Table of Content

16 February 2022, Volume 42 Issue 2

Previous Issue    Next Issue

THE POLITICAL ECONOMY EXPLANATIONOF THE LOGIC OF CHINA'S “TWO MIRACLES”

REN Baoping

2022, 42(2):  4-11. 

Asbtract ( )   PDF (5114KB) ( )  

Related Articles | Metrics

During the centurylong struggle of the Communist Party of China, it has created “Two Miracles” of the largescale and rapid economic growth and the longterm stable development in the social sphere. The reasons for the formation of the “Two Miracles” are as follows. The adherence to the leadership of the Party is the political guarantee, the adherence to scientific theoretical guidance is the ideological guarantee, the adherence to the socialist system and the adherence to the national governance system are the institutional guarantee; the creativity of the people under the leadership of the Party is the driving force guarantee. In terms of the theoretical logic of political economy, the theoretical logic of the formation of the “Two Miracles” is that the combination of state capacity under the leadership of the Party and largescale market creation created the miracle of economic growth and the miracle of longterm social stability on the basis of the economic foundation laid by rapid economic growth. The historical experience of the “Two Miracles” is the cultivation of state capacity under the leadership of the Party, the synergy and complementarity between the central government and local governments, the combination of development planning and market mechanisms, and the coordination of selective industrial policies, functional industrial policies and inclusive industrial policies. To continue to write the “Two Miracles” in the second century and to create a miracle of highquality development, it is necessary to judge future development trends from a medium and long term development perspective, to continue to promote the coevolution of the state and the market, to reshape the growth system for highquality development, to fully unleash the potential of domestic demand, and to establish a “peoplecentred” model of economic development.

THE IMPACT OF VAT REDUCTION POLICY ON ENTERPRISE INVESTMENT——From the Perspective of Enterprises' Leverage Ratio

GUO Jie, LOU Zhusheng

2022, 42(2):  12-23. 

Asbtract ( )   PDF (8297KB) ( )  

Related Articles | Metrics

The valueadded tax (VAT) reform continues to deepen, and the effect of VAT reduction has become a hot issue of academic and government concern. Because the supply and demand of products are elastic, enterprises cannot completely transfer the VAT burden to consumers. Moreover, different enterprises face different lending market environments. Therefore, the impact of VAT reduction on enterprise investment is complex. The enterprise investment decisionmaking model shows that the VAT reduction will increase the enterprise investment, but the investment level of enterprise with higher leverage ratio will increase less than the enterprise with low leverage ratio due to the constraint of the loan market. Based on the quarterly data of listed companies from 2016Q3 to 2019Q1, this paper uses the differenceindifference model to empirically analyze the impact of the VAT reduction policy in 2018 on enterprise investment. The results show that VAT reduction increases the investment level of enterprises, and has a more significant impact on fixed assets investment. However, the transmission mechanism of the lending market weakens the promotion effect of the VAT reduction policy on enterprises with higher leverage.

RESEARCH ON THE HOUSEHOLD INTERNET CONSUMPTION BEHAVIORON THE PERSPECTIVE OF INCLUSIVE FINANCE DEVELOPMENT

SONG Mingyue, ZHOU Bowen, ZANG Xuheng

2022, 42(2):  24-40. 

Asbtract ( )   PDF (10902KB) ( )  

Related Articles | Metrics

As a new type of consumption format and mode, internet consumption has become a new driving force to expand domestic demand. This paper studies the households' consumption behavior from the perspective of inclusive finance development by applying econometrics method such as Probit model and treatment effect. The results show that the development of inclusive finance has significantly and positively increased the proportion and frequency of internet consumption households. After a gradual growth, the total consumption level and consumption structure of these households are higher and better, especially in urban region. Through the three mechanisms of facilitating payment, easing liquidity constraints and increasing household income, the development of inclusive finance has improved the amount of online consumption expenditure of internet consumption households. At the same time, heterogeneity analysis also draws a series of conclusions. Therefore, we can deepen the degree of household financial participation, accelerate the development of regional digital inclusive finance, help the elderly and lowincome groups cross the digital divide, popularize internet consumption and increase internet consumption expenditure to a greater extent, so as to further expand the domestic demand.

DIGITAL INCLUSIVE FINANCE, GOVERNMENT INTERVENTIONAND COUNTY ECONOMIC GROWTH——An Empirical Analysis Based on Threshold Panel Regression

WANG Wenyu, BEI Duoguang,

2022, 42(2):  41-53. 

Asbtract ( )   PDF (9437KB) ( )  

Related Articles | Metrics

Digital inclusive finance increases the availability of credit to traditionally disadvantaged groups which contributes to countylevel economic growth in China. Government intervention plays an essential role in the development of digital inclusive finance. Based on the countylevel panel data from 2014 to 2018, this paper estimates the moderating effect of government intervention on countylevel economic growth that is caused exogenously by digital inclusive finance using threshold panel regression. The results show that :(1)Digital inclusive finance has a positive effect on county economic growth, and government intervention plays a moderating role. Specifically, the digitization and depth of digital inclusive finance usage positively affect countylevel economic growth and government intervention plays the same role. (2) Digital inclusive finance promotes county economic growth by adjusting traditional financial market structure. (3)In terms of different regions, in the eastern region, digital inclusive finance has a restraining effect on county economic growth; in the central region, digital inclusive finance has a positive effect on county economic growth,and government intervention plays oneway moderating effect; in the western region, the moderating effect of government intervention is inverted Ushaped. This paper further analyzes the fundamental causes of regional differences and provide practical policy suggestions.


FISCAL SUSTAINABILITY AND EDUCATIONALEFFORTS OF LOCAL GOVERNMENTS

CHEN Li, DENG Weida, WANG Zhixuan

2022, 42(2):  54-66. 

Asbtract ( )   PDF (8589KB) ( )  

Related Articles | Metrics

Fiscal sustainability is an important factor that affects the educational efforts of local governments. Based on the citylevel panel data from 2015 to 2019, this paper calculates the fiscal sustainability indicator of local governments and investigates the impact of fiscal sustainability on the educational input of local governments. The results show that most cities of China are in a state of fiscal sustainability, and the increasing fiscal sustainability risk of local governments will reduce the government's educational efforts, especially in the eastern and central regions and in developed cities.


HOMELAND CHAMBER OF COMMERCE AND CORPORATE RISKTAKING——Evidence from Listed Companies

HUANG Bo, CHENG Xiaomeng, LI Haitong

2022, 42(2):  67-83. 

Asbtract ( )   PDF (11222KB) ( )  

Related Articles | Metrics

 Chamber of commerce is an important platform for enterprises to accumulate social capital, aiming to promote resource sharing and risk sharing among enterprises. This paper takes Ashare listed companies as the research sample, and empirically analyzes the impact of companies participating in homeland chamber of commerce on corporate risktaking. The results show that participating in homeland chamber can improve corporate risktaking. This conclusion is still valid after a series of robustness tests. From the perspective of the mechanism, participating in homeland chamber is not only conducive to reducing corporate financing constraints, but also conductive to promoting firms M&A activities. Further research finds that the chamber of commerce has substitution effects on regional social trust, and the impact on corporate risktaking is more pronounced in the areas with strong traditional culture and greater marketization degree. Besides, participating in homeland chamber can help enterprises reduce the risk of supply chain. This paper provides an empirical basis for verifying the risksharing characteristics of the chamber of commerce, and provides references for understanding the social function of the chamber of commerce.


ZERO MARKUP REFORM UNDER INCOME INEQUALITY——Physicians' Strategic Response and the Reallocation of Medical Expenditure

NI Xia, YE Chusheng

2022, 42(2):  84-100. 

Asbtract ( )   PDF (11865KB) ( )  

Related Articles | Metrics

This paper focuses on how zero markup reform changes the allocation of medical expenditure among different diseasesIn the first place, this paper uses four waves of the China Health and Retirement Longitudinal Study (CHARLS) data to conduct a differenceindifference analysis to identify the redistribution effect of medical expenditure allocation among different diseasesThe results show that, after the reform, a tenpercent rise in regional drug sale reliance will make the medical expenditure of an average patient increase by 513%However, a onestandard deviation increase in the patient's severity will make the increase of his total expenditure decrease by 298%Secondly, this paper discusses and tests empirically the possible causes of this phenomenon under the framework of twodimensional heterogeneity in income and severityThe paper shows that the zeromarkup reform increases the relative price of treatments that are more suitable for severe conditions and therefore encourages physicians to overuse themHowever, the usage of these treatments is quite different among patients with different income levelsHighincome patients with milder conditions are more likely to use them, but lowincome patients with more severe conditions are relatively less likely to use themThis micro mechanism leads to the misallocation of medical resources among different conditions

STUDY ON THE MARKET SCALE EFFECT OF THE SYMBIOTIC DEVELOPMENT OF STATEOWNED ECONOMY AND PRIVATE ECONOMY

HONG Yang, LAN Chuanchun, HONG Gongxiang

2022, 42(2):  101-112. 

Asbtract ( )   PDF (7903KB) ( )  

Related Articles | Metrics

To explain clearly the mechanism of the symbiotic development of stateowned economy and private economy in theory is the need to better adhere to “two unswervingly”.Based on LotkaVolterra model,this paper theoretically proves the symbiosis of stateowned economy and private economy and how the “1+1 >2”effect realizes. Based on the time series data of stateowned and private listed companies from 1992 to 2018, the empirical analysis result using VAR model shows that the development of stateowned economy promotes the expansion of market scale and contributes to the development of private economy; the development of private economy promotes the expansion of market scale and contributes to the development of stateowned economy; the expansion of the market has expanded the development space for the symbiotic development of the stateowned and private economies, and promotes mutual cooperation and winwin results between the two. From the perspective of market scale effect, this paper explains the mechanism of the symbiotic development of stateowned economy and private economy.