This article presents two propositions on the role of FDI in economic growth: (1) FDI is a mover of production efficiency and (2) FDI is a shifter of the host country's production frontier. It then employs a production function with a large panel data set from the Chinese regions over 1979-2003...

In this article, we empirically investigate the relationship between realized and risk-neutral volatilities by applying the model-free measures to FTSE-100 index and index options from April 1992 to March 2005. Based on the deviation between the risk-neutral and the physical volatilities, we...

A vector autoregression (VAR) model is employed to investigate the cointegration relationship between agriculture and non-agricultural sectors in the Chinese economy during 1952-92. Three cointegration vectors are identified among agriculture, industry, construction, transport and services....

Many studies indicate that profit-sharing is an effective incentive to boost productivity of firms in the western economies such as USA, UK and Germany. Whether a similar incentive scheme can work in a centrally-planned economy like China has not been well researched. China introduced a...

Spatial differentials in economic growth has become an important economic, social and political issue in China in her rapid industrialization drive over the last two decades. Measuring such differentials and quantifying their relevant components are important for policy making on regional...

When Gini coefficients are decomposed by class (e.g. occupation, sex, region, and so on, it is possible to examine how income inequality can be measured by its class components: intra-class, inter-class and overlapped. In the literature, there have been many studies on the decomposition...

A production model is proposed to explain why economic growth may lead to regional inequality and club divergence. Economic growth starts from a few centres and spills over to other regions. The spillover effect diminishes as distance rises, causing club formation with a clear geographical pattern.

In a recent article, Geroski and Walters (Economic Journal, 105, 1995, 916-928) suggest that changes in demand Granger cause changes in innovative activity but not vice versa. This note shows that inappropriate modelling methods can lead to such conclusions which exclude the possibility of...

A modified policy analysis matrix is developed to study the costs and benefits of crop production in Thailand. Government intervention in production diversification is assessed with alternative indicators of comparative advantages. It suggests that intervention may be socially undesirable but...

When total income consists of a number of factors, the Gini coefficient measuring income inequality can be decomposed into factor components. Some traditional decomposition methods rely on calculating the covariances between incomes and their ranks. Such methods have obvious limitations in...