribution and its changes. It also discusses how economic and institutional factors affect the urban system and the patterns of urban growth.
Shunfeng Song; Kevin Honglin Zhang. Urbanisation and City Size Distribution in China. Urban Studies 2002, 39, 2317 -2327.
AMA StyleShunfeng Song, Kevin Honglin Zhang. Urbanisation and City Size Distribution in China. Urban Studies. 2002; 39 (12):2317-2327.
Chicago/Turabian StyleShunfeng Song; Kevin Honglin Zhang. 2002. "Urbanisation and City Size Distribution in China." Urban Studies 39, no. 12: 2317-2327.
After adopting the open-door policy, China experienced a boom of inward foreign direct investment (FDI) by multinational corporations. This article attempts to assess effects of location characteristics and government policies on FDI flows during the period 1987–98. A model of FDI determinants is specified and estimated with cross-section and panel data. The estimates indicate that China's huge market size, liberalized FDI regime, and improving infrastructure are attractive to multinationals. The regional distribution of FDI within China is influenced largely by FDI incentives and historical-cultural links with foreign investors, along with other location factors.
Kevin Honglin Zhang. WHAT ATTRACTS FOREIGN MULTINATIONAL CORPORATIONS TO CHINA? Contemporary Economic Policy 2001, 19, 336 -346.
AMA StyleKevin Honglin Zhang. WHAT ATTRACTS FOREIGN MULTINATIONAL CORPORATIONS TO CHINA? Contemporary Economic Policy. 2001; 19 (3):336-346.
Chicago/Turabian StyleKevin Honglin Zhang. 2001. "WHAT ATTRACTS FOREIGN MULTINATIONAL CORPORATIONS TO CHINA?" Contemporary Economic Policy 19, no. 3: 336-346.
Kh Zhang. Does foreign direct investment promote economic growth? Evidence from East Asia and Latin America. Contemporary Economic Policy 2001, 19, 175 -185.
AMA StyleKh Zhang. Does foreign direct investment promote economic growth? Evidence from East Asia and Latin America. Contemporary Economic Policy. 2001; 19 (2):175-185.
Chicago/Turabian StyleKh Zhang. 2001. "Does foreign direct investment promote economic growth? Evidence from East Asia and Latin America." Contemporary Economic Policy 19, no. 2: 175-185.
Kh. Zhang. Why is U.S. direct investment in China so small? Contemporary Economic Policy 2000, 18, 82 -94.
AMA StyleKh. Zhang. Why is U.S. direct investment in China so small? Contemporary Economic Policy. 2000; 18 (1):82-94.
Chicago/Turabian StyleKh. Zhang. 2000. "Why is U.S. direct investment in China so small?" Contemporary Economic Policy 18, no. 1: 82-94.