Table of Content

16 January 2009, Volume 29 Issue 1

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TEN QUESTIONS ON THE FINANCIAL CRISIS

WU Xiao-qiu

2009, (1):  5-13. 

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A financial crisis which has deep impact on the system of economy and finance is spreading around the world recently.Learning experiences and lessons from this crisis is the main task of the government and scholars in China.It is quite important to analyze further the following theoritical issues related to financial crisis:the root causes of this financial crisis,the relationship between real economy and fictitious economy,the reform of the international monetary system,the rebuilding of the international financial order,financial innovation and regulation,the balance between government intervention and market principle,the reason why investment banks fail,high financial leverage,the future of asset-securitization,and the alternative monetary policy targets.

CHINA'S MACROECONOMIC SITUATION AND POLICIES:2008-2009

Institute of Economic Research, Renmin University of China

2009, (1):  14-20. 

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In 2008,China's economy has slid into the contracting phase of current business cycle,with its core CPI inflation rate lower than 2% and its GDP growth rate slightly lower than 10%.In 2009,guided by the demand management principle of long run neutrality,China's macroeconomic management should build a policy framework that is centered on enhancing domestic investment demand and at the same time adopt an expansionary fiscal policy and monetary policy,such that China's fast economic growth can be sustained.

A STUDY ON THE RELATIONSHIP BETWEEN INFLATION AND ECONOMIC GROWTH WITH A VAR MODEL

WANG Shuang-zheng

2009, (1):  21-27. 

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Inflation is an important indicator of measuring macroeconomic stability and health.The relationship between inflation and economic growth is one of the major economic issues that draw academic attention.Results from this econometric analysis indicate that there was two-way Granger Causality between China's inflation and economic growth;China's inflation was largely driven by its own fluctuations;the evident increase of upstream products' prices is to bring pressure on China's future inflation;and the rapid growth of its money supply is to affect inflation to a certain degree.

AN ANALYSIS ON THE ENDOGENOUS PATHS OF THE SCALE AND QUALITY OF CHINA'S EDUCATION AFFECTING ECONOMIC GROWTH

LUO Lai-jun, ZHU Yan, ZHAO Peng-fei

2009, (1):  28-34. 

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China's economic growth rate has been increased by its expansion in education scale,and decreased by the decline in education quality.Overall,education has contributed to China's economic growth.Judging by the endogenous growth paths of education affecting economic growth,China's education scale has yet to reach optimum,and future expansion is justifiable;at the same time,a balanced education structure needs to be achieved by investing in both the primary education and vocational education;improvement in education quality helps economic growth,and China's education policy should emphasize on improving education quality.

AN INTERPRETATION OF THE FINANCIAL CRISIS FROM THE PERSPECTIVE OF CRISIS TRANSFER

GUO Jin-guang

2009, (1):  44-50. 

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A traditional crisis usually demonstrates as a crisis in production capacity,but a modern crisis generally demonstrates as a credit crisis.There are fundamental differences in the generative mechanisms and transmission mechanisms of the two kinds of crises,which have made the classical "center-periphery" structural hypothesis invalid in explaining the current financial crisis in the US.However,the classical "center-periphery" crisis-transferring mechanism does not change in both kinds of crises.In the process of destructing and ever-escalating of the world financial system,China should locate itself appropriately such that it can strengthen regulation and prevent risks;specifically,China needs to cope with current situation with active and effective strategies in aspects such as financial institutions,financial tools,and industrial development.

A STUDY ON THE LONG-TERM PERFORMANCE OF SEO IN CHINA'S LISTED COMPANIES

HUANG Hua-ji, CHEN Li-gui

2009, (1):  51-56. 

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Issuing additional shares is one important channel for listed companies to raise fund,but the long-run performance of this practice has been controversial in both the academics and the business sector.From the empirical analysis on both the financial performance and stock performance of list companies,we found that after issuing additional shares,in the short run the companies have experienced worsening performance and falling returns,but in the long run both the financial performance and share-holding performance of the companies have exhibited positive changes. This indicates that issuing additional shares as a means of financing contributes to long run growth of listed companies, providing that regulation and monitoring are enhanced.

AN EMPIRICAL STUDY ON THE INTERACTION BETWEEN REAL ESTATE PRICES AND MACRO ECONOMY

CUI Guang-can

2009, (1):  57-62. 

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With a panel data model analysis of a dataset covering China's 31 provinces from 1995 to 2006,we found that the real estate prices were significantly affected by China's interest rates and inflation rate,and fundamental macroeconomic variables such as supply of real estates and income determine the prices of real estates in the intermediate and long run.The prices of real estates evidently affected macroeconomic stability,rising real estate prices tended to raise total investment and total consumption,and investment in the real estate sector had significantly effects on total investment.Therefore,China should stabilize the real estate prices in order to stabilize its economy and promote economic growth.

INTERNATIONAL ACCOUNTING HARMONIZATION IN CHINA:A REVIEW

XU Jing-chang, WANG Zhi-chao

2009, (1):  63-68. 

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Prior literature related to the international harmonization of China accounting can be classified into two groups.The first group,focusing on the process of accounting information harmonization,includes:(1) the difference of different GAAP ideally or literally,(2) the policy-makers' principles of accounting harmonization,(3) the compliance of firms' accounting practices with GAAP,and(4) the comparability of accounting choices under different sets of GAAP.The second,focusing on the result of the harmonized accounting information,is composed of the movement of accounting information quality and the economic consequences of accounting information both stimulated by the international accounting harmonization.In this paper,we comprehensively review these studies abiding to this taxonomy,and put forward expectations of future research.

THE EFFECTS OF FOREIGN DEMAND SHOCKS ON CHINA'S EXPORTS

ZHANG Yan-hong

2009, (1):  69-74. 

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China's unique economic growth model renders it vulnerable to adverse changes in external economic environment,with foreign demand shock being an important channel.Empirical results from this study demonstrate that on one hand China's exports were driven by foreign demand,and on the other hand the competitiveness of China's exports depended on its cost advantages.Given the recent rises in its export costs and the economic downturn occurring in its major export markets,in order to stabilize its export growth,in the short run China needs to readjust its export tariff rebate rates and stabilize Renminbi(RMB)'s appreciation,and in the long run promote technological advances.

ON THE SOCIAL BASIS AND APPLYING PATHS OF THE "SHUTTING DOWN TRADE WHILE MAINTAINING OPENING UP" STRATEGY——The Game for the Price Index of the Yiwu Small-ware Market in China

CAO Rong-qing

2009, (1):  75-80. 

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In the last half year,the price index of the Yiwu small-ware market has gradually increased,while the business climate index has fallen.This phenomenon indicates China's exporting manufacturers,the Yiwu small-ware market included,enjoy little bargaining power over their exports.In order to increase the bargaining power of China's manufacturers,China should adopt some feasible measures,including turning export manufacturers towards domestic trade,establishing name brands of China's products,and expanding sales network,such that the competitiveness of products made in China can be restored and increased.