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FEC Articles Express:FEC 2019 September Issue


Frontiers of Economics in China

Volume 14, Issue 3 (September 2019)


Dani Rodrik

Where Are We in the Economics of Industrial Policies?


Yunpeng Sun, Jingjia Zhang

Effectiveness of Monetary Policy in China: Evidence from Factor-Augmented Vector Autoregression Model


Leo H. Chan, Maritza Sotomayor, Donald Lien

Impacts of the Contributions of FDI and Remittances on the Economic Growth in Asia and Latin America: A Comparative Study


Yi Che, Zuojun Fan, Yan Zhang

The Effect of Land Reallocation on Off-farm Employments in Rural China


Kanang Amos Akims, Dianah Mukwate Ngui

Productivity and Export Performance: Micro-Level Evidence from the Manufacturing Sector in Nigeria


Guojin Chen, Runze Zhang, Xiangqin Zhao

Economic Policy Uncertainty and Stock Risk Features



Where Are We in the Economics of Industrial Policies?

Dani Rodrik

John F. Kennedy School of Government, Harvard University


Abstract: Research on industrial policy has taken off, leading to a better understanding of when such policies effectively harness economic development. This article reviews the recent literature on the economics of industrial policies. Until recently, empirical studies on industrial policies came largely in one of two types: detailed country/region studies and cross-industry or cross-country econometric studies. I point out that the country/region studies had the usual problem that it was difficult to trace the effects of success to specific industrial policies, while the econometric studies suffered from the problem of misspecification. I show that a new generation of work has been moving us beyond the largely ideological debates of the past to a more contextual, pragmatic understanding.




Evidence from Factor-Augmented Vector Autoregression Model


Yunpeng Sun

School of Economics, Tianjin University of Commerce

Jingjia Zhang

APEC Study Center, Nankai University


Abstract: Since 2002, the People’s Bank of China has frequently used both quantity-based direct monetary instruments and price-based indirect monetary instruments to promote economic growth and stabilize price level. Specifically, this study estimates 13 three-variable factor-augmented vector autoregression (FAVAR) models to explore how two types of monetary instruments affect China’s economy and price level. Overall, we find that monetary policy has positive effects on China’s economy and price level. Second, this study clearly states that the effectiveness of China’s monetary policy on the economy has depended on China’s quantity-based direct monetary instruments since 2002. Third, the effectiveness of quantity-based direct monetary instruments on China’s economy and price level is dependent on the significant and positive effects of quantity-based direct monetary instruments after the 2008 financial crisis. Fourth, the significant and positive effects of price-based indirect monetary instruments on China’s economy and price level before 2008 cannot fundamentally change their current insignificant effects on China’s economy and price level.


Impacts of the Contributions of FDI and Remittances on the Economic Growth in Asia and Latin America: A Comparative Study

Leo H. Chan, Maritza Sotomayor

Woodbury School of Business, Utah Valley University

Donald Lien

College of Business, University of Texas San Antonia


Abstract: Foreign direct investment (FDI) and foreign remittance have been the main sources of external capital inflows for many developing countries. FDI has been credited as the main driver of rapid economic growth in many Asian countries/regions in recent decades. However, this effect of FDI on long-run economic growth has not been observed in Latin American countries. Now, the question is whether FDI and an increase in foreign remittances in the past two decades have achieved expected positive results in terms of economic growth for emerging economies. This study uses a generalized method of moments (GMM) dynamic panel model to quantify the impacts of FDI and foreign remittances as sources of foreign capital for Asia and Latin America. Our findings suggest that FDI and remittances perform differently in different regions in terms of their impacts on GDP growth. Countries that have specific policies (i.e., industrial policy, domestic content requirement, and export production targets) for FDI are likely to derive more significant benefits from FDI and remittances. Developing countries that are emerging or lagging should learn from the countries with positive outcomes and implement similar policies.




Journal Profile

Frontiers of Economics in China (FEC)is a quarterly peer-reviewed journal edited by Institute for Advanced Research, Shanghai University of Finance and Economics, and published by Higher Education Press.  Established in 2006 and with Guoqiang Tian as the Editor, the journal has a strong Editorial Advisory Board (with several Nobel Prize winners as board members), as well as a dedicated Co-Editors’ team and an Editorial Board comprised of leading overseas and domestic Chinese economists.

Issued quarterly and distributed worldwide, the FEC is available both online and in hard-copy.  With more than 600 institutional subscribers worldwide and indexed in more than 10 databases including EBSCO-BSU, EconLit, ESCI, Gale, ProQuest, RePEc and SCOPUS, the journal is ranked as one of “The Highest International Impact Academic Journals of China” in 2019.

The FEC welcomes submissions of theoretical and empirical papers from all fields of economics, particularly those with an emphasis on the Chinese economy and other emerging, developing or transition economies.  While the journal is primarily interested in original research papers, it also welcomes submissions of opinion articles, literature surveys, and book reviews.

Based on data from the WOS website, scholars from about 400 institutions (2/3 of which are outside China), including NBER, WHO, Harvard University, MIT, UC-Berkeley, Oxford University, National University of Singapore, Seoul National University, University of Bonn, University of Tokyo, Peking University and Tsinghua University, have cited articles published in FEC.  Among the journals that have cited FEC articles are American Economic Review, Science, International Economic Review, China Economic Review, Journal of Comparative Economics, Journal of Economic History, Journal of Economics & Management Strategy, and Journal of Population Economics.


Editor: Guoqiang Tian, Shanghai University of Finance and Economics

Executive Editor: Zhiqi Chen, Carleton University


Chunrong Ai, University of Florida

Kevin X.D. Huang, Vanderbilt University

Neng Wang, Columbia University

Quan Wen, University of Washington


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