Uncertainty induced by the political environment affects investment risk, and thus affects investment decisions, which have a close relationship with economic development. This paper investigates the economic cost of ...Uncertainty induced by the political environment affects investment risk, and thus affects investment decisions, which have a close relationship with economic development. This paper investigates the economic cost of political instability using the case study of the tense relationship across-Strait in China. We use a synthetic control method to better model the counterfactual analysis of this case study. The intense situation of the relations across-Strait has great influence on the economic development of Fujian province. Fujian province is the closest province in proximity to Taiwan and also possesses the greatest preferential policies for Taiwan Residents direct investment. The empirical results of this study reveal that during 2001-2008 Fujian province＇s average annual loss in GDP per capita was 682.54 yuan. In other words, GDP per capita in Fujian has declined about 12.1 percent annually during this period compared with GDP per capita as calculated by the synthetic control method.展开更多
Sovereign Wealth Funds established by Middle Eastern countries occupy an important position in world capital markets in terms of size or activity.However,regarding the establishment and operation of the funds,Saudi Ar...Sovereign Wealth Funds established by Middle Eastern countries occupy an important position in world capital markets in terms of size or activity.However,regarding the establishment and operation of the funds,Saudi Arabia pursues a conservative investment strategy as a regional power,which is quite different from other Gulf countries.It is found that the economic conditions in Saudi Arabia,such as money supply,foreign exchange reserves,external debt and domestic economic development,which are generally considered to be the determining factors for the establishment of SWFs,were not favorable compared with those in the other GCC states in the last decades.However,even when those conditions have been improved since the beginning of this century,the performance of SWFs in Saudi Arabia still lags behind compared with other Gulf countries.As the economic indicators of the country will be studied,so will a political analysis be conducted in three specific perspectives:the significance of US dollar reserve for Saudi-US diplomatic relations,the deterioration of political environment of FDI in western countries after 9/11 and a mix of public and private ownership systems brought by the royal family.In the end,one can conclude that Saudi Arabia is a conservative investor on SWFs.展开更多
文摘Uncertainty induced by the political environment affects investment risk, and thus affects investment decisions, which have a close relationship with economic development. This paper investigates the economic cost of political instability using the case study of the tense relationship across-Strait in China. We use a synthetic control method to better model the counterfactual analysis of this case study. The intense situation of the relations across-Strait has great influence on the economic development of Fujian province. Fujian province is the closest province in proximity to Taiwan and also possesses the greatest preferential policies for Taiwan Residents direct investment. The empirical results of this study reveal that during 2001-2008 Fujian province＇s average annual loss in GDP per capita was 682.54 yuan. In other words, GDP per capita in Fujian has declined about 12.1 percent annually during this period compared with GDP per capita as calculated by the synthetic control method.
基金This research is the product of Key Research program of SHISU“Study on the Financial Risk Manegement of China and Foreign Countries”(KX161022022).
文摘Sovereign Wealth Funds established by Middle Eastern countries occupy an important position in world capital markets in terms of size or activity.However,regarding the establishment and operation of the funds,Saudi Arabia pursues a conservative investment strategy as a regional power,which is quite different from other Gulf countries.It is found that the economic conditions in Saudi Arabia,such as money supply,foreign exchange reserves,external debt and domestic economic development,which are generally considered to be the determining factors for the establishment of SWFs,were not favorable compared with those in the other GCC states in the last decades.However,even when those conditions have been improved since the beginning of this century,the performance of SWFs in Saudi Arabia still lags behind compared with other Gulf countries.As the economic indicators of the country will be studied,so will a political analysis be conducted in three specific perspectives:the significance of US dollar reserve for Saudi-US diplomatic relations,the deterioration of political environment of FDI in western countries after 9/11 and a mix of public and private ownership systems brought by the royal family.In the end,one can conclude that Saudi Arabia is a conservative investor on SWFs.
