Table of Content

16 October 2016, Volume 36 Issue 10

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THE EFFECTS OF P2P LENDING NETWORK GROUP SYSTEMS ON BORROWERS LOAN SUCCESS RATES AND INTEREST RATES——Based on the Empirical Test of Prospercom

PEI Ping1,CAI Yue2

2016, 36(10):  5-15. 

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In recent years, P2P lending networks have flourished in the midst of Chinas expanding financial sectorThe financial activation and expansion of newer investment channels are also facing many theoretical and practical issuesThis paper studies P2P Lending Network Group Systems from a social capital perspective by using the worlds largest P2P lending network, ProspercomBy performing an empirical examination on more than 126 000 borrowers, this paper concludes that joining P2P lending groups, in particular, joining leading and higher credit score groups, can not only improve the success rate of obtaining loans, but also reduce the interest rate of those loansThis paper argues that the Prospercom P2P lending system serves as a worthy reference for Chinese P2P lending systemsEstablishing and perfecting P2P lending network group systems is one way to successfully develop Chinas P2P lending networks.

RISK PREFERENCE OF LENDER, BEHAVIOR CHOICE OF PLATFORM AND P2P LENDING REGULATION

CHENG Hua,YANG Wei

2016, 36(10):  16-24. 

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By constructing a network lending model including lender, borrower and P2P platform, this paper analyses the influence of risk preference of lender and intermediary fee on the behavior of these three partiesWe clarified the conditions of successful finance on P2P platform and its stable operation.Meanwhile, we pointed the possibility of P2P platforms moral hazardOur conclusion is as follows: the risks of P2P finance not only come from borrower, but also have relationship with the risk preference of lender, so the platform and the regulators should screen the investors. Intermediary fee is an effective tool to balance the benefit of three parties, the regulators should give enough space for price setting. Establishing the asset isolation system, and strengthen the inspection and punishment are the fundamental way to reduce the P2P risk, however, the regulators should not put tight restrictions on pricing and model innovation.

STARTING POINT FAIRNESS, PROCEDURAL FAIRNESS, OUTCOME FAIRNESS AND DISTRIBUTIVE FAIRNESS SATISFACTION

SUN Jing-shui,CHENG Fang-fang

2016, 36(10):  25-42. 

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Intensively studying the cognition, judgment and evaluation of the residents on the satisfaction of the distributive fairness has great significance for the government to formulate scientific and reasonable policies, to promote distributive fairness, to raise the satisfaction of residents, and to maintain social harmony and stabilityIn this paper, we estimate the inequality degree in income distribution and the satisfaction of the distributive fairness by using the data of the 958 residents questionnaires from 11 regions across Zhejiang province, and construct an ordered Probit model to empirically test the effects of the determinants on the satisfaction of the distributive fairnessResults indicate that currently the degree of the inequality in the residents income has gone beyond the reasonable limit, while, the satisfaction rate of residents for the distributive fairness is comparatively highThe main findings reveal that the factors including starting point fairness, procedural fairness, outcome fairness, human capital, physical capital, social security have significantly positive impacts on the satisfaction of the distributive fairnessFurthermore, the positive impacts of human capital, starting point fairness, outcome fairness and social security are relatively high, whereas the impacts of procedural fairness, number of household labors and physical capital are relatively lowThis finding has important implications for future policy development.


VERTICAL INDUSTRY ASSOCIATION, TURN PRICE CONTROL AND COLLUSION NONEFFICIENCY：EVIDENCE FROM CHINESE LISTED COMPANIES

DAI Zhi-min1,GUO Lu2

2016, 36(10):  42-55. 

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Industrial organizational level product contains vertical and horizontal collusion between the conspiraciesAs the difference between the performances of the product vertical collusion contender status, the resale price controls determine their economic values in a dynamic environment multitasking conflicts by facing possible collapse to reach solutions to existing and new conspiracy solutionThis paper shows that the two homogenization manufacturers use their service provider system in dynamic competitive environment, which may lead to some greater overall industry profitsBy applied game theory and dynamic panel technology to Chinas most dynamic regions of two triangular objects, the noncollusion is more economically efficient manner from the perspective of overall social welfareFrom the vertical links between organizations, the conspiracy is a nonefficiency activity and each noncollusion impulses service provider, which relates to their ability of negotiations and innovation externalitiesThis paper indirectly proves that collusion manufacturing and service industries are economic value segmentation instead of economic value creatorsThe existing interindustry vertical association is a nonfragile equilibriumThis paper also provides some corresponding suggestions.

CAN FDI AND INDUSTRIAL AGGLOMERATION HELP TO IMPROVE THE INTERNATIONAL COMPETITIVENESS ——An Empirical Research on Chinas Manufacturing Industries Based on PanelVAR Model#br#

ZHOU Cai-rong

2016, 36(10):  56-69. 

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This research uses 2004—2013 data from United Nations UNCOMTRADE to measure the indexes RCA, FDI and industrial agglomeration of Chinas 27 major manufacturing industriesAfter that, do empirical researches to analyze whether FDI and industrial agglomeration can improve international competitiveness or not through panel data and PVAR modelThe result suggests as follows: (1) The international competitiveness of Chinas major manufacturing industries is becoming stronger, However, with strong international competitiveness is mainly concentrated in laborintensive industries, while the hightech industries is the most potential industries to help China to gain new global competitive advantage(2) At the part of FDI proportion, Chinas manufacturing industries have a little changeable, but the total amount of it is enhanced in a rapid pace(3)There is an upward trend phenomenon in average industrial agglomeration, it means that major manufacturing industries appear steady agglomeration and extent and trend have significant differences among different industries(4) FDI and international competitiveness have a significantly positive correlation, it means that if foreign direct investment is deeper, it would have a higher international competitiveness; This phenomenon also appears at the relationship between industrial agglomeration and international competitivenessBesides, it exists an interaction effect between industrial agglomeration and foreign direct investment, and also affects international competitiveness(5)The result of panel VAR also shows that there are stable longterm relationships among international competitiveness, industrial agglomeration and foreign direct investment.


FROM THE PERSPECTIVE OF INTEREST RATE LIBERALIZATION OF RISKTAKING CHANNEL OF MONETARY POLICY

XIANG Hou-jun1,XIANG Wei-kang1,CHEN Xinpeng2

2016, 36(10):  70-83. 

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The continuous deepening of interest rate liberalization has a great impact on Chinas monetary policy transmission, economic fluctuations and financial stabilityAccording to this, our paper empirically tests the impact of interest rate liberalization on bank risktaking channel of monetary policyThe results of the study show as follows: (1) There is a bankrisk taking channel of monetary policy in China, and from the perspective of dimension of interest rate liberalization indirect measure methods, after considering the direct effect of loan interest rate liberalization, the banks real risktaking is on the riseBut after considering the price discipline effect of deposit interest rate liberalization, the price discipline effect does not play a role as we expect(2) From the perspective of the dimension of interest rate liberalization direct measure methods, by introducing the dummy variable approach, the study finds that loan interest rate liberalization will make the impact of monetary policy on banks real risktaking become apparentFurthermore, by the introduction of interest rate liberalization index method, the study finds that the deepening of the interest rates liberalization will make the risktaking channel become apparent and the banks real risktaking will rise(3) The impact of the interest rate liberalization on the bank risktaking channel of monetary policy is different between different types of banks.

STRATEGIC COMMITMENTS, FINANCIAL CONSTRAINTS AND DEBT CHOICE——Which Firms Are Supported by the Bond Market for Their Strategic Development

ZENG Xue-yun1, WANG Yu2, HE Hao-miao3

2016, 36(10):  84-98. 

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This paper examines the resourceallocation function of the bond market from the perspective of strategic commitmentThe results reveal that since the Pilot Rules for the Issuance of Corporate Bonds announced in 2007, bond market has significance in supporting corporate strategic developmentHowever, further studies show that the supporting effect only exists in companies with lower financial constraints, iecompanies located in provinces of high marketization, ultimately controlled by state, or enjoying developed internal capital markets, are more likely to issue bonds for higher strategic commitment while bond financing of highly financialconstrained companies are not so sensitive to strategic commitment as the formers and the sensitivity coefficient is lower than that of the formersThese demonstrate that the resourceallocation function of financial market is limited by financial constraints instead of alleviating financial constraintsThe above conclusions deepen our understanding of the resourceallocation function of the financial systemAccording to the conclusions given by this paper, reformation in the future should focus on improving the financing ability of companiesOtherwise, the financial market could hardly achieve the equilibrium allocation needed under free competition through its spontaneous mechanism.


STUDY ON THE MULTIPLIER EFFECT OF INDUSTRY AND AGRICULTUREIN THE POST FINANCIAL CRISIS PERIOD IN CHINA

XU Fei1,LI Qiang-yi2

2016, 36(10):  99-112. 

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This paper based on the two sector economic growth model to test the spillover effects of industrial and agriculturalIt is found that the industrial sector has the advantage of resource allocation because of the advantages of its productivity, spillover effect, but the underdevelopment of agriculture will also limit the expansion of industrial resources allocationThe whole social economic growth is affected by industrial growth, industrial and agricultural spillover effects, and agricultural growthTherefore, there is a need for industrial and agricultural cooperative developmentWe use the method of 2SLS estimation, GMM estimation and quantile regression robustness test.