Does Polycentric Development Improve Green Utilization Efficiency of Urban Land? An Empirical Study Based on Panel Threshold Model Approach

In the context of increasing resource and environmental constraints, measurement and determinants of green utilization efficiency of urban land (GUEUL) is currently the subject of a rapidly expanding literature. Previous research concerning determinants of GUEUL focuses primarily on effects of socio-economic conditions on GUEUL, and little attention has been devoted to impacts of spatial structure and urban development patterns. This research explores impacts of polycentric development on GUEUL of urban agglomeration (UA), using data for major UAs in China covering the period 2005–2019. GUEUL and the extent of polycentricity is measured by employing an improved directional slack-based measure (SBM) model and the rank-size distribution-based approach, respectively. The linkage between polycentric development and GUEUL is explored by estimating models of determinants of GUEUL, and the nonlinear characteristics of the relationship are investigated by employing the panel threshold model approach. The results suggest that polycentric development positively impacts GUEUL of UAs, and such effect rises with economic development levels. In addition, degree of agglomeration, economic development level and intensity of government investment in science and technology is found to be positively related to GUEUL. The empirical results have significant implications for improving GUEUL through formulating and implementing regional and urban policies.

Research on the Impact of Government Environmental Information Disclosure on Green Total Factor Productivity: Empirical Experience from Chinese Province

Government environmental information disclosure is an important means to promote environmental supervision and law enforcement, and improve the level of environmental management. In order to explore the impact of government environmental information disclosure on the sustainability of urban economic growth, this paper uses the Pollution Information Transparency Index (PITI) to measure the degree of government environmental information disclosure, studies its effect on green total factor productivity through two-way fixed effect model and systematic GMM estimation method, and further adopts threshold model to study whether there is heterogeneity in this effect. The results show that: (1) Each unit of government environmental information disclosure will increase green total factor productivity by 0.2 units. (2) Considering the endogeneity, the promotion of government environmental information disclosure to green total factor productivity has increased. (3) The degree of government environmental information disclosure plays a non-linear role in the path of green total factor productivity. The greater the degree of economic development, the more obvious the effect of government environmental information disclosure on green total factor productivity. Therefore, this paper believes that the government should strengthen the disclosure of environmental information based on the urban economic development to ensure the sustainability of urban economic development.

Threshold Effect of Financial System on High-Quality Economic Development

The relationship between financial system and economic development is not a simple linear relationship. In some cases, the development of finance may not improve the economic development level. This paper studies the influence of the financial system on the high-quality economic development, constructs the comprehensive index of the financial system by the factor analysis method, and calculates the green total factor productivity as the index of high-quality economic development by the CRS multiplier model. Empirically, this paper takes the panel data of 30 provinces, municipalities, and autonomous regions in China from 2005 to 2018 as samples, constructs the panel threshold model, and applies the financial system, economic development level, infrastructure, and industrial structure as threshold variables to study the nonlinear relationship between the financial system and high-quality economic development. The results demonstrate that the impact of the financial system on the high-quality economy presents an inverted U-shaped relationship when the financial system and industrial structure are the threshold variables, indicating that there is an optimal interval, that is, when the financial system threshold is between 0.1355 and 0.1377 and the industrial structure threshold is between 0.1364 and 0.1408, the financial system plays a greater role in the allocation of funds and has the most obvious positive impact on high-quality economic development. Meanwhile, the impact of the financial system on the high-quality shows a marginal decreasing trend when the economic development level and infrastructure are the threshold variables; when the economic development threshold is less than 0.1409 and the basic setting threshold is less than 0.1167, the financial system has the greatest effect on promoting high-quality economic development. Based on the research results, targeted policy suggestions are put forward.

Does Environmental Regulation Promote Industrial Green Technology Progress? Empirical Evidence from China with a Heterogeneity Analysis

The complex relationship between environmental regulation and green technology progress has always been a hot topic of research, especially in developing countries, where the impact of environmental regulation is important. Current research is mainly concerned with the impact of the single environmental regulation on technological progress and lacks study on the diversity of environmental regulations. The main purpose of this paper is to examine the heterogeneity of the effects of different types of environmental regulation on industrial green technology progress. As China’s scale of economy and pollution emissions are both large, and the government has also made great efforts in environmental regulation, this paper takes China as the example for analyses. We first use the EBM-GML method to measure the industrial green technology progress of 30 provinces in China from 2000 to 2018, and then apply the panel econometric model and threshold model to empirically investigate the influence of 3 types of environmental regulation. The results show that, first, the impacts of environmental regulation on industrial green technology progress are significantly different; specifically, command-based regulation has no direct significant impact, and autonomous regulation has played a positive role, and market-based regulation’s quadratic curve effect is significant, in which the cost-based and investment-based tool presents an inverted U-sharped and U-sharped, respectively. Second, there may be a weak alternative interaction among different types of environmental regulation. Third, a market-based regulatory tool has a threshold effect; with the upgrading of environmental regulation compliance, the effect of a cost-based tool is characterized by “promotion inhibition”, and that of an investment-based tool is “inhibition promotion”. Finally, the results of regional analysis are basically consistent with those of the national analysis. Based on the study, policy enlightenment is put forward to improve regional industrial green technology progress from the perspective of environmental regulation. This paper can provide a useful analytical framework for studying the relationship between environmental regulation and technological progress in a country, especially in developing countries.

The impact of external debt on total factor productivity and growth in HIPCs: non-linear regression approaches

Purpose The purpose of this study is to provide an empirical analysis of the impact of external debt on total factor productivity (TFP) and growth along with the TFP channel through which external debt affects the growth of heavily indebted poor countries (HIPCs). Design/methodology/approach This study uses panel data econometrics; basically, the seemingly unrelated regression (SUR) and alternative non-linear (panel threshold) models. For robustness check, it also uses panel-corrected standard errors, feasible generalized least squares and SUR (using alternative variables). Findings External debt significantly reduces both TFP and growth. Besides, it confirms that the relationship between external debt and TFP and gross domestic product growth is non-linear. Further external debt can affect the growth of HIPCs through the TFP channel. However, the threshold model result reveals weak evidence of threshold values although there are some threshold values of 67 and 54 for TFP and growth models, respectively. Originality/value To the best of the authors’ knowledge, this is the first study on most concerned countries (HIPCs) that shows a detailed and complete analysis of the TFP channel and the impact of external debt on growth. Thus, it provides appropriate and sound policies that consider the unique characteristics of the countries. Unlike most previous findings, this study does not support an inverted U-shape relationship between external debt and growth. Further, it provides insights into the relationships among TFP, external debt and growth. Moreover, it considers basic panel econometric tests like cross-sectional dependence, uses a non-linear simultaneous equations model along with the alternative non-linear model and is supported by different robustness checks.

Threshold Effects of Import Dependence on Economic Growth in Nigeria

This study uses annual time series data spanning 1981–2018 to investigate the threshold effects of import dependence on economic growth in Nigeria. The ordinary least squares (OLS) and the fully modified OLS (FMOLS) techniques are employed for estimation of a quadratic regression model to determine the nature of the relationship between aggregate import dependence and economic growth. It is found that the relationship is concave, that is, it follows an inverted-U shape. The conditional least squares estimator is thereafter employed to estimate the threshold model specified to determine the threshold level of import dependence. The study finds a threshold level of 26% for aggregate import dependence. Below this threshold, import dependence positively affects economic growth; above the threshold, the growth effect of import dependence is adverse. Furthermore, it is found that the long-run growth effect of Inflation is adverse, and investment is favourable to long-run economic growth. Based on these findings, the paper recommends efforts by Nigeria’s government to reduce import dependence below the estimated threshold of 26%, control inflation and encourage investment so as to enhance the growth of the nation’s economy.

Influence of Different Industrial Agglomeration Modes on Eco-Efficiency in China

It is a key issue for the Chinese government to improve eco-efficiency and realize green development. As a spatial organization mode of industrial labor division, industrial agglomeration has a complex impact on eco-efficiency. However, it is still debatable which industrial agglomeration modes have a positive impact on eco-efficiency. This paper employs a panel threshold model, enterprise micro-level data, and relevant economic environment data from 283 cities in China from 2004 to 2012. It tests the nonlinear effects of specialized, related diversified, and unrelated diversified agglomeration on industrial eco-efficiency. The results show that the impact of specialized and related diversified agglomeration on industrial eco-efficiency is first inhibited and then promoted. The unrelated diversified agglomeration has a significantly negative impact on industrial eco-efficiency, but the negative impact weakens when agglomeration reaches a certain level. Furthermore, the impact of the three agglomeration modes on industrial eco-efficiency depends on city size. The impact of specialized agglomeration on industrial eco-efficiency is insignificant in small- and some medium-sized cities, but it has a significant inhibitory effect on industrial eco-efficiency when the city surpasses medium size. The role of related diversified agglomeration in promoting industrial eco-efficiency is further enhanced with the growth of city size. The impact of unrelated diversified agglomeration on industrial eco-efficiency gradually changes from negative to positive, but it plays a promoting role only when the city reaches the scale of super-large and mega-cities. Finally, this paper suggests that policymakers should formulate differentiated agglomeration policies according to changes in industrial agglomeration level or city size to improve industrial eco-efficiency.

Research on the threshold of symbiosis between finance and real economy – empirical test based on banking panel threshold model

PurposeStarting from the theoretical mechanism of profit sharing between finance and the real economy, this paper reviews and analyzes the profitability of China's banking industry and makes a horizontal comparison with the banking industry of the United States, Japan, and Germany.Design/methodology/approachBased on the panel threshold model, it is found that there is a dual-threshold asymmetric effect between banking profit and the growth of real economy. When the net profit rate of the banking industry is lower than 0.491%, the increase in banking profitability will inhibit the growth of real economy due to profit grabbing; when the rate falls within the range of 0.491–0.801%, the increase in bank profitability is conducive to the growth of real economy.FindingsFinance and the real economy are in the most comfortable symbiotic state; when the rate is higher than 0.801%, the continued increase in bank profitability will weaken the promotion effect of finance on the real economy, but bank profitability and the growth of real economy are still in a symbiotic state of positive promotion.Originality/valueThe promotion effect of China's bank profitability to the growth of real economy has shifted from the suboptimal state to the optimal range as a whole, which is attributed to the strong deleveraging and strict supervision of the Chinese government after 2016, the timely and decisive “stepping on the brakes”, pulling the financial sector back from the “illusion” caused by “self-circulated” profits and preventing it from harming the real economy.