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AbstractInnovation is crucial for driving economic growth. This paper conducts a comprehensive analysis of the effect of intermediate input import policy uncertainty (IIIPU) on firm innovation. Specifically, leveraging China’s entry into the WTO as a quasi-natural experiment, this study utilizes a difference-in-differences strategy to analyze the intermediate input import policy uncertainty on the innovative activities of Chinese manufacturing firms. The findings reveal that a reduction in intermediate input import policy uncertainty (IIIPU) significantly hampers firm innovation activities. This negative impact persists even after undergoing a series of tests on identification assumptions and robustness checks, and it intensifies annually after China’s accession to the WTO. In addition, the reduction in IIIPU has a more pronounced effect on high-productivity firms, foreign-invested enterprises, and utility model patents. [ABSTRACT FROM AUTHOR]

This article explores the growing importance of data in global value chains (GVC) and its impact on power relations. We ask (1) how data becomes valuable in GVC, (2) how different types of data are used and (3) how this affects power relations among actors in GVC. We conceptualise data as increasingly important for the development of intangible assets, combining the literatures on intangible assets in GVC and the political economy of data. Based on 88 interviews with practitioners and experts involved in digital business models in Germany, we propose a data typology as an instrument to analyse the effects of data use in GVC based on the origin of data: transactions, product use and processes. We then apply the typology to three case studies of data use in GVC, analysing what kind of intangibles data contribute to and how this leads to upgrading and changes in value chain governance. We argue that data use in industrial value chains does not lead to the concentration of power in the hands of data monopolies. Instead, the creation of value from data rests on a division of labour, with various actors competing for shares of the captured value. [ABSTRACT FROM AUTHOR]

This article presents a cross-sectoral analysis of service flows, with a particular emphasis on technologically advanced services, from China to the European manufacturing sector. The research question examines the extent to which the increasing integration of Chinese technologically advanced services into European manufacturing aligns with China’s internal trends in servicification and its strategic agenda for expanding service exports within global value chains. Employing input-output modelling, the study demonstrates China’s expanding role as a supplier of technologically advanced services to European manufacturing and identifies specific industries within Europe that exhibit the highest dependency on Chinese services. [ABSTRACT FROM AUTHOR]

In today’s business environment, with organizations enhancing performance, maintaining a competitive edge, and fostering innovation, the efficient transfer of knowledge plays an increasingly pivotal role. As industries recognize the importance of and strive for more and more productive knowledge transfer, understanding the factors affecting this process becomes imperative. Manufacturing is considered a strategic sector, and well-performing knowledge transfer is necessary for higher innovation and competitiveness. To increase knowledge transfer performance, companies must have the awareness, ability, and opportunity to identify the main aspects that need operational improvement. Studies based on systematic literature review and mapping impact factors have shown that knowledge transfer is hypothetically affected by a vast variety of factors, which creates challenges for companies in selecting and applying these factors. Therefore, the two research questions of this study are – RQ1: What are the relationships between the knowledge transfer-influencing factors identified in the literature analysis and the dependent variables? RQ2: What is the weight of the statistically significant factors identified in the empirical study?

Supplier selection has emerged as an important activity regarding strategic purchasing with implications for the operational efficiency of both organisations and supply chains. Given the need to evaluate both qualitative and quantitative criteria for different supply alternatives, the decision-making process became more complex.

This study analyzes explanations identified in the literature for the subpar economic performance of the so-called peripheral member states of the Euro Area since the mid-1990s, comparing it to those of the core, catch-up, and financial hub member states. It argues that a key factor in the peripherals’ malaise was a financial Dutch disease-like mechanism, as the adoption of the euro led to large and sustained capital inflows. This resulted in a structural shift in the productive structure of peripheral economies away from technologically advanced manufactured goods, which are characterized by higher productivity growth. Consequently, peripheral member states specialized in non-tradable sectors, and in low-technology and labor-intensive tradable goods and services sectors, which largely explains the peripherals’ low economic growth, low productivity growth, and growing macroeconomic imbalances. Furthermore, this study argues that the economic underperformance of catch-up member states can also be explained by a financial Dutch disease mechanism. [ABSTRACT FROM AUTHOR]

This paper presents a center-periphery Neo-Kaleckian model that addresses a traditional theme in the literature on economic development, namely the redistribution of rents from exporters of natural resources toward firms in sectors that are relatively more technology-intensive. This conflict has been reshaped in the past three decades by financialization, capital flights, the acceleration of technical change and the key role governments play in providing strategic public goods to foster competitiveness. We argue that in this more complex international context, the Balance-of-Payments (BOP) constraint on output growth assumes different forms. We focus on two polar cases: the financialization constraint, in which capital flights hamper the capacity of the government to finance the provision of strategic public goods even when the trade balance is positive; and the trade deficit constraint aggravated by capital flights, in which private firms in the more technology-intensive sector cannot finance the imports of all the capital goods they need to expand industrial production at a faster rate. [ABSTRACT FROM AUTHOR]

Purpose: In this fast-changing world, digitization has become crucial to organizations, allowing decision-makers to alter corporate processes. Companies with a higher corporate social responsibility (CSR) level not only help encourage employees to focus on their goals, but they also show that they take their social responsibility seriously, which is increasingly important in today's digital economy. So, this study aims to examine the relationship between digital transformation and CSR disclosure of Chinese A-share companies. Furthermore, this research investigates the moderating impact of governance heterogeneity, including CEO power and corporate internal control (INT) mechanisms. Design/methodology/approach: This study used fixed effect estimation with robust standard errors to examine the relationship between digital transformation and CSR disclosure and the moderating effect of governance heterogeneity among Chinese A-share companies from 2010 to 2020. The whole sample consists of 17,266 firms, including 5,038 state-owned enterprise (SOE) company records and 12,228 non-SOE records. The whole sample data is collected from the China Stock Market and Accounting Research, the Chinese Research Data Services and the WIND databases. Findings: The regression results lead us to three conclusions after classifying the sample into non-SOE and SOE groups. First, Chinese A-share businesses with greater levels of digitalization have lower CSR disclosures. Both SOE and non-SOE are consistent with these findings. Second, increasing CEO authority creates a more centralized company decision-making structure (Breuer et al., 2022; Freire, 2019), which improves the negative association between digitalization and CSR disclosure. These conclusions, however, also apply to non-SOE. Finally, INT reinforces the association between corporate digitization and CSR disclosure, which is especially obvious in SOEs. These findings are robust to alternative HEXUN CSR disclosure index. Heterogeneity analysis shows that the negative relationship between corporate digitalization and CSR disclosures is more pronounced in bigger, highly levered and highly financialized firms. Originality/value: Digitalization and CSR disclosure are well studied, but few have examined their interactions from a governance heterogeneity perspective in China. Practitioners and policymakers may use these insights to help business owners implement suitable digital policies for firm development from diverse business perspectives. [ABSTRACT FROM AUTHOR]

There is a growing body of literature exploring governance in regional value chains (RVCs) in Africa. Agro-processing RVCs are of particular interest, as this is where the manufacturing capabilities of most African countries lie. The research on RVCs in Africa highlights governance by lead firms and government actors as an important aspect in determining the structure and outcomes within these RVCs. Using the global value chain (GVC) analytical framework, this article analyses governance in the poultry RVC in South Africa, Zambia and Zimbabwe. The paper finds that the poultry RVC is a bilateral oligopoly, where the lead firms are supermarkets and large poultry producers with exclusive rights to multi-territorial breeding rights. The article highlights that both large producers and the supermarkets play an important role in the formation and structure of the poultry RVC, with important implications for regional integration and industrialisation. [ABSTRACT FROM AUTHOR]

There is limited research assessing how AI knowledge affects employment prospects. The present study defines the term 'AI capital' as a vector of knowledge, skills, and capabilities related to AI technologies, which could boost individuals' productivity, employment, and earnings. Subsequently, the study reports the outcomes of a genuine correspondence test in England. It was found that university graduates with AI capital, obtained through an AI business module, experienced more invitations for job interviews than graduates without AI capital. Moreover, graduates with AI capital were invited to interviews for jobs that offered higher wages than those without AI capital. Furthermore, it was found that large firms exhibited a preference for job applicants with AI capital, resulting in increased interview invitations and opportunities for higher-paying positions. The outcomes hold for both men and women. The study concludes that AI capital might be rewarded in terms of employment prospects, especially in large firms. [ABSTRACT FROM AUTHOR]

From the perspective of a heterogeneous firm framework, we investigate the direct and spillover effects of public research and development (R&D) subsidies, firm heterogeneity, and external factors on innovation. Our analysis is based on panel data from manufacturing firms in Korea. We find three apparent roles of public R&D subsidy in enhancing firm-level innovation. First, public R&D subsidy has a direct positive impact on innovation in both the short and long run. Second, it does not have a stand-alone spillover effect on innovation. Third, public R&D subsidies have a positive spillover effect on innovation when combined with organizational slack in the short and long run and with leverage and firm size in the short run. Moreover, our analysis reveals that the impact of public subsidies, firm heterogeneity, external factors, and their interaction with innovation is primarily observed in firms with high absorptive capacity, not in those with low absorptive capacity. Based on these findings, the study recommends that when a government formulates its R&D policies, in order to enhance the efficiency and effectiveness of public R&D subsidies, it is necessary to prioritize understanding the various conditions and circumstances associated with the public R&D-productivity nexus. It is especially crucial to keep in mind that when firm heterogeneity—as a source of absorptive capacity and organizational learning—and the similarity of technology-based innovations are properly considered, public R&D subsidies can be efficient and effective policy tools for increasing direct benefits and inter-firm spillovers.

AbstractWe examine the impacts of financial technology and financial literacy on the development of financial inclusion among the younger generation using data from a survey with 1288 students in Vietnam in the city and rural areas. We employ logistic regression and two-stage instrumental variable regression for our analysis, with location and financial shock caused by COVID-19 serving as the instruments. Vietnam is a fintech hub in Asia with the world-leading adaption of cryptocurrency and a significantly high rate of e-wallet use. The results indicate although there is a gap in access to financial services between urban and rural areas, the access rate is considerably high. Fintech and financial literacy play a significant role in facilitating this high level of financial inclusion development. Women have better access to financial services, showing the effectiveness of women’s empowerment programs. Little evidence shows the negative impact of the pandemic on financial inclusion. [ABSTRACT FROM AUTHOR]

The unprecedented growth in the export of services and its accompanying economic incentives has invited discussions on service export determinants. Against this background, the present article is an attempt to test whether the contemporary theories on causal links between exports, financial development and growth hold for services export. For realizing the objective, we employed the panel cointegration technique for Organization for Economic Co-operation and Development (OECD) countries over a period of 23 years (2000–22). Findings of both first and second generation cointegration test indicate a long run equilibrium between services export, financial development and growth. However, there are differences in the short and long association, as outcomes of panel auto autoregressive distributed lag (ARDL) approach show financial development to be significant determinant of services export only over long run. Additionally, granger causality test suggests a feedback mechanism prevalent between services export-financial development, services export-growth and financial development-growth. The empirical evidence offered in the study elucidates the significance of continuously developing the financial markets and institutions for achieving sustained growth in export of services. The bi-directional relationship between the variables also presents an opportunity to strengthen economic growth and financial development process through policies aimed at expanding services export. [ABSTRACT FROM AUTHOR]

Structural transformation is among the core questions in development economics, but in recent decades, the discipline has shifted its focus away from production and transformation in favour of analyses on exchange, growth and productivity. Yet, the structural transformation question remains central, and needs to be confronted with the main changes in the global economic and political landscape, such as the emergence of the Belt and Road Initiative (BRI). With its emphasis on an infrastructure-based connectivity agenda, the BRI opens the space for a paradigm shift in development, and for a renewed emphasis on structural transformation. This article introduces a special issue that explores the role of the BRI in promoting structural transformation in low- and middle-income countries, to understand if and under which conditions the BRI creates pathways that can change the structure of the economies. Through an explicit focus on the role of BRI on transformation in low- and middle-income countries, this special issue examines how domestic institutions regulate and coordinate production diversification, national and international sectoral specificities, and drivers and barriers to technological innovation and trade. In this sense, the special issue sheds light on new conceptualisations and empirical examples of industrial policies. [ABSTRACT FROM AUTHOR]