Environmental Regulation, Technological Innovation, and Industrial Transformation: An Empirical Study Based on City Function in China

The Chinese economy has now transitioned from rapid expansion to high-quality growth. The issue of achieving synergy between environmental conservation and economic growth has become a serious concern. Based on the panel data of 120 prefecture-level cities in China from 2008 to 2017, we used the panel threshold regression model to investigate the influences of environmental regulation (ER) and technological innovation (TI) on urban industrial transformation. Further, we examined the threshold characteristics of four types of functional cities—resource-based, industry-oriented, comprehensive regional, and other types of cities. Our results show that ER and TI have varied effects on the industrial transformation of the four categories of functional cities. Both ER and TI have significant nonlinear threshold impacts on industrial transformation in resource-based cities. The inhibitory effect of ER on industrial structure rationalization decreases as the severity of ER increases. There is a shift from the promotion to the restriction of industrial structure rationalization due to TI increase. In contrast, TI strengthens the optimization of industrial structure. The promotion effects of ER and TI on industrial structure optimization improve as the former and latter increase in comprehensive regional cities. The influence of TI on the industrial transformation of industry-oriented cities is consistent with its impact on resource-based cities. These findings provide theoretical guidance and inspiration for urban industrial transformation in response to ER and TI based on their functional roles.

Heterogeneous Impacts of Body Mass Index on Work Hours

This study examined how higher body mass index (BMI) affects the work hours of men and women and how the impact varies by gender and the value of BMI. Using a longitudinal dataset of 1603 British adults (men: n = 775; women: n = 828) and a panel threshold regression model, this study estimated that BMI has significant impacts on work hours but the pattern is different by gender and BMI groups. BMI is positively associated with work hours up to the estimated BMI threshold of 30, which corresponds to the clinical cutoff point of obesity; above this point, additional increases in BMI is associated with reduced work hours. The asymmetric nonlinear relationship between BMI and work hours was more evident among women, particularly female low-skilled workers. The results imply reduced work capacity and lower labor income for women with a higher BMI above an obesity threshold, highlighting a practical role of BMI’s obesity cutoff value. The findings of this study provide a new perspective regarding the economic burden of workplace obesity and point out the need to design gender-specific and BMI-based strategies to tackle productivity loss from obesity.

“Double-edged sword”: the effect of cultural distance on post-disaster tourism destination recovery

Purpose Some researchers have found that disasters may have a “blessing in disguise effect” that some disaster sites transformed into more popular tourism destinations; however, no studies have analyzed the heterogeneity of the “blessing in disguise effect”. This paper aims to explore and determine the effect of cultural distance on international inbound tourist arrivals to a post-disaster tourist destination that could explain this heterogeneous phenomenon. Design/methodology/approach This study used a threshold regression model and a differences-in-differences (DID) approach to analyze 2000–2016 international tourist arrival data from 13 main origin countries to Sichuan Province before and after the 2008 Wenchuan Earthquake in China. Findings The effect of cultural distance on post-disaster inbound arrivals from the various origin countries followed a non-linear U-shaped “double-edged sword” pattern rather than displaying a simple linear relationship. Most notably, the disaster appeared to have a more positive effect on arrivals from countries with larger cultural distances, while the effect on arrivals from countries with shorter cultural distances was negative. Originality/value This study found that cultural distance could explain the heterogeneous “blessing in disguise” phenomenon, and it had both positive and negative impacts on tourism destination recovery; that is, a definite “double-edged sword effect” of cultural distance was found, which could help destination marketing organizations and management departments to design appropriately targeted marketing for post-disaster tourism destination recovery.

How Does Income Inequality Influence Environmental Regulation in the Context of Corruption? A Panel Threshold Analysis Based on Chinese Provincial Data

The question of how the income inequality of residents affects the level of environmental regulation in the context of official corruption was the core research issue of this study. We analyzed this problem using the panel threshold regression model from 26 provinces in China from 1995 to 2017. We found that when there is no official corruption, the widening of the residents’ income inequality promotes stricter environmental regulations; when the corruption problem is serious, the expansion of the residents’ income inequality leads to the decline in environmental standards; that is, the impact of residents’ income inequality on environmental regulation has a threshold effect due to corruption. In addition, the threshold effect due to corruption of all residents’ income inequality on environmental regulation is mainly generated by the urban residents’ income inequality and the urban–rural income inequality. This paper contributes to the literature that concentrates on the relationship between income inequality and environmental regulation, and shows that corruption is a key factor that can deeply influence that relationship. The research conclusion shows that increasing anti-corruption efforts can not only maintain national political stability, social fairness, and justice, but also be a powerful measure for environmental pollution governance.

Optimal Price Level Under Slowing Economic Performance Using Simple Growth-Inflation Threshold Models

The purpose of this study was to evaluate the threshold of inflation that is tolerant of Indonesia’s economic growth rate. The basic question to be answered was what level of inflation is safe enough for economic growth. To answer this question, this study used Indonesian macroeconomic data, specifically data on inflation and economic growth between 1969-2017 sourced from the Central Statistics Agency and Bank Indonesia. The data analysis method used was a threshold regression model that was repeated manually by entering an acceptable inflation simulation value based on inflation experience in Indonesia. The simulation results showed that the inflation threshold that is safe for growth is around 7 to 8 percent per year. However, the model showed that inflation of 3 percent is the optimal level for growth. One concludes that an inflation rate of around 3 percent can be used as a guide in determining the inflation target in Indonesia. Keywords: growth, inflation, stability, threshold

Is there a moderate range of impact of financialization on corporate R&D?

How to promote corporate research and development is a particularly important issue under the background of the economy being diverted out of the real economy. By selecting samples of 1221 Chinese A-share non-financial listed companies from 2010 to 2019, this paper examines the impact of financialization on research and development through the panel threshold regression model. Then, the moderate range of the impact of financialization on corporate research and development is measured, as well as their heterogeneity is also analyzed. The research shows the following results: first, there is a dynamic relationship and moderate range between financialization and corporate research and development. Financialization has a positive effect on corporate research and development when the level of financialization exceeds 0.4748. Secondly, from further heterogeneous research, financialization has a threshold effect on research and development among enterprises with a high level of research and development. In addition, there is a promoting effect on corporate research and development only when their financialization level exceeds 0.0097 in enterprises with a high level of research and development. Therefore, in order to promote corporate research and development, financialization of non-financial enterprises should make adjustment and regulation according to the action and direction of moderate range.

Analysis of Australia’s Fiscal Vulnerability to Crisis

Fiscal vulnerability, like a contagion, poses a threat to financial sector stability, which can lead towards sovereign default. This study aimed to assess fiscal vulnerability to crisis by investigating the Australian economy’s gross public debt, net public debt, and net financial liabilities. We used a threshold regression model and compared results with the baseline deficit–debt framework of analysis. The results of the base model suggested that the economy is fiscally sustainable, and that the primary surplus remains unaffected by increasing levels of public debt. In contrast, the threshold regression model indicated that the increasing level of debt has eroded primary surplus below the threshold level of 30.89% of public debt to GDP. These results need further investigation. Therefore, we modified our basic threshold model to capture budget deficit and surplus as a threshold in response to changes in public debt. The results from the sequential threshold regression model using the debt to GDP ratio and primary budget surplus identifying the periods of 1991, 1992, 2008, 2009, 2011 and 2019 as times of likely vulnerability to fiscal crisis. The overall results confirmed that the primary surplus remained sustainable over the estimated threshold level of public debt in all other sample periods and these findings persisted across alternative measures of public debt.

Does the Economic Growth Improve Public Health? A Cross-Regional Heterogeneous Study in China

On public health, the effect of economic growth in China is analyzed in this paper by using the panel threshold regression model. The empirical study from 2000 to 2017 shows that China's economic growth has a significant threshold effect on public health. After the threshold is exceeded, public health will be improved dramatically. The threshold effect is heterogeneous at the regional level. The eastern region has no threshold, and both central and western regions have a single significant threshold. However, the threshold value and threshold effect in the central and western regions are also different. The heterogeneity is caused by the different levels of regional economic development. Therefore, based on public health utility maximization, the government should make different health policies according to the characteristics of regional development.