This study examined the impact of the EU's and the US's electric vehicle tariff policies on the resilience of the global automotive supply chain. Using a multiregional computable general equilibrium model, it simulated nine scenarios under three policy settings: conflict escalation, conflict de-escalation, and third-party mediation. The results indicated: (i) tariff sanctions imposed by the EU and the US failed to suppress China's automotive output, which instead increased by 0.21 percent to 1.83 percent under conflict escalation scenarios; (ii) conflict escalation scenarios inflicted significant welfare losses globally and impaired supply chain resilience. The resilience losses were particularly pronounced in the US (-0.155) and the EU (-0.147); (iii) cooperative strategies, such as technical standard alignment and foreign direct investment-driven integration, restored welfare and enhanced resilience across economies. These results affirm the viability of non-zero-sum strategies centered on institutional cooperation and technology exchange to mitigate trade tensions and strengthen automotive supply chain resilience.
This study examined the relationship between parent companies' financing constraints and outward foreign direct investment (OFDI) performance of Chinese multinational enterprises, measured by the return on assets of their overseas subsidiaries. Firm-level data showed that parent companies' financing constraints were negatively associated with the operating performance of overseas subsidiaries, and this result remained robust across a series of robustness tests. The effect was more pronounced for subsidiaries whose parent companies had no export experience. Parent companies' financing constraints were associated with lower productivity and higher leverage among overseas subsidiaries. The results suggest that greater financial marketization, stronger industrial policy support, greater human capital investment, and greenfield entry may mitigate the adverse association between parent companies' financing constraints and OFDI performance. This study contributes to the literature by highlighting the role of parent companies' financing constraints in shaping overseas subsidiary performance and provides policy implications for improving firms' financing conditions and supporting OFDI development.
This study investigated how geographical proximity to supply chain networks (SCN_GP) shaped corporate environmental, social, and governance (ESG) performance using data from Chinese listed firms from 2009 to 2023. By developing an innovative SCN_GP metric that combined geographic proximity with supply chain relationship significance, the study identified asymmetric effects. Proximity to key customers enhanced ESG performance through financial flexibility, cost optimization, innovation, and corporate sustainability awareness cultivation, whereas supplier proximity showed negligible impact. These effects were more pronounced in industries characterized by low environmental uncertainty, high market competition, and low pollution intensity, and for firms with low customer concentration, limited commercial credit relationships, or nonstate ownership. Further analysis showed that SCN_GP also generated economic benefits by reducing financialization and improving productivity. These findings underscore the strategic role of SCN_GP in enhancing corporate ESG performance, offering insights for sustainable supply chain design during the global green transition.
This paper studies the macroeconomic and welfare effects of flow-specific capital controls using an asymmetric two-country dynamic stochastic general equilibrium model calibrated to China. The framework distinguishes between inflow controls targeting entrepreneurs' external borrowing and outflow controls regulating financial intermediaries' foreign assets. Easing global financial conditions increases both capital inflows and outflows through collateral and balance-sheet channels. The results show that flow-specific adjustment-cost-based controls deliver more effective stabilization of targeted capital flows while generating much smaller macroeconomic spillovers than tax-based controls. While flow-specific outflow controls are welfare-enhancing, the welfare effect of flow-specific inflow controls is state-dependent and varies with different shocks.
The question of whether robots, as a driving force of the new technological revolution, can facilitate green production has attracted much attention. This study developed a heterogeneous firm model including robots, energy, and pollution to investigate the impact of robots on firms' green production. The results indicate that: (i) robots reduced firms' energy and pollution intensity and promoted green production; (ii) financial frictions reduced the positive effects of robots on green production; (iii) the impact was facilitated by scale, technological, and structural effects; (iv) robots had a more significant positive impact on green production in state-owned and labor-intensive firms, and in regions with stronger green technological advantages and stricter environmental regulations; and (v) superstar firms amplified this positive effect - a marginal effect due to the heightened attention they received from investors, the media, and government.
