While there is a consensus on the expanding importance of the China–Africa economic relationship, there is much more debate on how to portray the relationship. Thus, this study is aimed to examine the impacts of the China–Africa trade and Chinese foreign direct investment (FDI) on the growth of African countries controlling the mediating role of institutional quality. The two-step system Generalized method of moments (GMM) model is applied using robust data for the period of 2003–2017. Drawing on complementary theoretical perspectives, this study took into account the conditional effect of China–Africa trade and Chinese FDI subject to the institutional quality of African countries and the interdependence of China–Africa trade and Chinese FDI to African countries. The benign impacts of the China–Africa trade and Chinese FDI on economic growth to African countries remain contingent upon appropriate policy action to improve the institutional quality of African countries and the synergies between the China–Africa trade and Chinese FDI to African countries.
24 April 2024 in Environment, Development and Sustainability
This paper examines the impacts of economic policy uncertainty (EPU) on the trade flow of 143 countries, considering the EPU of exporter and importer countries and the income heterogeneity of the sample countries for over 2000–2019. Besides, it considered the mediating role of regional trade agreements (RTAs) in the EPU-trade nexus. Our results of the two-step Heckman sample selection model imply that the intensive and extensive margins of trade are adversely affected by the exporter and importer countries’ EPU. However, the negative effects of EPU of exporter countries on trade performance turn to positive when the mediating role of the RTAs is controlled. Also, the counterfactual simulation analysis is conducted to compute illustrative distance equivalents of improving the EPU to the average performing country in the sample. Finally, the marginal effect of EPU with respect to GDP per capita results indicates that the higher levels of per capita income seem to decrease the negative effect of EPU on trade. Our findings are robust after we run sensitivity analysis using the Poisson pseudo-maximum likelihood (PPML) to control heterogeneity and zero-valued observations issues. Finally, based on the findings, policy implications are forwarded.
Purpose: Health-related online fake news (HOFN) has become a major social problem. HOFN can lead to the spread of ineffective and even harmful remedies. The study aims to understand Internet users' responses to HOFN during the coronavirus (COVID-19) pandemic using the protective action decision model (PADM).Design/methodology/approach: The authors collected pandemic severity data (regional number of confirmed cases) from government websites of the USA and China (Studies 1 and 2), search behavior from Google and Baidu search engines (Studies 1 and 2) and data regarding trust in two online fake news stories from two national surveys (Studies 2 and 3). All data were analyzed using a multi-level linear model.Findings: The research detected negative time-lagged relationships between pandemic severity and regional HOFN search behavior by three actual fake news stories from the USA and China (Study 1). Importantly, trust in HOFN served as a mediator in the time-lagged relationship between pandemic severity and search behavior (Study 2). Additionally, the relationship between pandemic severity and trust in HOFN varied according to individuals' perceived control (Study 3).Originality/value: The authors' results underscore the important role of PADM in understanding Internet users' trust in and search for HOFN. When people trust HOFN, they may seek more information to implement further protective actions. Importantly, it appears that trust in HOFN varies with environmental cues (regional pandemic severity) and with individuals' perceived control, providing insight into developing coping strategies during a pandemic.
Festivals are the most viable source of tourism promotion and provide recognition to different cultures and communities. This paper proposed and examined a holistic model of festival word of mouth (WOM), which is influenced by authenticity, promotion, loyalty, quality, and satisfaction. Accordingly, the current paper investigated the effect of the proposed model with reference to Lok Virsa handicrafts, the most famous festival of the Islamabad region in Pakistan. The findings revealed that the festival quality has direct impact on WOM and promotion. Promotion has a positive influence on loyalty, satisfaction, and WOM. Festival authenticity strongly influences promotion, quality, satisfaction, and WOM. Festival satisfaction is positively related to WOM and loyalty. Whereas, festival loyalty and WOM are significantly associated. The results suggest that festival organizers should deliver the claims and promises in the festival that they have made with tourists. This technique will harvest positive WOM and increase tourist re-visitation to upcoming festivals.
This study attempts to empirically examine the impacts of the China–Africa economic relationship on factor productivity. The two-step system Generalized method of moments (GMM) estimator is applied to analyze the impacts of the Africa–China economic relationship on factor productivity of 44 African countries controlling Africa–China trade, Chinese foreign direct investment (FDI), and aid allocation to African countries for the periods 2003–2017. The estimation strategy controls endogeneity concerns. Another novelty of this study is calculating total factor productivity (TFP) using the regression approach and driving capital stock data. Additionally, the institutional quality index of countries is derived using principal component analysis. The findings of this study refer that the impact of the China–Africa economic relationship on the TFP of African countries is conditional to the domestic institutional quality of African countries. The results imply that the productivity embodied by the Africa–China economic relationship should be backed by the domestic adaptive capacity to use the benefit of China–Africa economic relations to excel factor productivity. Hence, the capability of African countries to benefit from the China–Africa economic relationship to enhance factor productivity should improve the institutional quality.