Bank of China

ABSTRACT Against the backdrop of digitalization reshaping the international trade landscape, the deep integration of digital technology with the real economy is transforming the global value chain and has become a crucial pathway for enhancing national competitiveness. This study investigates how digital‐real integration influences China's trade network centrality. Employing a trade network model, we first theoretically analyze how digital‐real integration affects firms' positions within the trade network. Then, based on customs data from 2011 to 2022, we measure China's trade network centrality and empirically test the impact of digital‐real integration. The results indicate that digital‐real integration significantly improves China's trade network centrality, with various robustness tests supporting the reliability of this conclusion. Heterogeneity analyses reveal that the effect of digital‐real integration is more pronounced in high contract intensity and technology‐intensive industries. Additionally, mechanism analysis shows that digital‐real integration increases production flexibility and supply–demand matching efficiency, thereby enhancing industrial competitiveness and elevating China's position in the global trade network. Extended analyses highlight the moderating roles of digital infrastructure and trade facilitation, showing that enhancement of digital infrastructure and trade facilitation amplifies these positive effects.

ABSTRACT This study examines whether China's Carbon Emissions Trading Policy (CETP) influences foreign direct investment (FDI) under staggered policy adoption. Using panel data for 260 cities from 2005 to 2021 and a two‐way fixed‐effects difference‐in‐differences (DID) approach supported by event‐study pre‐trend tests, the results show that CETP is associated with a statistically significant increase in FDI inflows. Treating carbon‐market features as continuous treatments indicates that higher carbon‐price levels and stronger market liquidity reinforce these effects. To clarify the underlying mechanisms, formal mediation using lagged R&D intensity and green patent applications demonstrates a significant innovation‐driven transmission channel. Heterogeneity analysis further shows that the policy impact is stronger in eastern and first‐/second‐tier cities, consistent with higher institutional capacity and more developed market environments. Comparative insights with the EU ETS and K‐ETS suggest that price credibility and market depth are important conditions for investment responses. Overall, the findings provide evidence that CETP can shape cross‐border investment behavior and support the development of innovation‐oriented, low‐carbon growth pathways.

The study aimed to investigate the relationship between ICT usage, financial literacy, and digital financial inclusion among the youth in Kampala, Uganda. It primarily aimed to address the existing gap in understanding how these two variables, ICT usage and financial literacy, serve as predictors of digital financial inclusion, particularly among young populations who are often financially excluded. The investigation employed a cross-sectional research design, utilizing primary data collected through structured questionnaires from 294 youths in Kampala. Descriptives, correlation, and regression analyses were used to assess the relationships between ICT usage, financial literacy, and digital financial inclusion. The study’s key findings revealed that both ICT usage and financial literacy have significant positive effects on digital financial inclusion. Specifically, ICT usage and financial literacy were found to explain 42% of the variation indigital financial inclusion. The remaining 58% could be attributed to other factors not included in this study. The findings pose significant implications for policymakers and stakeholders involved in financial inclusion initiatives. The study highlights the critical role that ICT plays in extending financial services to previously underserved populations, particularly in regions with limited access to traditional banking infrastructure. Moreover, the findings underscore the need to integrate financial literacy programs into digital financialinclusion strategies. This approach would not only enhance youths’ capacity to use digital financial tools but also improve their financial well-being by fostering better financial decision-making, saving, and investment behaviors. This study contributes to the body of nowledge by providing further support for the relationship between ICT Usage, financial literacy, and digital financial inclusion among youth. It further unveils a new model that suggests and demonstrates that digital financial inclusion is primarily predicted by ICT Usage and financial literacy, which has not been explored in the digital financial inclusion literature, especially among youth in the context of developing countries. This adds to the Technology Acceptance Model and Systems Theory of Financial Inclusion, which emphasize the importance of technology and financial education in enhancing access to financial services.

The emergence of digital platforms in emerging market economies has fundamentally transformed supply chain finance, creating novel opportunities for working capital optimization while introducing distinct credit risk challenges. This paper develops a comprehensive dynamic credit pricing model for supply chain financing arrangements where the buyer assumes financial responsibility and interest payments, termed buyer-paid-interest financing. We integrate game-theoretic equilibrium analysis with credit risk assessment frameworks to characterize optimal pricing mechanisms across heterogeneous supplier credit profiles. Through a two-period modeling framework, we demonstrate that optimal interest rates exhibit non-linear relationships with both probability of default and loss given default parameters. Our analysis reveals that platform-based economies realize superior welfare outcomes compared to traditional bank-intermediated arrangements when credit assessment technologies efficiently capture supplier transaction data. We further establish conditions under which buyer-paid-interest structures dominate alternative financing mechanisms from both platform and supplier perspectives. Numerical analysis demonstrates that optimal pricing policies balance operational coordination benefits against credit risk compensation requirements. The model offers actionable insights for platform operators, financial institutions, and policymakers designing sustainable supply chain financing ecosystems in emerging markets.