Table of Content

16 April 2022, Volume 42 Issue 4

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NEW ACHIEVEMENTS IN THE SINICIZATION OF MARXISM——Research on Xi Jinping's Discussion on the Relationshipbetween the Government and the Market

YANG Ruilong

2022, 42(4):  4-11. 

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The Sixth Plenary Session of the 19th CPC Central Committee emphasized the guiding position of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. Xi Jinping's important discussion on the relationship between the government and the market is one of the important contents of the Thought of Socialism with Chinese Characteristics. The core issue of the reform of the socialist market economic system is to deal with the relationship between the government and the market. The marketoriented reform with Chinese characteristics is to develop the market economy under the leadership of the party and the basic socialist economic system. We can neither find readymade answers in the works of classical Marxist writers, nor copy the dogma of western mainstream economics and copy the Western model. Instead, we should combine the basic principles of Marxism with Chin's specific reality to promote theoretical innovation. Making the market play a decisive role in resource allocation is a new achievement of the Sinicization of Marxism. Under the condition of socialist market economy, we should not only give play to the decisive role of the market in resource allocation, but also give better play to the role of the government. Therefore, we must build an economic system with effective market mechanism, dynamic micro subjects and moderate macrocontrol, so as to continuously enhance China's economic innovation and competitiveness. To better play the role of the government, we need to establish a new type of the relationship between the government and the business.

WILL FINTECH DEVELOPMENT PROMOTE THE RETURNED MIGRANTS TO WORK IN RURAL AREA IN CHINA——Evidence from China Laborforce Dynamic Survey (CLDS)

ZENG Xiangquan, GUO Qing

2022, 42(4):  12-26. 

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Internet technology promotes the rapid development of fintech, which reduces financing constraints and entrepreneurial costs, promotes entrepreneurship and employment of the returned migrants and helps realize the Rural Revitalization Strategy in China Using theoretical model and empirical analysis, the paper focuses on the impact of fintech on returned migrants' job decisions Using the Index of Digital Financial Inclusion and the data from China Laborforce Dynamic Survey (CLDS) and using the Logit model and instrument variable to deal with endogenous problems, the empirical results show that: a onestandarddeviation increase in fintech significantly improves the probability of nonagricultural employment of returned migrants by 0062~021 units, and reduces the probability of their agricultural employment by 0071~022 units Fintech can reduce the cost of financing and entrepreneurship, and attract returned migrants to carry out opportunitypull entrepreneurship in rural areas, so as to create jobs and promote migrants' income In contrast, fintech has no significant impact on entrepreneurship and income of ruralurban migrants Heterogeneity analysis shows that fintech can significantly promote the returned migrants with low physical capital and low human capital to carry out opportunitypull entrepreneurship, and has stronger universality for the returned migrants with high physical capital These findings have important policy implications and provide evidence for stabilizing employment, promoting information technology in rural area and the realization of Rural Revitalization Strategy

HOW DOES ENVIRONMENTAL REGULATION AFFECT THE MARKUP RATIO OF MANUFACTURING ENTERPRISES

SHEN Chunmiao, ZHENG Jianghuai

2022, 42(4):  27-39. 

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Based on the Chinese industrial enterprise pollution emission database and Chinese industrial enterprise database over the period from 2000 to 2011, this paper uses PSMDID method to investigate the effect of environmental regulation on the markup ratio of manufacturing enterprises and its micro mechanism, in which the substantial promotion of environmental regulation stringency since the 11th Fiveyear Plan is regarded as quasi natural experiment. The empirical results of the total sample show that the environment regulation has produced a positive effect on markup ratio. Mediation effect tests show that the promotion effect of environment regulation on markup ratio is majorly driven by innovative compensation mechanism, the effect of an increase in compliance cost caused by environmental regulation has produced a negative effect on markup ratio and the effect of the market structure mechanism is not significant. The results of sub sample regression show that the promotion effect of environmental regulation on the markup ratio is more obvious in high pollution industries and in middle regions.

DOES UNCERTAINTY OF ECONOMIC POLICY DRIVE THE FINANCIALIZATION OF MANUFACTURING ENTERPRISES——Identification of Mediating and Moderating Effects

LI Shuangyan, LIU Chang , TAN Xiao

2022, 42(4):  40-55. 

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With a low return rate of the investment in real economy, manufacturing enterprises are gradually deviating from the main business operation, which is manifested the obvious financialization. This paper analyzes the impact of economic policy uncertainty on the financialization of manufacturing enterprises based on the data of Chinese Ashare listed manufacturing companies from 2009 to 2019. This paper further identifies the mediating and moderating effects through empirical analysis from the theoretical perspectives of cash holding, real options and principalagent theory, and gets the following conclusions: (1) economic policy uncertainty increases the degree of financialization of manufacturing enterprises. (2) Financing constraints have a mediating effect on the relationship between economic policy uncertainty and the financialization of manufacturing enterprises. (3)Ownership concentration, customer concentration and bank supervision all weaken the positive impact of economic policy uncertainty on the financialization of manufacturing enterprises. After replacing the core variables and accounting for the effects of ownership and size heterogeneity, government subsidies, omitted variable bias and endogeneity, the conclusions are still robust. This paper also puts forward some targeted suggestions on the policy implementation,liquidity support, capital flow supervision.


STUDY ON THE MEASUREMENT AND CHARACTERISTICS OF CHINA'S INEQUALITY OF OPPORTUNITY——Also on the Influence of City Size

YI Shuchang, SUN Jiuwen, LIU Qing

2022, 42(4):  56-69. 

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While China's economy is growing rapidly, the income gap is also widening. This paper relies on Roemers “environmentefforts” binary analysis theory, adopts exante parameter method, uses China Laborforce Dynamics Survey Data (CLDS) to measure the changing trend of China's inequality of opportunity in recent years, decomposes the inequality of opportunity, analyzes the impact of household registration, family, gender and other factors on inequality of opportunity, and discusses the effect of city size, city location difference and administrative level difference. The results show that the inequality of opportunity in China is on the rise, and there are obvious regional differences from the eastern coastal areas to the western inland areas. There are different characteristics in urban and rural areas, in different genders and ages, and there is an inverted Ushaped relationship between inequality of opportunity and urban size. High level cities such as municipalities and provincial capitals tend to have a lower level of opportunity inequality.

REVENUE SHARING, COMPETITION AND ECONOMIC DISPARITY WITHIN PROVINCES IN CHINA

WEI HailunLIU, Yongzheng

2022, 42(4):  70-83. 

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 Regional disparity in China has gradually become one of the important constraints for further economic development and hence received widespread academic attention. However, economic disparity within provinces, acting as the main component of the overall regional disparity in the country, has not been examined rigorously. This paper aims to explore how intergovernmental revenue sharing at the provincesubprovincial level may affect economic disparity within provinces through the channel of local fiscal competition. Based on county level panel data from 1995 to 2014, this paper first builds both the indexes of economic disparity within governments and subprovincial revenue sharing ratios and then conduces empirical estimations. Our results indicate that: subprovincial revenue ratios significantly increase the disparity of county effective tax rates within provinces, which, in turn, induce unbalanced distribution of tax bases and hence exacerbating economic disparity within governments. This effect is also found to be more salient in less developed provinces. Overall, our study contributes to a better understanding of regional disparity in China and the modernization of Chinas system and capacity for governance from the perspective of fiscal decentralization arrangement.

THE ADJUSTMENT OF ADMINISTRATIVE DIVISIONS AND VITALITY OF REGIONAL MARKET ENTITY——Based on the Perspective of “Countytodistrict” Policy and Entrepreneurial Activities

ZHANG Guangli, XUE Huili, LAN Minghui, LIN Song

2022, 42(4):  84-97. 

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This paper uses the differenceindifference method (DID) to examine the impact of the “Countytodistrict” policy on the entrepreneurship of counties in China. The results show that the “Countytodistrict” policy can significantly increase the number and the scale of entrepreneurship in the reformed counties. From the perspective of labor and land resource, this paper explains the mechanism that “Countytodistrict” policy influences entrepreneurship and finds that the “Countytodistrict” policy significantly increases labor inflow and reduces the area of agricultural land in reformed counties. Furthermore, this paper also finds that the “Countytodistrict” policy has a stronger effect on corporate entrepreneurship and the entrepreneurship of secondary and tertiary industries. Finally, in moderating effect, this paper finds that when the city where the reformed county is located has a better quality of infrastructure or business environment, the positive impact of the “Countytodistrict” policy on entrepreneurship is stronger.

RESEARCH ON CONTROL POWER TRANSFER MECHANISM OF PPP PROJECT——Based on an Exploratory Multicase Analysis

GONG Junjiao, CHENG Qianping

2022, 42(4):  98-112. 

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 Improving the control rights of private enterprises to participate in PPP projects is an important measure to stimulate the innovation vitality of private enterprises and reduce operating costs. The process of private enterprises participating in PPP projects is essentially a dynamic game between the governments transfer and enterprises acquisition of control rights. From the perspective of cooperative governance, this paper takes two urban public utility PPP projects involving the same private enterprise as the research objects, and extract the key elements that affect the transfer of urban public utility PPP projects control. An exploratory multicase analysis method is used to excavate the control transfer mechanism of private enterprises participating in PPP projects. This paper finds that government institutional capabilities, corporate dynamic capabilities, and market competition strength are the key elements. They not only affect the transfer of control rights, but the relationship between government and enterprises plays a positive role in the above three types of influence paths. Correspondingly, there are three basic paths for private enterprises to participate in the transfer of control of PPP projects. They are capacity transfer, relationship transfer and market transfer. This research not only enriches the research results of the control rights of PPP projects, but also provides guidance and reference for improving the control rights of private enterprises participating in PPP projects.