Can Trade Facilitation Prevent the Formation of Zombie Firms?Evidence from the China Railway Express

Using data on firms listed on Chinese A-share markets from 2009 to 2017,this paperapplies the difference-in-difference model to test the effect of trade facilitation onpreventing the formation of zombie firms.We find that the China Railway Express(CRE)significantly prevented the formation of such firms.Mechanism tests show:(i)the CRE has accelerated the speed of sales,which increased the overseas salesrevenue of firms;(ii)the economies of scale and the capital accumulation effectcaused by the CRE can help increase firms'solvency and development ability.Heterogeneity analysis indicates that the effect of the CRE on preventing theformation of zombie firms is mainly reflected in non-state-owned firms,firms inhighly competitive industries,and firms in the eastern region of China.We suggestthat China should continue to promote trade facilitation by expanding the CRE andstrengthening the market's dominant role in preventing the formation of zombie firms.Disadvantaged firms should seize the development opportunities brought by the CRE.

Bayesian network-based risk evaluation model for the operational requirements of the China Railway Express under the Belt and Road initiative

The operation of the China Railway Express features numerous links across several regions and countries. Effectively controlling therisks involved in the operation of the China Railway Express is crucial for ensuring safety and efficiency and promoting the sustainabledevelopment of the China Railway Express. The Bayesian network-based risk-management model was built corresponding to theactual operation of the China Railway Express;the model used an advanced risk-management theory. The sensitivity analysis of riskfactors and Bayesian network inference were realized using the expectation-maximization and clique-tree propagation algorithms.Using the risk-checklistmethod, 17 risk-related factors were analysed on 17 nodes of the Bayesian network fromthree perspectives—safety, efficiency and effectiveness—based on expert opinions and the actual operating conditions of the China Railway Express.Data from a sensitivity analysis and evidence inference of the Bayesian network model indicated that the sensitivity coefficients ofnodes N01, N04, N07, N08 and N17 of the network were high. Moreover, the risk-occurrence probabilities for nodes N01, N04, N06,N07 and N09 were higher in the case of reverse inference. Our results revealed the crucial factors influencing the risk. The identifiedrisk factors included the stability of the political environment in countries along the route, conditions of station infrastructures andthe complexity of the process of changing rails and reloading. Further, risk-management suggestions were provided. By establishinga sound risk-management framework, reliable assessment and management could be realized in accordance with changes in theoperating conditions of the China Railway Express.

Connecting the Belt and Road through sea-rail collaboration

As part of China's "the Belt and Road"strategy, China Railway Express provides alternative shipping routes and transportation modes from Asia to Europe and creates new opportunities for intermodal transportation in the shipping industry. A time–distancebased cost(time cost) function was proposed to compare China Railway Express with traditional transportation modes. Time cost was related to different types of cargoes,which exhibit distinct sensitivity to time. Using the proposed cost function as basis, we identified the cost indifference area where total costs are equal. Further analysis was performed for selecting the transportation mode and supply area for a specific cargo. This study provides various parties, such as business owners, the government, and the shipping industry, with many valuable insights.