Table of Content

16 November 2016, Volume 36 Issue 11

Previous Issue    Next Issue

HOW TO REDUCE GOVERNMENT DEBT: SUSTAINING ECONOMIC GROWTH,UPGRADING INDUSTRIAL STRUCTURE AND SAFEGUARDING FINANCE

MA Yong,TIAN Tuo

2016, 36(11):  5-15. 

Asbtract ( )   PDF (5746KB) ( )  

Related Articles | Metrics

Based on sample data of 41 countries over the period from 2001 to 2011, this paper shed light on the effects of economic growth, upgrading of industrial structure and financial volatility on the reduction of government debt by using systemGMM estimationThe empirical results showed that while both economic growth and the upgrading of industrial structure had a positive effect on government debt reduction, higher financial volatility was found to be negatively associated with government debt reduction and weakens the positive effects of economic growth and industrial upgrading on government debt reduction as wellThese conclusions suggested that, to reduce government debt in practice, both economic growth and structure adjustment (especially the latter) should be pursued under the precondition of financial stability to realize economic growth in the context of financial stability and economic structure optimization.


MARKET SEGMENTATION AND MISALLOCATION——An Investigation Based on Productivity Dispersion

WANG Lei1,DENG Fangfang2

2016, 36(11):  16-26. 

Asbtract ( )   PDF (6023KB) ( )  

Related Articles | Metrics

Misallocation is a restraining factor of economic development in new status of Chinese economyExisting literatures focus on factor market distortion analysis but neglect the effect of market segmentation on misallocationIn the process of marketization of Chinese economy, there is a phenomenon that all provinces take market segmentation to develop economyThe segmentation strategies protect the inefficient plants in the province by increasing the transaction cost of plants from outside province marketThe transaction costs of market segmentation distort the price and quantity of producers, and lower the indifferent productivity level of industry equilibriumThus high degree of market segmentation should exhibit high productivity dispersion and lower average productivity levelsWe demonstrate this mechanism in a simple industry equilibrium model with heterogeneous plants and test it empirically using Chinese industry survey data 1998—2007We find evidence that market segmentation is indeed positively related to withinindustry productivity dispersion, that is, lower one percent of index of market segregation will reduce 394 percent of misallocationThere is policy significance to improve efficiency of resources allocation and structural reform of supply side.

PENSION SUBSTITUTION RATE AND RESIDENTS CONSUMPTION BEHAVIOR FROM MICRO RESPECTIVE

LIU Wen1,HANG Bin2

2016, 36(11):  27-36. 

Asbtract ( )   PDF (5438KB) ( )  

Related Articles | Metrics

With the gradually intensified aging level, the combination of the multitrack is officially launched with extensive focus on the low substitution rate at the same timeFirst from the micro perspective, this paper applies bufferstock savings theory and relative empirical analysis to study the effect of pension system on the consumption behavior from two aspects: pension multitrack and substitutionThe results both show that Chinas exist of the pension multitrack and low substitution rate to some extent can both explain consumption behaviorCivil servants and institutional staffs hold higher consumption tendency than enterprise personnelAfter controlling the multitrack，improving the pension substitution rate can help stimulate consumption expenditure, especially for those families which have lower income level and female household head.

A RESEARCH ON THE DYNAMIC EFFECT OF EQUITY INCENTIVE UNDER A LONGTERM TIME FRAME 

CHEN Wen-qian

2016, 36(11):  53-66. 

Asbtract ( )   PDF (7781KB) ( )  

Related Articles | Metrics

This paper investigates the dynamic effect of equity incentive on operating performance under a longterm time frame，and examines whether and how this dynamic relationship between equity incentive and corporate operating performance can be moderated by property rights, grant motivation  and implementation frequencyThe results show as follows: Equity incentive can not only exert current incentive effect in the event year, but also exist persistent effect in the following 5 years, which presents an inverted ushaped dynamic characteristicCompared with private enterprises, the incentive effect of stateowned enterprises exists a twoyear time lagged effect and can only last for 3yearsCompared to incentive contracts with more stable and continuous incentive, welfare contracts exist only shortterm incentive effect and appear negative effects after the third yearEquity incentive has stronger and more lasting performanceimproving effect for the enterprises with higher frequency of implementation.


THE IMPACT OF REGIONAL CORRUPTION ON THE NATIONALIZATION OF PRIVATE FIRMS IN CHINA

ZHANG Yu-xiao

2016, 36(11):  67-77. 

Asbtract ( )   PDF (5954KB) ( )  

Related Articles | Metrics

Using 1998—2007 Chinese Manufacturing Enterprises Database and provinciallevel corruption data and building a simple model, this paper proves that state ownership will help private firms circumvent governments violation in a corruptive institutional environment and an incomplete contractual environmentTherefore private firms are more likely to nationalize when government is more corruptiveMoreover, private firms with higher profitability are more exposed to the violation of corruptionWe find that both broadsense nationalization and narrowsense nationalization are significantly correlated with corruption rate and firms return on assetsMoreover, firms with higher return on assets are more likely to nationalize because of corruptionTherefore, nationalization is the response that private firms use to deal with governments violation, which will help us understand the operating environment of private firms and governmentfirm relationship in transition countries.


DETERMINANTS OF THE MEDICAL EXPENDITURES PER CAPITA: STUDY ON THE CHONGQING MEDICAL EXCHANGE

WANG Wen-juan， CAO Xiang-yang

2016, 36(11):  78-87. 

Asbtract ( )   PDF (5315KB) ( )  

Related Articles | Metrics

This research utilizes the fixed effect model to analyze the determinants of the medical expendituresThe dummy variables are introduced to represent the Medical Exchange, and the income of doctors is introduced as mediator variables such that the effect of doctors would be revealedThis research demonstrates that the Chongqing Medical Exchange reduces the medical expenditures per capita indeedNonetheless, this policy may backfire because of the mediating effect of the revenue of doctorsBased on these studies, this paper puts forward policy recommendations to control the medical expenditures per capita: increasing the number of hospital, adjusting the internal structure of the medical workers, and advocating and ensuring Physician practice, and increasing doctors income reasonably.

THE EFFECTS OF REGIONAL INDUSTRIAL STRUCTURE CHANGE ON ECONOMIC GROWTH——An Empirical Study Based on Fifteen Provinces

TAO Gui-fen，FANG Jing

2016, 36(11):  88-100. 

Asbtract ( )   PDF (6710KB) ( )  

Related Articles | Metrics

This paper selected five provinces randomly from the eastern area, middle area and western area respectivelyIt discussed the structural changes in different areas from the perspective of rationalization and optimization from 1978 to 2013, and built econometric model to compare the effects of industrial structure on economic growth between different areasFurthermore, it applied a robustness test to verify the conclusionThe results showed that the rationalization and optimization of industrial structure in eastern area were superior to the middle and western areaThere was a steady relationship between the rationalization of industrial structure and economic growth, nevertheless, the relationship between the optimization of industrial structure and economic growth was uncertainIn the light of present situation, as for the eastern area, the rationalization of industrial structure had more effects than the optimization of industrial structure on the economic growthIn the middle area and western area, the total effect of the optimization of industrial structure on the economic growth was greater than the rationalization of industrial structure.

EXPERIENCE LEARNING EFFECT AND MISUSING EFFECT ON CROSSBORDER INVESTMENT ACTIVITIES——Evidence from the Microdata of Chinese Enterprises Investing in Latin America

TANG Lin-jia1，FAN Yan-cheng1，CHI Ren-yong2，CHENG Cong1

2016, 36(11):  101-112. 

Asbtract ( )   PDF (6610KB) ( )  

Related Articles | Metrics

We propose a research framework to analyze the learning effect and misusing effect of investment experience on the impact of national distance on crossborder investment performance, based on the microdata of Chinas enterprise investment in Latin AmericaThe empirical results show that the national distance has a significant negative effect on the crossborder investment activitiesThe effects of institutional distance and geographical distance are more strongly negative effect than culture distanceThe host countrys investment experience mainly is the learning effect, the other is misusing effectThis paper provides some theoretical explanations and investment strategies.