The Reciprocal and Symbiotic Effects of Industrial Relocation between China and BRI Countries

Reciprocity and symbiosis are essential to the creation of“a community with a shared future for mankind”,and industrial relocation is a key strategy for implementing the Belt and Road Initiative(BRI).This paper investigates the reciprocal and symbiotic effects of industrial relocation between China and BRI countries,and performs an empirical test using the Eora global supply chain database of 2002-2020.Our findings suggest that there has been an increasing level of industrial reciprocity and symbiosis between China and BRI countries,but great differences exist across sectors and regions;industrial relocation between China and BRI countries is conducive to two-way industrial reciprocity and symbiosis primarily through regional value chain cooperation and an increasing level of industrial agglomeration.The most substantial effects have been observed in industrial relocation involving developed BRI countries,in medium-and high-tech sectors,and following the announcement of the BRI.

Effects of Industrial Relocation on Chinese Regional Economic Growth Disparities: Based on System Dynamics Modeling

The economic growth of China has led to increasing growth disparities between regions. Such disparities are uncontrolled and are severely negative symptoms in the process of economic development. On the basis of system dynamics(SD) modeling and the relationship between industrial relocation and regional economic growth, we construct a model of the interrelationship between the two aforementioned phenomena. The model is an effective and creative exploration for examining effects of industrial relocation on Chinese regional economic growth disparities. The SD model is employed in this study to build an inter-regional labor migration SD model, an inter-regional capital migration SD model, an intra-industry SD model, an intra-regional population SD model, and an intra-regional SD model which are based on realities in labor and capital flow from the view of industrial relocation. VENSIM software is utilized to perform a system simulation based on the data of the eastern, middle, and western regions from 2000 to 2010. Results show that industrial relocation gradually narrows the relative disparity in GDP among the three regions. Moreover, the absolute one is enlarged continuously. The absolute and relative disparities in per capita GDP among eastern, middle, and western regions generally exhibit decreasing trends.

Industrial Pollution Governance in Beijing-Tianjin-Hebei Based on Industrial Relocation

Industrial relocation and ecological subsidy are viewed as effective ways to overcome transboundary industrial pollution. In this paper, we study the transboundary industrial pollution control problem in the Beijing-Tianjin-Hebei region in the context of industrial relocation. Firstly, we construct an economic model of pollution control with relevant variables such as environmental tax and environmental damage coefficient. Secondly, we solve the economic contributions by using the proportional split-off solution. Finally, we compare the optimal relocation quantity and welfare functions in both cooperative and non-cooperative cases. Our research finds that: 1) The optimal strategy is closely related to utility coefficient, environmental loss coefficient and incentive intensity coefficient.2) The welfare function and the optimal relocation quantity in the cooperative case are significantly greater than those in the non-cooperative case. Based on the analysis, some suggestions are provided for transboundary industrial pollution management.

How Efficient Is China＂s Industrial Relocation from East to West？ - Evidence from 20 Manufacturing Industries

With the acceleration of the rise of central China and the western development drive, industrial relocation from China＇s eastern region to the central and western regions is in full swing. However, does the relocation demonstrate industrial clustering effect？ Empirical studies based on twenty two-digit manufacturing industries in 27provinces from 2000 to 2009 demonstrate that industrial clustering effect appeared in central and western regions which had undertaken industrial relocation from eastern region; however, the studies do not show excessive administrative interference as evidenced by the significantly improved productivity of the relocated industries. Compared with non-labor- intensive manufacturing industries, labor-intensive manufacturing industries are easier to form cyclic accumulative effects. Studies also revealed that improvement in supporting infrastructure, industrial chain and higher labor quality in non-agriculture employment during urbanization are significant for central and western regions to undertake industrial relocation.

China’s Industrial Upgrading and Value Chain Restructuring Under the New Development Pattern

Global industrial chains(GICs)have become a hallmark of the world economy underpinning the global production cycle.Since the reform and opening up was introduced in 1978,China has taken an active role in global value chains(GVCs)and become the world’s factory floor.Under the external shocks to GICs,such as US trade frictions with China and the COVID-19 pandemic,China’s traditional comparative advantages in manufacturing which include its labor force and costs are waning.This has manifested in a wave of industrial relocations from China to other countries as well as China’s weakening international competitiveness.We took stock of the concepts and journey of GVCs and elaborated the intrinsic relationship between GVCs and the new development pattern of“dual circulations”.We also analyzed the trends of GVCs,the current status and problems of China’s industrial chains,and China’s market heft,complete industrial chains and the digital economy as new strengths for industrial chain upgrade.In our conclusion,this paper put forth some policy recommendations for China’s industrial chain upgrade in the context of dual circulations.

Laboratory of Economics for the Assessment of Environmental Impact Caused by Industrial Activities-Implementation of the WTP-WTA Approach

In this work,a methodological framework has been developed in the form of an algorithmic process,which includes 28 stages of activities and 6 decision nodes,for the assessment of the environmental impact caused by industrial activities.The main part of this process is a modification of the Contingent Valuation Method(CVM),which relied heavily on research based on the WTP-WTA(Willingness to Pay/Receive,respectively)assessment.The research can be carried out either in a strictly controlled environment or on site and as is(“in laboratory conditions”or“real conditions”,respectively,in the terminology of experimental economics).The application of this methodology is presented,referring to three cases of industrial pollution(in three different locations)caused by(i)a cement plant,(ii)an oil refinery complex,and(iii)a small industrial town with a heavily polluted port,in which several industrial units coexist,while all of them are located near Athens,Greece.The results are interpreted/discussed and conclusions are drawn.

A Spatial Econometric Approach to Studying Regional Air Pollution in China

Using spatial econometric method,this paper investigates the mutual influence of air pollution among 31 Chinese provincial regions,together with the effects of energy mix and economic variations.Global spatial autocorrelation analysis reveals that significant positive spatial correlation exists for air pollution;Local spatial autocorrelation analysis indicates that pollution aggregation hot spots are concentrated in Beijing-Tianjin-Hebei region,the Yangtze River Delta and part of the central region between these two economic growth poles.This paper believes that industrial relocation is a major reason behind such distribution of air pollution in China as it has deepened the spatial correlation between interregional economy and pollution,which will further give rise to the spatial spillover effect of pollution.With the creation of the regression model of spatial and Environmental Kuznets Curve,the authors discovered that the level of pollution is closely related to energy mix and industrial structure.In addition,the inverted U-shape relationship between air pollution and economic development as demonstrated by previous studies does not exist or is yet to appear in China,where continuous growth of per capita GDP is accompanied by an increasing level of pollution.According to empirical analysis,the improvement of environmental quality at the expense of industrial relocation to neighboring regions is temporary.Due to the existence of spillover effect of pollution,regions that have enforced tighter environmental regulation such as Beijing and Tianjin are unable to acquire all benefits from such regulation.Treatment of air pollution necessitates interregional joint prevention and control.In the long run,adjusting energy mix and optimizing industrial structure are the key to fighting air pollution.But in the short run,reducing the consumption of inferior coal is the most effective option for China,which has seen multiple-fold increase in imports of inferior coal each year.

The Key Driver of China’s New Economic Development Pattern:A Major Power’s Flying Geese Paradigm

This paper examines China’s flying geese paradigm that serves as a key driver of a new pattern of the country’s economic development.Our results suggest that such a major power’s flying geese paradigm has taken shape in the aftermath of the global financial crisis in 2008.However,this paradigm has provincial heterogeneity in that industrial relocation varies across provinces.For instance,China’s central and western regions have shown differences while serving as destinations for labor-intensive industries and processing trade.This flying geese paradigm evolves in a slow and nonlinear manner,and may be subject to stagnation and even reversal.

Are China＇s Exports Crowding Out or Being Crowded Out？ Evidence from Japan＇s Imports

Previous studies have investigated whether Chinese exports have crowaea oul mose from other countries. However, what has yet to be considered is the evidence based on different quality varieties. Using the most detailed Harmonized System 9-digit product- level data, the present paper provides evidence of crowding-out and crowded-out effects across different product quality segments and across manufacturing sectors by quality segments. The empirical evidence presented in this paper shows that the crowding-out effects of Chinese exports have been greatest at the lower end of the quality spectrum but less significant at the higher quality spectrum. Moreover, since 2007, China＇s own exports of lower quality manufactured goods have been increasingly crowded out. The key policy implication is that China＇s export path is in line with that taken by other Asian economies in previous decades; the crowded-out effect could achieve win-win outcomes for countries involved; and lower income countries would do well to be open to receive those relocated low value-added industries from China. However, the relocation policy in China is best implemented gradually as climbing up the product quality ladder takes time.