Table of Content

16 November 2021, Volume 41 Issue 11

Previous Issue    Next Issue

THE EFFECTS OF TAX BURDEN ON FIXED ASSETS INVESTMENT——Viewed through Tax Differences#br#

MA Haitao, ZHU Mengke

2021, 41(11):  4-22. 

Asbtract ( )   PDF (718KB) ( )  

Related Articles | Metrics

Based on the data of Chinese listed enterprises from 2003 to 2018, this paper analyzes the impact of the changes of effective rate of valueadded tax and effective rate of corporate income tax on enterprise's fixed assets investment from the perspective of tax differences. The results show that, the relationship between the effective rate of valueadded tax and fixed assets investment depends on the macro environment and the ability of tax burden transfer. Specifically, in the economic upward period or in enterprises with strong tax burden transfer ability, the decrease of effective rate of valueadded tax can increase the cash flow of enterprises and promote the fixed assets investment. There is a significant negative correlation between effective rate of corporate income tax and fixed assets investment. The decrease of the effective rate of corporate income tax will promote the enterprises' investment by improving the internal cash flow and enhancing the external financing ability of enterprises. Especially when the corporate debt risk is relatively low, the positive impact of the decrease of effective income tax rate on fixed assets investment will increase with the increase of financing constraints. To some extent, this analysis shows that the tax burden changes of different taxes will have differentiated impact on enterprise's investment, which provides new empirical evidence for tax cuts to help investment.


HUMAN CAPITAL SYSTEM AND REGIONAL INNOVATION PERFORMANCE——Research Based on FuzzySet Qualitative Comparative Analysis (fsQCA)

FANG Zhulan, XU Tengda

2021, 41(11):  23-34. 

Asbtract ( )   PDF (7086KB) ( )  

Related Articles | Metrics

Based on China's original and innovative human capital system framework, using 30 provinces in China as samples, this paper for the first time uses the fuzzyset qualitative comparative analysis (fsQCA) method to study the joint effects of six important human capital systems on innovation performance and the interaction between different systems. The research shows that: any single system is not a necessary condition for high innovation performance, nor is it able to constitute a sufficient condition. Only a combination of multiple systems can improve innovation performance. There are five paths to support high innovation performance in China, which can be further divided into three models: “financialoriented” model, “innovatororiented” model and “performancemaintaining” model. In the financialoriented model, the developed human capital credit system objectively protects the supernormal tacit knowledge, thus partially replacing the ordinary property right system and pricing system. In the innovatororiented model, there is a complementary relationship among the security system, the property rights system and the evaluation system. In the performancemaintaining model, the education system can make up for the lack of the property right system, but it is difficult to continue due to the brain drain. This paper supplements and develops China's original and innovative human capital system framework, and provides useful inspiration for governments.


THE BILATERAL IMPACT OF MANUFACTURING AGGLOMERATION ON GREEN ECONOMY EFFICIENCY

ZHANG Pingdan, TU Xiwei

2021, 41(11):  35-53. 

Asbtract ( )   PDF (10512KB) ( )  

Related Articles | Metrics

This paper improves the bilateral stochastic frontier model by including spatial effects to estimate the bilateral impact of manufacturing agglomeration on green economic efficiency. Based on the panel data of prefecturelevel and above cities in China from 2006 to 2016, the agglomeration effect, congestion effect and the combined net effect of manufacturing agglomeration on green economic efficiency are estimated. The research results show that: (1) The agglomeration effect of China's manufacturing agglomeration on green economy efficiency is 19.51%, the congestion effect is 8.96%, and the net effect is 10.55%, that is, manufacturing agglomeration is conducive to the improvement of green economy efficiency. (2) The panel threshold model analysis finds that in the highlevel stage, with the increase in manufacturing agglomeration and specialization, the marginal effect of the net effect on green economy efficiency changes in a Ushape, and as the spatial level of manufacturing agglomeration increases, the marginal effect of the net effect on green economy efficiency shows an increasing trend. (3) The analysis of heterogeneous combination shows that, in different stages of economic development, changes in manufacturing agglomeration specialization levels and spatial hierarchies have an increasing effect on the bilateral green economy efficiency of different sample cities. The impacts are not the same, indicating that cities in China have sizable heterogeneity and challenges in choosing the route of manufacturing agglomeration.

FROM FISCAL DOMINANCE TO MONETARY POLICY TOOLS: THE SWITCHING OF CHINA'S INTEREST RATE DETERMINATION

ZHOU Xuan, PENG Jiajun, WANG Fei, LU Dong

2021, 41(11):  54-67. 

Asbtract ( )   PDF (8471KB) ( )  

Related Articles | Metrics

Based on the perspective of interest rate liberalization, this paper uses MSAR (Markov regimeswitching autoregressive model) to study the nonlinear changes of interest rate determination channels in China since the interest rate liberalization began (19962017). This paper uses the econometric model to identify two regimes of interest rate determination channels in China: “fiscal dominant” (19962005) and “monetary dominant” (20062017) regimes. The switching time of China's interest rate determination channels coincides with the critical timing of interest rate liberalization reform process, showing that China's interest rate liberalization reform has made remarkable achievement, and the interest rate determination has changed from fiscal dominant to monetary dominant regime, laying a good foundation for further interest rate liberalization.


INTERNET USE, FINANCIAL LITERACY, AND FINANCIAL DECISIONS——A Study based on 2013-2017 China Household Finance Survey

ZHONG Jingdong, QIN Xuezheng, LIU Chong

2021, 41(11):  68-78. 

Asbtract ( )   PDF (6380KB) ( )  

Related Articles | Metrics

 Based on the 2013-2017 panel data of China Household Finance Survey (CHFS), this paper investigates the effects of internet use on households financial literacy and financial decisions. It constructs instrumental variables based on the policy shock from the Broadband China strategy implemented in 2013, and uses the panel instrumental variable model to identify the causal effects of internet use. Results find that, internet use can significantly promote households investment in formal financial products, and financial literacy significantly mediates between them. Internet use also helps to narrow the urbanrural gap in financial literacy and financial decisions. The findings are enlightening for improving households financial literacy and financial decision in China.


HOW DOES INTELLIGENT MANUFACTURING AFFECT LABOR INCOME SHARE——An Empirical Study Based on Provincial Panel Data in China

SONG Xuguang, DU Junhong

2021, 41(11):  79-96. 

Asbtract ( )   PDF (10144KB) ( )  

Related Articles | Metrics

This paper analyzes the effect of intelligent manufacturing development on the labor income share. Based on the nested CES production function, this paper constructs a theoretical labor income share framework including intelligent manufacturing and traditional production mode, to describe the mechanism of the influence of intelligent manufacturing on the labor income share. Empirical analysis is carried out by constructing intelligent manufacturing index system and Normalized Supplyside System. The study finds that the elasticity of substitution between intelligent manufacturing and traditional production mode determines the effect direction of intelligent manufacturinglabor extended technology progress on labor income share. Through the Normalized Supplyside System, it is found that the elasticity of substitution between intelligent manufacturing and traditional production mode is complementary, and extended technology progress finally inclines to intelligent manufacturing, which will lead to the decline in the labor income share. In addition, the development of intelligent manufacturing improves the average wage rate and labor productivity. The increase in labor productivity produces excess demand for capital and intelligent manufacturing because of the complementary relationship between the factors. As a result, the increase in labor income share is limited. Therefore, this paper points out that the government should perfect the income security mechanism, such as reducing the labor income tax, and improving the welfare of workers by income redistribution, and the training of labor skills should match the intelligence manufacturing, so as to increase the share of labor income.

GOVERNMENT REGULATION AND CORPORATE INNOVATION——A Case Study on Vaccine Listed Companies

LIU MengJIANG LihanSHI Jinchuan

2021, 41(11):  97-112. 

Asbtract ( )   PDF (9220KB) ( )  

Related Articles | Metrics

Whether government regulation can effectively promote corporate innovation and industrial development is worthy of further study. Taking the Regulations on the Administration of Vaccine Circulation and Vaccination revised and issued by the State Council in 2016 as an example, this paper investigates the innovative effect and impact mechanism of vaccine retroactive regulation on vaccine listed companies. The results show that the investment in R&D and patents of vaccine enterprises has been significantly improved after the revision of the regulation. Further analysis reveals that the effect mainly results from the government regulation, which forces enterprises to improve product quality by promoting the establishment of vaccine product traceability system. The conclusion of this paper expands the research on the effectiveness of government regulation and enterprise innovation.