Table of Content

16 March 2016, Volume 36 Issue 3

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THE EFFECT OF ECONOMIC TARGET OF GOVERNMENT——Evidence from China

SUN Wen-kai,LIU Yuan-chun

2016, 36(3):  5-13. 

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This paper investigates the effect of economic target set by the government on economic growth and fluctuation in China. We collected the economic target from two conferences of central government and local government in each year. We found that the growth target was set based on previous growth, and impacting growth of that year. This means that the economic target may enlarge economic fluctuation. The relatively stable target in recent years, however, decreased economic fluctuation. We also found that the channel of the effect is mainly from government policy. That is, government implementedcorresponding policies to ensure the target realized. Some policy suggestions are also discussed.

THE DYNAMIC IMPACT OF RETIREMENT, CONSUMPTION STRUCTURE CHANGES AND CONSUMPTION EXPENDITURE OPTIMIZATION——Comparison of Influence Factors on Consumption of Retirees between Enterprises and Institutions

WANG Zeng-wen,HE Dong-mei

2016, 36(3):  14-31. 

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Chinas economy has entered a new normal state. However, the aging trend is increasingly serious, accompanied by the export and investment leads to the lagging economic growth model, which makes Chinas transition stage facing two core challenges: retirement shocks and domestic consumption. How to deal with the retirement crisis and promote the consumption of residents is a problem to be solved. This paper focuses on Chinas “dual track system” of the hot issues and selects 30 regions of Chinas macroeconomic panel data from 1998 to 2014, focusing on analysis of the impact of corporate and public retirement on the impact of urban residents. On the level of the total consumption of the residents, the impact of corporate retirement has a significant inhibition on it, and the impact on the retirement of the institution has a significant positive effect on the impact of the government and the peoples consumption structure, and the situation is more complex. The main cause of these effects is the inequality of the two track and the subjective differences between the two groups. In view of this, to be proposed consumption effect of the release of the merger reform, improving the oldage social security system, stabilizing consumer expectations and adjusting the market structure can promote the development of aging industry and silver market policy

recommendations.

HIGH HOUSING PRICE AND ENTREPRENEURSHIP IN URBAN CHINA

PU Ming-zhe,ZHENG Feng-tian

2016, 36(3):  31-44. 

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Previous research had debates on the relationship between high housing price and entrepreneurship. Based on CHIP data set in 2002 and 2008, this paper studies the effects of high housing price on entrepreneurial behaviors in urban China. Empirical results show that high housing prices increase the probability to run businesses for urban residents. High housing price reduces the probability of the groups who have houses and no mortgages. Whats more, high housing prices stimulate more selfemployed businesses rather than bosstype entrepreneurship. Thus, the incentive effects of high house price cant be overestimated. More other institutional factors should be taken into consideration.

FINANCING STRUCTURE AND INNOVATION——Evidence from Ashare of Listing Corporation of Strategic Emerging Industries in China

SUN Zao, XIAO Li-ping

2016, 36(3):  45-58. 

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In this paper, we investigated the relationship between financing structure and innovation, using the strategic emerging industries of Ashare listed firms from 2010 to 2012. The main conclusions are found as follows: (1) Internal financing has a significant positive effect on innovation. (2) There is a positive correlation between equity financing and innovation. (3) Debt financing for emerging industries of strategic enterprises listed inhibit innovation. After considering firm heterogeneity, the above conclusions on the low level of financing constraints, the young and smallscale enterprises is equallyapplicable, but the high degree of financing constraints, mature and largescale innovation is mainly dependent on internal financing. Further analysis shows that, there are some differences affect the financing structure of the different nature of the business property of enterprise innovation in the strategic emerging industries. In the central and local governmentowned companies, the relationship between financialstructure and innovation is not significant; the private equity companies are mainly dependent on internal financing and equity financing, debt financing have a negative effect on innovation. This article has profound policy implications that it should be vigorously developing the equity financing market, improve the proportion of direct financing, and reduce the level of leverage.

R&D, MARKET POWER AND THE EFFECTS ON SOCIAL WELFARE——An Empirical Analysis Based on Chinese Industries

BAI Xue-jie,SUN Hong-yin,WANG Hai-feng

2016, 36(3):  59-71. 

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In what way can R&D activity improve the market power? Whether do the industry differences exist in the way and mechanism that R&D activity improves social welfare? Based on the panel data from Chinese manufacturing data from 2004 to 2007, this paper introduces enterprise R&D activity into market power measurement model and calculates the market power of Chinese manufacturing enterprises directly. From the perspectives of industry, ownership and enterprise behavior characteristic, the effect of R&D activity on the enterprise market power and the effect of reducing cost and increasing product price on social welfare in different industries are both investigated. 

HOW URBANIZATION AFFECTS BALANCED GROWTH IN URBANRURAL AREA IN CHINA

CHEN Yi-guo1,XU Jun2

2016, 36(3):  72-85. 

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The relationship between urban and rural development is key to social stability in process of urbanization. In this paper, we set up a model which discusses the development of urban and rural in two states including fragmentation and flow. We find that knowledge, labor and capital encourages the balanced growth between urban and rural areas while biased investment and price intervention raise the imbalance and offset the promoting effect of urbanization. Using provincial panel data of China, we verify the above conclusion. We suggest that promoting balanced investment of government and reducing price intervention would encourage balanced development of urban and rural in the process of urbanization.

EFFECTS ON CHINAS FOREIGN TRADE OF ESTABLISHMENT OF TPP

WANG Xiao-song,HE Xin-yue

2016, 36(3):  86-100. 

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This paper studies the effect of establishment of TPP on Chinas foreign trade, based on a series of statistical indicators and CGE simulation. By observing trade development between China and TPP members, we find a decreasing interdependent trade relationship between China and these partners. Based on results of CGE simulation, we find a minor effect of TPP without China on Chinese trade volume, output and national welfare. But textile and apparel industry will face a drastic output decreasing by TPP, while export of transportation equipment, iron and metal products will decrease significantly. In order to promote trade development and maintain the power in Eastern Asia, China ought to join TPP in the future.

REGIONAL COMPETITION AND LOCAL GOVERNMENT SUBSIDY IN THE DEVELOPMENT OF STRATEGIC EMERGING INDUSTRIES

YU Jin-ping,WU Xiao-kang

2016, 36(3):  101-112. 

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This paper reveals the local government behaviors of industrial subsidies in regional competition and their economic effects through a theoretical model. In addition, the relation between the rate of regional subsidies on emerging industries and regional production cost is also examined empirically. The results indicate that the subsidy rate in the regions with lower production cost should be larger than others if there is no difference in scale preference among regions. However, if the scale preference of local government in regions without cost advantages is much stronger than others, the subsidy rate in regions without cost advantage will be larger than other regions. The empirical studies show that local governments in China prefer to subside more to those industries without cost advantages.