Energy prices are often distorted by government control, which is usually justified on the grounds that such control will help mitigate the negative impact of price volatility from oil imports, and thus positively affect the domestic economy. In this paper, we show in a two-sector growth model, that regulatory price distortion can negatively affect the economy, and then, based on the model, we empirically estimate the impact of the price distortion on output growth in China, using monthly, time series data from 2005M1 to 2012M12. In contrast to the usual argument for regulatory control to mitigate price volatility, we find that regulatory price distortion negatively affects output growth in China during both the short and long term, because it is robust to different measures of output and price distortion. Hence, the argument that using price regulation to protect economic growth is undermined, and subsequently, this study lends its support to energy price deregulation. A market oriented, energy price regime may improve the resilience of the domestic economy to global, oil price shocks.
Purpose
With a fast-growing Muslim population and consumer income, the demand for halal products by Chinese Muslims has expanded strongly. However, literature addressing Chinese Muslims’ consumption is limited, and their demand for halal products is little understood. This study aims to investigate what affects Chinese Muslims’ demand for halal products, with a focus on halal personal care products.
Design/methodology/approach
A survey of 500 respondents was conducted to collect cross-sectional data in northwest China. Data were processed and analysed with a logit model.
Findings
Apart from faithfulness, reliability of recommendations, product price, product availability and halal authenticity are most important determinants influencing the purchase of halal products by Chinese Muslims.
Research limitations/implications
In this study, the focus is only on Muslims from China’s Northwest. Due to various constraints, the cluster and convenience sampling methods are used.
Practical implications
The findings are invaluable for governments and industry bodies to form policies to better meet the burgeoning demand for halal products by Chinese Muslims. They are also very invaluable for producers and exporters who intend to penetrate the halal market in non-Muslim-dominant countries like China.
Originality/value
Studies on understanding the needs of Muslims in non-Muslim countries are limited. Given the sheer size of the Muslim population in China, understanding their demand for halal products and influential determinants concerning such demand adds to the literature and helps the industry to better serve and capitalise on the growing market.
Using a Heckman sample selection model estimated using pooled four‐year firm‐level data, this paper explores the export spillovers from the FDI in the cultural, educational and sporting product manufacturing industry of the manufacturing sector in China from 2000 to 2003. The manufacturing sector contributes around 40 per cent of the GDP in the Chinese economy, and the cultural, educational and sporting product manufacturing industry has a significant proportion of FDI activities, and firms in this sector are active in exporting. Through the empirical exercise, we find that there exist export spillovers from FDI in the industry, for which the magnitude depends on firms’ geographical location, sale cost and revenue ratio, and ownership structure. On average, domestic firms located in Western China suffer from a foreign presence, irrespective of whether they are privately owned or state and collectively owned. For firms in Central China, both the privately owned and state and collectively owned firms appear to benefit from foreign presence. Regarding firms located in Coastal China, the privately owned firms suffer from the foreign presence, while in contrast the state and collectively owned firms benefit from the foreign presence. In addition, in this industry there are more firms that benefit from the presence of FDI than those that suffer, which to some extent justifies the government's policy to attract the FDI inflow.
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