Development Zones and Their Surrounding Host Cities in China: Isolation and Mutually Beneficial Interactions

The construction of development zones is an important strategic measure for China to attract foreign investment and open up more extensively to the outside world; for this reason, such zones are also of great significance to China’s regional development. Although the economic effects of development zones have received extensive attention from scholars, the interaction between the development zone and the host city that surrounds it has, to date, remained unexamined. To fill this gap, this research constructed a panel measurement analysis framework and selected 46 of China’s national development zones established from 2004 to 2018 as study samples and used Granger causality test method to reveal the causal relationship between the total factor productivity of the development zones and their surrounding host cities. The consequences exhibited a long-term causality between the total factor productivity of the development zones and that of the host cities in all the panels. Short-term causality, however, was only identified in the eastern and western area panels. The development zone is shown to significantly promote the development of its host city, albeit with a certain lag effect; conversely, the support function provided by the host city to the development zone was found to remain weak. Our research results provide a new perspective on realizing a mutually beneficial interaction between development zones and their host cities.

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How do globalization indicators de jure–de facto and total factor productivity affect tourism development in European countries?

Journal of Hospitality and Tourism Insights ◽

10.1108/jhti-05-2020-0089 ◽

2020 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Panayiotis Tzeremes

Keyword(s):

Total Factor Productivity ◽

Generalized Method Of Moments ◽

Tourism Development ◽

European Countries ◽

Productivity Index ◽

Factor Productivity ◽

Causality Test ◽

Content Type ◽

Vector Autoregressive ◽

First Time

PurposeThis research analyzes, for the first time, the linkage among the gathered dataset of globalization indicators, the total factor productivity index and tourism development in a panel of 25 European countries during the 1995–2016 period.Design/methodology/approachThe Generalized Method of Moments estimator for panel Vector Autoregressive Regression model is implemented and as a robustness test, the panel Granger causality test is used.FindingsThe findings have divulged that globalization and total factor productivity increase tourism development. An increase in the economic globalization de factor indicator will cause an increase in tourism development in European countries. Moreover, an increase in the social globalization de jure indicator will lead to a higher level of tourism development in European countries.Practical implicationsPolicy-makers should use the complementary association between globalization and international tourism to promote productivity in European countries. These countries can also utilize the tourism sector as a tool to enhance the connectivity of their economies and societies with other parts of the world.Originality/valueWe use for the first time the globalization index as proposed by Gygli et al. (2019) in the tourism discipline. We evaluate the total factor productivity index instead of the economic growth applied by the majority of the researchers and we employ for the first time in the tourism field the GMM–PVAR framework.

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Does Social Capital Matter for Total Factor Productivity? Exploratory Evidence from Poland

Sustainability ◽

10.3390/su12239978 ◽

2020 ◽

Vol 12 (23) ◽

pp. 9978

Author(s):

Urszula Markowska-Przybyła

Keyword(s):

Social Capital ◽

Sustainable Development ◽

Total Factor Productivity ◽

Synergistic Effects ◽

Empirical Studies ◽

Physical Capital ◽

Economic Effects ◽

Added Value ◽

Factor Productivity ◽

The Impact

Two issues connected with sustainable development are analysed in this article: total factor productivity (TFP), which measures the efficiency of transforming physical capital and labour into production, and social capital, which is increasingly considered as a factor of TFP. TFP is sometimes viewed as a measure of sustainability, and its high value indicates an effective way of combining and using limited resources. Social capital, in turn, is a determining factor in the social, economic, and environmental dimensions of development. The subject of this analysis is the impact of social capital on TFP. Social capital generates synergistic effects and creates added value using the existing resources. Therefore, it is legitimate to regard it as one of the determinants of TFP. The role of social capital in sustainable development is theoretically grounded and confirmed by numerous empirical studies. Nevertheless, due to the deep dependence on the context, the mechanisms of the impact of this capital on economic effects are still not fully understood. In this paper, social capital is analysed in the context of the post-transformation economy. This context seems to be interesting for two reasons: the relative weakness of social capital in post-communist countries and extensive nature of development these countries have experienced in recent decades, which together can be a barrier to long-term growth in these economies. The purpose of the paper is to identify and assess the impact of social capital in Poland on TFP in a regional breakdown (Nomenclature of Territorial Units for Statistics II - NUTS II). The research period covers the years 2002–2016 and employs econometric modelling methods. Social capital turns out to be a factor in explaining the level of TFP in Polish regions.

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Total Factor Productivity and Openness in Indian Economy: 1970–2011

Foreign Trade Review ◽

10.1177/0015732518810835 ◽

2018 ◽

Vol 54 (1) ◽

pp. 46-57 ◽

Cited By ~ 2

Author(s):

Salman Haider ◽

Aadil Ahmad Ganaie ◽

Bandi Kamaiah

Keyword(s):

Granger Causality ◽

Total Factor Productivity ◽

Trade Openness ◽

Physical Capital ◽

Causal Link ◽

Factor Productivity ◽

Causality Test ◽

Lower Efficiency ◽

Indian Economy ◽

Distributed Lag

The present article aims to explore the causal link between total factor productivity (TFP) and openness in the Indian economy during the period 1970–2011. The study employs the cointegration and error-correction approach, along with Granger causality test. The TFP index used in the study is based on the Tornqvist index and export plus import as a percentage of GDP is used as a measure of openness. It is found that trade openness is cointegrated with TFP using the autoregressive distributed lag (ARDL) method. In the short run, there is evidence of unidirectional Granger causality running from trade openness to total factor productivity. The finding suggests that heavy protection for the domestic industry would deprive the country of efficiency gains in the long run. The resultant effect would be the wastage of resources. For a developing country, lower efficiency levels will halt the process of development. However, enhancement of TFP can not only be due to increase in trade, along with it, the investment in human and physical capital are also better avenues to be taken care of. JEL Codes: F10 O40 O33 C22

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