China’s annual economic growth has slowed since the global financial crisis, dropping from 14.2% in 2007 to 6.9% in 2017. The question as to whether China would fall into the middle-income trap (MIT) has attracted plenty of discussions. However, China is a diverse country with uneven economic development. Some provinces are far more advanced than others. Therefore, it might be inaccurate to look at China as one single entity to make a judgment on the MIT issue. Instead, looking into each province and comparing provincial-level differences would be more insightful.
This case is essentially about economic growth and development in general, and that of China in particular. It makes the topic of growth more interesting by discussing the triggering factors of the MIT through comparing the differences between a “trapped” and an “escaped” province, i.e., Shaanxi and Jiangsu. To alleviate the regional development gap, Shaanxi and Jiangsu became paired poverty alleviation partners in 1996 under the guidance of the Chinese central government. However, more than 20 years have passed, yet there is still a huge gap between the two provinces in many fields. Jiangsu’s GDP per capita has surpassed the range of MIT, while Shaanxi’s has not and is very likely to be trapped with the continuing slowdown of its economic growth. The key difference between the two provinces is not their resources, but their development policies.
the Middle Income Trap
International Journal of Finance Economics
This paper studies how monetary easing provides incentives for banks to take risk and issue mortgage-backed securities (MBS) and, because MBS have the "lemon" property, why MBS buyers are willing to purchase high-risk securities at high prices. Banks need equity to attract deposits. Monetary easing reduces this need, and banks leverage up and reduce their monitoring efforts. The internal need for liquidity and risk sharing motivates banks to issue MBS. Security buyers understand the moral hazard problem that banks face but are willing to purchase bank securities at high prices because monetary easing would also reduce their cost of funds.
Evidence-based HRM: a Global Forum for Empirical Scholarship
The purpose of this paper is to contribute to the human resources (HR) literature by using exploratory network analysis (ENA), a data-driven technique. This technique was employed to discover how the perceived effectiveness of HR practices interrelate with employee perceptions on organizational cultural factors to enhance organizational commitment.
The authors used data from 1,459 employees of a large South Korean conglomerate and studied how individual HR practices could be enhanced by specific organizational cultural factors. The data were analyzed using ENA, which is an inductive approach.
The authors found that organizational commitment is associated with the positive perceptions of employees on the effectiveness of HR practices, such as performance appraisal, training and development, and compensation. Results show that when both HR practices and organizational cultural factors are considered, they appear to influence organizational commitment independently.
Data were collected from a large conglomerate. The authors were limited by the use of the scales developed by a consulting firm. Therefore, readers should be cautious about the generalizability of the findings.
The application of a data-driven technique (ENA) highlights the potentially fertile methodological grounds for HR research. Literature on strategic HR management may benefit from inductive approaches, wherein data serve as primary foundation for the design and development of new theories.
Journal of Accounting and Economics
We study how career concerns influence banking analysts’ forecasts. Banking analysts’ first (last) earnings forecast of the year is relatively more optimistic (pessimistic) for a bank that could be their future employer. This pattern is not observed when the same analysts forecast earnings of banks unlikely to be their future employer. We use the Global Settlement as an exogenous shock on career concerns and show that this forecast pattern is more pronounced after the Settlement. Moreover, we find evidence that analysts benefit from this behavior as analysts that are more biased in their forecasts of potential future employers are more likely to move to a higher reputation bank.
International Journal of Production Economics
Supply chain disruptions can occur at any node if there is a vast array of triggers. A common trigger for manufacturing disruptions is supply interruptions. This paper considers a single-stage supply chain with single manufacturer sourcing from a single supplier, where supply disruptions lead to a production pause and the demand is deterministic. In view of different hitting times and durations of disruptions, this paper compares and selects proactive and reactive strategies for supply disruption management via a cost minimization model. Based on the comparison, two types of dynamic strategies are proposed to guide the mitigation approaches as the disruptions continue. One is a dynamic reactive strategy for a non-prevention system and is called passive-backup, and the other is a dynamic combination strategy that contains reactive and proactive strategies for the prevention system and is called recovery-backup. How the lead time of backup sources, disruption starting time, cost of lost sales, backup costs and backorder rate impact the dynamic strategies is also explored in this paper.
Journal of Purchasing and Supply Management
In complex and competitive business environment, there have been many examples of supply chain members fighting for power. Therefore, researchers have begun focusing on the impact of control power allocation on the supply chain. This paper examines the allocation of power in different service supply chain relationships, analyzing the impact of service level on optimal control power allocation and comparing the differences between the optimal power distribution in service supply chains and that of manufacturing supply chains. We adopt a mathematical model building method to discuss this issue, verifying the theoretical perspectives through empirical studies of China's largest state-owned logistics company, the China Railway Company, and the private ownership enterprise, Tianjin SND Logistics Company. We also develop a conceptual model of the influence of control power on the performance of service supply chains, based on the modeling and case analysis. The conceptual model shows several results: the control power allocation determines the dominant structure of the supply chain; the service provider's wholesale pricing strategy and the service integrator's sales price strategy present different outcomes under various dominant structures of the supply chain, which will greatly affect the performance of the corresponding supply chain; and the relationship between the supply chain dominant structure and the price can be adjusted by the service level.
Service supply chain