Table of Content

16 May 2016, Volume 36 Issue 5

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POLITICAL PERFORMANCE DRIVE, POLITICAL CONNECTION AND PRIVATE ENTERPRISES INVESTMENT EXPANSION 

XU Ye-kun1,LI Wei-an2

2016, 36(5):  5-22. 

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The administrative intervention of private enterprises investment derives from local governments is one of main reasons for the phenomenon of overinvestment and overcapacityThis paper adopts a sample of private listed companies from 2004 to 2011 to investigate effects of prefectural government performance pressure on private enterprises investment, and in particular the role of political connection as well as effects of political performance pressure on allocation of loan resourcesAfter controlling the city fixed effects, the results suggest that local performance pressure affects the investment of private enterprises, the problem of overinvestment is more severe when the local government is confronted with more pressure especially economic growth pressure, while political connection may attenuate this influence which means the problem of overinvestment is relatively less severe for politically connected enterprisesMoreover, the attenuated effect of political connection is more significant when private enterprises have local political connection, local governments have incentives to push private enterprises in nonregulated industries to expand investment with the political performance pressure especially economic growth pressure increasing, and loan resource has played an important role for the relationship between political performance pressure and investment of politically connected private enterprisesThe conclusions would provide some insights into local governments intervention in corporate investment which may lead to overcapacity as well as economic effects of political connection.

ECONOMIC POLICY UNCERTAINTY,PROPERTY RIGHTS AND TRADE CREDIT

WANG Huacheng1,LIU Huan1,GAO Sheng-hao2

2016, 36(5):  34-45. 

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With the background of economic policy uncertainty, this paper selects the Ashares listed companies from 2007Q1 to 2014Q4, discusses the impact of the changes of macroeconomic entertainment for an enterprises trade credit The empirical results show as follows: With high economic policy uncertainty, the scale of enterprises trade decreases The stateowned enterprises, with property advantage, will inhibit the decrease of trade credit Especially in regions of highGDP growth and low financial market development, the effect of inhibition will be more significant The results in this paper support that the economic policy uncertainty has a great influence on the enterprises trade credit, the role of trade credit in a corporate borrows will attract more attention.

THE IMPACT OF MINIMUM WAGE ON WORKERS INCOME AND INCOME DISTRIBUTION——A Study Based on CHNS Data

WANG Xianghong,WANG Geng-song

2016, 36(5):  46-56. 

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This paper examines the impact of minimum wage on workers income level and income distribution using household survey data We first use differenceindifference method to study the impact of minimum wage upgrading on income level We combine the differenceindifference method with a method involving percentage change to study the impact of minimum wage change rate on income distribution The results indicate that minimum wage upgrading generally does not have significant impact on average income level of all workers However, minimum wage does have negative impact on those in collective enterprises and negative impact on those whose income were within 150%~205% of previous minimum wage level This implies that minimum has some impact on income distribution The results are robust to alternative specifications.

SPATIAL EFFECTS OF TFPS REVERSE TURNING POINT UNDER ENVIRONMENTAL REGULATION——Based on Provincial Industrial Panel Data Verification

CHEN Jing-quan,LIU Wei,DU Chong-hua

2016, 36(5):  57-67. 

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Industry is the main sector of pollutant emission and energy consumption Environmental regulation affects environmental total factor productivity and industrial sustainable development further Based on MalmquistLuenberger productivity index, this paper measured industrial total factor productivity of every province using panel data of provincial industry in China (except Tibet) from 2001 to 2012We took environmental pollution into consideration which avoided overestimating total factor productivity The spatial econometric model was constructed in this paper and effects of spatial correlation and spatial heterogeneity were considered There were some controlled variables, such as the proportion of capital and labor, regional economy development, enterprise scale, pattern of ownership, structure of foreign investment Then we tested the relationship between environmental regulation and total factor productivity empirically The empirical results showed that the relationship of environmental regulation intensity and TFP of industry presented as “Ushaped” curve in eastern, western and middle China, which meant total factor productivity descended first and then rose with the enhancement of environmental regulation intensity and eastern region arrived at the turning point earlier than middle and western regions On the right of the turning point, the reaction of total factor productivity caused by environmental regulation change in eastern region is faster than in middle and western regions, marginal total factor productivity is higher in eastern region.

DO INCREASES IN OUTSIDE OPTION ENHANCE THE INCENTIVES OF SPECIFIC INVESTMENTS——A Microevidence from Tobacco Contracts of Yunnan Province

DANG Li1,ZHANG Yu2,PENG Cheng1

2016, 36(5):  68-83. 

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There are different ideas about the relation between outside option and specific investments in academic fields The property theory (mainly GHM model) thinks that the increases in outside option will protect the profits from specific investments, hence strengthen the investors incentives of specific investments They consider that increases in outside option increase specific investments However, some scholars think increases in outside option can also reduce the level of specific investments, when the outside option is binding This means more property may not lead to more specific investments This paper tries to make clear this dispute, and builds a new theoretical model based on a new definition about outside option in a noncooperative game framework The results show that given this new environment increases in outside option also can lower the incentives of specific investments Moreover, we firstly give an empirical test to the relation between outside option and specific investments by using the micro contract data of tobacco in Yunnan province in China, and find there is a negative relation between the outside option and specific investments The results, opposite to the main ideas of property theory, have some theoretical and practical meanings to some extent.

INCOME INEQUALITY AND HOUSEHOLD BORROWING——Does the Motivation of Household Borrowing for Social Status Exist

GUO Xin-hua, LIU Hui, WU Zai-hua

2016, 36(5):  84-99. 

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Using the data of 2011 China Household Finance Survey (CHFS), this paper investigates the effect of income inequality on household debt and verifies the existence of households motivation borrowing for social status in ChinaOur research results show as follows:(1) Income inequality is not a major factor whether the household to borrow or not, but it can cause the inhibition of the scale in debt(2)The broaden of income inequality does not make lowincome families attempt to seek loans or enhance the size of household debtChinese family has no motives for pursuing a higher social status to borrow(3) The broaden of income inequality benefits the highincome families to get more formal financial borrowingLowincome families will be more dependent on the informal financial borrowing(4) The demographic characteristics of the head of household, economic characteristics of households and their locations are the important factors that affect household borrowing behavior, and there are more obvious differences between factors that influence the formal finance and informal finance borrowing.

THE PARTICIPATION MODE AND POSITION IN GLOBAL VALUE CHAINS OF CHINA AND JAPANS MANUFACTURING INDUSTRY——Based on World Inputoutput Tables

YIN Wei-hua

2016, 36(5):  100-112. 

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According to the ratios of vertical specialization including backwardlinkage (VS) and forwardlinkage (VS1) and global value chains (GVC) index, this paper analyzes the participation mode and position in GVC of China and Japans manufacturing industry using 1995—2011 world inputoutput tables (WIOTs) Our studies indicate the following: (1) Domestic valueadded (DVA) share in Chinas exports is lower than Japans It means that Chinas profit ability is relatively low (2)VS and VS1 present an upward trend from 1995—2011 It means that the participation levels in GVC are rising for China and Japans manufacturing industry (3) The participation modes of Chinas manufacturing industry in GVC are mainly backward, while the participation modes of Japans manufacturing industry in GVC are mainly forward (4) Chinas manufacturing industry which is dominated by foreign valueadded (FVA) in final goods mainly engages in final assembling activities, while Japans manufacturing industry which is dominated by FVA in intermediate goods mainly engages in key parts production activities (5) National division of China and Japans manufacturing industry gets deepening (6) GVC of Chinas manufactured goods which are the downstream are climbing, while GVC of Japans manufactured goods are the upstream are declining.