China's rise and internationalization: regional and global challenges and impacts

Contents
1. Introduction — China’s Rise and Internationalization: Challenges and Impacts
	Acknowledgments
	References
Part I: The Rise of China in Global Trade and Foreign Direct Investment
	2. EU–China Trade and Investment Relations in Turbulent Times: A European Perspective
		1. Introduction
		2. Facts and Figures About EU–China Trade and Foreign Direct Investment
		3. Strategic Objectives in EU Trade and Investment Relations with China
			3.1. Globalization is not the problem, protection is. . .
			3.2. Strategic interests in EU trade and investment policy
			3.3. The broader context of EU strategic interests
			3.4. Reciprocity
		4. Toward a Closer Collaboration between the EU and China
			4.1. Opportunities for closer cooperation
			4.2. The next steps forward
		5. Conclusion
		References
	3. Trade Interdependence and Comparative Advantage Between China and Countries Along the Belt and Road
		1. Introduction
		2. Overview of the Belt and Road Initiative
		3. Trade Patterns of China and BRCs
		4. Trade Interdependence
		5. Changes in Comparative Advantage
		6. Conclusion
		Appendix A. BRCs Classified by Geographical Location
		Appendix B. AIIB-Approved Projects, 2017–2018
		References
	4. Banking Crises’ Impacts on Bilateral Trade
		1. Introduction
		2. Literature Review
		3. Model
			3.1. Background context
			3.2. Unilateral effects estimation with one-stage model
			3.3. Unilateral effects estimation with a two-stage model
		4. Data Source
			4.1. Value of trade
			4.2. Geography data
			4.3. Banking crises data
		5. Results
			5.1. One-stage results for exporters and importers
			5.2. Two-stage results for exporters and importers
			5.3. Robustness check
			5.4. Chinese exporters and importers
		6. Conclusion
		Acknowledgements
		References
	5. Does Producer Service FDI Promote the Upgrading of China’s Manufacturing Sector?
		1. Introduction
		2. FDI Inflow in Producer Services and Changes of Manufacturing Structure in China
			2.1. The development of China’s FDI inflow and the producer service FDI inflow
			2.2. Changes in the structure of China’s manufacturing sector
		3. The Mechanism of FDI in Producer Service Industries Influencing the Manufacturing Sector Upgrading
		4. Empirical Analysis of FDI in Producer Services on Upgrading China’s Manufacturing Sector
			4.1. Econometric model setting and variable selection
			4.2. Basic regression results
			4.3. Robustness test
			4.4. Spatial spillover effect
		5. Conclusions and Policy Implications
		Acknowledgements
		References
Part II: The Financial Aspects of China’s Growth and Development
	6. Financial Integration and China’s Growth Surge
		1. Introduction
		2. The Surge and Its External Effects
			2.1. Growth and trade
			2.2. External financial effects
		3. Quantifying Financial Integration
		4. Modeling Financial Interdependence
			4.1. Financial markets
			4.2. Regional money market equilibrium
		5. Effects of the Growth Surge
		6. Sensitivity to Type 2 Financial Integration
		7. Conclusion
		Acknowledgement
		References
	7. Systemic Risks, Macroeconomic Shocks, and Financial Security in China
		1. Introduction
		2. Review of Related Literature
		3. Empirical Facts in China
		4. Empirical Analysis
			4.1. Building the basic systemic risk equation and single-factor influence equation
			4.2. Calculation of composite index for financial security
			4.3. Macroeconomic shocks
		5. Concluding Remarks and Policy Proposals
		Appendix A. Parameter Estimation of Mixed Section–Time Fixed Effect Model for Panel Data
		Acknowledgment
		References
	8. Fiscal Sustainability of China’s Provincial Governments: A Non-Stationary Panel Data Analysis
		1. Introduction
		2. Methodology and Data
		3. Results
		4. Concluding Remarks
		Appendix A.
		References
	9. Size Matters After All: Evidence from the Chinese Stock Market
		1. Introduction
		2. Data and Key Variables
			2.1. Data construction
			2.2. Descriptive statistics
		3. Econometric Methodology
			3.1. Future returns and key variables
			3.2. Fama–MacBeth (1973) cross-sectional regressions
		4. Findings
			4.1. Including interaction terms
			4.2. Subsamples
		5. Conclusion
		References
	10. Can “Active Portfolio Weight Change” of Institutional Investor Make the Stock Market Stable?
		1. Introduction
		2. Data
		3. Measurement of Active Portfolio Weight Change
			3.1. Overall portfolio weight change and active portfolio weight change
			3.2. Portfolio weight change measurement results and analysis
		4. Estimation of the Effect of Active Portfolio Weight Change on Stock Market Returns
		5. Estimation of the Effect of Active Portfolio Weight Change on Stock Market Volatility
		6. Conclusions
		Acknowledgement
		References
Part III: Innovation and Sustainable Growth in the Chinese Economy
	11. Technology Level, Market Competition, and Firms’ Innovation Behavior: Evidence from Chinese High-Tech Enterprises
		1. Introduction
		2. Theoretical Model
			2.1. Duopoly competition and income
			2.2. Game analysis of firms’ innovation choice
			2.3. Impact of competition on industry innovation
		3. Empirical Analysis
			3.1. Variable definition
			3.2. Data specification
			3.3. Methodology
		4. Result of Empirical Analysis
		5. Conclusion
		Acknowledgments
		Appendix A: Proof of Innovative Choice Expressions
		Appendix B: Total Innovation Flow and Simulation
		References
	12. Macroeconomic Costs and Potentials of CO2 Emission Reduction: A Case Study of Zhejiang Province, China
		1. Introduction
		2. Literature Review
			2.1. Studies on the macroeconomic costs of CO2 abatement
			2.2. Studies on the impact of policy instrument
			2.3. Studies on the greenhouse gas emission in different industries
		3. Methods and Data
			3.1. Objective functions
			3.2. Constraint functions
			3.3. Genetic algorithms
			3.4. Data
		4. Results and Disscussions
		5. Conclusions and Suggestions
		References
	13. Does the Environmental Policy Stringency Gap between China and Its Trading Partners Affect Its Manufacturing Exports?
		1. Introduction
		2. Short Review of Literature
		3. Model Specifications and Variable Description
			3.1. Model specification
			3.2. Variables specification and data description
			3.3. Estimation issues
		4. Estimation Results and Analysis
			4.1. Estimation of full sample
			4.2. Estimation of grouped estimation
		5. Main Conclusions and Policy Implications
		Acknowledgement
		Appendix
			A.1. Net export
			A.2. The physical capital stock
			A.3. EPS
			A.4. Data sources
		References
	14. Local Public Expenditure and Local Economic Growth: Evidence from Zhejiang Province of China
		1. Introduction
		2. Review on Theoretical Literature
			2.1. Fiscal expenditure’s influence one conomic growth
			2.2. Fiscal expenditure’s influence on private consumption
			2.3. Fiscal expenditure’s influence on private investment
		3. Model and Data
			3.1. Model
			3.2. Variables
			3.3. Data
		4. An Empirical Analysis
			4.1. HP filtering process
			4.2. Unit root test
			4.3. Regression analysis
			4.4. Granger causality test
		5. The Impact of Fiscal Expenditure Structure on Private Investment
		6. Conclusions and Policy Implications
			6.1. Conclusions
			6.2. Research implications
		Appendix
			A.1. Hodrick–Prescott filtering method
		Acknowledgements
		References
Index