Table of Content

16 February 2016, Volume 36 Issue 2

Previous Issue    Next Issue

STUDY ON THE CIVIL SERVANTS WAGE RELATION BETWEEN DIFFERENT REGIONS

HE Xian

2016, 36(2):  5-13. 

Asbtract ( )   PDF (1328KB) ( )  

Related Articles | Metrics

 civil servants wages in our country differ greatly in different regions, which causes dissatisfaction of the civil servants in some regions. To establish reasonable wage relation between regions and narrow regional disparity on the basis of objective data and scientific approaches is one of the important parts of civil servants wages reform. This thesis discusses the relevant theories of regional disparities, studies the characteristics of the wage disparity, investigates the historic development of civil servants wage relation between different regions and proposes several main issues of establishing reasonable wage relation between different regions.

PATH DEPENDENCE, MARKET ENTRY AND TRANSFORMATION OF RESOURCESBASED CITY

ZHANG Sheng-ling1,LI Yue,JIU Er-ke,JI Qing-wei

2016, 36(2):  14-27. 

Asbtract ( )   PDF (2145KB) ( )  

Related Articles | Metrics

This paper using empirical data attempted to prove the existence of path dependence in resourcebased cities, and then analyzed the mechanism of path dependence and its influence on regional economic transformation. Analysis showed that the pathdependent effects erode endogenous motivation of industrial structure through technical and institutional “double lock” during the rapid economic growth period. Labor quality and lowlevel of human capital, the lag development of alternative industry, all those factors lead to serious structural unemployment in resourceexhausted period. The optional way of transformation is to prompt market entry in consideration of regional driving factors, to break the path dependence, and to drive to change comparative advantage from resource endowment to other endowment. Comparing with the inefficient research investment, human capital play more important role in city transformation. Serious external problems and pathdependent effect make government management more important to industry development in resourceexhausted cities.

CHARACTERISTICS OF DIRECTORS  LOCATION, RANK OF POLITICAL CONNECTIONS AND FIRM VALUE——Empirical Evidences of Directors Forced Resignation Based on “No18 Document”

TANG Xue-song,LIN Yan

2016, 36(2):  28-45. 

Asbtract ( )   PDF (2129KB) ( )  

Related Articles | Metrics

On Oct 30, 2013, the Central Committee of the Communist Party in China issued No18 Document to ban government officials taking any positions at Chinese firms. Based on this background, we employ all resigned directors of Chinese stock markets from Oct 30,2013 to Oct 30, 2014 as the sample to explore the correlation between directors rank of political connections and firm value, and how does this correlation been affected by characteristics of directors location. We find that the higher the rank of politically connected directors, the more significant the firm value drops; moreover, the ranks of political connections of nonlocal directors, Peking directors and both exert more significant influence on the decreasing of firm value after the resignation announcement; additionally, around the issue of No18 Document, the value of politically connected firms drop more than that of nonpolitically connected firms; firms with higher political connections lose more value than that of firms with lower political ties. Our study suggests that seeking directors with higher political rank, especially nonlocal directors or directors from power center, is a vital channel that the firm constructs political connections.

RENT TO PRICE RATIO AND THE HOUSING BUBBLE IN URBAN CHINA

KUANG Wei-da

2016, 36(2):  46-58. 

Asbtract ( )   PDF (1623KB) ( )  

Related Articles | Metrics

From the perspectives of consumption demand and investment demand, this paper develops a theoretical model to measure housing bubble by equilibrium rent to price ratio with bubble and without bubble. Using the housing market databases of Chinas 35 large and mediumsize cities over 1996—2013, this paper finds 16 cities (e.g. Beijing, Shanghai) exist distinct housing bubble. The expectation of housing price more easily gives rise to housing bubble in Chinas eastern and firsttier cities than the middle and western and second and thirdtier cities. Interest rate policy has a more valid effect in curbing housing bubble for the western and middle or second and thirdtier cities than the eastern or firsttier cities. The overbuilding causes housing bubble. Mortgage lending and development cost fuel the housing bubble formation. The land revenue maximization facilitates housing bubble, while the stock market yields prevent housing bubble formation.

TAXSHARING REFORM AND THE INFRASTRUCTURE INVESTMENT PREFERENCE OF CHINA S LOCAL GOVERNMENT——An Empirical Analysis based on Fiscal Incentive Hypothesis

YANG Tian-yu,RONG Yu-fei

2016, 36(2):  59-70. 

Asbtract ( )   PDF (1721KB) ( )  

Related Articles | Metrics

It is believed that the political promotion incentives faced by local government is a crucial reason to explain China s infrastructure investment according to existing literature. However, the statistic data shows evidence opposing to this point. Before 1995, infrastructure capital stock has coincident growth rate with GDP. After 1995, the growth of infrastructure capital stock is significantly faster than GDP growth. Since the promotion incentives have not changed since 1978, existing literature cannot explain why local government s infrastructure investment behavior is different before and after 1995. Based on provincial panel data, the authors present a fiscal hypothesis to explain local government s behavior, and empirically identify the determinants on infrastructure spending. The paper finds that, local government s preference infrastructure investment preference was mainly determined by the changes in fiscal incentives in 1994. This implies that further perfects of sharetaxing system are vital to improve local government s expenditure structure

THE INTERNATIONAL COMPARISON OF THE OPTIMAL MONETARY INTERMEDIATE TARGET——Based on a DAGSVAR Model

HUANG Xian,XIA Shi-long

2016, 36(2):  71-82. 

Asbtract ( )   PDF (1563KB) ( )  

Related Articles | Metrics

The academia have an ongoing debate about the choice of the optimal monetary intermediate target among interest rates, simplesum monetary aggregates and Divisia monetary aggregates. This paper compares empirically the relative importance of the overnight interbank interest rate R, simplesum monetary aggregate M2, Divisia monetary aggregate D2 to price P, output Y in the US, the euro zone and the UK respectively based on a DAGSVAR model. The results show that M2 has the largest impact on Y and R has the largest impact on P in the US. In the euro zone, D2 has the largest impact on Y and M2 has the largest impact on P. In the UK, M2 has the largest impact on both Y and P. In summary, if the monetary ultimate target is economic growth, the optimal intermediate targets of the US and the UK are simplesum monetary aggregates, the euro zones optimal intermediate target is the Divisia monetary aggregate. If the monetary ultimate target is price stability, the optimal intermediate target of the US is the interest rate, the optimal intermediate target of the euro zone and the UK are simplesum monetary aggregates. Thus, for different economies or monetary ultimate targets, the choice of the optimal intermediate target may be different. The conclusion of this paper is to some extent to the contradictory supplement of the academic consensus interest rates generally perform better than the monetary aggregates and Divisia monetary aggregates are generally perform better than simplesum monetary aggregates.

THE IMPACT OF THE DEVELOPMENT OF NONINTEREST BUSINESS ON THE BANK-S INCOME AND RISK——Based on the Empirical Study of 49 Commercial Banks in China

ZHAO Sheng-min,SHEN Chuang

2016, 36(2):  83-97. 

Asbtract ( )   PDF (1853KB) ( )  

Related Articles | Metrics

Using 49 commercial banks  data of our country during the periods of 2005—2014, this paper analyzes the impact of noninterest business on the performance and risk of different types of commercial banks. Empirical results show that in general the development of noninterest business has a significant positive impact on bank return and riskadjusted return, mainly from fee and commission business, but it has no significant impact on risk. For stateowned banks, the development of noninterest business increases both profitability and risk, for which the main source of increase in return is fee and commission and of risk is other noninterest income. For jointstock banks and city commercial banks, the impact is not obvious. For rural commercial banks, the development of noninterest business reduces bank risk, mainly from fee and commission business, but it has no significant impact on return and riskadjusted return.

HOW DOES BUYERSUPPLIER RELATIONSHIPS SHAPE THE TRADE CREDIT——Evidence from China

MA Li-jun,ZHANG Min,YI Zhi-hong

2016, 36(2):  98-112. 

Asbtract ( )   PDF (1911KB) ( )  

Related Articles | Metrics

Trade credit is a significant source of financing for enterprises, as well as a hot spot of research in academia. However, the existing research universally overlooked the influence on trade credit comes from supplier, which is the provider of trade credit. In this paper, we use listed companies in China as samples, empirically testing the relationship between suppliers concentration and the scale and period of trade credit obtained by downstream enterprises. The result shows that the higher the suppliers concentration, the smaller the trade credit scale, and the shorter the credit period. Furthermore, the negative relationship between these two factors will be significantly weakened when companies can get bank loans more easily or the companies locate in areas with highly developed product market. This paper not only enriched literature in the field of corporate strategy and trade credit from a new perspective, but provided empirical evidence for the necessity of China s construction of credit market and product market.