Table of Content

16 April 2016, Volume 36 Issue 4

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RECONSTRUCTING MACROECONOMIC POLICY FRAMEWORKS FOR THE NEW NORMAL CHINESE ECONOMY

Macroeconomic Analysis and Forecast Research Group

2016, 36(4):  5-24. 

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Faced with the policy dilemma between the declining effect of soft stimulus and the bad side effect of strong stimulus, Chinese policymakers have to think how to reconstruct macroeconomic policy frameworksThe strategic objectives of reconstruction include: (1) in a short time, dealing with the emerging risk of macroeconomy and finance; (2) in the medium term, dealing with bad sideeffects of economic restructuring and change of the pattern of economic growth; (3) in the long term, constructing efficient, sustainable, and dynamic consistent macroeconomic policy frameworksFundamentals of reconstruction include: (1) the objectives of macroeconomic and financial stability and external balance should be included in policy frameworks; (2) fiscal policy directs to the sideeffect of economic restructuring, while monetary policy directs to macroeconomic and financial stability; (3) macroeconomic policies should be implemented in marketoriented and predictable modeA feasible breakthrough could be made in government bond markets.

THE IMPACTS OF LIFE CYCLE, RISK PREFERENCE AND ACCUMULATION LEVEL ON THE OPTIMAL ASSET ALLOCATION STRATEGIES OF THE DC PENSION PLAN

HE Lin1, LIANG Zong-xia2

2016, 36(4):  25-33. 

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In recent years, DC pension plan has been greatly developed in ChinaThe accumulation phase of the DC pension plan lasts for decadesHow to achieve higher oldcare utilities by appropriate asset allocation strategies is the key issueIn this paper, we study the impacts of life cycle, risk preference and the accumulation level on the optimal asset allocation strategies in the Mertons optimal investmentconsumption frameworkFurthermore, using Monte Carlo methods, the performances of the four kinds of asset allocation strategies are evaluatedThe results confirm the necessity of introducing the “lifecycle funds” and the “lifestyle funds” to guide the optimal asset allocation behaviors.

DOES BANKING SECTOR COMPETITION PROMOTE THE PERFORMANCE OF RURAL BANKS: MECHANISM AND EMPIRICAL RESEARCH

ZHOU Shun-xing

2016, 36(4):  34-44. 

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This paper aims to study whether the improvements of competition degree in banking sector promote the running performance of rural banksBasing on the panel data from 2008 to 2013 of rural banks in county fields of Jiangsu province, this paper tests the effect of banking competition on the rural banks financial performance and social performanceThe empirical results show that banking sector competition significantly reduces the financial performance of rural banks, but significantly improves the social performanceBesides, this paper finds that the banking competition has an effect on the credit behavior of rural banksTherefore, the marketoriented financial reform and the increasing competition in the market would improve the rural banks social performance.

DO CORPORATE VENTURE CAPITALISTS ADD VALUE TO STARTUP FIRMS

XU Zi-yao

2016, 36(4):  45-54. 

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Based on the sample of venture capital institutions invested into the listed companies on the SMEs board, this paper discusses the valueadding ability of CVC on start up firmsThis paper finds that, CVCbacked startups obtain lower valuation at the IPO and worsen the shortrun performance than independent venture capital (IVC)backed onesThe further empirical investigation proves that only when the startups have a strategic fit with the CVCS parent corporations, there would be a significant positive effect on valuationBesides, this effect is not completely from the superior project selection ability of CVCS parent corporationsAccording to the findings, this paper puts forward some advice on CVC activities, expecting this paper can promote the development of CVC in China.

A RESEARCH ON INEFFICIENT INVESTMENT UNDER NEW FINANCIAL REPORTING METHOD

ZHANG Yi-xin1, XU Jing-chang2

2016, 36(4):  55-65. 

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As a new financial reporting method, XBRL brings new changes to accountingIn this paper, we study the impact of XBRL on inhibiting inefficient investment by using listed companies in Shenzhen Stock ExchangeThe results show that the application of XBRL inhibit inefficient investment effectively, and this effect is more apparently in Shenzhen Component Index companies who participate in pilot mechanismFurther test indicates that the impact of XBRL on relieving underinvestment is more apparentlyThis paper analyzes companies investment activities under the application of XBRL, which provides new empirical evidence for the use of XBRL in China, and indirectly proves the benefit of pilot mechanism in diffusion of XBRL.

RESEARCH ON TRANSPLANT OF LABOR STANDARDS BASED ON SUPPLIER MORAL HAZARD

LI Xian-xiang

2016, 36(4):  66-76. 

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Since many companies get more market shares through labor certification in emerging countries, the issue of labor standards transplants has also been much concernedThis paper analyzes the transplant characteristics of labor standards in developing countries from the perspective of supplier moral hazardThe empirical study shows that the buyers must choose a suboptimal balance between moral hazard and the level of effort on the presence of risk aversion suppliersEspecially considering the information rent of limited liability which resulted from minimum standards, buyers must pay certain additional agent costs in order to meet the principalagent progressThe final equilibrium labor standard will be distorted downwards more than when only considering the adverse selection.

THE SOCIAL WELFARE OF CHINESE LAND FINANCE——Based on Sen Capability Approach Theory

WU Shi-wei,WANG Xiao-qin

2016, 36(4):  77-86. 

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This paper based on Sen capability approach, using fuzzy mathematics and factor analysis method to measure Chinese provincial cities social welfare index between 2004 and 2013,analyzed the relationship between social welfare and land financeThe empirical results showed following conclusionsFirst, coastal cities social welfare index was relatively high, then the contributions to social welfare index of transparency guarantee, social opportunity, economic condition, protective safeguard and political freedom were increasingSecond, eastern coastal cities absolute and relative land finance were far more than western cities, then social welfare and land finance cannot match wellThird, social welfare had a positive spatial correlation, different provincial city social welfare index existed spatial agglomeration and diffusion phenomenaFinally, through dynamic spatial panel model to empirical analyze found that the relationship between land finance and social welfare index was inverted Ushaped curve.

THE CHANGES OF THE FARMERS WELFARE IN THE POSTCONCENTRATED RESIDENCE AGE UNDER DIFFERENT ECONOMIC LEVELS——A Comparative Analysis of Different Circle of Chengdu City

JIANG He-sheng,FEI Xiang,TANG Hong

2016, 36(4):  87-99. 

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This paper used the survey data of 313 farmers in Chengdu city of Sichuan province, and then employed the fuzzy assessment approach to examine the changes in farmers welfare state under different economic circleThe results indicated that: (1) farmers welfare state in centralized residence had a certain degree of improvement, but there was a big difference in the welfare change of different economic circle, and the welfare improvement level of second circle of medium development level was significantly higher than that of first circle of higher development level, and the welfare levels of third circle of low development level had declined; (2) residential living conditions, social security, community activities and social resources had been improved, but the economic situation and the living environment of the family had been deterioratedThe policy implications of the survey were that combining with the characteristics of circle to promote employment, improving farmers family economic status and enhancing the ability of community green governance, improving the living environment of the farmers.

ECONOMIC TRANSITION, THE CHANGES OF HOUSEHOLD EMPLOYMENT, AND INCOME DISTRIBUTION IN RURAL CHINA

MAO Xue-feng,1LIU Jing2

2016, 36(4):  100-112. 

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The period of dramatic economic and social reform coincided with a period of increasing inequality in ChinaBy drawing on the data from the Chinese Household Income Project (CHIP) from 1989 to 2007, this paper examines the different impacts of both kinds of rural labor mobility, say, ruraltourban migration and local offfarm work, on rural inequalityUsing Gini index decomposition and nonparametric kernel density decomposition method, we got some valuable conclusionsFirst, the economic development in the rural area coincided with more rise in inequality before 1995 and more growth after 1995Second, local offfarm employment is the main source of the household nonagriculture income, which tends to increase income disparities, while migration has egalitarian effects on rural incomeFinally, economic growth does not equally benefit all the subgroups, and different subgroups contribute to the different parts of the whole density change.