In the context of global integration, whether a diplomatic partnership strategy can promote outward foreign direct investment (OFDI) and how it works are very important issues for China. Based on a dataset featuring China's partnerships collected from the Ministry of Foreign Affairs website, we establish an empirical framework to assess the role of China's diplomatic strategy in its OFDI arising from partnerships since 1993. The results show that the establishment or upgrade of partnerships has had a positive effect on Chinese firms' decisions on OFDI for at least the short term, especially for firms with higher demand for policy guarantees from the government, such as noncentral firms and non-Beijing firms. The results also show that the increase in OFDI is concentrated in host countries with higher political risks, such as developing countries, neighboring countries, and Belt and Road countries, which is consistent with China's diplomatic focus. Our research proves that China's diplomatic strategy can assist firms to invest abroad.
Relying on innovation to drive green energy efficiency improvement has emerged as the key to achieving the Sustainable Development Goals (SDGs) under the pressure of the global economic downturn and carbon emission reduction targets. Using the multi-period difference-in-difference (DID) method and panel data of the 282 cities between 2004 and 2019, this study evaluates and examines the effects, channels, and heterogeneity of the impact of the national innovative city pilot policy (NICPP) on the green total factor energy efficiency (GTFEE). The results are as follows: (1) the baseline regression results show that the NICPP has a positive impact on GTFEE, and the conclusions are still valid after robustness tests and instrumental variables approach to solve endogeneity problems; (2) channel tests show that the NICPP can enhance GTFEE through three channels: industrial structure transformation, green technology innovation, and resource allocation improvement; (3) heterogeneity analysis shows that the NICPP is more effective in improving GTFEE in cities with rich science and education resources, newer industrial bases, and higher initial industrial concentration. This study offers encouraging empirical support and policy implications for employing innovative city policies to improve GTFEE, cities should adapt to local conditions to encourage sustainable development-oriented innovation, industrial clustering, and optimize the market-based allocation of energy.
When the Melitz model is implemented in practice, the industrial productivity distribution is often assumed to be of Pareto form. In this case, a fundamental relationship κ > σ − 1 must hold to guarantee the convergence of the industrial average productivity, where κ is the concentration degree of the industrial productivity Pareto distribution and σ is the substitution elasticity across varieties in the industry.
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