This paper studies the effects of foreign exchange intervention on banking system. Foreign is widely used in emerging market economies as a stabilization tool to address challenges from capital inflows. While existing suggest that sterilized asset purchases by central bank can help contain excessive growth domestic credit following inflow surges, we show they also have an unintended liquidity effect system, running counter aim bank. because (government) securities, issued finance purchases,...

<title>Abstract</title> Warming changes are accelerating the impact of pest distribution patterns, particularly expansion habitat for stem-boring pests, which a growing threat to forestry ecosystems. In this study, we applied species models and niche analyses assess suitable habitats <italic>Anoplophora chinensis</italic> glabripennis</italic> under current future climatic conditions, analyzed in their overlap. The results showed that ensemble model constructed was highly accurate predicting...

Abstract We examine the impact of China's economic stimulus plan in 2008 on total factor productivity (TFP) listed firms. hypothesize that firms operating regions characterized by greater resource misallocation would experience a more pronounced decline TFP following implementation plan. To gauge extent misallocation, we employ proportion state‐owned enterprises (SOEs) as measure. Our findings reveal substantial decrease for located provinces with higher SOE shares compared to those lower...

Abstract Whether and how are zombie firms associated with a crisis‐rescue plan? We examine this issue through the channel of state‐owned enterprises (SOEs). find that, after China's 2008 stimulus plan, firm in city high SOE share is more likely to become firm. This result may be driven by fact that government‐led investment, SOEs, tends focus on employment‐related projects than efficient ones, particularly during crisis period. Resource misallocation plan cause production inefficiency, which...

Abstract This paper investigates the effects of economic policy uncertainty on local government debt issuance in China and identifies a transmission channel through cost capital. Our findings demonstrate that raises external financing for governments, leading to decreased levels issuance. Specifically, 1% increase related variations leads reduction 0.0478%. In addition, our analysis reveals governments located regions experiencing lower fiscal pressure, catch‐up higher sensitivity are more...

Abstract Using data for the period 2000–2011, we construct province‐level real effective exchange rate (REER) indices China and test effect of REER depreciation on regional economic growth in a generalized method moments regression framework. Our results show that depreciation, general, promotes growth, through increasing net exports lowering FDI costs. After dividing full sample into coastal inland subsamples, find influences areas but not areas. This is due to fact have more surplus labor...

Purpose The authors provide firm-level evidence that external financing affects international trade in a way different from internal financing. Design/methodology/approach separate new entrants incumbent exporters and investigate the roles of export market participation quantity. Findings find is particular importance, as well financing, helping firm become exporter. By contrast, unlike not significantly important for an exporter to stay market. Regarding quantity, firm's positively...

This paper investigates whether the determinants of mergers and acquisitions (M&amp;A) inflows are different from those outflows in emerging Asia. We use an augmented gravity model with bilateral cross-border M&amp;A data 2000 to 2015 for 13 Asian countries. find that stock market size source country matters both outflows. In addition, motives firms seeking foreign markets, natural resources, lower labor costs drive Finally, bank credit liquidity play important roles only, not

We study a liquidity management channel through which sterilized foreign exchange intervention can affect bank lending and the real economy. In model, central holds reserves sterilizes its asset purchases by issuing bills that are instruments for commercial banks. Sterilized altering supply of instruments, is referred to as channel. use model optimal policy in response portfolio flow shocks choice sterilization instruments. The infinite horizon version calibrated Chinese economy explain...

First generation crisis models suggest that the size of international reserves affects only timing a while second imply higher can reduce probability crisis. in literature, this article suggests ‘rolling probit model’ to successfully demonstrate high be effective offsetting vulnerable fundamentals zone. The more zone require levels If are sufficiently bad, level needed may explosive, which makes unavoidable. Unlike arbitrary proposals reserve adequacy measures current also sheds light on...

Abstract We empirically investigate whether reserve currency preferences have been a source of stability for the international monetary system. Our findings suggest that reserve-hoarding countries, especially emerging/developing tend to adopt stabilizing diversification strategy in their portfolio allocation, buying (selling) assets denominated depreciated (appreciated) currency. The result is robust both International Monetary Fund and Bank Settlements measures quantity changes shares....