In the past decade, China's outward foreign direct investment (FDI) has increased significantly. On the other hand, the Chinese economic growth model is heavily reliant on domestic investment. Our study examines the important issue of how China's domestic investment responds to its FDI outflows. We investigate this issue analyzing, for the first time, China's domestic investment at industrial level. We specifically account for the factor of government support given the significant role played by the state in the Chinese economy. Using industrial level data, we further evaluate whether domestic investment reacts to outward FDI differently between statedominated industries and those that are not state-dominated. Our study adopts an accelerator model in which the system-Generalized Method of Moments (GMM) is used to construct our estimates. Our empirical results suggest that domestic investment responds positively to outward FDI in China. Furthermore, the FDI outflows influence domestic investment differently according to the level of government support for individual industries. Such influence is much stronger in state-dominated industries than in those that are not state-dominated.JEL Classification: E22, F21, O16, P23
This paper attempts to investigate the impact of social media on economic growth. Using information obtained from memberships to social networks, we find that social media has a negative and significant impact on economic growth. This provides evidence in favour of our hypothesis that social media increases the search costs for information and also increases the substitution effect from labour to leisure thereby producing a negative impact on growth.
We study the dynamic effects of monetary policy on the banking sector in Nigeria.We show that the Bank Lending Channel improved banks resilience to monetary shocks.Our study of the Bank Lending Channel reveals the importance of banks size and equity.Larger banks and more capitalised banks are less sensitive to changes in monetary policy.The Central Banks restructuring activities improved the bank lending channels impact.
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