Table of Content

20 October 2012, Volume 32 Issue 10

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ADVANCING COMPREHENSIVE REFORM IN CHINA

CAI Fang

2012, 31(10):  5-11. 

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As an institutional change, economic reform followed the law of diminishing marginal return.Under such a framework, one could judge that the economic reform in China had not reversed, neither stagnated, but it faced particular difficulties of picking “highhanging fruit” at fundamentally changed stage of development By revealing the main characteristics of next step reforms, this paper suggested a reform approach, which could be characterized by top design under the guidance of the laws It pointed out three main tasks of future reforms, namely ending the segregation system of ruralurban relationship, creating environment for development of human capital, and reshaping government function.

STUDY ON CHINAS BUSINESS CYCLE——A Largedimensional Regimeswitching Factor Model Approach

LIU Zhen-Ya-1, DENG Lei-2

2012, 31(10):  12-24. 

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This paper focused on high dimensional economic variables that were subject to regime switching and put forward a new model: largedimensional regimeswitching factor model (LD-RS-FM). Based on a twostep analysis, principal component analysis and autoregressive analysis, the model proposed here was capable of capturing important macroeconomic features, such as comovements and structural changes, with a very small number of representative common factors. Therefore, these factors could be used for purpose of regime switching analysis. Additionally, there were also some structural meanings underlying these factors. Conclusions suggested that LD-RS-FM was a powerful tool for the study the business cycle features of Chinese macroeconomy.

SURPLUS LABOR AND LEWIS TURNING POINT

GUO Jin-Xing, SONG Rong-Rong

2012, 31(10):  25-31. 

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The paper analyzed the international experiences of surplus labor and Lewis turning point. The findings were as follows: firstly, surplus labor and nonfull employment were long term existence in the process of economic development, both in developing economies and developed economies; secondly, the decrease and disappearance of surplus labor in agricultural sector were not the direct proof of Lewis turning point, because the surplus labor would move to the informal sector in urban; thirdly, it required to apply multiple standards to verify the Lewis turning point, due to the complexity of economic development.

THEORETICAL AND EMPIRICAL EVIDENCES FOR
OWNERSHIP AND MARKET PERFORMANCE——Comparative Perspective and Deideological Rethink

SHI Ming-Ming-1, ZHANG Xiao-Jun-2

2012, 31(10):  32-40. 

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This paper reviewed the recent theoretical and empirical studies on relationship between ownership and market performance which had exceeded the simple conclusion in 1980s and 1990s discussion. The researches, including reconsiderations on the neoclassical economics and contract theory, new comparative economics, new regulation theory, mixed oligopoly models, provided profound insights into the relationship. The latest empirical researches indicated that the original literatures were deeply influenced by the specific political preference and institution restriction, many of which lacked of systematic and robustness. Latest researches paid more attention to the scientific attitude of deideology and hypothesis of model settings. This paper illustrated that theoretical and econometric analytical tools proved that each ownership structure had both advantages and disadvantages. To avoid the premise that one was superior to the other might be a right direction to update the studies.  

GOVERNMENT POWER, PROFITABLE INVESTMENT
EXPAND AND INFLATION

MIAO Wen-Long

2012, 31(10):  41-52. 

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From the perspective of government power, this paper established the objective function of central and local levels of government in the decentralized system, and drew the preliminary conclusions：long-term steady-state price level depended not only on the central and local levels of government debts, taxes and expenditure, but also on the effect of state-owned enterprises investment scale; central government investment, debt, profit and money growth had the relation to pushing each other; and local governments to expand investment with a strong competitive sources of financing monetary growth required to find ways to compete for bank loans, force the increase of monetary supply. Inflation was one major result of profit investment expansion of soft constrained government power. Therefore a necessary condition for controlling inflation was to design an institution that government could get some interests through controlling inflation, had incentive to reduce the scale of the government's profitable quasi-public investment, and to increase the pure public investment related to the national economy and the people's livelihood.

INTERNATIONAL CAPITAL FLOWS TO CHINA：
COMPARATIVE STUDY ON THE DIRECT INVESTMENTS
AND THE NONDIRECT INVESTMENTS

WANG Guo-Song, LIU Zhao

2012, 31(10):  53-62. 

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he paper empirically studied on the affecting factors on the three types of international capital flows of the direct investments, the indirect investments（including other investments）, and the error and omission and the profit from investment during 1982-2010 in China. VEC tests turned out that the three types of international capital flows were negative relations with the premium and discount annual rate of the RMB against USD real exchange rate, and positive relations with the spread of interest rate, inflation between China and USA, and Chinas real economic growth, and the expectation to the real exchange rate of RMB against USD in the long term. The relations between three types of international capital flows and the four affecting factors abovementioned were different in the short term. The variance decomposition turned out that real economic growth was the leading course of international capital flows of the direct investments, and the expectation to real exchange rate of RMB against USD was the leading course of international capital flows of the indirect investments（including other investments）, the error and omission and the profit from investment.

PUBLIC FINANCE: THE SEPARATION AND MIX OF TWO TRADITIONS

MA Jun

2012, 31(10):  63-73. 

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ince 1980s public finance research and education in China had been experiencing a switch from former Soviet Union academic system to modern mainstream public finance theory which was mainly based on the AngloSaxon orientation. This change fastened the internationalization of Chinas public finance research. Also the internationalization toward AngloSaxon orientation means the competitive public finance tradition was gave up which had negative effect on the development of public finance theory in China. By analyzing two theoretical sources of modern mainstream public finance this paper raised the question that where Chinas public finance research should be toward in the future.

FOREIGN EXCHANGE RESERVES, MONETARY
 STERILIZATION AND SOCIAL OUTPUT——Empirical Study Based on VAR

ZHOU Shuang-1, LIU Peng-2

2012, 31(10):  74-81. 

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This paper examined the inflation effect of foreign exchange reserve increase and the effectiveness of monetary sterilization in China. A VAR model was employed to detect the dynamic effects of the foreign exchange reserve increase and the monetary sterilization on inflation and the level of social outputs. The results showed that the monetary sterilization could affiliate the inflation effect raised by the foreign exchange reserve increase, and the effect lasted for about 8 months,while it had a positive effect on the gross output. Finally, some implications were drawn from the test results.

DEEP CAUSES PERSPECTIVE OF THE MASSES
CORPORATIONS SOCIAL RESPONSIBILITY DEFICIENCY——Viewing from the Responsibility Game Imbalance

YI Kai-Gang

2012, 31(10):  82-89. 

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The phenomenon of social responsibility deficiency was no longer confined to a single enterprise, and it had extended to whole industry or industrial chain. The problem of masses corporations'social responsibility deficiency was alarming to the society. Base on defining the concept of masses corporations social responsibility deficiency, this paper made a summary of six industries'typical responsibility deficiency behaviors from different dimensions, and deeply discussed the characteristics of masses corporations'social responsibility deficiency: concealment and long time, conformity and normal, destruction and irreversibility. The masses corporations'social responsibility deficiency originated from responsibility game imbalance, and it required to build a joint supervision and common governance mechanism among multiple subjects to promote the effect of responsibility governance.

THE INCOME GAP BETWEEN URBAN AND RURAL
RESIDENTS AND FARMERS INCOME STRUCTURE
——the Evidence from Three Cities in Southern Hunan National Demonstration Area

HU Yu-1, CHEN Xiao-Chun-2, XU Hong-Lian-1

2012, 31(10):  90-98. 

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Based on the literature review, this paper collected the data from three cities in southern Hunan national demonstration area, and analyzed the relationship between the income gap between urban and rural residents and the farmersi'ncome structure.Empirical results showed that salary income and family business income were the farmers income main sources, and that property income and metastatic income were the important source of the farmers income.This paper suggested developing the industry of the agricultural products and other services.

THE GOVERNMENT RESPONSIBILITY OF CHINA'S
RURAL ELDER SECURITY SYSTEM: FROM THE
VIEW OF THE INSTITUTIONAL CULTURE

ZHENG Jun

2012, 31(10):  99-107. 

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Based on the interdisciplinary approach, this paper pointed out that China's rural elder security system should include political, economic and social responsibility. After studying the relation between institutional culture and system, a new theoretical frame would be structured as follow: the government should provide the value orientation of system design which corresponded to the traditional culture, lead to a sustained development, and improve the institutional settings for system's innovation in future.