Table of Content

16 June 2022, Volume 42 Issue 6

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THE PUZZLE OF WAGE STAGNATION IN THE GLOBAL MANUFACTURING SECTORS——Empirical Evidence from the Perspective of the Quality of Imported Intermediate Product

WEN Yanbing, ZHONG Jianjun

2022, 42(6):  4-18. 

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This paper studies the wage stagnation phenomenon of the global manufacturing sectors from the perspective of rapid growth of intermediate product trade and its quality First，this paper reconstructs the wagedetermination model under open condition based on the DS monopolistic competition framework and the research of Koch & Smolka（2019)，and finds that the quality of imported intermediate product affects the fluctuation of wages in all countries Second，based on the research of Feenstra & Romalis（2014)，this paper constructs a new GEKS index to measure the quality of imported intermediate product at the level of productindustrycountry or region，and then uses the CEPIIBACI（HS92）trade database to estimate the quality of the intermediate product in SITC_Rev2 fourdigit manufacturing industries quality imported from 248 export markets in 37 countries during 19952011 It shows that the quality of imported intermediate product in the global manufacturing sectors has an obvious rising trend，but the differentiation is serious It rises in the middle and lowincome economic entities and declines in the highincome economic entities Finally，this paper quantitatively identifies the specific impact of the quality of imported intermediate product on manufacturing wages in importing countries or regions at the transnational or regionindustry level The findings are as follows：（1）The quality of imported intermediate product has a significant and negative effect on global manufacturing wages，and the reduction effect is the greatest in middle income economic entities，middle technology intensive industries，high skilled labor forces and the importing minerals industries（2）The quality of the imported intermediate product reduces the global manufacturing wages through two mechanisms，employment destruction effect and R&D incentive effect（3）The effect of the quality change of imported intermediate product on manufacturing wages is a market law and a temporary “global shock” These findings explain the puzzle of wage stagnation in the global manufacturing sectors and inspire countries to respect the laws of nature and market in the globalization，strengthen international cooperation，jointly cope with the impact of the external shock，improve peoples wellbeing，and jointly build a community with a shared future for mankind

DEBT LIMITS，TAX AUTONOMY AND LOCAL GOVERNMENT IMPLICIT DEBTS RISK

LI Yihua, WANG Guanfang, ZHU Jie, GUO Yiyang

2022, 42(6):  19-32. 

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The influence of debt limits on implicit debts risk is a weak link in current studies Based on the panel data of 30 provincial units from 2010 to 2018 and using the generalized DID model，an empirical study is conducted to study the effects of debt limits and tax autonomy on the local government implicit debts risk It is found that the debt limits do not restrain the growth of implicit debts，and the reduction of debt limits space will accelerate the expansion of implicit debts risk，especially for the middle and western regions Moreover，increasing tax autonomy will reduce the adverse effects of the debt limits An analysis of regional heterogeneity measured by the collective decisionmaking system of local officials finds that the negative impact of the debt limits on local implicit debts risk is less in regions with a high proportion of committee members from the central government Based on dividing the debt limits，further analyses reveal that issuing replacement bonds and new bonds have different effects on implicit debts risk The conclusions suggest that to manage local implicit debts risk requires the combination of the optimization of debt limits，official behavior and fiscal and tax system reform Only by treating both the symptoms and root causes can we truly achieve the goal of resolving the risk of implicit debts


THE BIAS OF LOCAL GOVERNMENTS EXPENDITURE STRUCTURE——From the Perspective of Crossborder Public Affairs

PANG Wei, SUN Yudong

2022, 42(6):  33-49. 

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This paper theoretically analyzes that the local governments in China not only have the bias of productive expenditure，but also have a preference in the expenditure of crossborder and local public goods investment because of externality and information asymmetry Under the budget principle of “living within its means”，this paper uses the panel data of 31 provincial governments in China from 2010 to 2019 to empirically analyze the impact of the growth of local government general public budget revenue on the growth of four types of fiscal expenditure scale，namely，crossborder expenditure on peoples livelihood，crossborder productive expenditure，regional expenditure on peoples livelihood and regional productive expenditure The results show that at the national level，the increase of the growth rate of general public budget revenue can make the crossborder productive expenditure increase the most Besides，the more competitive the government is，the more attention the local government attaches to externality，so the more funds the local government will spend on regional government affairs From the results of different types of fiscal revenue on fiscal expenditure behavior，only indirect tax revenue can have a significant impact on fiscal expenditure of the three types of regions at the same time In order to improve the quality of public services，this paper puts forward corresponding policy suggestions according to the research conclusions

BANK COMPETITION AND FINANCIALIZATION OF ENTERPRISES： PROMOTION OR INHIBITION

HE Yunxin, CHEN Fei

2022, 42(6):  50-63. 

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Bank competition may either promote or inhibit the financialization of enterprises due to multiple mechanisms of their interactions Based on the panel data of nonfinancial Ashare listed companies from 2007 to 2019，this paper examines the relationship between them empirically The results show that：（1）Competitive banking market structure inhibits the financialization of enterprises（2）Bank competition not only eases the erosion of debt costs on corporate profits，helps to narrow the profit margin gap between the financial sector and entity enterprises，thereby inhibiting profitseeking behaviors of enterprises' financialization，but also promotes corporate innovation by guiding the allocation of credit resources，which exerts crowdingout effect on financial assets allocation in entity enterprises；in addition，bank competition also encourages banks to play the role of monitoring actively，which helps to inhibit the enterprise insiders'opportunistic behaviors of financial speculation（3）The inhibiting effect of bank competition on the financialization of enterprises is more significant in nonstateowned enterprises，small and mediumsized enterprises and enterprises located in regions with lower levels of marketization These results indicate that enhancing the level of bank competition can help to restrain the trend of financialization of enterprises and reverse the situation of the economy “shift from real to virtual”

THE WEALTH DISTRIBUTION EFFECT OF ARTIFICIAL INTELLIGENCE

LIU Fengliang, WU Mengfei, XU Shaofeng

2022, 42(6):  64-78. 

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The influence of artificial intelligence on economic inequality has attracted wide attention in academic circles However，the existing research focuses on analyzing its impact on labor income inequality There is still a lack of relevant research on its impact on wealth distribution and thus on property income inequality This paper establishes a continuoustime heterogeneous agent dynamic general equilibrium model，regards the influence of artificial intelligence on production technology as a package of biased technological progress，and studies the influence of artificial intelligence technology on wealth distribution It is found that the influence of artificial intelligence on wealth inequality is different in the short term and in the long run The application of artificial intelligence technology will increase the degree of wealth distribution inequality in the economy in the short term In the long run，the wealth distribution effect of artificial intelligence depends on its promotion to different types of technological progress The core mechanism is that the diversity of technological progress in artificial intelligence has different effects on the return on capital in the short term and in the long run In the short term，all kinds of technological progress will always increase the return on capital，while in the long run，different types of technological progress have different effects on the return on capital Based on the above conclusions，this paper puts forward some policy suggestions on how to apply artificial intelligence to promote growth and prevent the expansion of inequality in China

DOES ANTIMONOPOLY LAW IMPROVE CORPORATE GOVERNANCE—— Evidence from Chinas AShare Listed Companies

JIA Jianfeng, LIU Dingming, LI Dongxu

2022, 42(6):  79-96. 

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The implementation of the Antitrust Law improves the corporate governance of the Chinese listed companies and improves market efficiency This paper uses the Ashare listed companies between 2005 and 2010 and investigates the sensitivity between the company's CEO turnover and firm performance This paper finds that the implementation of the Antitrust Law significantly improves the sensitivity between firm performance and the likelihood of CEO turnover，which alleviates the agency issues and improves internal corporate governance In addition，this paper divides firms based on the levels of administrative monopoly，industrial monopoly，and corporate rents The results show that the effect of Antitrust Law on the relations between firm performance and CEO turnover is more pronounced among the more monopolistic provinces，more monopolistic industries，and companies with higher profit margins，particularly among the local stateowned enterprises These results suggest that the implementation of Antitrust Law in China can benefit corporate governance，protect investors wealth，and maintain market equality

REGIONAL INTEGRATION POLICIES，FACTOR MOBILITY AND THE ENHANCEMENT OF RESIDENTS' SENSE OF GAIN——A Quantitative Analysis Based on Policy Texts

CHEN Xiqiang, YAO Fangfang, MA Shuang

2022, 42(6):  96-112. 

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The intention of regional integration policy is to enhance residents' sense of gain by weakening barriers of factor mobility and narrowing regional development gap This paper constructs policy indices from four perspectives： transportation connectivity，weakening of administrative barriers，economic cooperation and labor mobility，and studies the policy effects of regional integration strategy at two aspects： narrowing the income inequality among regional residents and improving their sense of gain It is found that：（1）Regional integration policies can enhance residents' sense of gain based on narrowing the income gap among regional residents，and administrative measures are the main policy measures to enhance residents' sense of gain（2）The convergence of regional income inequality is the objective basis for the improvement of residents' sense of gain，and the policy effects of regional integration policies to reduce regional income inequality are heterogeneous at different stages and in different regions（3）Mechanism analysis shows that the transportation measures and administrative measures in the regional integration policy can significantly narrow the income gap of regional residents by guiding capital to spread to undeveloped areas，which is the major way to enhance residents' sense of gain