Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_256340_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Feng Lu Author-X-Name-First: Feng Author-X-Name-Last: Lu Author-Name: Guoqing Song Author-X-Name-First: Guoqing Author-X-Name-Last: Song Author-Name: Jie Tang Author-X-Name-First: Jie Author-X-Name-Last: Tang Author-Name: Hongyan Zhao Author-X-Name-First: Hongyan Author-X-Name-Last: Zhao Author-Name: Liu Liu Author-X-Name-First: Liu Author-X-Name-Last: Liu Title: Profitability of China's industrial firms (1978–2006) Abstract: This paper measures nine indicators of profitability for the Chinese industrial firms during the period 1978–2006. In light of the results, it examines the issues such as the trend change of the Chinese profitability, difference of profitability between various categories of firms, impacts of inflation on the profitability calculated using the corporate accounting data, and comparison of profitability among China, Japan and US. Evidence found by the paper indicates the micro-economic underpinnings for the Chinese economic boom in recent years. Journal: China Economic Journal Pages: 1-31 Issue: 1 Volume: 1 Year: 2008 X-DOI: 10.1080/17538960701564833 File-URL: http://hdl.handle.net/10.1080/17538960701564833 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:1:y:2008:i:1:p:1-31 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_256342_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Joseph Stiglitz Author-X-Name-First: Joseph Author-X-Name-Last: Stiglitz Title: China: Towards a new model of development Abstract: This essay argues that changes in China's circumstances require a different model for the Chinese economic development. Because China's circumstances are different from that of other countries, the model for China inevitably needs to be different from that of elsewhere. In line with the central ideas, the essay discusses extensive issues regarding China's economic development such as export growth model, innovation, property rights, tax policy, social insurance, etc. Journal: China Economic Journal Pages: 33-52 Issue: 1 Volume: 1 Year: 2008 X-DOI: 10.1080/17538960701564858 File-URL: http://hdl.handle.net/10.1080/17538960701564858 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:1:y:2008:i:1:p:33-52 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_256344_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zhang Shuguang Author-X-Name-First: Zhang Author-X-Name-Last: Shuguang Author-Name: Zhang Bin Author-X-Name-First: Zhang Author-X-Name-Last: Bin Title: Growth of China's foreign exchange reserve Abstract: China's growing foreign exchange reserve is estimated to exceed $2 trillion by 2010. The purpose of its paper is to examine its impact on the balance sheet of the Chinese central bank, the money supply and the bond market. The paper will then move on to discuss its social welfare effect by comparing the estimated future return of the foreign exchange reserves with its opportunity costs measured by the potential return of domestic investments. Journal: China Economic Journal Pages: 53-62 Issue: 1 Volume: 1 Year: 2008 X-DOI: 10.1080/17538960701564874 File-URL: http://hdl.handle.net/10.1080/17538960701564874 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:1:y:2008:i:1:p:53-62 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_256362_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Justin Yifu Lin Author-X-Name-First: Justin Yifu Author-X-Name-Last: Lin Title: The Needham puzzle, the Weber question, and China's miracle: Long-term performance since the Sung dynasty Abstract: This paper attempts a brief overview of China's economic performance since the Sung dynasty. It discusses Chinese long economic stagnation since the Sung dynasty and explores the reasons why it was quickly lagging behind western countries from the 1800s. It explains why the industrialization and modernization led by Chinese government from 1949 to 1978 failed in narrowing the gap between China and the developed countries. It examines Chinese rapid economic growth during its reform and opening up period. Journal: China Economic Journal Pages: 63-95 Issue: 1 Volume: 1 Year: 2008 X-DOI: 10.1080/17538960701565053 File-URL: http://hdl.handle.net/10.1080/17538960701565053 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:1:y:2008:i:1:p:63-95 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_277044_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Dianqing Xu Author-X-Name-First: Dianqing Author-X-Name-Last: Xu Author-Name: Christer Ljungwall Author-X-Name-First: Christer Author-X-Name-Last: Ljungwall Title: What is the real size of China's economy? Abstract: On 20 December 2005, China's National Bureau of Statistics adjusted China's nominal GDP by CNY 2.3 trillion. The bulk of this upward adjustment was attributed to improved coverage of value added by services. The service industry now makes up 40% of GDP. Based on previous studies and other observations, this paper point outs that there is still significant underreporting of the service industry and, hence, China's GDP is likely to be underestimated. We find a plausible share of service industry in GDP to be in the range of at least 45% to 55%. Journal: China Economic Journal Pages: 97-105 Issue: 1 Volume: 1 Year: 2008 X-DOI: 10.1080/17538960701770521 File-URL: http://hdl.handle.net/10.1080/17538960701770521 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:1:y:2008:i:1:p:97-105 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_277046_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jikun Huang Author-X-Name-First: Jikun Author-X-Name-Last: Huang Author-Name: Qi Zhang Author-X-Name-First: Qi Author-X-Name-Last: Zhang Author-Name: Scott Rozelle Author-X-Name-First: Scott Author-X-Name-Last: Rozelle Title: Economic growth, the nature of growth and poverty reduction in rural China Abstract: This paper examines some of the major driving forces of poverty reduction in China. Based on time series and cross-sectional provincial data, the determinants of rural poverty incidence are estimated. The results show that economic growth is an essential and necessary condition for nationwide poverty reduction. It is not, however, a sufficient condition. While economic growth played a dominant role in reducing poverty through the mid-1990s, its impact has diminished since that time. Beyond general economic growth, growth in specific sectors of the economy is also found to be effective in reducing poverty. The finding of our paper is consistent with the idea that poverty reduction in the future will need to be adjusted with more emphasis being given on direct targeting through helping the poor to increase their human capital and incomes. Journal: China Economic Journal Pages: 107-122 Issue: 1 Volume: 1 Year: 2008 X-DOI: 10.1080/17538960701770547 File-URL: http://hdl.handle.net/10.1080/17538960701770547 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:1:y:2008:i:1:p:107-122 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_307811_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Rod Tyers Author-X-Name-First: Rod Author-X-Name-Last: Tyers Author-Name: Jane Golley Author-X-Name-First: Jane Author-X-Name-Last: Golley Author-Name: Bu Yongxiang Author-X-Name-First: Bu Author-X-Name-Last: Yongxiang Author-Name: Iain Bain Author-X-Name-First: Iain Author-X-Name-Last: Bain Title: China's economic growth and its real exchange rate Abstract: The shocks that underlie China's comparatively rapid growth include gains in productivity, factor accumulation and policy reforms that increase allocative efficiency. The well-known Balassa–Samuelson hypothesis links productivity growth in tradable industries with real appreciations. Yet it relies heavily on the law of one price applying for tradable goods, against which there is now considerable evidence. In its absence, other growth shocks also affect the real exchange rate by influencing relative supply or demand for home product varieties. This paper investigates the pre-conditions for the Balassa–Samuelson hypothesis to predict a real appreciation in the Chinese case. It then quantifies the links between all growth shocks and the Chinese real exchange rate using a dynamic model of the global economy with open capital accounts and full demographic underpinnings to labor supply. The results suggest that financial capital inflows most affect the real exchange rate in the short term, while differential productivity is strong in the medium term. Contrary to expectation, in the long term demographic forces prove to be weak relative to changes in the skill composition of the labor force, which enhances services sector performance and depreciates the real exchange rate. Journal: China Economic Journal Pages: 123-145 Issue: 2 Volume: 1 Year: 2008 X-DOI: 10.1080/17538960802076455 File-URL: http://hdl.handle.net/10.1080/17538960802076455 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:1:y:2008:i:2:p:123-145 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_307817_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zongyi Zhang Author-X-Name-First: Zongyi Author-X-Name-Last: Zhang Author-Name: Feng Wang Author-X-Name-First: Feng Author-X-Name-Last: Wang Author-Name: Dongmei Yu Author-X-Name-First: Dongmei Author-X-Name-Last: Yu Author-Name: Qi Liu Author-X-Name-First: Qi Author-X-Name-Last: Liu Title: The determinants of peasants' family income in China's west underdeveloped area: effects of working away from home village Abstract: There are more than one hundred million peasants working in non-agricultural industries away from their home villages in China. Using survey data of 2004 from Chongqing, the authors intend to research on the poverty of China's west economically backward area through investigating the peasants' family income and the out-of-rural workers' income, and have found out that working away from home village is the main source of peasants' income growth in China's economically backward area. Working away from home village gives peasants a chance to get directly engaged in the process of industrialization and urbanization, reducing the east–west inequality and rural–urban income disparity. Journal: China Economic Journal Pages: 147-153 Issue: 2 Volume: 1 Year: 2008 X-DOI: 10.1080/17538960802076513 File-URL: http://hdl.handle.net/10.1080/17538960802076513 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:1:y:2008:i:2:p:147-153 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_307821_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ping Qian Author-X-Name-First: Ping Author-X-Name-Last: Qian Author-Name: Wei Zhang Author-X-Name-First: Wei Author-X-Name-Last: Zhang Title: Rate of return on venture capital investment in China Abstract: The rate of return on venture capital investment of venture capital (VC) firms in China has been attracting increasing attention. We use robust multinomial regression models to analyze 56 exit projects of venture capital investment from 1999 to 2003 in China. The results show that the returns of state-owned VC firms are lower than those of non state-owned VC firms. Furthermore, the returns of the VC firms located in Shanghai and Shenzhen are higher than those in other regions. The capital scale of VC firms is negatively correlated with the rate of return. In addition, some variables, such as business duration, investment scale, investment duration and exit vehicle, are probably unrelated to rate of return on venture capital investment in China. Journal: China Economic Journal Pages: 155-164 Issue: 2 Volume: 1 Year: 2008 X-DOI: 10.1080/17538960802076554 File-URL: http://hdl.handle.net/10.1080/17538960802076554 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:1:y:2008:i:2:p:155-164 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_307823_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Chuliang Luo Author-X-Name-First: Chuliang Author-X-Name-Last: Luo Title: The return to education and its distribution in urban China: evidence from quantile regression analysis Abstract: Based on Chinese Households Income Projects in 2002, this paper discusses the relationship between the return to education and the quantiles of income distribution. The findings in this paper show that the return to education is lower for the higher quantiles, while the estimators also depend on the choice of control variables. The methodology of the quantile regression might be helpful in adjusting the ability bias in the estimation on return to education. The policy implications of the paper highlight the impact of the education expansion in boosting the income growth for those in lower quantiles. Journal: China Economic Journal Pages: 165-175 Issue: 2 Volume: 1 Year: 2008 X-DOI: 10.1080/17538960802076570 File-URL: http://hdl.handle.net/10.1080/17538960802076570 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:1:y:2008:i:2:p:165-175 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_307825_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yeqiang Wang Author-X-Name-First: Yeqiang Author-X-Name-Last: Wang Author-Name: Houkai Wei Author-X-Name-First: Houkai Author-X-Name-Last: Wei Title: Industry characteristics, spatial competition and industrial concentration – evidence from China Abstract: We study the determinants of a geographic concentration of manufacturing industries in a spatial competition framework. Based on a panel data set of China during 1995–2003, we have the following findings. First, some traditional comparative advantages in production factors such as labor endowment are becoming the major factors that prevent the industrial concentration. Second, the major factors that promote geographic manufacturing concentration are technology spillover and industry linkage. Third, the effect of economy of scale on manufacturing concentration is significant, but the direction depends on how the concentration is measured. Journal: China Economic Journal Pages: 177-190 Issue: 2 Volume: 1 Year: 2008 X-DOI: 10.1080/17538960802076596 File-URL: http://hdl.handle.net/10.1080/17538960802076596 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:1:y:2008:i:2:p:177-190 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_307830_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xiaojuan Jiang Author-X-Name-First: Xiaojuan Author-X-Name-Last: Jiang Title: The determinants and trends of China's exportable structure Abstract: The paper empirically investigates several key factors to determine changes in China's exportable structure. Based on this, it predicts the possible changes of China's export goods, especially of those with high value-added. It concludes that comparative advantage, market structure and the global integration penetration are the three most important factors to determine the exportable structure for each industry in China. Journal: China Economic Journal Pages: 191-202 Issue: 2 Volume: 1 Year: 2008 X-DOI: 10.1080/17538960802076646 File-URL: http://hdl.handle.net/10.1080/17538960802076646 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:1:y:2008:i:2:p:191-202 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_307835_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Michael Funke Author-X-Name-First: Michael Author-X-Name-Last: Funke Author-Name: Ralf Ruhwedel Author-X-Name-First: Ralf Author-X-Name-Last: Ruhwedel Title: Trade, product variety and welfare: a quantitative assessment for mainland China Abstract: We calculate a variety of welfare gains for Mainland China, following the approach of Romer (1994), who emphasized that proper modelling of the impact of trade restrictions on the number of available product varieties is crucial for quantifying the welfare impact of trade liberalization. The empirical work presented relies on direct measures of product variety calculated from highly disaggregated trade data. The emerging conclusion is that freer trade has indeed boosted welfare. Journal: China Economic Journal Pages: 203-212 Issue: 2 Volume: 1 Year: 2008 X-DOI: 10.1080/17538960802076695 File-URL: http://hdl.handle.net/10.1080/17538960802076695 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:1:y:2008:i:2:p:203-212 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_307839_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zhixiong Zeng Author-X-Name-First: Zhixiong Author-X-Name-Last: Zeng Author-Name: Xiaoli Wan Author-X-Name-First: Xiaoli Author-X-Name-Last: Wan Title: Understanding the recent performance of China's stock market Abstract: Employing time-series extrapolation and an out-of-sample forecast based on a bivariate VAR (vector auto-regression), we argue that the current boom of China's stock market represents a recovery that corrects the previous divergence of the stock market from the aggregate economic performance. Nevertheless, we caution that the speed of the recent rise in stock prices is alarming. If the current speed continues, then the stock market will soon become overheated in the sense that the level of stock prices will exceed the level justified by economic fundamentals. Journal: China Economic Journal Pages: 213-225 Issue: 2 Volume: 1 Year: 2008 X-DOI: 10.1080/17538960802076737 File-URL: http://hdl.handle.net/10.1080/17538960802076737 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:1:y:2008:i:2:p:213-225 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_307844_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yong Guo Author-X-Name-First: Yong Author-X-Name-Last: Guo Title: How does economic transition breed corruption? Abstract: Based on the existing literature, this paper discusses the relationship between economic transition and corruption, and argues that economic transition is one of the main roots of the spread of corruption in transitional China. It divides economic transition into four parts, and examines various channels by which economic transition breeds corruption opportunities. By applying the case statistical analysis method to analyze 594 major corruption cases, it finds the most corruption-prone areas, and provides some empirical evidence on the existence of such channels. Journal: China Economic Journal Pages: 227-236 Issue: 2 Volume: 1 Year: 2008 X-DOI: 10.1080/17538960802076786 File-URL: http://hdl.handle.net/10.1080/17538960802076786 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:1:y:2008:i:2:p:227-236 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_307846_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Qiren Zhou Author-X-Name-First: Qiren Author-X-Name-Last: Zhou Title: Inflation pressure and price intervention: an ominous combination Abstract: Of the debate regarding the new round of surging inflation in China, structural opinion interprets inflation as a problem of structural price growth, mainly brought about by a price hike for selected commodities as a result of exogenous shocks from different sectors. In line with the explanation, various measures aiming to control prices have been implemented recently. On the basis of basic economic principles and empirical evidence drawn from four cases, this essay argues that price intervention policies are counter-productive in bringing inflation down. Journal: China Economic Journal Pages: 237-243 Issue: 2 Volume: 1 Year: 2008 X-DOI: 10.1080/17538960802076802 File-URL: http://hdl.handle.net/10.1080/17538960802076802 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:1:y:2008:i:2:p:237-243 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_356939_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: James Laurenceson Author-X-Name-First: James Author-X-Name-Last: Laurenceson Author-Name: Zhao Yong Author-X-Name-First: Zhao Author-X-Name-Last: Yong Title: Efficiency amongst China's banks: a DEA analysis five years after WTO entry Abstract: WTO entry in 2001 heralded a new stage in the reform of China's banking sector. With the reality that foreign banks would be extended national treatment by the end of 2006, China's banks faced the imperative to reform in earnest. They began reforms from a variety of different starting points and have pursued a variety of different reform approaches. Five years on, this paper assesses efficiency levels in 11 of China's most prominent banks. The results, obtained using Data Envelopment Analysis (DEA), suggest that differences in efficiency levels are actually quite small. On the one hand, this finding is encouraging because it suggests that few of China's major banks lag behind the pack. On the other hand, it also implies that efficiency levels almost certainly do lag in China's less prominent banks, which together still account for more than 40% of total banking system assets. Journal: China Economic Journal Pages: 275-285 Issue: 3 Volume: 1 Year: 2008 X-DOI: 10.1080/17538960802567719 File-URL: http://hdl.handle.net/10.1080/17538960802567719 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:1:y:2008:i:3:p:275-285 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_356944_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Joanne Xiaolei Qian Author-X-Name-First: Joanne Xiaolei Author-X-Name-Last: Qian Author-Name: Russell Smyth Author-X-Name-First: Russell Author-X-Name-Last: Smyth Title: Private and public financing of education and regional disparities in education inputs in contemporary China Abstract: Reforms to China's education sector over the last two decades have sought to diversify the sources of funding education. This paper examines the consequences of these reforms for Chinese families and regional disparities in access to education. To illustrate the implications of education reforms for Chinese families, we draw on a large survey of urban residents across 32 Chinese cities as well as a case study of fees charged by a single secondary school in Chengdu. We argue that while China has made progress in moving towards the United Nations objective of ‘Education for All’, decentralization of China's education funding has impeded access to schooling for many, particularly those living in financially disadvantaged locales, and placed an undue financial burden on many ordinary Chinese households. Journal: China Economic Journal Pages: 287-301 Issue: 3 Volume: 1 Year: 2008 X-DOI: 10.1080/17538960802567768 File-URL: http://hdl.handle.net/10.1080/17538960802567768 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:1:y:2008:i:3:p:287-301 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_356945_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Fang-Fang Tang Author-X-Name-First: Fang-Fang Author-X-Name-Last: Tang Author-Name: Jichuan Zong Author-X-Name-First: Jichuan Author-X-Name-Last: Zong Title: Hotel electronic marketing and online price dispersion in mainland China Abstract: This paper examines the hotel online-booking market in China. Information on prices along with three attributes, room type, location, and star rank, have been collected from nine representative online-booking websites. The empirical results show significant relationships between price dispersion and the room attributes. Key findings include: the higher the hotel rank and room type, the larger the price dispersion; the three cities exhibit different price dispersion patterns, and the higher the quality of the room, the larger the price dispersion is affected by location. Journal: China Economic Journal Pages: 303-315 Issue: 3 Volume: 1 Year: 2008 X-DOI: 10.1080/17538960802567776 File-URL: http://hdl.handle.net/10.1080/17538960802567776 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:1:y:2008:i:3:p:303-315 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_356949_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Aaron Mehrotra Author-X-Name-First: Aaron Author-X-Name-Last: Mehrotra Author-Name: José Sánchez-Fung Author-X-Name-First: José Author-X-Name-Last: Sánchez-Fung Title: Forecasting inflation in China Abstract: This paper forecasts inflation in China over a 12-month horizon. The analysis runs 15 alternative models and finds that only those considering many predictors via a principal component display a better relative forecasting performance than the univariate benchmark. Journal: China Economic Journal Pages: 317-322 Issue: 3 Volume: 1 Year: 2008 X-DOI: 10.1080/17538960802567818 File-URL: http://hdl.handle.net/10.1080/17538960802567818 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:1:y:2008:i:3:p:317-322 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_356951_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Friedrich Sell* Author-X-Name-First: Friedrich Author-X-Name-Last: Sell* Title: The new exchange rate policy in the Asian emerging economies – goodbye trouble, hello comfort? Abstract: In this paper, we discuss new aspects of exchange rate policy that can be observed in the Asian emerging economies. In the first place, we show the alternative regimes they may choose and their respective pros and cons. Secondly, we concentrate on the recent strategy of systematic undervaluation of one's currency – figuring prominently among ‘big’ Asian players such as China and India – and the most likely implications of such a strategy for domestic allocation, distribution and stabilization goals. With the background of Germany's experiences in 1969, almost on the eve of the Bretton Woods' system collapse, we model a speculative attack on an undervalued currency in the vein of the Flood–Garber seminal paper from 1984. Now, however, the country in concern (just like India and China) possesses strong rather than weak fundamentals. The continuous accumulation of international reserves, in addition, leads to the question of an ‘optimal management’ of foreign exchange reserves in Asian emerging economies with regard to size and composition. We finally propose a sequence of reforms/policies that should be implemented in those Asian emerging economies on their still long journey to a regime featured by autonomous monetary policy, flexible exchange rate and capital mobility. A brief summary and an outlook for future research close the paper. Journal: China Economic Journal Pages: 323-344 Issue: 3 Volume: 1 Year: 2008 X-DOI: 10.1080/17538960802567834 File-URL: http://hdl.handle.net/10.1080/17538960802567834 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:1:y:2008:i:3:p:323-344 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_358772_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Justin Yifu Lin Author-X-Name-First: Justin Yifu Author-X-Name-Last: Lin Title: Economic thoughts from an East Asian perspective: a conceptual framework of viability and development strategy Abstract: This paper attempts an analytical framework centred on the relationship between the concept of viability and choice of development strategy. On the basis of a critical review on the mainstream literature in economic development, it presents the conceptual framework with an emphasis on elaborating the dichotomy of ‘comparative advantage defying (CAD) strategy’ versus ‘comparative advantage following (CAF) strategy’. Empirical experiences of economic development in China and other East Asian economies in the contemporary era are discussed in the context of the conceptual framework. Journal: China Economic Journal Pages: 245-274 Issue: 3 Volume: 1 Year: 2008 X-DOI: 10.1080/17538960802586040 File-URL: http://hdl.handle.net/10.1080/17538960802586040 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:1:y:2008:i:3:p:245-274 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1274009_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Miaojie Yu Author-X-Name-First: Miaojie Author-X-Name-Last: Yu Title: Introduction to the special issue on firm performance and worker heterogeneity using Chinese Employer-Employee Survey (CEES) dataset Abstract: The Chinese Employer-Employee Survey (CEES) is the first dataset that links firm performance with worker heterogeneity in China, and therefore is a precious data resource for various research topics. This note introduces the CEES dataset, as well as seven papers that serve as the initial step in applying the CEES dataset. The topics covered include interaction between firm-level behavior and worker-level features, for example, firm innovation, quality upgrading, government intervention, worker’s cognitive and non-cognitive abilities, and labor protection. The ample information documented by CEES dataset is worth exploring in the future research agenda. Journal: China Economic Journal Pages: 1-3 Issue: 1 Volume: 10 Year: 2017 Month: 1 X-DOI: 10.1080/17538963.2016.1274009 File-URL: http://hdl.handle.net/10.1080/17538963.2016.1274009 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:10:y:2017:i:1:p:1-3 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1274008_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Wei Tian Author-X-Name-First: Wei Author-X-Name-Last: Tian Author-Name: Miaojie Yu Author-X-Name-First: Miaojie Author-X-Name-Last: Yu Author-Name: Rui Zhang Author-X-Name-First: Rui Author-X-Name-Last: Zhang Title: International trade and firm innovation: patterns and evidence from the Chinese Employer-Employee Survey data Abstract: How international trade fosters firm innovation is crucial in understanding how economic integration boosts productivity growth. This study uses the Chinese Employer-Employee Survey data set, which contains detailed, firm-level information on exports, imports, and innovation. The study documents several stylized facts characterizing the interaction between international trade and innovation among Chinese firms. The main findings are that exporters and importers are exceptional in production and innovation; exporters are more inclined to import material and machinery inputs; domestic and private firms do not seem to be more innovative than their counterparts.Abbreviations: CEES: Chinese Employer-Employee Survey; FIE: Foreign investment enterprise; NBS: National Bureau of Statistics of China; SOE: State-owned enterprise Journal: China Economic Journal Pages: 4-17 Issue: 1 Volume: 10 Year: 2017 Month: 1 X-DOI: 10.1080/17538963.2016.1274008 File-URL: http://hdl.handle.net/10.1080/17538963.2016.1274008 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:10:y:2017:i:1:p:4-17 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1274003_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Dandan Li Author-X-Name-First: Dandan Author-X-Name-Last: Li Author-Name: Ting Tang Author-X-Name-First: Ting Author-X-Name-Last: Tang Author-Name: Dezhuang Hu Author-X-Name-First: Dezhuang Author-X-Name-Last: Hu Author-Name: Feifei Song Author-X-Name-First: Feifei Author-X-Name-Last: Song Author-Name: Lianfa Luo Author-X-Name-First: Lianfa Author-X-Name-Last: Luo Title: The challenge to china’s enterprises from increasing labor costs: the product quality perspective Abstract: Using China Employer–Employee Survey data, this paper investigates the possible heterogeneous results of increasing labor costs of different firms. The paper finds that, unskilled labors have a higher wage growth rate than the skilled labor. Firms with higher product quality employ more skilled labor, and thus are less affected by the increasing labor costs. On the other hand, firms with higher product quality have less elastic demand, which makes it possible for them to increase their prices without demand decreasing. The conclusions are well supported by the data. Therefore, we should treat the challenge of increasing labor cost in a new way. The real challenge of increasing labor cost is greater for low-quality firms. The empirical results suggest that some of the low-quality firms should upgrade their quality to a higher level to offset their labor cost increase.Abbreviations: CEES: China Employer-Employee Survey LP: Labor productivity LTP: Lewis turing point TFP: Total factor productivity Journal: China Economic Journal Pages: 18-33 Issue: 1 Volume: 10 Year: 2017 Month: 1 X-DOI: 10.1080/17538963.2016.1274003 File-URL: http://hdl.handle.net/10.1080/17538963.2016.1274003 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:10:y:2017:i:1:p:18-33 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1274006_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Tang Li Author-X-Name-First: Tang Author-X-Name-Last: Li Author-Name: Pingtian Wang Author-X-Name-First: Pingtian Author-X-Name-Last: Wang Author-Name: Xingyan Liu Author-X-Name-First: Xingyan Author-X-Name-Last: Liu Author-Name: Hong Cheng Author-X-Name-First: Hong Author-X-Name-Last: Cheng Title: Quality-oriented growth: a new trend for Chinese firms Abstract: Based on data from the China Employer-Employee Survey (CEES), this study analyses the actual effect of quality-driven growth on firms’ performances in the economic transition of recent years. The results show positive and significant effects between the firms’ performance and quality-oriented growth, which is defined as a strategy that supports the spirit of greater entrepreneurial innovation, the advancement of input quality, and corporate governance improvement. Using a quality-driven growth mode, firms can effectively relieve the adverse effect of downward macroeconomic growth pressure on performance. This study proposes that China’s macroeconomic policy should shift from demand-oriented management to supply-oriented management, with a particular focus on quality development strategy. Moreover, firms should establish a quality-driven development strategy, facilitating a spirit of entrepreneurial innovation, advancing input quality, and improving corporate governance. This strategy will increase the firm’s performance, and effectively relieve the macroeconomic downward pressure.Abbreviations: CEES: China Employer-Employee Survey, TFP: Total factor productivity Journal: China Economic Journal Pages: 34-46 Issue: 1 Volume: 10 Year: 2017 Month: 1 X-DOI: 10.1080/17538963.2016.1274006 File-URL: http://hdl.handle.net/10.1080/17538963.2016.1274006 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:10:y:2017:i:1:p:34-46 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1273629_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Hongwei Yu Author-X-Name-First: Hongwei Author-X-Name-Last: Yu Author-Name: Wenjin Chen Author-X-Name-First: Wenjin Author-X-Name-Last: Chen Author-Name: Ying Huang Author-X-Name-First: Ying Author-X-Name-Last: Huang Author-Name: Shilei Song Author-X-Name-First: Shilei Author-X-Name-Last: Song Author-Name: Hong Cheng Author-X-Name-First: Hong Author-X-Name-Last: Cheng Title: Understanding the divergence of manufacturing enterprisesʼ profitability in China Abstract: The transition of the Chinese economy is placing increasing pressure on manufacturing enterprises to become more profitable. In this article, we first calculate and analyze the profitability of Chinese manufacturing enterprises based on data from the 2015 Chinese Enterprises–Employees Survey (CEES 2015), and find that there is an obvious profitability divergence tendency of manufacturing enterprises. We then analyze the different actions and strategies that may cause the profitability divergence and find that aggressive strategies in innovation, diversification, market development, and conservative strategies in production expansion tend to result in a good profitability, while the opposite strategies in each action lead a poor profitability. The different adoption of strategies in diverse actions may the possible causes of profitability divergence.Abbreviations: CEES: China Employer-Employee Survey, PGR: Profit growth rate, SME: Small and medium-sized enterprise Journal: China Economic Journal Pages: 47-60 Issue: 1 Volume: 10 Year: 2017 Month: 1 X-DOI: 10.1080/17538963.2016.1273629 File-URL: http://hdl.handle.net/10.1080/17538963.2016.1273629 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:10:y:2017:i:1:p:47-60 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1274004_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Hong Cheng Author-X-Name-First: Hong Author-X-Name-Last: Cheng Author-Name: Dezhuang Hu Author-X-Name-First: Dezhuang Author-X-Name-Last: Hu Author-Name: Chengyu Xu Author-X-Name-First: Chengyu Author-X-Name-Last: Xu Author-Name: Kai Zhang Author-X-Name-First: Kai Author-X-Name-Last: Zhang Author-Name: Hanbing Fan Author-X-Name-First: Hanbing Author-X-Name-Last: Fan Title: Does government paternalistic care promote entrepreneurship in China? Evidence from the China Employer-Employee Survey Abstract: This article examines whether government paternalistic care exerts positive effects on entrepreneurship in China, and the channels through which paternalistic care affects entrepreneurship, using data from the 2015 baseline of the China Employer-Employee Survey (CEES). The data suggests that over 70% of manufacturing firms received at least one type of government paternalistic care, though the distributions are different depending on the firm’s size, ownership, industry, firm and entrepreneur’s age. The empirical analysis indicates that government paternalistic care negatively affects entrepreneurship by diminishing innovation capability. Human capital and imported intermediate goods should be the driving forces for a firm’s development, but government paternalistic care has a counterproductive effect on those two factors, thereby impeding entrepreneurship. The results show that those good intentions have gone awry. The government should gradually terminate its paternalistic policies for firms, and firms need to promote their own solid innovation capability.Abbreviations: CEES: China Employer-Employee Survey SOE: State-owned enterprise Journal: China Economic Journal Pages: 61-75 Issue: 1 Volume: 10 Year: 2017 Month: 1 X-DOI: 10.1080/17538963.2016.1274004 File-URL: http://hdl.handle.net/10.1080/17538963.2016.1274004 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:10:y:2017:i:1:p:61-75 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1274005_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Fan Yu Author-X-Name-First: Fan Author-X-Name-Last: Yu Author-Name: Chu Wang Author-X-Name-First: Chu Author-X-Name-Last: Wang Author-Name: Jun Shen Author-X-Name-First: Jun Author-X-Name-Last: Shen Author-Name: Yuxuan Shi Author-X-Name-First: Yuxuan Author-X-Name-Last: Shi Author-Name: Tang Li Author-X-Name-First: Tang Author-X-Name-Last: Li Title: Effect of cognitive abilities and non-cognitive abilities on labor wages: empirical evidence from the Chinese Employer-Employee Survey Abstract: The existing literature suggests that worker’s cognitive and non-cognitive abilities have a significant impact on wages. However, presently there is little research in this area of ​​China’s labor force, due to scanty data. To this end, this Paper conducted a CEES-based data research, which found that, the cognitive and non-cognitive abilities of male, skilled workers have a greater impact on their wages, as compared with those of the female, unskilled workers. The OLS regression based on the Mincer Wage Equation found that, the impact of non-cognitive abilities on wages is generally larger than that of the cognitive abilities. All cognitive abilities have a positive impact on wages, wherein English proficiency has the greatest elasticity of wages, which is 12.1%. Of all non-cognitive abilities, Conscientiousness has the highest wage elasticity, which is 13.6%, whereas Agreeableness has a negative wage elasticity of −6.32%.Abbreviations: CEES: Chinese Employer-Employee Survey OLS: Ordinary least squares Journal: China Economic Journal Pages: 76-89 Issue: 1 Volume: 10 Year: 2017 Month: 1 X-DOI: 10.1080/17538963.2016.1274005 File-URL: http://hdl.handle.net/10.1080/17538963.2016.1274005 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:10:y:2017:i:1:p:76-89 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1274007_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yue Deng Author-X-Name-First: Yue Author-X-Name-Last: Deng Author-Name: Shiya Huang Author-X-Name-First: Shiya Author-X-Name-Last: Huang Author-Name: Limei Lin Author-X-Name-First: Limei Author-X-Name-Last: Lin Author-Name: Lu Ning Author-X-Name-First: Lu Author-X-Name-Last: Ning Author-Name: Cheng Zhang Author-X-Name-First: Cheng Author-X-Name-Last: Zhang Author-Name: Han Li Author-X-Name-First: Han Author-X-Name-Last: Li Title: Labor rights in Chinese manufacturing firms: an empirical analysis based on the China Employer-Employee Survey data Abstract: Based on the 2015 China Employer-Employee Survey data, this article presents descriptive statistics on collective and individual labor rights in Chinese manufacturing firms. The former includes data about rights pertaining to labor unions and collective bargaining, while the latter includes promotion and remuneration. The main findings are as follows. (1) Although the indicators vary widely in terms of firm-specific characteristics (e.g. size, capital sources, ownership structure, exporting, and industry), the overall protection level of collective labor rights in Chinese manufacturing firms appear to meet accepted levels with 61.45% of firms offering labor unions and 64.93% engaging in collective wage bargaining. (2) While a few employees did not enjoy individual labor rights such as promotions and social security (e.g. 40% workers had no opportunity for promotion), discrimination based on demographical characters (e.g. gender, Hukou, and education level) is not evident for employees’ individual labor rights.Abbreviations: CEES: China Employer-Employee Survey; ILO: International Labor Organization. Journal: China Economic Journal Pages: 90-105 Issue: 1 Volume: 10 Year: 2017 Month: 1 X-DOI: 10.1080/17538963.2016.1274007 File-URL: http://hdl.handle.net/10.1080/17538963.2016.1274007 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:10:y:2017:i:1:p:90-105 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1267925_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Erratum Journal: China Economic Journal Pages: i-i Issue: 1 Volume: 10 Year: 2017 Month: 1 X-DOI: 10.1080/17538963.2016.1267925 File-URL: http://hdl.handle.net/10.1080/17538963.2016.1267925 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:10:y:2017:i:1:p:i-i Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1321222_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jong-Wha Lee Author-X-Name-First: Jong-Wha Author-X-Name-Last: Lee Author-Name: Shujiro Urata Author-X-Name-First: Shujiro Author-X-Name-Last: Urata Author-Name: Yiping Huang Author-X-Name-First: Yiping Author-X-Name-Last: Huang Title: Introduction Journal: China Economic Journal Pages: 107-107 Issue: 2 Volume: 10 Year: 2017 Month: 5 X-DOI: 10.1080/17538963.2017.1321222 File-URL: http://hdl.handle.net/10.1080/17538963.2017.1321222 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:10:y:2017:i:2:p:107-107 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1321212_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Tianyang Xi Author-X-Name-First: Tianyang Author-X-Name-Last: Xi Title: Inclusive institutions and economic growth: comparative perspective and policy implications for China Abstract: This paper examines the empirical relationship between the presence of inclusive institutions and the pattern of economic growth in a cross-country setting. We find evidence that the presence of inclusive institutions, indicated by political democracy, positively affects consumption share. In turn, the increase of the latter in the preceding year is associated with a significantly higher rate of total factor productivity (TFP) growth. The link from democracy to TFP growth via consumption is stronger for countries of higher levels of income. These findings suggest that institutional inclusiveness may have become increasingly important for economic growth when the level of income rises. We also provide preliminary evidence that consumption may have facilitated productivity growth via the channels of increasing innovations and reducing social conflicts. The findings shed lights on the structural transformations toward a more inclusive and sustainable model of growth in China today.Abbreviations: FE: GMM: Generalized method of moments PWT: TFP: Total factor productivity Journal: China Economic Journal Pages: 108-127 Issue: 2 Volume: 10 Year: 2017 Month: 5 X-DOI: 10.1080/17538963.2017.1321212 File-URL: http://hdl.handle.net/10.1080/17538963.2017.1321212 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:10:y:2017:i:2:p:108-127 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1321884_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Arata Kuno Author-X-Name-First: Arata Author-X-Name-Last: Kuno Author-Name: Fukunari Kimura Author-X-Name-First: Fukunari Author-X-Name-Last: Kimura Title: The political economy of preferential trade arrangements: The case of Japan Abstract: Support for open trade regimes varies. We analyze Japanese survey data on individuals' preferences for TPP, unilateral import liberalization, and East Asian economic integration, and compare factors influencing policy preferences. First, despite the massive negative campaigns against TPP, 42.8% of individuals support Japan’s participation in TPP, vs. 21.1% against. Second, economic factors do matter for an individual in determining his/her policy preference over TPP. Third, noneconomic factors such as gender, age, access to accurate information, and attachment to hometown also feature as determinants. Fourth, although preferences over TPP and other policy options are positively correlated, some factors decrease TPP support but do not undermine support for two other less-politicized policy options: lack of access to accurate information and some industry and regional TPP-specific factors. Criticism impacts negatively on FTA policy preferences. Finally, we discuss economic policy implications for relationships between China, Japan, and Korea.Abbreviations: FTA: Free trade agreement; JA: Japan agricultural cooperative; TPP: Trans-Pacific partnership agreement. Journal: China Economic Journal Pages: 128-146 Issue: 2 Volume: 10 Year: 2017 Month: 5 X-DOI: 10.1080/17538963.2017.1321884 File-URL: http://hdl.handle.net/10.1080/17538963.2017.1321884 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:10:y:2017:i:2:p:128-146 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1319630_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Taeyoon Sung Author-X-Name-First: Taeyoon Author-X-Name-Last: Sung Author-Name: Doyeon Kim Author-X-Name-First: Doyeon Author-X-Name-Last: Kim Title: How chaebol restructuring after the 1997 crisis has affected corporate decision and performance in Korea: debt financing, ownership structure, and investment Abstract: Korean chaebol firms, characterized by excessive debt financing and overinvestment, experienced restructuring after the 1997 crisis. By reducing debt financing and thus overinvestment, they tried to reorganize financing structure and ownership structure. Chaebols’ debt reduction turns out to have improved performance. However, polarization between chaebol and non-chaebol firms has become more significant. Even after the crisis, firms that give higher cash flows to a controlling shareholder take more capital investment, indicating that agency problems still exist within chaebols. Chaebol-affiliated firms continue to be more active in R&D than non-chaebol firms. However, the pattern is limited to the group of top 10 chaebols after the crisis.Abbreviations: KFTC: Korea Fair Trade Commission Journal: China Economic Journal Pages: 147-161 Issue: 2 Volume: 10 Year: 2017 Month: 5 X-DOI: 10.1080/17538963.2017.1319630 File-URL: http://hdl.handle.net/10.1080/17538963.2017.1319630 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:10:y:2017:i:2:p:147-161 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1321216_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Tatsuo Hatta Author-X-Name-First: Tatsuo Author-X-Name-Last: Hatta Title: Competition policy vs. industrial policy as a growth strategy Abstract: This paper shows that competition policy, rather than industrial policy, generated the rapid economic growth in post-war Japan. It also reveals that Japan’s growth rate was lowered from the mid-1970s due to newly introduced industrial policies and paucity of further competition policy. The current Abe government recognises the need for competition policies in Japan to recover from the low-growth period. The paper describes the types of competition policy carried out under Abenomics, especially in National Strategic Special Zones.Abbreviations: METI: Ministry of Economy, Trade, and Industry NSSZ: National Strategic Special Zones Journal: China Economic Journal Pages: 162-174 Issue: 2 Volume: 10 Year: 2017 Month: 5 X-DOI: 10.1080/17538963.2017.1321216 File-URL: http://hdl.handle.net/10.1080/17538963.2017.1321216 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:10:y:2017:i:2:p:162-174 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1320047_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Bijun Wang Author-X-Name-First: Bijun Author-X-Name-Last: Wang Author-Name: Xiang Li Author-X-Name-First: Xiang Author-X-Name-Last: Li Title: From world factory to world investor: the new way of China integrating into the world Abstract: This paper argues that outward direct investment (ODI) is replacing international trade as the new way China integrates into the world. Based on two complementary datasets, we document the pattern of Chinese ODI. We argue that the rapid growth of China’s ODI is the result of strong economic development, increasing domestic constraints, and supportive government policies. Compared with trade integration, investment integration involves China more deeply in global business. As a new global investor, China’s ODI in the future is full of opportunities, risks, and challenges. The Chinese government should improve bureaucracy coordination and participate more in designing and maintaining international rules to protect ODI interests. Journal: China Economic Journal Pages: 175-193 Issue: 2 Volume: 10 Year: 2017 Month: 5 X-DOI: 10.1080/17538963.2017.1320047 File-URL: http://hdl.handle.net/10.1080/17538963.2017.1320047 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:10:y:2017:i:2:p:175-193 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1321880_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Minju Jeong Author-X-Name-First: Minju Author-X-Name-Last: Jeong Author-Name: Jihye Kang Author-X-Name-First: Jihye Author-X-Name-Last: Kang Author-Name: Soyoung Kim Author-X-Name-First: Soyoung Author-X-Name-Last: Kim Title: Effects of government spending shocks in China, Japan, and Korea Abstract: This study investigates the effects of government spending shocks on various key macro variables in China, Korea, and Japan using structural VAR models. The main empirical findings are as follows. Government spending multipliers of all three countries are far larger than 1 in recent years. The effectiveness of fiscal expansion has not changed markedly in China but substantially increased in Korea (after the Asian financial crisis) and Japan (during zero lower bound period). Increases in the effectiveness of fiscal expansion are associated with changes in the monetary and exchange rate policy regimes and institutions of these countries. Among the three countries, the government spending multiplier is relatively large in China but relatively small in Japan in recent years. Although the effects on exchange rate and trade balance vary across countries and sample periods, real exchange rate tends to depreciate, whereas trade balance tends to improve under flexible exchange rate regimes. Some empirical findings are consistent with standard theory, but others are not.Abbreviations: NK: New Keynesian VAR: Vector Autoregressive ZLB: Zero Lower Bound Journal: China Economic Journal Pages: 194-225 Issue: 2 Volume: 10 Year: 2017 Month: 5 X-DOI: 10.1080/17538963.2017.1321880 File-URL: http://hdl.handle.net/10.1080/17538963.2017.1321880 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:10:y:2017:i:2:p:194-225 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1319634_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Kwanho Shin Author-X-Name-First: Kwanho Author-X-Name-Last: Shin Title: Capital flow reversals during the taper tantrum in 2013: causes and consequences Abstract: Quantitative easing (QE) conducted by the US Fed during 2009 Q1 to 2013 Q2 expanded capital flows into emerging economies. The possibility of tapering to reduce QE caused the taper tantrum in 2013 that was characterized by sudden capital reversals and drastic exchange rate depreciation in a subset of developing countries. In this paper we investigated factors that drove capital reversals and drastic exchange rate depreciation in the developing countries. We find that actual capital inflows during the QE periods were most responsible for capital reversals thereafter. However, we do not find evidence that capital flow reversals actually contributed to the drastic exchange rate depreciation during the taper tantrum or lowered real GDP growth afterwards. Consistent with previous studies Our findings suggest that pre-emptive measures to prevent excessive capital inflows are crucial to promote the resilience of the economy. The recent experience of Korea that introduced a series of macroprudential measures shows supporting evidence for this view.Abbreviations: EG: Eichengreen and Gupta (2015); IFS: International Financial Statistics; PRS: Park, Ramayandi, and Shin (2016); US Fed: U.S. Federal Reserve System Journal: China Economic Journal Pages: 226-243 Issue: 2 Volume: 10 Year: 2017 Month: 5 X-DOI: 10.1080/17538963.2017.1319634 File-URL: http://hdl.handle.net/10.1080/17538963.2017.1319634 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:10:y:2017:i:2:p:226-243 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1320048_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Masayo Kani Author-X-Name-First: Masayo Author-X-Name-Last: Kani Author-Name: Kazuyuki Motohashi Author-X-Name-First: Kazuyuki Author-X-Name-Last: Motohashi Title: Determinants of demand for technology in relationships with complementary assets among Japanese firms Abstract: There has been growing interest in open innovation by firms creating new value by combining internal and external ideas. Technology insourcing, however, has not been satisfactorily investigated compared to technology outsourcing in empirical literature. In this paper, we examine the determinants of external technology sourcing by types of the counterpart in new product development (NPD). We use a novel dataset at the product level, conducted by RIETI in 2011. We highlight cases in which a technology partner is also a business partner, such as a supplier or customer, from those where this is not the case. In contrast, in cases when a technology partner is not a business partner, patents play an important role in moderating transaction costs in partnerships. In contrast, in cases when a technology partner is also a business partner, we found a pattern of co-specialization of managerial resources with the partner firm.Abbreviations: B2B: Business to business; NPD: New product development; RBV: Resource-based view Journal: China Economic Journal Pages: 244-262 Issue: 2 Volume: 10 Year: 2017 Month: 5 X-DOI: 10.1080/17538963.2017.1320048 File-URL: http://hdl.handle.net/10.1080/17538963.2017.1320048 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:10:y:2017:i:2:p:244-262 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1314650_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Corrigendum Journal: China Economic Journal Pages: 263-263 Issue: 2 Volume: 10 Year: 2017 Month: 5 X-DOI: 10.1080/17538963.2017.1314650 File-URL: http://hdl.handle.net/10.1080/17538963.2017.1314650 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:10:y:2017:i:2:p:263-263 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1370141_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shiyuan Pan Author-X-Name-First: Shiyuan Author-X-Name-Last: Pan Author-Name: Kang Shi Author-X-Name-First: Kang Author-X-Name-Last: Shi Author-Name: Lisheng Wang Author-X-Name-First: Lisheng Author-X-Name-Last: Wang Author-Name: Juanyi Xu Author-X-Name-First: Juanyi Author-X-Name-Last: Xu Title: Excess liquidity and credit misallocation: evidence from China Abstract: China’s M2/GDP ratio continues to rise despite having reached the highest tier in the world, but there is no consensus on its driving forces. In this paper, we investigate this puzzle empirically, using different levels of data. We first estimate the degree of the excess liquidity in China based on cross-country regressions. Our results show that China’s excess liquidity is 50 percent of that implied by the cross-country benchmark. Province-level evidence shows that credit misallocation between state-owned enterprises (SOEs) and private enterprises (PEs) may lead to credit inefficiency and hence generate excess liquidity. We further validate this finding using manufacturing firm-level data, and show that credit misallocation has deteriorated since the Four Trillion Yuan Stimulus Plan since 2008. These facts unveil more challenges for the ongoing deleveraging campaign and SOE reform.. Journal: China Economic Journal Pages: 265-286 Issue: 3 Volume: 10 Year: 2017 Month: 9 X-DOI: 10.1080/17538963.2017.1370141 File-URL: http://hdl.handle.net/10.1080/17538963.2017.1370141 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:10:y:2017:i:3:p:265-286 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1370093_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Richard C. K. Burdekin Author-X-Name-First: Richard C. K. Author-X-Name-Last: Burdekin Author-Name: Ran Tao Author-X-Name-First: Ran Author-X-Name-Last: Tao Title: An empirical examination of factors driving the offshore renminbi market Abstract: Following the 2010 establishment of the offshore renminbi market in Hong Kong, renminbi deposits there quickly rose above RMB 1 trillion. In this article, we examine fluctuations between the offshore value of the renminbi in Hong Kong and its onshore value in mainland China. The size of the spot market spread appears to be influenced by stock market sentiment as reflected in the spread between A-shares listed in Shanghai and H-shares listed in Hong Kong. There is also some evidence of a link between the spread and the pace of renminbi deposit growth in Hong Kong. Journal: China Economic Journal Pages: 287-304 Issue: 3 Volume: 10 Year: 2017 Month: 9 X-DOI: 10.1080/17538963.2017.1370093 File-URL: http://hdl.handle.net/10.1080/17538963.2017.1370093 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:10:y:2017:i:3:p:287-304 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1368903_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Wan-wen Chu Author-X-Name-First: Wan-wen Author-X-Name-Last: Chu Title: Industry policy with Chinese characteristics:a multi-layered model Abstract: Though China has characteristics of a developmental state like those of East Asia, there are evident differences due to China’s scale. Unlike the East Asian model, in which the central government takes charge of industrial policy directly, the Chinese central government formulates the policy and the local governments implement it. Thus, a multi-layered and complex policy structure has been the norm, and considered one of the Chinese characteristics. This paper examines several examples of Chinese industry, and finds that the effectiveness of this model mainly depends upon the way the central and local governments interact. For example, the 2004 automotive industrial policy was successful, because the central-local interactions demonstrated mutual accountability and thus brought policy innovation. After 2004, however, the auto industrial policy became ineffective, when the environment and the central-local relationship changed. It remains to be seen whether relevant parties could improve their coordination to produce a better result. Journal: China Economic Journal Pages: 305-318 Issue: 3 Volume: 10 Year: 2017 Month: 9 X-DOI: 10.1080/17538963.2017.1368903 File-URL: http://hdl.handle.net/10.1080/17538963.2017.1368903 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:10:y:2017:i:3:p:305-318 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1370155_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Min Renne Author-X-Name-First: Min Author-X-Name-Last: Renne Title: Location determinant and MNE’s performance: A modeling test in the China’s automobile industry Abstract: This paper argues that the location strategy is an important successful condition for multinational enterprise’s investment in China. We conduct a location–performance model for multinationals in China, which is tested using a structural equation modeling approach on a sample of 216 joint ventures of automobile multinational enterprises in China. We find that the relationship between the location determinant and multinational performance is significant and positive, and which is supported by the local partner’s performance. Journal: China Economic Journal Pages: 319-340 Issue: 3 Volume: 10 Year: 2017 Month: 9 X-DOI: 10.1080/17538963.2017.1370155 File-URL: http://hdl.handle.net/10.1080/17538963.2017.1370155 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:10:y:2017:i:3:p:319-340 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1370158_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Amanjot Singh Author-X-Name-First: Amanjot Author-X-Name-Last: Singh Author-Name: Manjit Singh Author-X-Name-First: Manjit Author-X-Name-Last: Singh Title: Co-movement and spillovers: empirical evidence from BRIC equity markets Abstract: A higher degree of co-movement and spillover effects among different asset classes undermine portfolio diversification benefits. In this regard, the present study attempts to capture dynamic co-movement and return-volatility spillover effects among the most promising emerging equity markets, i.e. Brazil, Russia, India and China in a multivariate framework by employing VAR-ABEKK and VAR-DCC-AGARCH (1,1) models. To further comprehend the behaviour of the correlation coefficients during the global financial crisis period (2007–2009), heat map and Markov regime switching model (two regimes with a switch at ‘mean’ level only) have been used. The results report that the BRIC equity markets do not share a common stochastic trend in the long run. There is strong evidence of market shocks to volatility, volatility to volatility and negative shocks to volatility spillover effects among the BRIC markets. Overall, the BRIC markets are partially integrated with each other, thereby making them stronger investment candidates. Journal: China Economic Journal Pages: 341-361 Issue: 3 Volume: 10 Year: 2017 Month: 9 X-DOI: 10.1080/17538963.2017.1370158 File-URL: http://hdl.handle.net/10.1080/17538963.2017.1370158 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:10:y:2017:i:3:p:341-361 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1370170_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Kazimierz Poznanski Author-X-Name-First: Kazimierz Author-X-Name-Last: Poznanski Title: Confucian economics: how is Chinese thinking different? Abstract: The Chinese have their economics. Not yet acknowledged, it is contained in the Confucian thought. Called by me ‘Confucian economics’, it sharply differs from the Western ‘Liberal economics’. Individuals seek posterity through offspring, rather than ‘instant gratification’. Resources are not seen as scarce but as abundant. Rather than take resources from others, people work to make a living. The work ethics and not the profit margin is a key motive. Individuals work not for themselves but for their family. The family is a source of moral sentiment, understood as responsibility for others. This is why the main institution is family and not market. To Confucians, the key principle is equality, which precedes efficiency. Inequality upsets ‘social peace’, as a precondition for growth. Built on Liberal principles, the Western capitalist system is a market one. The Chinese system, which I call ‘Confucian system’, is also market-based. The former is a ‘free market’ animated by individuals, the latter is a ‘familial market’ built around households. Both approaches advocate ‘minimal state’, but for Liberals the state is a ‘night watchman’ to ensure the security of resources, while for Confucians, the state is a moral guide to enable social harmony. As a theory, Confucian economics is a form of ethics and the Liberal is not. China has never abandoned Confucianism. The recent reforms are not about rolling back the Soviet model to establish a capitalist system. Relying on Confucian economics, China is reviving Confucian system. Paradoxically, the ancient Confucian economics has become the engine of China’s modernity. This is a key reason for China’s ‘longest boom’. To extend it, China needs to refocus its policies from ‘capital formation’ to the ‘moral cultivation’, along the Confucian principles. Journal: China Economic Journal Pages: 362-384 Issue: 3 Volume: 10 Year: 2017 Month: 9 X-DOI: 10.1080/17538963.2017.1370170 File-URL: http://hdl.handle.net/10.1080/17538963.2017.1370170 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:10:y:2017:i:3:p:362-384 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1380337_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Editorial Board Journal: China Economic Journal Pages: ebi-ebi Issue: 3 Volume: 10 Year: 2017 Month: 9 X-DOI: 10.1080/17538963.2017.1380337 File-URL: http://hdl.handle.net/10.1080/17538963.2017.1380337 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:10:y:2017:i:3:p:ebi-ebi Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1412101_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yiping Huang Author-X-Name-First: Yiping Author-X-Name-Last: Huang Title: Proactively and steadily advancing China’s financial opening Abstract: Should China continue to open its financial system? Our answer to this question is positive since financial opening is necessary for supporting economic innovation, containing financial risks and participating in international economic governance. However, the needs some new ideas in devising next-stage financial opening policies including replacing the experimental approach by more systemic method and top-level design, combining ‘using reform to assist opening’ and ‘promoting reform through opening’, and taking into full account of the spillover effects of Chinese financial policies. Finally, we make policy recommendations in seven key areas, including enforcing better policy coordination, devising macro-prudential regulations, increasing exchange rate flexibility, opening the domestic financial markets, relaxing restrictions on businesses of foreign financial institutions, improving external financing cooperation and adopting prudent cross-border capital flow management. Journal: China Economic Journal Pages: 1-13 Issue: 1 Volume: 11 Year: 2018 Month: 1 X-DOI: 10.1080/17538963.2018.1412101 File-URL: http://hdl.handle.net/10.1080/17538963.2018.1412101 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:11:y:2018:i:1:p:1-13 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1415792_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yuyan Zhang Author-X-Name-First: Yuyan Author-X-Name-Last: Zhang Author-Name: Weijiang Feng Author-X-Name-First: Weijiang Author-X-Name-Last: Feng Author-Name: Wei Liu Author-X-Name-First: Wei Author-X-Name-Last: Liu Title: China and the current international strategic environment Abstract: This report argues that the current international strategic environment is beneficial for the continuation of China’s modernisation process. In terms of peace, although world peace can be maintained, international security threats have become diverse and complex. In terms of development, traditional development models face increasing challenges. Green, inclusive, and sustainable development paths are urgently needed. In terms of governance, institutions of global governance are incapable of adapting to constant change, which calls for substantial reform of the existing system. Therefore, China is currently evolving towards actively taking initiative in the creation of endogenous strategic opportunities, instead of passively relying on exogenous opportunities. China should explore more inclusive means of development and promote a new model of international coordination to create a free, open and inclusive international order that serves the common interests of the international society. Journal: China Economic Journal Pages: 14-24 Issue: 1 Volume: 11 Year: 2018 Month: 1 X-DOI: 10.1080/17538963.2018.1415792 File-URL: http://hdl.handle.net/10.1080/17538963.2018.1415792 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:11:y:2018:i:1:p:14-24 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1411057_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zhu Min Author-X-Name-First: Zhu Author-X-Name-Last: Min Author-Name: Chen Weidong Author-X-Name-First: Chen Author-X-Name-Last: Weidong Author-Name: Zhou Jingtong Author-X-Name-First: Zhou Author-X-Name-Last: Jingtong Author-Name: Gai Xinzhe Author-X-Name-First: Gai Author-X-Name-Last: Xinzhe Author-Name: Xiong Qiyue Author-X-Name-First: Xiong Author-X-Name-Last: Qiyue Title: The development of China’s financial system: a global perspective Abstract: China’s financial sector has undergone remarkable changes since the implementation of the reform and opening-up policy. China’s finance sector is playing a more and more important role in the world’s financial system: once a ‘support act’, China has now taken to the international stage as a leading figure. The development of China’s financial sector is prominent worldwide with financial institutions increasing dramatically in both number and variety, and the scale of financial assets expanding at an astounding rate. Globally, China’s banking sector ranks largest in size, the market value of the stock market second, and the balance value of the bond market and the premium revenue of the insurance industry third. China has become one of the leading countries in the development of the financial market. Journal: China Economic Journal Pages: 25-43 Issue: 1 Volume: 11 Year: 2018 Month: 1 X-DOI: 10.1080/17538963.2018.1411057 File-URL: http://hdl.handle.net/10.1080/17538963.2018.1411057 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:11:y:2018:i:1:p:25-43 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1416770_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jun Zhu Author-X-Name-First: Jun Author-X-Name-Last: Zhu Author-Name: Kai Guo Author-X-Name-First: Kai Author-X-Name-Last: Guo Author-Name: Ming Ai Author-X-Name-First: Ming Author-X-Name-Last: Ai Author-Name: Yue Zhao Author-X-Name-First: Yue Author-X-Name-Last: Zhao Author-Name: Xuefei Bai Author-X-Name-First: Xuefei Author-X-Name-Last: Bai Title: The further opening up of China’s financial sector Abstract: Since the introduction of reform and opening-up policies, China has made great progress through a continued focus on the ‘troika’, the opening up of the financial sector, a market-oriented exchange rate regime, and the relaxation of foreign exchange regulation. In spite of this progress, the relative openness of China’s financial sector remains fairly low. Foreign financial institutions have a relatively small market share in China and still face restrictions regarding ownership and scope of business, the breadth and depth of financial market is to be further developed, and institutional environment requires further improvements in areas such as accounting, auditing, and taxation. In this next phase of development, China should continue to pursue coordinated progress in the ‘troika’, further open up financial sector through adopting Pre-establishment National Treatment (PENT) and a negative list, and step up risk prevention in the meantime. Journal: China Economic Journal Pages: 44-52 Issue: 1 Volume: 11 Year: 2018 Month: 1 X-DOI: 10.1080/17538963.2018.1416770 File-URL: http://hdl.handle.net/10.1080/17538963.2018.1416770 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:11:y:2018:i:1:p:44-52 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1411070_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zhang Bin Author-X-Name-First: Zhang Author-X-Name-Last: Bin Title: Towards a floating RMB exchange rate regime Abstract: The main challenge of China’s current exchange rate regime is that with large and frequent interventions, the RMB exchange rate cannot adequately respond to the changes in economic fundamentals. This will lead to unilateral exchange rate expectations and large-scale capital inflows or outflows. In addition, large and frequent foreign exchange market interventions have a negative impact on economic structural optimisation, RMB internationalisation, and foreign investment. Two strategies can be used to introduce a floating exchange rate system: one is a free-floating exchange rate, and the other is wide range fluctuation against a basket of currencies. The latter is a transitional option before introduction of the former: a free-floating exchange rate. Journal: China Economic Journal Pages: 53-60 Issue: 1 Volume: 11 Year: 2018 Month: 1 X-DOI: 10.1080/17538963.2018.1411070 File-URL: http://hdl.handle.net/10.1080/17538963.2018.1411070 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:11:y:2018:i:1:p:53-60 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1411072_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Guan Tao Author-X-Name-First: Guan Author-X-Name-Last: Tao Title: Management of China’s cross-border capital flows Abstract: Since the turn of the century, especially since the global fiscal crisis in 2008, China’s process of capital account opening and RMB internationalization has begun to accelerate, and financial openness has improved significantly. However, due to the pressure of large-scale capital outflow over the last two years, the government has adopted a policy combination of exchange rate management, market intervention, and capital flow management. The liberalization and management of cross-border capital flow are closely linked. Based on current trends of China’s cross-border capital flows management, macro-management and micro-regulation should be distinguished in the future to construct a dual-pillar framework. In addition, cross-border capital flows management, especially capital controls, should be temporary measures. If used reasonably, they can buy some time for other reforms and adjustments. Journal: China Economic Journal Pages: 61-70 Issue: 1 Volume: 11 Year: 2018 Month: 1 X-DOI: 10.1080/17538963.2018.1411072 File-URL: http://hdl.handle.net/10.1080/17538963.2018.1411072 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:11:y:2018:i:1:p:61-70 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1412103_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zhong Xu Author-X-Name-First: Zhong Author-X-Name-Last: Xu Author-Name: Yingwei Tang Author-X-Name-First: Yingwei Author-X-Name-Last: Tang Author-Name: Yuanyuan Cao Author-X-Name-First: Yuanyuan Author-X-Name-Last: Cao Title: Promoting China’s financial market reform and innovation with opening-up policies Abstract: Market-oriented development philosophy and international financial market practices are key drivers for the prosperity of China’s financial market. Now China’s financial market has evolvedto a vast market that global investors cannot ignore.Compared to international developed markets, openness of China’s financial market is lack of coordination among sub-markets as well as absence of a harmonized means of opening-up. In foreseeable future, promoting development of the China’s financial market with opening-up policies will be a necessity for strengthening China’s competitiveness in the international market. China must take initiatives, adopt an inclusive and cooperative attitude to financialaffairs, and adjust its self-focused strategy of opening up. By adapting to international conventions and the best practices, China will gradually play acentral role in the international financial architecture, leading to an improved pattern of domestic reform and opening-up. Journal: China Economic Journal Pages: 71-80 Issue: 1 Volume: 11 Year: 2018 Month: 1 X-DOI: 10.1080/17538963.2018.1412103 File-URL: http://hdl.handle.net/10.1080/17538963.2018.1412103 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:11:y:2018:i:1:p:71-80 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1416775_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jun Zhu Author-X-Name-First: Jun Author-X-Name-Last: Zhu Author-Name: Kai Guo Author-X-Name-First: Kai Author-X-Name-Last: Guo Author-Name: Ming Ai Author-X-Name-First: Ming Author-X-Name-Last: Ai Author-Name: Xuefei Bai Author-X-Name-First: Xuefei Author-X-Name-Last: Bai Author-Name: Yue Zhao Author-X-Name-First: Yue Author-X-Name-Last: Zhao Title: Building China’s framework for overseas investment and financing cooperation Abstract: In recent years, China’s overseas investment and construction projects have been developing rapidly. In the meantime, financing demand in developing and emerging economies for projects such as infrastructural and industrial development has soared. This paper assesses the status quo of China’s cooperation in overseas investment and financing, recommends that China should promote investment and financing cooperation under the leading principles of market-orientated operation and primary role of enterprises, and clarify the due positions of market, government, and international institutions. This paper presents the following policy recommendations: (1) Promoting the development financing; (2) Further improving China’s export credit mechanism, to provide investment and financing support for Chinese enterprises in overseas ventures; (3) Improving the network of Chinese financial institutions and the coverage of financial services; (4) Encouraging host countries, multilateral development banks, capital markets of developed economies, and international financial centers to perform due functions in overseas investment and financing cooperation; and (5) Appropriately using a variety of investment and financing methods, including equity investment. Journal: China Economic Journal Pages: 81-89 Issue: 1 Volume: 11 Year: 2018 Month: 1 X-DOI: 10.1080/17538963.2018.1416775 File-URL: http://hdl.handle.net/10.1080/17538963.2018.1416775 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:11:y:2018:i:1:p:81-89 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1449445_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jiajun XU Author-X-Name-First: Jiajun Author-X-Name-Last: XU Author-Name: Paul Hubbard Author-X-Name-First: Paul Author-X-Name-Last: Hubbard Title: A flying goose chase: China’s overseas direct investment in manufacturing (2011–2013) Abstract: This paper examines whether rising wages have driven Chinese manufacturers to make foreign direct investment abroad to reduce the costs of production. We match the Chinese Ministry of Commerce’s register of Overseas Direct Investments with China’s Industrial Enterprise Survey data from 2011 to 2013 and annual average wage data for prefecture-level cities. Although high-income developed economies are the preferred destinations for Chinese manufacturing investment abroad, labor-intensive light manufacturing sectors related to the textiles, clothing and leather industries are focused on the low-income countries – consistent with a ‘flying goose’ effect. But, these are only a small part of the Chinese investment – account for 6% of the number of matched official ODI registrations. Yet, it might be still too early to observe that rising factor prices are systematically driving investments offshore. Journal: China Economic Journal Pages: 91-107 Issue: 2 Volume: 11 Year: 2018 Month: 5 X-DOI: 10.1080/17538963.2018.1449445 File-URL: http://hdl.handle.net/10.1080/17538963.2018.1449445 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:11:y:2018:i:2:p:91-107 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1453103_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ernest Boffy-Ramirez Author-X-Name-First: Ernest Author-X-Name-Last: Boffy-Ramirez Author-Name: Soojae Moon Author-X-Name-First: Soojae Author-X-Name-Last: Moon Title: The role of China’s household registration system in the urban-rural income differential Abstract: Together with the rapid growth of the Chinese economy, there has been a growing divide between the earnings of urban and rural residents. This paper focuses on China’s household registration system, or ‘hukou’, as a potential source of the earnings gap. Using multiple waves of data from the China Health and Nutrition Survey from 1993 to 2011, we take advantage of variation in hukou status generated by individual-level changes. We control for fixed individual-specific characteristics that determine earnings and estimate an urban hukou ‘premium’. Urban hukou holders earn almost 30% more than rural hukou holders, but after we account for individual fixed characteristics, the urban hukou premium drops to 6–8%. We also find important differences between men and women. The empirical evidence indicates the hukou system is a component of the urban-rural earnings differential, but its importance should not be overstated. The elimination of the hukou system alone cannot address long-standing inequities in access to social services between rural and urban populations. Journal: China Economic Journal Pages: 108-125 Issue: 2 Volume: 11 Year: 2018 Month: 5 X-DOI: 10.1080/17538963.2018.1453103 File-URL: http://hdl.handle.net/10.1080/17538963.2018.1453103 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:11:y:2018:i:2:p:108-125 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1469319_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Feng Lu Author-X-Name-First: Feng Author-X-Name-Last: Lu Author-Name: Xiaoguang Liu Author-X-Name-First: Xiaoguang Author-X-Name-Last: Liu Title: Africa’s industrialization and China’s OFDI in the manufacturing sector: rationales and practices Abstract: The article examines the rationales and practices for three types of manufacturing outward foreign direct investment (OFDI) into Africa in the context of the cooperation between Africa’s industrialization and China’s OFDI on manufacturing. African economies have achieved impressive growth in the new century, but sustainable economic growth in this vast continent is still constrained by lagging industrialization and weak manufacturing sector. While China’s economy has made great achievements in Gross Domestic Product growth and poverty reduction, it witnessed hikes of factor price such as wage, land and exchange rate at varying degrees in the recent decade, imposing pressure on economic restructuring. Against the background, the new trend of Chinese manufacturing OFDI provides new opportunities for Africa to solve structural problems of weak manufacturing. Policy implications of this study on China–Africa industrial capacity cooperation are briefly discussed. Journal: China Economic Journal Pages: 126-150 Issue: 2 Volume: 11 Year: 2018 Month: 5 X-DOI: 10.1080/17538963.2018.1469319 File-URL: http://hdl.handle.net/10.1080/17538963.2018.1469319 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:11:y:2018:i:2:p:126-150 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1458431_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Qi Dong Author-X-Name-First: Qi Author-X-Name-Last: Dong Author-Name: Tomoaki Murakami Author-X-Name-First: Tomoaki Author-X-Name-Last: Murakami Author-Name: Yasuhiro Nakashima Author-X-Name-First: Yasuhiro Author-X-Name-Last: Nakashima Title: Recalculating the agricultural labor force in China Abstract: In this study, we use a hypothetical method to recalculate the agricultural labor force based on statistical data on the labor force in China. We confirm the revised agricultural labor force data by estimating the agricultural production function. Through comparing the marginal labor productivity with the subsistence level of wages in the agricultural sector, we find that the overstated figures of agricultural labor force not only result in the underestimation of agricultural labor productivity but also are misleading by indicating that China reaches the Lewis turning point later than in actuality. The process of labor transfer in China, a large part of which is through rural migrant workers, has been much faster than expected. Journal: China Economic Journal Pages: 151-169 Issue: 2 Volume: 11 Year: 2018 Month: 5 X-DOI: 10.1080/17538963.2018.1458431 File-URL: http://hdl.handle.net/10.1080/17538963.2018.1458431 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:11:y:2018:i:2:p:151-169 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1458391_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: J.M. Albala-Bertrand Author-X-Name-First: J.M. Author-X-Name-Last: Albala-Bertrand Title: Industrial interdependence: China 1995–2010 Abstract: The present article focuses on inter-industrial activity via a useful decomposition of the input-output model and deals with the changes of domestic industrial/sectoral backward and forward linkages (i.e. the pull and push of the economy) as well as the changes in their domestic and imported components (i.e. via import substitution/penetration) over the 1995–2010 period. There are three distinctive periods of import substitution/import penetration, which seem to correspond to the East-Asian crisis of 1997 and the global crisis of 2008 as well as the main reform and policies of the periods. The secondary and tertiary sectors show a positive increase in both the pull of backward linkages and the push of forward linkages, showing important levels of absolute import substitution. This is especially true for the pull of light and heavy industry on the economy and secondarily for domestic trade, heavy industry becoming the main engine of the economy by far. Journal: China Economic Journal Pages: 170-193 Issue: 2 Volume: 11 Year: 2018 Month: 5 X-DOI: 10.1080/17538963.2018.1458391 File-URL: http://hdl.handle.net/10.1080/17538963.2018.1458391 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:11:y:2018:i:2:p:170-193 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1449594_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Fan Feng Author-X-Name-First: Fan Author-X-Name-Last: Feng Author-Name: Ravi S. Sharma Author-X-Name-First: Ravi S. Author-X-Name-Last: Sharma Title: Modeling the migration of cultural goods: a macro-economic study of domestic Chinese cinema Abstract: This article investigates the migration of cultural goods such as movies in the burgeoning commercial exhibition marketplace of China. Based on prior research on the movie industry and theatrical releases, this empirical study models the dynamic relationships between cinema attendance and the number of cinema screens in response to consumer mindset shifts in terms of predetermined and exogenous variables. These relationships are established and estimated by applying the Vector Auto-Regression (VAR) and Seemingly Unrelated Regressions (SUR) techniques. The regression analyses are executed over 96 observations spanning from May 2005 to April 2013. A key empirical finding is that cultural goods such as movies are affected by a variety of market and economic factors. Another significant finding is that income and admission price will not significantly affect the Chinese cinema-goers’ consumption behaviors, whereas they may alter the market expectation of the exhibitors. In recent years, the prevalence of Internet options has further promoted a more competitive market of choice, quality, and prices. This is an area worthy of further scholarly investigation. Journal: China Economic Journal Pages: 194-223 Issue: 2 Volume: 11 Year: 2018 Month: 5 X-DOI: 10.1080/17538963.2018.1449594 File-URL: http://hdl.handle.net/10.1080/17538963.2018.1449594 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:11:y:2018:i:2:p:194-223 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1344423_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Erratum Journal: China Economic Journal Pages: 224-224 Issue: 2 Volume: 11 Year: 2018 Month: 5 X-DOI: 10.1080/17538963.2017.1344423 File-URL: http://hdl.handle.net/10.1080/17538963.2017.1344423 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:11:y:2018:i:2:p:224-224 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1529876_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yan Shen Author-X-Name-First: Yan Author-X-Name-Last: Shen Title: Forty years of Open and Reform: in restrospect and in prospect Journal: China Economic Journal Pages: 225-227 Issue: 3 Volume: 11 Year: 2018 Month: 9 X-DOI: 10.1080/17538963.2018.1529876 File-URL: http://hdl.handle.net/10.1080/17538963.2018.1529876 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:11:y:2018:i:3:p:225-227 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1516274_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yang Yao Author-X-Name-First: Yang Author-X-Name-Last: Yao Title: An Anatomy of the Chinese selectocracy Abstract: The Chinese regime is a self-contained polity that is best described by selectocracy, i.e. a polity that selects officials by a centralized mechanism. The Chinese Communist Party (CCP) is the selectorate. Throughout the process of reform, the party has been de-politicized, so the central government has become disinterested with regard to the conflicts in society, which enables it to adopt identity-blind and growth-enhancing policies. The selectoracy’s selection process is open, competitive and meritocratic. It puts more emphasis on responsibility, not accountability, as incentive to illicit performance from local officials. This ensures that the central government’s policies are carried out in the country. Journal: China Economic Journal Pages: 228-242 Issue: 3 Volume: 11 Year: 2018 Month: 9 X-DOI: 10.1080/17538963.2018.1516274 File-URL: http://hdl.handle.net/10.1080/17538963.2018.1516274 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:11:y:2018:i:3:p:228-242 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1509529_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Cai Fang Author-X-Name-First: Cai Author-X-Name-Last: Fang Title: Population dividend and economic growth in China, 1978–2018 Abstract: China witnessed important demographic transitions during the past 40 years. The significant decline in fertility rate, as a result of both policy change and economic factors, generated the so-called population dividends – rising proportion of working age population – during the past several decades. This paper demonstrates important channels through which broadly defined population dividends contribute to economic growth in China, by magnifying roles of capital, by improving labor quality, alongside increases in labor supply, and by strengthening labor mobility. As population aging now takes over from population dividends as the main demographic trend, it is possible for China to continue its strong growth by focusing on both the traditional growth factors, such as further reducing the proportion of agricultural workers, and new growth factors, such as further improving productivity by strengthening human capital and weakening institutional obstacles. Journal: China Economic Journal Pages: 243-258 Issue: 3 Volume: 11 Year: 2018 Month: 9 X-DOI: 10.1080/17538963.2018.1509529 File-URL: http://hdl.handle.net/10.1080/17538963.2018.1509529 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:11:y:2018:i:3:p:243-258 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1512541_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Liu Shouying Author-X-Name-First: Liu Author-X-Name-Last: Shouying Author-Name: Xiong Xuefeng Author-X-Name-First: Xiong Author-X-Name-Last: Xuefeng Title: China’s rural institutions and governance since the beginning of the rural reform Abstract: This paper looks at how China governs its vast rural territories. The structure of rural governance relies not only on the extent and form of the state’s authority, but also on the principal–agent relationship between the state and local stakeholders, as well as the role of the informal institutional arrangements that serve as the foundation for rural governance. China’s 40 years of reform and opening have led to the transformation of rural China into urban and rural China. The rules and order of informal institutions have evolved and changed significantly, and the cost-benefit structure of formal state governance has been amended. The appropriate rural governance system for village transformation improves the performance of the country’s direct governance and the entrustment–agent system for village governance. Further, the rural governance system balances formal and informal institutions to achieve an effective institutional arrangement. Journal: China Economic Journal Pages: 259-283 Issue: 3 Volume: 11 Year: 2018 Month: 9 X-DOI: 10.1080/17538963.2018.1512541 File-URL: http://hdl.handle.net/10.1080/17538963.2018.1512541 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:11:y:2018:i:3:p:259-283 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1512542_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yu Yongding Author-X-Name-First: Yu Author-X-Name-Last: Yongding Title: The Long-Drawn Process of reform of the Exchange Rate Regime and the Evolution of China’s Exchange Rate Policy Abstract: An inflexible exchange rate not only brings the traditional problem of impossible trinity but also contributes to the formation of China’s irrational international balance of payments structure characterized by the so-called twin surpluses (current account and capital account surpluses). As a result, though China has some 2 trillion USD net foreign assets, it runs investment income deficits for more than a decade. Furthermore, when the RMB is under appreciation pressure, the inflexibility brings about inflows of hot money. When the RMB is under depreciation pressure, the inflexibility facilitates the unwinding of carry trade and capital flights. On the whole, China is too cautious in reforming its exchange rate regime. Instead of designing various cumbersome central parity rate-setting rules, China should make up its mind to float the RMB as soon as possible. Journal: China Economic Journal Pages: 284-300 Issue: 3 Volume: 11 Year: 2018 Month: 9 X-DOI: 10.1080/17538963.2018.1512542 File-URL: http://hdl.handle.net/10.1080/17538963.2018.1512542 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:11:y:2018:i:3:p:284-300 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1516275_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Miaojie Yu Author-X-Name-First: Miaojie Author-X-Name-Last: Yu Title: China’s international trade development and opening-up policy design over the past four decades Abstract: China’s opening-up in the past four decades has gone through three waves: the extensive margin of opening-up (1978–2001), the intensive margin of opening-up (2001–2017), and all-around opening-up (since 2017). This paper explores these three stages of the country’s economic reform. China’s gains from trade have been inspired by different economic factors. Before the turn of the century, the large trade volume was due to the realization of comparative advantage based on the country’s factor endowment. However, after its accession to the World Trade Organization, China’s gains from trade have been due, in large part, to the realization of economic scale effects associated with the larger market. Journal: China Economic Journal Pages: 301-318 Issue: 3 Volume: 11 Year: 2018 Month: 9 X-DOI: 10.1080/17538963.2018.1516275 File-URL: http://hdl.handle.net/10.1080/17538963.2018.1516275 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:11:y:2018:i:3:p:301-318 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1516256_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Tao Liu Author-X-Name-First: Tao Author-X-Name-Last: Liu Author-Name: Wing Thye Woo Author-X-Name-First: Wing Thye Author-X-Name-Last: Woo Title: Understanding the U.S.-China Trade War Abstract: Three major concerns drove the U.S. into initiating the trade war, and they are (a) the concern that China’s chronically large trade surplus was depressing job creation in the U.S. (b) the concern that China was using illegal and unfair methods to acquire U.S. technology at an effectively discounted price; and (c) the concern that China seeks to weaken U.S. national security and its international standing. On the dispute over China’s exchange rate and trade imbalance, the first conclusion is that it was marked by analytical confusion over the meaning of the term ‘equilibrium exchange rate’. The second conclusion is that China’s trade imbalance reflects the economic conditions in both China and U.S., and that the efficient and fair solution of the problem requires policy changes in both countries. On the industrial policy dispute, the first conclusion is that the issue of forced technology transfer is largely a dispute about China using its market power to benefit itself at the expense of its trade partners. The second conclusion is that China’s use of market power can last only until the other large countries could unite and retaliate as a group. The inevitability of retaliation means that China should replace the joint-venture (JV) mechanism for technological diffusion with other ways to strengthen its technological capability. On the U.S. concern about whether China trade weakens its national security, the first conclusion is that the notion of national security that is commonly adopted in the U.S. trade policy debate is ignorant about the primary determinants of U.S. capability in innovation. By focusing instead mainly on how to hold down China technologically, the long-run outcome will be a technologically weaker U.S. and hence, a more vulnerable U.S. The second conclusion is that the U.S. must identify a clear, short list of critical technologies and critical infrastructure for the recently reformed Committee for Foreign Investment in the United States (CFIUS) to cover, and update this list constantly. Otherwise, the broad and changing nature of notions about national security would allow the bureaucratically driven phenomenon of mission-creep to steadily expand the coverage of the CFIUS process, thereby steadily rendering CFIUS to be operationally capricious. Our principal policy suggestion to China is that, because China’s economy in 2018 is very different from that in 1978 (e.g. many parts of China now look like Singapore and China is Africa’s biggest donor), there should be more reciprocity in China’s trade and investment relations with the advanced economies despite China’s status as a developing economy under WTO rules. Our principal policy suggestion to President Trump is to stop equating strategic competition with economic competition. Strategic competition is normally a zero-sum game. While fair economic competition is usually a zero-sum game in the short run, it generally creates a win-win outcome in the long run. Journal: China Economic Journal Pages: 319-340 Issue: 3 Volume: 11 Year: 2018 Month: 9 X-DOI: 10.1080/17538963.2018.1516256 File-URL: http://hdl.handle.net/10.1080/17538963.2018.1516256 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:11:y:2018:i:3:p:319-340 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1560526_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yao Qian Author-X-Name-First: Yao Author-X-Name-Last: Qian Title: Central Bank Digital Currency: optimization of the currency system and its issuance design Abstract: Central Bank Digital Currency (CBDC) contributes to optimizing payment functions of fiat money, reducing reliance on payment services provided by the private sector, alleviating regulatory burdens and pressure on the central bank, and strengthening the authority of fiat money. Moreover, issuance of CBDC helps to address dilemmas of modern monetary policies, including inefficiencies in policy transmission, difficulties in countercyclical control, flow of currency away from the real economy to the virtual economy and inadequate management of policy expectations. This paper proposes a CBDC issuance framework based on forward contingencies. The incorporation of time, sector, and loan rate contingencies in the activation of CBDC will realize real-time transmission of monetary policy, enable targeted supply of money and prevent the currency from circulating beyond the real economy. The economic state contingency makes it possible to exercise countercyclical control of currency. The embedment of these contingencies also enables currency to perform the function of forward guidance. Journal: China Economic Journal Pages: 1-15 Issue: 1 Volume: 12 Year: 2019 Month: 1 X-DOI: 10.1080/17538963.2018.1560526 File-URL: http://hdl.handle.net/10.1080/17538963.2018.1560526 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:12:y:2019:i:1:p:1-15 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1544686_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ming Zhang Author-X-Name-First: Ming Author-X-Name-Last: Zhang Title: China’s efforts to contain Renminbi’s depreciation and the relating impacts Abstract: China began to face Renminbi (RMB) depreciation pressure since 2014Q2, and the 8/11 reform in 2015 exacerbated the RMB depreciation pressure against USD. To contain the depreciation pressure, the People’s Bank of China (PBC) adopted three methods. Firstly, PBC tried to stabilize the exchange rate by selling USD and purchasing RMB, which resulted in the fast shrinking of China’s foreign exchange reserve. Secondly, PBC strengthened the regulation of capital outflows, which caused the stagnation of RMB internationalization. Thirdly, PBC frequently changed the pricing mechanism of the daily fixing of RMB to USD, which led to the reverse of the liberalization of RMB exchange rate. Under the new environment of RMB depreciation pressure and much lower foreign exchange reserve, Chinese government changed its strategies and became more cautious and pragmatic in outward foreign direct investment, RMB internationalization, and Belt & Road Initiative construction. Journal: China Economic Journal Pages: 16-31 Issue: 1 Volume: 12 Year: 2019 Month: 1 X-DOI: 10.1080/17538963.2018.1544686 File-URL: http://hdl.handle.net/10.1080/17538963.2018.1544686 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:12:y:2019:i:1:p:16-31 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1556421_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Tingting Ge Author-X-Name-First: Tingting Author-X-Name-Last: Ge Title: Time-varying transmission efficiency of China’s monetary policy Abstract: This paper tries to investigate the time-varying characteristics of China’s monetary policy transmission from the impulse response evidence of both open-economy DSGE model and TVP-VAR model. We find that the transmission efficiency of price-based monetary policy has significantly improved over the sample period, while quantity-based monetary policy is weakening. The resume of exchange reform in 2010 also strengthens the exchange rate channel especially in terms of price-based monetary policy. Combining with the evidence from DSGE model underlines the importance of further interest rate liberalization and price-based monetary policy Taylor rule should also consider the exchange rate stability. Journal: China Economic Journal Pages: 32-51 Issue: 1 Volume: 12 Year: 2019 Month: 1 X-DOI: 10.1080/17538963.2018.1556421 File-URL: http://hdl.handle.net/10.1080/17538963.2018.1556421 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:12:y:2019:i:1:p:32-51 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1514576_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ahmad Jafari Samimi Author-X-Name-First: Ahmad Author-X-Name-Last: Jafari Samimi Author-Name: Seyed Peyman Asadi Author-X-Name-First: Seyed Peyman Author-X-Name-Last: Asadi Author-Name: Zahra Sheidaei Author-X-Name-First: Zahra Author-X-Name-Last: Sheidaei Title: The international spillover of china’s monetary policy: a case study of a developing country Abstract: This paper aimed to investigate the evidence on the transmission of China’s monetary policy shocks to macroeconomic variables in Iran. Since 1990, China has become one of the main trading partners of Iran; therefore, it is expected that China’s macroeconomic shocks have some consequences on Iran’s Economy. In this study, a structural vector autoregressive model is used to explore such a transmission. The findings of the study reveal that the China’s monetary policy changes significantly affect the Consumer Price Index (CPI) as Iran’s CPI meaningfully increases with the expansion of China’s money supply. Furthermore, it was found that Iran’s other economic variables, including the real GDP, real effective exchange rate, and interest rate, do not significantly reflect the China’s monetary shocks; even though confirm the expected sign and direction. Journal: China Economic Journal Pages: 52-67 Issue: 1 Volume: 12 Year: 2019 Month: 1 X-DOI: 10.1080/17538963.2018.1514576 File-URL: http://hdl.handle.net/10.1080/17538963.2018.1514576 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:12:y:2019:i:1:p:52-67 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1477418_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Qiuzi Fu Author-X-Name-First: Qiuzi Author-X-Name-Last: Fu Author-Name: Sofia B. Villas-Boas Author-X-Name-First: Sofia B. Author-X-Name-Last: Villas-Boas Author-Name: George Judge Author-X-Name-First: George Author-X-Name-Last: Judge Title: Does china income FSDs follow Benford? A comparison between Chinese income first significant digit distribution with Benford distribution Abstract: Since Benford’s law is an empirical phenomenon that occurs in a range of data sets, this raises the question as to whether or not the same thing might be true in terms of the Chinese income distribution data. We focus on the first significant digit (FSD) distribution of Chinese micro income data from the 2005 Inter-Census sample, which corresponds to 1% of Chinese population and other micro income data from the China family panel studies (CFPS) and Chinese General Social Survey (CGSS). We use information theoretic-entropy based methods to investigate the degree to which Benford’s FSD law is consistent with the FSD of Chinese income data and our findings suggest consistency between the Chinese FSD income distribution and Benford’s distribution. The close connection between the two distributions has implications for the quality of the sample of Chinese micro data. Journal: China Economic Journal Pages: 68-76 Issue: 1 Volume: 12 Year: 2019 Month: 1 X-DOI: 10.1080/17538963.2018.1477418 File-URL: http://hdl.handle.net/10.1080/17538963.2018.1477418 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:12:y:2019:i:1:p:68-76 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1543792_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: James Laurenceson Author-X-Name-First: James Author-X-Name-Last: Laurenceson Author-Name: Hannah Bretherton Author-X-Name-First: Hannah Author-X-Name-Last: Bretherton Author-Name: Paul F. Burke Author-X-Name-First: Paul F. Author-X-Name-Last: Burke Author-Name: Edward Wei Author-X-Name-First: Edward Author-X-Name-Last: Wei Title: Chinese investment in Australian infrastructure assets: accounting for local public preferences Abstract: Chinese investment in Australian infrastructure assets can bring economic benefits for both countries. However, it can also create domestic political challenges. This is because Australian public support for foreign investment in infrastructure is limited. In order to better inform public policy and firm decision-making in both China and Australia, this paper undertakes a choice modelling analysis of original survey data to determine the drivers of local public preferences. The Australian public is found to be more concerned by the share of foreign ownership an investment will bring rather than the fact it is from China. Accounting for these preferences, such as through the recruitment of local partner companies, will facilitate Chinese investment in Australian infrastructure, and potentially, greater bilateral engagement on the Belt and Road Initiative. The Australian case might also offer wider lessons for Chinese investment in infrastructure assets abroad. Journal: China Economic Journal Pages: 77-92 Issue: 1 Volume: 12 Year: 2019 Month: 1 X-DOI: 10.1080/17538963.2018.1543792 File-URL: http://hdl.handle.net/10.1080/17538963.2018.1543792 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:12:y:2019:i:1:p:77-92 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1560525_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Andrew Podger Author-X-Name-First: Andrew Author-X-Name-Last: Podger Title: Trade governance of the belt and road initiative Journal: China Economic Journal Pages: 93-96 Issue: 1 Volume: 12 Year: 2019 Month: 1 X-DOI: 10.1080/17538963.2018.1560525 File-URL: http://hdl.handle.net/10.1080/17538963.2018.1560525 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:12:y:2019:i:1:p:93-96 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1616919_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Miaojie Yu Author-X-Name-First: Miaojie Author-X-Name-Last: Yu Title: Introduction to the Special Issue on Understanding the Current China-U.S. ‘Trade War’ Abstract: One of the most important international economic events in 2018 was the China-U.S. “trade war.” With China’s growing role in the worldwide economy and geopolitical impacts, the United States has labeled China as a strategy competitor. This notes briefly introduce the six articles covered in the volume. We highlight the causes and possible economic consequences from the perspectives of the United States, China, Japan, the Europe, and even East Asian countries like Association of Southeast Asian Nations (ASEAN) countries. Journal: China Economic Journal Pages: 97-99 Issue: 2 Volume: 12 Year: 2019 Month: 5 X-DOI: 10.1080/17538963.2019.1616919 File-URL: http://hdl.handle.net/10.1080/17538963.2019.1616919 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:12:y:2019:i:2:p:97-99 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1601811_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jeffrey D. Sachs Author-X-Name-First: Jeffrey D. Author-X-Name-Last: Sachs Title: Will America create a Cold War with China Abstract: American policy towards China is now up for grabs, with hardliners and soft-liners battling for the upper hand. The hardliners view China as an existential threat to American security and interests. The soft-liners regard China as a powerful counterpart, on occasion friend, competitor, or adversary, but not an existential threat. In my view, the hardline approach – to be pursued through protectionist trade policies and aggressive technology policies — would prove disastrous, weakening the world economy and creating a self-fulfilling grave risk of future conflict. Journal: China Economic Journal Pages: 100-108 Issue: 2 Volume: 12 Year: 2019 Month: 5 X-DOI: 10.1080/17538963.2019.1601811 File-URL: http://hdl.handle.net/10.1080/17538963.2019.1601811 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:12:y:2019:i:2:p:100-108 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1608047_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Chad P. Bown Author-X-Name-First: Chad P. Author-X-Name-Last: Bown Title: The 2018 US-China trade conflict after forty years of special protection Abstract: In 2018, the United States suddenly increased tariffs on nearly 50 percent of its imports from China. China immediately responded with tariff retaliation covering more than 70 percent of imports from the United States. This article assesses what happened in 2018 and attempts to explain why. It first constructs new measure of special tariff protection to put the sheer scope and coverage of the 2018 actions into historical context. It then uses the lens provided by the 2018 special tariffs to explain the key sources of economic and policy friction between the two countries. This includes whether China’s state-owned enterprises (SOEs) and industrial subsidies, as well as China’s development strategy and system of forcibly acquiring foreign technology, were imposing increasingly large costs on trading partners. Finally, it also examines whether the US strategy to provoke a crisis – which may result in a severely weakened World Trade Organization (WTO) – was deliberate and out of frustration with the institution itself. Journal: China Economic Journal Pages: 109-136 Issue: 2 Volume: 12 Year: 2019 Month: 5 X-DOI: 10.1080/17538963.2019.1608047 File-URL: http://hdl.handle.net/10.1080/17538963.2019.1608047 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:12:y:2019:i:2:p:109-136 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1603634_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Liugang Sheng Author-X-Name-First: Liugang Author-X-Name-Last: Sheng Author-Name: Hongyan Zhao Author-X-Name-First: Hongyan Author-X-Name-Last: Zhao Author-Name: Jing Zhao Author-X-Name-First: Jing Author-X-Name-Last: Zhao Title: Why will Trump lose the trade war? Abstract: The escalating U.S.–China trade conflicts have increasingly shadowed the outlook of the world economy. The Trump administration aims to achieve its strategic goals including reducing current account deficits, promoting the U.S. manufacturing sector, and curbing Chinese high-tech industries by waging the trade war against China. This paper argues that the current account deficits and the declining manufacturing sector in the U.S. are mainly driven by its internal structural factors, such as low saving rates, high labor costs, and rising service sector, rather than by the import competition from China. Moreover, the trade war further deteriorates the U.S. current account deficits and erode its comparative advantage, and it forces China to invest more in technological innovation and human capital, and thus promote its progress in high-tech industries. Thus, the U.S. will not be able to achieve its strategical goals and eventually lose the trade war. Journal: China Economic Journal Pages: 137-159 Issue: 2 Volume: 12 Year: 2019 Month: 5 X-DOI: 10.1080/17538963.2019.1603634 File-URL: http://hdl.handle.net/10.1080/17538963.2019.1603634 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:12:y:2019:i:2:p:137-159 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1605678_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Miaojie Yu Author-X-Name-First: Miaojie Author-X-Name-Last: Yu Author-Name: Rui Zhang Author-X-Name-First: Rui Author-X-Name-Last: Zhang Title: Understanding the recent Sino-U.S. trade conflict Abstract: To understand Sino-U.S. trade relations, this article interprets the trade imbalance between China and the United States from the Trump administration’s perspective. The Trump administration claims that the Chinese government’s subsidies and high import tariffs cause the Sino-U.S. trade deficit, resulting in job losses in the U.S. The Trump administration therefore argues that imposing high tariffs on Chinese exports can resolve the deficit. The article finds that U.S. statistical accounting overestimates the deficit. Reducing China’s imports cannot increase U.S. employment, and China provides the United States with low-price and high-quality products. Chinese investors tend to invest the surplus by purchasing U.S. Treasury bonds. In addition, the United States limits Chinese investments due to ‘national security’ concerns. China’s upgrading to the high end of the global value chain is a consequence of economic development. Therefore, the two countries should rebalance Sino-U.S. trade by seeking economic and trade cooperation via trade negotiations. Journal: China Economic Journal Pages: 160-174 Issue: 2 Volume: 12 Year: 2019 Month: 5 X-DOI: 10.1080/17538963.2019.1605678 File-URL: http://hdl.handle.net/10.1080/17538963.2019.1605678 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:12:y:2019:i:2:p:160-174 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1598014_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Larry D. Qiu Author-X-Name-First: Larry D. Author-X-Name-Last: Qiu Author-Name: Xing Wei Author-X-Name-First: Xing Author-X-Name-Last: Wei Title: China–US trade: implications on conflicts Abstract: In this study, we examine various aspects of China’s trade, the U.S.’ trade, and the bilateral trade between the two countries. The analysis of each aspect has direct and indirect implications on trade conflicts between the two countries. We focus on important factors, such as the growth of trade, import penetration, increased competitiveness of Chinese firms, comparative advantages of Chinese goods, China’s WTO entry and its compliance, and bilateral trade imbalance. While each of the factors can lead to trade frictions, individual factors will not have led to a large-scale trade war. These factors converge within a brief period and thus can be considered the China shock, thereby making other countries’ adjustments to their economic structures difficult. Therefore, trade frictions are inevitable. Journal: China Economic Journal Pages: 175-194 Issue: 2 Volume: 12 Year: 2019 Month: 5 X-DOI: 10.1080/17538963.2019.1598014 File-URL: http://hdl.handle.net/10.1080/17538963.2019.1598014 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:12:y:2019:i:2:p:175-194 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1603644_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Daniel Trefler Author-X-Name-First: Daniel Author-X-Name-Last: Trefler Title: The China-OECD trade divide: building bridges Abstract: Today’s largest trade frictions stem from differences between China and the OECD regarding the appropriate role of government. There are two types of differences. The first are legitimate attitudinal differences towards industrial policy (the use of subsidies), competition policy (the use of forced industry consolidation), and innovation policy (weak protections of intellectual property). China and the OECD will have to reach an accommodation on these differences if the end game is a rules-based trading system. Accommodation is possible, but unfortunately, both the US and China are adopting bullying tactics that diminish the effectiveness of the WTO and threaten the current rules-based system. The second class of differences is political and reflects China’s intentional lack of policy transparency and its generosity towards favoured firms. These differences will never be WTO compliant and China must either reform or give up its access to OECD markets. Journal: China Economic Journal Pages: 195-207 Issue: 2 Volume: 12 Year: 2019 Month: 5 X-DOI: 10.1080/17538963.2019.1603644 File-URL: http://hdl.handle.net/10.1080/17538963.2019.1603644 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:12:y:2019:i:2:p:195-207 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1611084_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Mari Pangestu Author-X-Name-First: Mari Author-X-Name-Last: Pangestu Title: China–US trade War: an Indonesian perspective Abstract: This paper takes a holistic approach to the effect of US-China trade war on Indonesia. The paper starts by laying out the context of the rise of protectionism and nationalism, comparing developed and developing country context, and its various causes such as unequal distribution of benefits and responses to the rise of China. The new US approach focusing on goods trade deficit, targeting mainly China but also other countries, including Indonesia and it should be seen as a tool to address the real concerns of the US regarding unfair trade, such as technology transfer, industrial subsidies and trade and investment distortions. It also reflects the US view of the inadequacy of the WTO. In terms of direct impact, the US-China trade war is creating uncertainities to global growth and in particular any decline in China’s growth is likely to hit Indonesia and other ASEAN countries given that China has become their number one trading partner. As for benefit from trade diversion and investment relocation to avoid the trade war, given the structure of its exports and lack of integration in the Global Value Chains, Indonesia is unlikely to benefit compared to several other Southeast Asian countries, such as Vietnam. However, any net benefit from this, will far outweigh the cost of the uncertainty in the rules based multilateral trading system (MTS) and the retreat of the US leadership to safeguard the MTS. The paper looks at how the current US unilateralism is framed in a carrot and stick approach, which does not benefit developing countries like Indonesia. To fill the leadership vacuum to maintain an open rules based order, other countries need to take the leadership position. This can be done by pursuing their own unilateral agenda of structural reforms, increasing regional economic integration and take collective leadership to conduct necessary reforms of the WTO especially on issues that are at the heart of the US-China trade war such as industrial subsidies, strengthening IPR, investment issues related to technology transfer, and competition policy and the level playing field. Journal: China Economic Journal Pages: 208-230 Issue: 2 Volume: 12 Year: 2019 Month: 5 X-DOI: 10.1080/17538963.2019.1611084 File-URL: http://hdl.handle.net/10.1080/17538963.2019.1611084 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:12:y:2019:i:2:p:208-230 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1607401_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Laixun Zhao Author-X-Name-First: Laixun Author-X-Name-Last: Zhao Title: Through trade wars, East Asians finally learning to cooperate with each other? Abstract: In this paper, I examine the Sino-U.S. trade disputes from less-talked about angles: institutional differences, SOEs, hukou control and contemporary Chinese history. Based on these, I provide suggestions for future cooperation and improvement. Journal: China Economic Journal Pages: 231-244 Issue: 2 Volume: 12 Year: 2019 Month: 5 X-DOI: 10.1080/17538963.2019.1607401 File-URL: http://hdl.handle.net/10.1080/17538963.2019.1607401 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:12:y:2019:i:2:p:231-244 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1670472_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yanliang Miao Author-X-Name-First: Yanliang Author-X-Name-Last: Miao Author-Name: Tuo Deng Author-X-Name-First: Tuo Author-X-Name-Last: Deng Title: China’s capital account liberalization: a ruby jubilee and beyond Abstract: Since Reform and Opening-up in late 1978, China has gradually opened many parts of its capital account, but the progress has been slower and bumpier than its current account liberalization. We review China’s four decades of capital account opening-up through the lens of three recurring debates. First, how open is China’s capital account and how much more needs to be done? Second, how committed is China to opening its capital account? Third, is China ready, and how to liberalize its capital account further? From China’s experience we draw good, bad, and ‘ugly’ lessons that answer to these three debates, and shed light on China’s capital account policy going forward. We conclude that policymakers are committed to opening up China’s capital account further. With the capital flow management framework upgraded, the challenge lies in coordinating capital account liberalization with financial and exchange rate reforms. The troika of a near-fully open capital account, a flexible exchange rate, and monetary independence best serves China’s long-term interests. Journal: China Economic Journal Pages: 245-271 Issue: 3 Volume: 12 Year: 2019 Month: 9 X-DOI: 10.1080/17538963.2019.1670472 File-URL: http://hdl.handle.net/10.1080/17538963.2019.1670472 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:12:y:2019:i:3:p:245-271 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1656916_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Liqing Zhang Author-X-Name-First: Liqing Author-X-Name-Last: Zhang Author-Name: Yan Zhang Author-X-Name-First: Yan Author-X-Name-Last: Zhang Author-Name: Zhixiao Dong Author-X-Name-First: Zhixiao Author-X-Name-Last: Dong Title: Financial sector opening and financial constraints: an empirical study based on China’s experiences Abstract: The paper investigates the effect of financial sector opening on financial constraints based on the experiences in China. We firstly review the policy of China’s financial sector opening and set up exogenous policy measures. Then based on the panel data of listed firms from 2010 to 2015, we calculate four indices to measure China’s firm-level financial constraints through internal and external finance channels. We find that China’s financial sector opening alleviates financial constraints and upgrades the financing structure for China’s listed firms. Financial sector opening also eliminates ownership discrimination and promotes financing efficiency, to alleviate financial constraints of private enterprises and profitable enterprises. The mechanism of the effects of financial sector opening on financial constrain is mainly through the collateral channels and the elimination of information asymmetry. Journal: China Economic Journal Pages: 272-296 Issue: 3 Volume: 12 Year: 2019 Month: 9 X-DOI: 10.1080/17538963.2019.1656916 File-URL: http://hdl.handle.net/10.1080/17538963.2019.1656916 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:12:y:2019:i:3:p:272-296 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1646953_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Vani Archana Author-X-Name-First: Vani Author-X-Name-Last: Archana Title: The potential impact of China - India free trade agreement on Chinese and Indian industries Abstract: The world’s two largest developing economies, China and India are considering positive negotiations on the Free Trade Agreement, which would pave the way for more trade and a new breakthrough in ties. In this context, the present paper using trade indicators explore, that India and China are in between the ideal trading partners and perfect competitors and the trade relationship between the two economies is more intense than the world average for the partner. A partial equilibrium approach based on highly disaggregated trade data shows that in a scenario where China and India completely open up its markets, there could be huge potential to create an impact on trade and welfare in their specific areas where they enjoy a comparative advantage. Journal: China Economic Journal Pages: 297-315 Issue: 3 Volume: 12 Year: 2019 Month: 9 X-DOI: 10.1080/17538963.2019.1646953 File-URL: http://hdl.handle.net/10.1080/17538963.2019.1646953 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:12:y:2019:i:3:p:297-315 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1591573_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Alexander Nikolaevich Semin Author-X-Name-First: Alexander Nikolaevich Author-X-Name-Last: Semin Author-Name: Alexander Ivanovich Kostyaev Author-X-Name-First: Alexander Ivanovich Author-X-Name-Last: Kostyaev Author-Name: Anatoly Sergeevich Truba Author-X-Name-First: Anatoly Sergeevich Author-X-Name-Last: Truba Author-Name: Vadim Vitalievich Ponkratov Author-X-Name-First: Vadim Vitalievich Author-X-Name-Last: Ponkratov Author-Name: Margarita Viktorovna Gagarina Author-X-Name-First: Margarita Viktorovna Author-X-Name-Last: Gagarina Title: Economic ramifications of China–United States trade war for the Russian Federation Abstract: The purpose of the article was to assess the impact of escalating China-United States trade war on the economic development of such countries as the Russian Federation, Poland, Turkey, Taiwan, Thailand, and South Africa. A cognitive map was developed to describe the general model of economic development of the countries under study, impacted by the trade war, which allowed for substantiation of a qualitative nature of the trade war ramifications in core economic sectors in the countries under consideration. The research results and recommendations are of scientific and practical importance, since they serve as the basis for elaborating further strategies to stem the risks of the escalating trade war to the countries engaged in international trade. Journal: China Economic Journal Pages: 316-335 Issue: 3 Volume: 12 Year: 2019 Month: 9 X-DOI: 10.1080/17538963.2019.1591573 File-URL: http://hdl.handle.net/10.1080/17538963.2019.1591573 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:12:y:2019:i:3:p:316-335 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1591572_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Moussa K. Fall Author-X-Name-First: Moussa K. Author-X-Name-Last: Fall Title: Impact of regional interactions on China’s trade performance: evidence from a spatial econometric approach Abstract: In this paper, we examine the impact of regional interactions on China’s trade performance as supported by infrastructure development, using exports and imports of Chinese-owned and foreign-owned firms disaggregated for 28 provinces. Taking into account the disparities in the regional economic activities, we use five spatial weight matrices in a spatial panel lag and spatial panel error frameworks in the period 1996–2016. The spherical distance and the gasoline usage weight matrices measure the impact of ground connections on China’s trade flows. The nautical miles and the river distance weight matrices measure the impact of maritime and river connections on trade flows for provinces along the sea coast, in the Yangtze valley, and along Zhu river, respectively. We find significant cross border effects on provincial trade flows. The effects vary between areas and firms. Overall, our findings show positive influence of regional interactions on China’s international trade performance. Journal: China Economic Journal Pages: 336-351 Issue: 3 Volume: 12 Year: 2019 Month: 9 X-DOI: 10.1080/17538963.2019.1591572 File-URL: http://hdl.handle.net/10.1080/17538963.2019.1591572 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:12:y:2019:i:3:p:336-351 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1570620_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Qiuzi Fu Author-X-Name-First: Qiuzi Author-X-Name-Last: Fu Author-Name: Sofia B. Villas-Boas Author-X-Name-First: Sofia B. Author-X-Name-Last: Villas-Boas Author-Name: George Judge Author-X-Name-First: George Author-X-Name-Last: Judge Title: Entropy-based China income distributions and inequality measures Abstract: We use information theoretic information recovery methods, on a 2005 sample of household income data from the Chinese InterCensus, to estimate the income distribution for China and each of its 31 provinces and to obtain corresponding measures of income inequality. Using entropy divergence methods, we seek a probability density function solution that is as close to a uniform probability distribution of income (with the least inequality), as the data will permit. These entropy measures of income inequality reflect how the allocation and distribution systems are performing, and we show the advantages of investigating province variation in income inequality using entropy measures rather than Gini coefficients. Finally, we use a sample of data from the China Family Panel Study to recover an estimate of the 2010 and the 2016 to investigate possible directions of inequality changes using these different additional data sources, given that the 2015 Inter-Census is not yet available. Journal: China Economic Journal Pages: 352-368 Issue: 3 Volume: 12 Year: 2019 Month: 9 X-DOI: 10.1080/17538963.2019.1570620 File-URL: http://hdl.handle.net/10.1080/17538963.2019.1570620 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:12:y:2019:i:3:p:352-368 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1710058_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yiping Huang Author-X-Name-First: Yiping Author-X-Name-Last: Huang Title: Special issue: challenges of population ageing in China Journal: China Economic Journal Pages: 1-2 Issue: 1 Volume: 13 Year: 2020 Month: 1 X-DOI: 10.1080/17538963.2019.1710058 File-URL: http://hdl.handle.net/10.1080/17538963.2019.1710058 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:13:y:2020:i:1:p:1-2 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1700608_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Chen Bai Author-X-Name-First: Chen Author-X-Name-Last: Bai Author-Name: Xiaoyan Lei Author-X-Name-First: Xiaoyan Author-X-Name-Last: Lei Title: New trends in population aging and challenges for China’s sustainable development Abstract: Population aging has increasingly become one of the most urgent problems in China. This paper reveals new trends in population aging in China and possible impacts on social and economic development in the future. We find that China will encounter the largest wave of population aging in the next 30 years, characterized by more individuals among the oldest-olds, more empty-nest elderly, and greater elderly dependency. These trends will impose challenges for China’s sustainable development on the supply and demand sides in the long term. Consequently, it is not only necessary to improve the old-age security system, but also to implement more innovative strategies to deepen human resource development, including among the older population. Journal: China Economic Journal Pages: 3-23 Issue: 1 Volume: 13 Year: 2020 Month: 1 X-DOI: 10.1080/17538963.2019.1700608 File-URL: http://hdl.handle.net/10.1080/17538963.2019.1700608 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:13:y:2020:i:1:p:3-23 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1681201_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Guangsu Zhou Author-X-Name-First: Guangsu Author-X-Name-Last: Zhou Author-Name: Gaosi Chu Author-X-Name-First: Gaosi Author-X-Name-Last: Chu Author-Name: Lixing Li Author-X-Name-First: Lixing Author-X-Name-Last: Li Author-Name: Lingsheng Meng Author-X-Name-First: Lingsheng Author-X-Name-Last: Meng Title: The effect of artificial intelligence on China’s labor market Abstract: Automation and artificial intelligence technology have played a pivotal role in today’s economic and social development. They represent a labor-substituted technological progress, featuring more and more jobs to be replaced by AI. Based on the adoption rate calculated in our paper and theoretical substitution probability estimated by existing studies, our research estimates the actual substitution probability by AI for various occupations in China. By using this actual substitution probability on occupation level, we also explore the substitution effects on labor force with different characteristics and find that AI has larger substitution impacts on labors of female, old age, low education and low income. We also predict the number of employed people that would be replaced by AI in each industry, and the results show that China will have 278 million labors (201 ~ 333 million under different adoption rates) replaced by AI by 2049, representing 35.8% of the current employment in China.Abbreviation: Artificial intelligence (AI), internet of things (IoT), Council of Economic Advisers (CEA) Journal: China Economic Journal Pages: 24-41 Issue: 1 Volume: 13 Year: 2020 Month: 1 X-DOI: 10.1080/17538963.2019.1681201 File-URL: http://hdl.handle.net/10.1080/17538963.2019.1681201 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:13:y:2020:i:1:p:24-41 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1681198_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Min Wang Author-X-Name-First: Min Author-X-Name-Last: Wang Author-Name: Xiumei Yu Author-X-Name-First: Xiumei Author-X-Name-Last: Yu Title: Will China’s population aging be a threat to its future consumption? Abstract: Based on the household level survey data, the paper makes a projection on China’s household consumption in 2049 with reasonable assumptions of disposable income, demographic structure, urbanization rate and total population in 2049. The results show that at annual income growth rates of 3%, 4% and 5%, China’s total household consumption in 2049 will be 71.0, 97.8 and 133.8 trillion CNY, respectively, 3.1~5.8 times of the total household consumption in 2015. Moreover, our projection shows that even excluding the income growth effect, the future consumption increased by rapid urbanization is much larger than the consumption depressed by the demographic change. The result highlights that as long as the Chinese government can successfully eliminate institutional constraints imposed on rural-urban migration, such as Hukou system or residency permits in the urban areas, population aging would not be a major threat to its future development. Journal: China Economic Journal Pages: 42-61 Issue: 1 Volume: 13 Year: 2020 Month: 1 X-DOI: 10.1080/17538963.2019.1681198 File-URL: http://hdl.handle.net/10.1080/17538963.2019.1681198 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:13:y:2020:i:1:p:42-61 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1691356_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shuanglin Lin Author-X-Name-First: Shuanglin Author-X-Name-Last: Lin Title: How to reform China’s fiscal system? Abstract: As the population aging, China’s government expenditures, including general fiscal expenditure, healthcare and social security expenditure, will grow more rapidly than government revenues, tending to elevate government debt. Local governments undertake overwhelming 85% of total general fiscal revenue and are responsible for healthcare and social security, and their debt has been growing. Fiscal reforms are imperative, including tax reforms, the structure of government spending reforms, social security reforms, healthcare reforms, local public finance reforms, and central and local government’s fiscal relationship reforms. This paper will explore the fiscal challenges China faces and discuss how to reform the fiscal system to cope with these challenges. Journal: China Economic Journal Pages: 62-81 Issue: 1 Volume: 13 Year: 2020 Month: 1 X-DOI: 10.1080/17538963.2019.1691356 File-URL: http://hdl.handle.net/10.1080/17538963.2019.1691356 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:13:y:2020:i:1:p:62-81 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1591574_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xun Wang Author-X-Name-First: Xun Author-X-Name-Last: Wang Title: Openness, growth convergence and China’s development prospects Abstract: This paper examines China’s long-term growth prospects and the potential drivers of future growth, based on cross-country productivity convergence and China’s featured demographic evolution. In a nonlinear open economy catch-up growth model, per capital GDP growth of the followers depend on that of the leading economy and time varying convergence of the relative per capita GDP. Comparable open economies of China are identified in terms of relative per capita GDP and the historical data of which are used to project China’s trajectory of productivity convergence and then the growth of per capita GDP. Projection shows China’s future GDP growth will gradually descend from 6.6–6.7% (2016–2020) to 2.6–2.7% (2046–2050) in low variant. Predictions under medium and high variants are provided as well. The importance of further opening-up domestic markets, elimination of birth control policies and accumulation of human capital in the process of promoting urbanization are highlighted and have significant implications for the economic restructuring and transformation of China.Abbreviations: ICRG: International Country Risk Guide; IMF: International Monetary Fund Journal: China Economic Journal Pages: 82-108 Issue: 1 Volume: 13 Year: 2020 Month: 1 X-DOI: 10.1080/17538963.2019.1591574 File-URL: http://hdl.handle.net/10.1080/17538963.2019.1591574 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:13:y:2020:i:1:p:82-108 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1700630_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ping Yan Author-X-Name-First: Ping Author-X-Name-Last: Yan Title: Business fixed investment of Chinese manufacturing firms in the post-financial crisis era Abstract: I document the investment decline of Chinese manufacturing firms after 2011, following the end of the 4 trillion fiscal stimulus program and expansionary monetary policies for combating the 2008–2009 financial crisis. I employ a difference-in-difference strategy to show that state-owned enterprises (SOEs) acted as investment stabilizers. In the post-crisis era, SOEs’ investment rates fell less compared to their private counterparts. Moreover, they had a smaller chance of exiting the market than private firms. In the face of monetary tightening, SOEs enjoyed a much smaller increase in the interest rates of their long-term debts. Although these may fuel the growth of the SOE sector relative to the private sector, and thus raised concerns for capital misallocation, the adverse effect on reallocation was dampened by shadow banking. Journal: China Economic Journal Pages: 109-121 Issue: 1 Volume: 13 Year: 2020 Month: 1 X-DOI: 10.1080/17538963.2019.1700630 File-URL: http://hdl.handle.net/10.1080/17538963.2019.1700630 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:13:y:2020:i:1:p:109-121 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1854524_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Publisher’s Note Journal: China Economic Journal Pages: i-i Issue: 2 Volume: 13 Year: 2020 Month: 05 X-DOI: 10.1080/17538963.2020.1854524 File-URL: http://hdl.handle.net/10.1080/17538963.2020.1854524 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:13:y:2020:i:2:p:i-i Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1766201_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jintao Xu Author-X-Name-First: Jintao Author-X-Name-Last: Xu Title: CEJ special issue: policy and regulatory reforms for green economic transition in China Journal: China Economic Journal Pages: ii-vi Issue: 2 Volume: 13 Year: 2020 Month: 05 X-DOI: 10.1080/17538963.2020.1766201 File-URL: http://hdl.handle.net/10.1080/17538963.2020.1766201 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:13:y:2020:i:2:p:ii-vi Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1751454_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Richard Damania Author-X-Name-First: Richard Author-X-Name-Last: Damania Author-Name: Thomas Sterner Author-X-Name-First: Thomas Author-X-Name-Last: Sterner Author-Name: Dale Whittington Author-X-Name-First: Dale Author-X-Name-Last: Whittington Title: Environmental policy instruments and corruption Abstract: In this paper we discuss the choice of taxation or regulation of environmental externalities. The subject might appear to be a well-trodden path, but we believe we have a new angle on this well-established question. We think we are being quite realistic when we assume that corrupt practices lurk behind every corner, threatening to derail the good intents of any regulator. With this starting point we compare the result of trying to impose taxation contra regulation in environments where the implementation in both cases will be marred by corrupt practices of under-reporting emissions and bribing inspectors. In a simple and stylized model of these circumstances we show that taxes tend to perform the same or better in the sense that a pollution tax induces greater compliance and lower pollution than does a regulatory standard. We also show that the advantages of a tax are particularly great in countries where the enforcement ability of authorities is weak, which is commonly thought to be the case in developing countries. Journal: China Economic Journal Pages: 123-138 Issue: 2 Volume: 13 Year: 2020 Month: 05 X-DOI: 10.1080/17538963.2020.1751454 File-URL: http://hdl.handle.net/10.1080/17538963.2020.1751454 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:13:y:2020:i:2:p:123-138 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1755097_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shilei Liu Author-X-Name-First: Shilei Author-X-Name-Last: Liu Author-Name: Yu Liu Author-X-Name-First: Yu Author-X-Name-Last: Liu Author-Name: Lunyu Xie Author-X-Name-First: Lunyu Author-X-Name-Last: Xie Author-Name: Jintao Xu Author-X-Name-First: Jintao Author-X-Name-Last: Xu Title: The environmental improvement under China’s ‘New Normal’ Abstract: The significant environmental improvement in China has drawn much research attention in recent years. However, in exploring the factors that lead to pollution reduction, most literature has ignored the slowing economic growth under the ‘New Normal’ of China. This omission could lead to the overestimation of the pollution reduction effects of other factors. In this paper, we estimate the effect of the economic slowdown using a dynamic Computable General Equilibrium model, CHINAGEM. We find that the contribution of the economic slowdown to pollution reduction ranges from 10% to 30%. This indicates the importance of considering the economic slowdown when evaluating the effects of other factors related to the environmental improvement in China. Journal: China Economic Journal Pages: 139-151 Issue: 2 Volume: 13 Year: 2020 Month: 05 X-DOI: 10.1080/17538963.2020.1755097 File-URL: http://hdl.handle.net/10.1080/17538963.2020.1755097 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:13:y:2020:i:2:p:139-151 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1752494_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Don Roberts Author-X-Name-First: Don Author-X-Name-Last: Roberts Title: Feed-in tariffs for renewable power and the role of auctions: the Chinese & global experience Journal: China Economic Journal Pages: 152-168 Issue: 2 Volume: 13 Year: 2020 Month: 05 X-DOI: 10.1080/17538963.2020.1752494 File-URL: http://hdl.handle.net/10.1080/17538963.2020.1752494 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:13:y:2020:i:2:p:152-168 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1751449_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Nina Khanna Author-X-Name-First: Nina Author-X-Name-Last: Khanna Author-Name: Xu Liu Author-X-Name-First: Xu Author-X-Name-Last: Liu Author-Name: Nan Zhou Author-X-Name-First: Nan Author-X-Name-Last: Zhou Title: International review of ecodesign programs for products and lessons learned for China Abstract: Since the 1980s, ecodesign has emerged as a new guiding principle for integrating environmental aspects into product design and development, with the aim of reducing adverse environmental life-cycle impacts. For China, the concept of ecodesign is becoming important in advancing Chinese industrial development while mitigating the rise in national energy consumption and emissions. We reviewed 28 existing ecodesign labels and supporting programs adopted globally to identify lessons learned and best practices for the development of potential ecodesign labeling programs in China. We find that systematic framework and process and inclusion of various stakeholders in developing criteria, certification requirements and supporting policies in the form of green procurement, small local pilot subsidies, and active outreach and communication are key success factors of international programs. Based on international experiences and by leveraging existing Chinese frameworks for labeling and policies, China has an opportunity to lead in developing broader environmental criteria for a new ecodesign labeling program. Journal: China Economic Journal Pages: 169-199 Issue: 2 Volume: 13 Year: 2020 Month: 05 X-DOI: 10.1080/17538963.2020.1751449 File-URL: http://hdl.handle.net/10.1080/17538963.2020.1751449 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:13:y:2020:i:2:p:169-199 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1754606_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Lu Jin Author-X-Name-First: Lu Author-X-Name-Last: Jin Author-Name: Yuanyuan Yi Author-X-Name-First: Yuanyuan Author-X-Name-Last: Yi Author-Name: Jintao Xu Author-X-Name-First: Jintao Author-X-Name-Last: Xu Title: Forest carbon sequestration and China’s potential: the rise of a nature-based solution for climate change mitigation Abstract: A growing interest has recently been placed on the potential of nature-based solutions to help mitigate climate change, reflecting the importance of natural ecosystems as sources and sinks for greenhouse gases. Forests are of the hot debate – that sequester and also emit carbon dioxide (CO2). In this paper, we estimate the forest carbon sequestration potential for China. We show that, as the government plans, by 2020, the size of China’s forest carbon stock will reach 12.87 billion tons, among which 5.73 billion tons will be from afforestation and reforestation (A/R). From the up-to-date data on AR activities (by 2018), we find that only 80% of the target sinks have been met. Scenario analysis shows that the carbon sequestered by the forests in 2020 is equivalent to 13%-17% of the industrial CO2 emission that year, with 6%-8% by A/R, 4%-6% by forest-management, 3%-4% by reduced-deforestation-and-forest-degradation, and 1% by wood-product-sink. Journal: China Economic Journal Pages: 200-222 Issue: 2 Volume: 13 Year: 2020 Month: 05 X-DOI: 10.1080/17538963.2020.1754606 File-URL: http://hdl.handle.net/10.1080/17538963.2020.1754606 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:13:y:2020:i:2:p:200-222 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1755129_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Chloe Ginsburg Author-X-Name-First: Chloe Author-X-Name-Last: Ginsburg Author-Name: Stephanie Keene Author-X-Name-First: Stephanie Author-X-Name-Last: Keene Title: At a crossroads: consequential trends in recognition of community-based forest tenure from 2002-2017 Abstract: Insecure, contested, and unjust forest tenure arrangements undermine forest investment and protection, fuel conflict, and jeopardize Indigenous Peoples’, local communities’, and indigenous and community women’s rights, livelihoods, and development prospects. While legally recognized community forests tend to have lower rates of deforestation, store more carbon and benefit more people than forests managed by either public or private entities, evidence shows over two-thirds of forests remain controlled by governments – a significant portion of which is contested by indigenous and local communities who traditionally own, manage, and depend on these forests. It is therefore all the more critical that governments support and advance communities’ forest tenure rights. Using longitudinal tenure data and analysis of global forest ownership trends developed by the Rights and Resources Initiative, this article details the distribution of statutory forest rights across 58 countries covering nearly 92% of global forests over the fifteen-year period from 2002–2017. Journal: China Economic Journal Pages: 223-248 Issue: 2 Volume: 13 Year: 2020 Month: 05 X-DOI: 10.1080/17538963.2020.1755129 File-URL: http://hdl.handle.net/10.1080/17538963.2020.1755129 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:13:y:2020:i:2:p:223-248 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1786618_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Serdar Ongan Author-X-Name-First: Serdar Author-X-Name-Last: Ongan Author-Name: Ismet Gocer Author-X-Name-First: Ismet Author-X-Name-Last: Gocer Title: Does trade policy related uncertainty affect international trade? Evidence from the US-China commodity trade Abstract: This study examines the impacts of US and China trade policy uncertainties on the US’s commodity level bilateral trade balances (henceforth, BTBs) with China. To this end, newly created trade policy uncertainty (henceforth, TPU) indexes for both countries are used and the nonlinear ARDL model is applied. Empirical findings indicate that the impacts of US and China TPU indexes on US’s aggregated and disaggregated data BTBs are mostly different. The aggregated data model finds that increases in the US TPU index worsen US’s BTB. However, disaggregated models find ‘improvements’ in 4 and ‘no impacts’ in 3 commodities out of 10. Similarly, while the aggregated data model finds that increases in China’s TPU index improves US’s BTB, disaggregated models find ‘worsen’ in 4 and ‘no impacts’ in 5 commodities our of 10. Furthermore, increases in the US’s TPU index worsen US BTB the most in commodity beverages and tobacco. Journal: China Economic Journal Pages: 364-375 Issue: 3 Volume: 13 Year: 2020 Month: 09 X-DOI: 10.1080/17538963.2020.1786618 File-URL: http://hdl.handle.net/10.1080/17538963.2020.1786618 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:13:y:2020:i:3:p:364-375 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1785073_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Vani Archana Author-X-Name-First: Vani Author-X-Name-Last: Archana Title: Who will win from the trade war? Analysis of the US–China trade war from a micro perspective Abstract: Over the past two years, China and the US are going on a trade war imposing tariffs on one another’s goods and this is hurting each other’s businesses. The focus of the present paper is to analyse the costs and benefits of tariff policy changes by the two economies. A partial equilibrium model approach based on highly disaggregated data shows that when China and the US are moving rapidly towards tariff imposition, it is largely deleterious from both the economy’s perspective in terms of trade and welfare. If we compare both the economies, the losses would be considerably higher for the US than China. However, trade liberalization is clearly associated with improved trade flows in the US and additional welfare gains in China. China would gain particularly in consumer goods, industrial goods and agricultural goods whereas the US would be better off opening its consumer goods and industrial goods. Journal: China Economic Journal Pages: 376-393 Issue: 3 Volume: 13 Year: 2020 Month: 09 X-DOI: 10.1080/17538963.2020.1785073 File-URL: http://hdl.handle.net/10.1080/17538963.2020.1785073 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:13:y:2020:i:3:p:376-393 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1783745_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Muhammad Tahir Author-X-Name-First: Muhammad Author-X-Name-Last: Tahir Title: Trade and life expectancy in China: a cointegration analysis Abstract: The purpose behind this paper is to empirically examine the relationship between trade openness and life expectancy for the Chinese economy. Data are collected for the period 1970–2015. Autoregressive Distributed Lag (ARDL) Modeling technique is utilized to find out the presence of long- and short-run relationship between trade openness and life expectancy. The findings indicated a stable long-run positive relationship between trade openness and life expectancy. Government expenditures, number of physicians and human capital growth have also positively and significantly impacted life expectancy. Similarly, growth of employment and number of beds in hospitals have influenced life expectancy negatively. Moreover, in the short run, government expenditures, growth of employment, number of physicians and human capital growth have maintained their relationship with life expectancy both in terms of coefficient signs and significance level while the relationship between trade openness, number of hospital beds and life expectancy is reversed. Journal: China Economic Journal Pages: 322-338 Issue: 3 Volume: 13 Year: 2020 Month: 09 X-DOI: 10.1080/17538963.2020.1783745 File-URL: http://hdl.handle.net/10.1080/17538963.2020.1783745 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:13:y:2020:i:3:p:322-338 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1715580_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ewa Cieślik Author-X-Name-First: Ewa Author-X-Name-Last: Cieślik Title: Does China use its trade potential in the Belt and Road Initiative properly? The relations between Chinese value added and trade potential in the European countries: bottom-up analysis Abstract: The aim of research is to evaluate China’s potential trade to selected European markets covered by the Belt and Road Initiative (BRI) and Chinese value added embodied in these countries gross exports. The study tried to answer the question: is there relation between Chinese actual exports coverage of its potential exports to selected European markets and China’s value added embodied in gross exports of its trade partners in Europe. The study covered 54 industries from selected 19 European countries which are the members of Chinese BRI. The study confirmed the positive relationship between Chinese actual exports coverage and China’s value added embodied in gross exports of its selected trade partners in Europe. Moreover, the analysis allowed identifying European markets that were characterized by high export potential for China and still not adequately used both in terms of total exports and value added. The study also identified specific industries, where China was particularly exploiting its exports. Journal: China Economic Journal Pages: 339-363 Issue: 3 Volume: 13 Year: 2020 Month: 09 X-DOI: 10.1080/17538963.2020.1715580 File-URL: http://hdl.handle.net/10.1080/17538963.2020.1715580 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:13:y:2020:i:3:p:339-363 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1726601_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zhuo Huang Author-X-Name-First: Zhuo Author-X-Name-Last: Huang Author-Name: Zhimin Qiu Author-X-Name-First: Zhimin Author-X-Name-Last: Qiu Author-Name: Dawei Lin Author-X-Name-First: Dawei Author-X-Name-Last: Lin Title: Evaluating the accrual anomaly in the Chinese stock market with the decomposition method Abstract: We evaluate the explanations for accrual anomaly in the Chinese stock market using the decomposition method. The results show that institutional ownership best explains the accrual anomaly with an explanatory power of about 46%, equity growth (EG) explains 12% of the anomaly, and the residual fraction of around 32% is unexplained by any candidate explanations. Our findings indicate that the naïve investor fixation hypothesis is favored to explain the accrual anomaly in China, and the existing explanations cannot fully explain the anomaly. Journal: China Economic Journal Pages: 270-289 Issue: 3 Volume: 13 Year: 2020 Month: 09 X-DOI: 10.1080/17538963.2020.1726601 File-URL: http://hdl.handle.net/10.1080/17538963.2020.1726601 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:13:y:2020:i:3:p:270-289 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1715581_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Abdelkader Derbali Author-X-Name-First: Abdelkader Author-X-Name-Last: Derbali Author-Name: Ali Lamouchi Author-X-Name-First: Ali Author-X-Name-Last: Lamouchi Title: RETRACTED ARTICLE: Why did they get in trouble? The influence of firm characteristics and institutional distance in the case of Chinese outward foreign direct investment Abstract: We, the Editor and Publisher of China Economic Journal, have retracted the following article:Abdelkader Derbali & Ali Lamouchi, “Why did they get in trouble? The influence of firm characteristics and institutional distance in the case of Chinese outward foreign direct investment,” China Economic Journal, 10.1080/17538963.2020.1715581Since publication, it has been brought to our attention that this article has substantial overlap, with the article(s) listed below:Chapter 1 of A Dissertation Presented to the Faculty of the Graduate School of Cornell University In Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy: Shuo Zhang, THREE PAPERS ON INSTITUTION, CORPORATE GOVERNANCE AND INTERNATIONAL EXPANSION OF CHINESE FIRMS, 2016-08-22.As this represents a serious breach of publishing ethics and of warranties made by the author with respect to originality and provenance, we are retracting the article from the journal. The authors have been informed.We have been informed in our decision-making by our policy on publishing ethics and integrity and the COPE guidelines on retractions. Journal: China Economic Journal Pages: 299-321 Issue: 3 Volume: 13 Year: 2020 Month: 09 X-DOI: 10.1080/17538963.2020.1715581 File-URL: http://hdl.handle.net/10.1080/17538963.2020.1715581 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:13:y:2020:i:3:p:299-321 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1679329_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Philip Hans Franses Author-X-Name-First: Philip Hans Author-X-Name-Last: Franses Title: Inflation in China, 1953-1978 Abstract: This paper reconstructs annual inflation figures for China, for the period 1953–1978, where inflation concerns the Consumer Price Index (CPI). One alternative index and two new models are considered. The models associate CPI based inflation with the GDP inflator and with retail prices, for the years after 1978. A combination of the three ‘forecasts’ is taken as the reconstructed series. This new inflation series has proper face value and can be used for macroeconomic data analysis in China. Journal: China Economic Journal Pages: 290-298 Issue: 3 Volume: 13 Year: 2020 Month: 09 X-DOI: 10.1080/17538963.2019.1679329 File-URL: http://hdl.handle.net/10.1080/17538963.2019.1679329 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:13:y:2020:i:3:p:290-298 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1804709_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zhang Xuechun Author-X-Name-First: Zhang Author-X-Name-Last: Xuechun Author-Name: Jia Yandong Author-X-Name-First: Jia Author-X-Name-Last: Yandong Author-Name: Lv Tingting Author-X-Name-First: Lv Author-X-Name-Last: Tingting Title: The impacts of the US dollar index and the investors’ expectations on the AH Premium – a macro perspective Abstract: This paper aims to provide a macro perspective to explanations of the AH premium, that is, the A and H share price differences of cross-listed companies, particularly the surge of the AH Premium Index after 2015: after the initiation of Shanghai–Hong Kong Stock Connect (SH Connect) in November 2014, the AH Premium Index jumped from 115.8 to 126.4, with a significant decline in its variance. We find that the impacts of US Dollar Index shocks dominated the overall changes in the AH premium on an individual equity basis over 2007–2019. Moreover, the US Dollar Index explains 50%-70% of the changes in the AH Premium Index, and investors’ expectations of the Chinese economy add another 10% to the explanatory power. Segregating the impact of the US Dollar Index, the average AH Premium Index only increased 2.7 percentage points, from 98.8 to 101.5. Further, after the initiation of SH Connect, the prices of cross-listed shares have been more responsive to exchange rate information. Over a longer term, SH Connect may have reduced the impacts of the US Dollar Index and increased the impacts of effective prices on equity prices. These findings demonstrate that hedging foreign exchange risks is the main reason for investment in H shares of mainland firms and, as a result, enhancing RMB foreign exchange rate flexibility is the core component as well as precondition for financial market opening in China. When market conditions permit, policy makers and regulators should consider a pilot program allowing investors to arbitrage the H shares of mainland firms with the AH premium in a reasonable range. This may further reduce the AH premium and enable the share prices to converge in the long run. Journal: China Economic Journal Pages: 249-269 Issue: 3 Volume: 13 Year: 2020 Month: 09 X-DOI: 10.1080/17538963.2020.1804709 File-URL: http://hdl.handle.net/10.1080/17538963.2020.1804709 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:13:y:2020:i:3:p:249-269 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1870283_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yang Ji Author-X-Name-First: Yang Author-X-Name-Last: Ji Author-Name: Yan Shen Author-X-Name-First: Yan Author-X-Name-Last: Shen Title: Introduction to the special issue on digital currency Journal: China Economic Journal Pages: 1-3 Issue: 1 Volume: 14 Year: 2021 Month: 01 X-DOI: 10.1080/17538963.2020.1870283 File-URL: http://hdl.handle.net/10.1080/17538963.2020.1870283 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:14:y:2021:i:1:p:1-3 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1748968_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zhong Xu Author-X-Name-First: Zhong Author-X-Name-Last: Xu Author-Name: Chuanwei Zou Author-X-Name-First: Chuanwei Author-X-Name-Last: Zou Title: What can blockchain do and cannot do? Abstract: This paper studies the economic functions of blockchain. First, by explaining blockchain technologies from an economic perspective, it introduces the Token Paradigm to summarize mainstream blockchain systems, discusses the true meanings of consensus and trustlessness in the blockchain field, and analyzes the functions of smart contracts. Next, it categorizes major blockchain applications according to how they use tokens and discusses relevant economic problems such as tokens’ monetary features, tokens’ impacts on blockchain platforms, blockchain’s governance functions, and the efficiency and security of blockchain systems. Finally, it discusses the concept of Blockchain as a Financial Infrastructure (BaaFI), which is represented by central bank digital currencies (CBDC) and global stable coins. Journal: China Economic Journal Pages: 4-25 Issue: 1 Volume: 14 Year: 2021 Month: 01 X-DOI: 10.1080/17538963.2020.1748968 File-URL: http://hdl.handle.net/10.1080/17538963.2020.1748968 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:14:y:2021:i:1:p:4-25 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1870272_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Dong He Author-X-Name-First: Dong Author-X-Name-Last: He Title: Digitalization of cross-border payments Journal: China Economic Journal Pages: 26-38 Issue: 1 Volume: 14 Year: 2021 Month: 01 X-DOI: 10.1080/17538963.2020.1870272 File-URL: http://hdl.handle.net/10.1080/17538963.2020.1870272 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:14:y:2021:i:1:p:26-38 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1872167_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Cangshu Li Author-X-Name-First: Cangshu Author-X-Name-Last: Li Author-Name: Yan Shen Author-X-Name-First: Yan Author-X-Name-Last: Shen Title: The potential impacts and risks of global stablecoins Abstract: This paper aims to study the implications of the potential large-scale usage of global stablecoins. We start with describing the origin and the evolution of stablecoins, and then analyze the operational mechanism and application scenarios. An analysis on whether global stablecoins will lead to dollarization of a country’s monetary system is then followed, based on the monetary quantity theory and Fisher’s equation. We find that large-scale usage of global stablecoins may have an impact on both large and small open economies, and with a greater impact on the sovereign monetary system of small economies. Further, global stablecoins may affect financial stability through influencing monetary policy, holder confidence and financial system. The potential risks are embodied in technology development, payment security and illegal transactions. To deal with these potential impacts and risks, we propose to strengthen judicial research and plan arrangements for global cooperation and coordination. Journal: China Economic Journal Pages: 39-51 Issue: 1 Volume: 14 Year: 2021 Month: 01 X-DOI: 10.1080/17538963.2021.1872167 File-URL: http://hdl.handle.net/10.1080/17538963.2021.1872167 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:14:y:2021:i:1:p:39-51 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1870279_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: David Kuo Chuen Lee Author-X-Name-First: David Kuo Chuen Author-X-Name-Last: Lee Author-Name: Li Yan Author-X-Name-First: Li Author-X-Name-Last: Yan Author-Name: Yu Wang Author-X-Name-First: Yu Author-X-Name-Last: Wang Title: A global perspective on central bank digital currency Abstract: This paper discusses the key considerations of CBDC design to balance benefits and risks and presents best practices in CBDC design from a global perspective. Using China’s CBDC as an illustration, this paper discusses two-tier or multi-tier ledger design and proposes ten enablers of mass adoption and successful implementation. This proposed design allows central banks to manage the process flow, focus on the monitoring and control, without bearing all the load or exposing to over-centralized risks. It concludes that CBDC will be the primary tool in the future digital economy, and countries that are conversant with the technology will have a competitive advantage. Learning from the implementation, continuously reviewing the existing regulation, and improvising whenever international dynamics change the landscape are vital attributes of a successful implementation. Journal: China Economic Journal Pages: 52-66 Issue: 1 Volume: 14 Year: 2021 Month: 01 X-DOI: 10.1080/17538963.2020.1870279 File-URL: http://hdl.handle.net/10.1080/17538963.2020.1870279 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:14:y:2021:i:1:p:52-66 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1870273_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shiyun Li Author-X-Name-First: Shiyun Author-X-Name-Last: Li Author-Name: Yiping Huang Author-X-Name-First: Yiping Author-X-Name-Last: Huang Title: The genesis, design and implications of China’s central bank digital currency Abstract: The People’s Bank of China (PBC) was among the first in the world to start exploration of central bank digital currency (CBDC) and will probably be one of the first major central banks releasing its own CBDC. This article intends to explain the construction of the e-CNY and discuss its likely implications. While PBC tried hard to avoid causing disintermediation of commercial banks, it remains to be seen if there will be a shift from commercial banks savings accounts to the new e-CNY wallets. E-CNY’s impacts on existing mobile payment system and the associated collection and analyses of big data in the Fintech sector could be major. In summary, even the modest step of creating e-CNY could significantly transform the financial landscape in China. But this is only the step by PBC in creating its own CBDC. Journal: China Economic Journal Pages: 67-77 Issue: 1 Volume: 14 Year: 2021 Month: 01 X-DOI: 10.1080/17538963.2020.1870273 File-URL: http://hdl.handle.net/10.1080/17538963.2020.1870273 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:14:y:2021:i:1:p:67-77 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1870282_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Wu Tong Author-X-Name-First: Wu Author-X-Name-Last: Tong Author-Name: Chen Jiayou Author-X-Name-First: Chen Author-X-Name-Last: Jiayou Title: A study of the economic impact of central bank digital currency under global competition Abstract: From both theoretical and practical perspectives, we examine the global development and competition of digital currencies, and investigate the design of China’s central bank digital currency (CBDC). Moreover, on the basis of correcting shortcomings in the existing literature, we undertake a quantitative analysis of the economic impact of the issuance of DC/EP based on a four-sector DSGE model. The results demonstrate that the substitution effect of DC/EP on bank deposits is limited, while the unit impact can enhance the economic growth rate by 0.15% and the overall economic effect is positive, at the same time it reduces the leverage ratio to a certain degree, which is conducive to reducing systemic financial risk. Therefore, we contend that China should accelerate the research and development of DC/EP and launch pilot schemes to promote DC/EP. Moreover, China should actively participate in the drafting of international regulations for digital currencies, selectively liberalize the jurisdiction of overseas nodes, jointly establish an integrated digital infrastructure for future generations. Journal: China Economic Journal Pages: 78-101 Issue: 1 Volume: 14 Year: 2021 Month: 01 X-DOI: 10.1080/17538963.2020.1870282 File-URL: http://hdl.handle.net/10.1080/17538963.2020.1870282 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:14:y:2021:i:1:p:78-101 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1870278_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Martin Chorzempa Author-X-Name-First: Martin Author-X-Name-Last: Chorzempa Title: China, the United States, and central bank digital currencies: how important is it to be first? Abstract: In only a few years, central bank digital currencies (CBDC) have gone from a fringe idea promoted by cryptocurrency bloggers to an idea being seriously explored by 80% of the world’s major central banks, including the People’s Bank of China and the United States Federal Reserve. This paper gives an overview of the drive at the world’s central banks to evaluate CBDCs and examines the reasons behind the world’s two leading economies’ stark divergence in central bank digital currency development. China committed much earlier to launching a CBDC, doing so in early 2016, and has since taken more concrete steps towards piloting and issuing a CBDC than the Fed, which has yet to commit to ever issuing one. Journal: China Economic Journal Pages: 102-115 Issue: 1 Volume: 14 Year: 2021 Month: 01 X-DOI: 10.1080/17538963.2020.1870278 File-URL: http://hdl.handle.net/10.1080/17538963.2020.1870278 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:14:y:2021:i:1:p:102-115 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1945255_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Miaojie Yu Author-X-Name-First: Miaojie Author-X-Name-Last: Yu Title: Introduction to the special issue Journal: China Economic Journal Pages: 117-119 Issue: 2 Volume: 14 Year: 2021 Month: 05 X-DOI: 10.1080/17538963.2021.1945255 File-URL: http://hdl.handle.net/10.1080/17538963.2021.1945255 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:14:y:2021:i:2:p:117-119 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1934147_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Lili Yan Ing Author-X-Name-First: Lili Author-X-Name-Last: Yan Ing Author-Name: Junianto James Losari Author-X-Name-First: Junianto James Author-X-Name-Last: Losari Title: The EU—China Comprehensive Agreement on Investment: Lessons Learnt for Indonesia Journal: China Economic Journal Pages: 200-221 Issue: 2 Volume: 14 Year: 2021 Month: 05 X-DOI: 10.1080/17538963.2021.1934147 File-URL: http://hdl.handle.net/10.1080/17538963.2021.1934147 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:14:y:2021:i:2:p:200-221 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1935519_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shang-Jin Wei Author-X-Name-First: Shang-Jin Author-X-Name-Last: Wei Author-Name: Xinding Yu Author-X-Name-First: Xinding Author-X-Name-Last: Yu Title: Semi-inclusive regional economic agreements in the pacific: a perspective from global value chains Abstract: A flurry of recent regional economic agreements in the Pacific are best characterized as ‘semi-inclusive,’ as each tends to include some large economies in the region but omit some others. With a perspective from global value chains (GVCs), we assess two particular dimensions of these agreements: (a) reduction in trade barriers, and (b) promotion of cross-border direct investment. We argue that China can be expected to gain from both the RCEP and China-EU Comprehensive Agreement on Investment (CAI), and it will likely gain even further from undertaking the necessary reforms to become a member of the CPTPP. Journal: China Economic Journal Pages: 171-186 Issue: 2 Volume: 14 Year: 2021 Month: 05 X-DOI: 10.1080/17538963.2021.1935519 File-URL: http://hdl.handle.net/10.1080/17538963.2021.1935519 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:14:y:2021:i:2:p:171-186 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1933055_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Haiwei Jiang Author-X-Name-First: Haiwei Author-X-Name-Last: Jiang Author-Name: Miaojie Yu Author-X-Name-First: Miaojie Author-X-Name-Last: Yu Title: Understanding RCEP and CPTPP: from the perspective China’s dual circulation economic strategy Abstract: Since initiating reform and opening up, especially since acceding to the World Trade Organization in 2001, China has made remarkable progress in international trade and economic development. Under the new development strategy of dual circulation, China looks to deepen regional integration through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) after signing the Regional Comprehensive Economic Partnership (RCEP). This study describes the trade relations between China and the member states of RCEP and CPTPP and discusses the differences between the two agreements, as well as China’s strengths and challenges. The paper proposes suggestions for the further opening up of China’s economy. Journal: China Economic Journal Pages: 144-161 Issue: 2 Volume: 14 Year: 2021 Month: 05 X-DOI: 10.1080/17538963.2021.1933055 File-URL: http://hdl.handle.net/10.1080/17538963.2021.1933055 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:14:y:2021:i:2:p:144-161 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1937092_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Peter Drysdale Author-X-Name-First: Peter Author-X-Name-Last: Drysdale Author-Name: Shiro Armstrong Author-X-Name-First: Shiro Author-X-Name-Last: Armstrong Title: RCEP: a strategic opportunity for multilateralism Abstract: East Asia’s Regional Comprehensive Economic Partnership (RCEP) agreement was concluded in a time of heightened uncertainty in the global economy and in the middle of the largest economic downturn in almost a century from a pandemic-induced global recession. The agreement consolidated the 10 member ASEAN’s free trade agreements with Australia and New Zealand, and the three northeast Asian economic powers China, Japan and South Korea. RCEP's economic cooperation agenda incorporates ASEAN processes which go beyond helping countries to implement the agreement and has potential to expand cooperation to new areas. This economic cooperation process makes RCEP a living agreement that can serve the needs of members as they evolve. It can also be used to embrace non-RCEP members, especially India, around particular agendas. The agreement is an important opportunity for China to use the RCEP framework to trial reforms and demonstrate its commitment to broader international multilateral liberalisation and economic cooperation. Journal: China Economic Journal Pages: 128-143 Issue: 2 Volume: 14 Year: 2021 Month: 05 X-DOI: 10.1080/17538963.2021.1937092 File-URL: http://hdl.handle.net/10.1080/17538963.2021.1937092 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:14:y:2021:i:2:p:128-143 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1933053_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Justin Yifu Lin Author-X-Name-First: Justin Author-X-Name-Last: Yifu Lin Title: What does China’s ‘dual circulations’ development paradigm mean and how it can be achieved? Abstract: According to the law of economic development, the proportion of domestic circulation in a country’s economy increases with the growth of economic size and the enlargement of service industry, both caused by the rise of income. In the new development paradigm, the Chinese government puts forward the idea of “taking the domestic circulation as the mainstay”, which reflects this basic economic law. However, the policy of “making full use of the domestic and international markets and resources” is still equally important. Therefore, the new development pattern includes the idea of “the domestic circulation and international circulation reinforcing each other”. To implement the new development paradigm, the most important things are to tap the growth potential through structural reform, deepen reform to improve the efficiency of domestic circulation and deepen the opening up to make better use of international resources so as to promote development and raise income level. Journal: China Economic Journal Pages: 120-127 Issue: 2 Volume: 14 Year: 2021 Month: 05 X-DOI: 10.1080/17538963.2021.1933053 File-URL: http://hdl.handle.net/10.1080/17538963.2021.1933053 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:14:y:2021:i:2:p:120-127 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1933057_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Peter H. Egger Author-X-Name-First: Peter H. Author-X-Name-Last: Egger Title: Putting the China-EU comprehensive agreement on investment in context Abstract: This paper reviews the content of as well as the reception of the current state of the planned China-European union Comprehensive Agreement on Investment as per January 2021. Moreover, it forms some expectations regarding its economic effects. Key conclusions are that, in spite of a limited scope of new concessions beyond ones that are realized or planned anyway unilaterally, the agreement will likely boost not only investment but also trade, and it will likely establish a closer political cooperation between China and the European Union. One reason for the positive economic effects is the reduction in uncertainty about the mutually granted concessions for investment. However, further stimulating effects of the very agreement will be possible when accompanying it with concessions on trade in goods and services in the future. Journal: China Economic Journal Pages: 187-199 Issue: 2 Volume: 14 Year: 2021 Month: 05 X-DOI: 10.1080/17538963.2021.1933057 File-URL: http://hdl.handle.net/10.1080/17538963.2021.1933057 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:14:y:2021:i:2:p:187-199 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1933059_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Fukunari Kimura Author-X-Name-First: Fukunari Author-X-Name-Last: Kimura Title: “RCEP from the middle powers’ Perspective” Abstract: East Asian countries signed the Regional Comprehensive Economic Partnership Agreement (RCEP) in November 2020. This paper demonstrates the importance of ASEAN centrality in East Asian economic integration and makes a preliminary assessment of the agreement in terms of the four expected roles: liberalization, rulemaking, reducing policy risks, and forming a pro-trade middle power coalition. The comparison with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) reveals the strengths and weaknesses of RCEP. The paper emphasizes the importance of dynamic aspects of mega-FTAs after being in effect and claims that RCEP must be further developed as an evolving agreement. Journal: China Economic Journal Pages: 162-170 Issue: 2 Volume: 14 Year: 2021 Month: 05 X-DOI: 10.1080/17538963.2021.1933059 File-URL: http://hdl.handle.net/10.1080/17538963.2021.1933059 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:14:y:2021:i:2:p:162-170 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1882064_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Mahmood Ahmad Author-X-Name-First: Mahmood Author-X-Name-Last: Ahmad Author-Name: Abdul Majeed Author-X-Name-First: Abdul Author-X-Name-Last: Majeed Author-Name: Muhammad Asif Khan Author-X-Name-First: Muhammad Asif Author-X-Name-Last: Khan Author-Name: Muhammad Sohaib Author-X-Name-First: Muhammad Author-X-Name-Last: Sohaib Author-Name: Khurram Shehzad Author-X-Name-First: Khurram Author-X-Name-Last: Shehzad Title: Digital financial inclusion and economic growth: provincial data analysis of China Abstract: China’s rapid expansion of digital financial inclusion in the last few years has dramatically augmented the accessibility and affordability of financial services, predominantly serving formerly financially excluded people, and positively contributes to higher economic growth. Despite the importance of digital financial inclusion in promoting economic growth, empirical evidence is relatively thin. Moreover, none of the studies has considered human capital in the nexus. Therefore, this study examines the impact of digital financial inclusion and human capital on China’s provincial economic growth. Unlike previous studies, this study uses the new proxy of digital financial inclusion based on breadth of coverage, depth of usage, and digitalization level. The empirical findings show that digital financial inclusion and human capital significantly affect China’s provincial economic growth. Based on this study’s findings, we recommend investment in human capital development and, at the same time, upgrading digital financial inclusion to attain higher economic growth. Journal: China Economic Journal Pages: 291-310 Issue: 3 Volume: 14 Year: 2021 Month: 09 X-DOI: 10.1080/17538963.2021.1882064 File-URL: http://hdl.handle.net/10.1080/17538963.2021.1882064 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:14:y:2021:i:3:p:291-310 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1865647_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Qian Hu Author-X-Name-First: Qian Author-X-Name-Last: Hu Author-Name: Xiaoyan Lei Author-X-Name-First: Xiaoyan Author-X-Name-Last: Lei Author-Name: Bo Zhao Author-X-Name-First: Bo Author-X-Name-Last: Zhao Title: Demographic changes and economic growth: impact and mechanisms Abstract: Using panel data on 172 countries from 1960 to 2019, this paper empirically analyzes the impact of population aging on economic growth and explores the underlying mechanisms. We find that the aging of the population significantly reduces the economic growth rate: when the population over age 65 increases by 1 percentage point, the per capita economic growth rate decreases by 2.6 percentage points. We examine four channels through which population aging may affect economic growth and find that three channels play significant roles: capital accumulation, labor supply, and economic structure, while technological progress and human capital accumulation do not seem to be significant. We also find significant heterogeneity in the impact across countries at different income levels: the effects are statistically significant for middle-income and high-income countries, but not for low-income countries. Journal: China Economic Journal Pages: 223-242 Issue: 3 Volume: 14 Year: 2021 Month: 09 X-DOI: 10.1080/17538963.2020.1865647 File-URL: http://hdl.handle.net/10.1080/17538963.2020.1865647 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:14:y:2021:i:3:p:223-242 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1963046_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Peter Egger Author-X-Name-First: Peter Author-X-Name-Last: Egger Author-Name: Susie Xi Rao Author-X-Name-First: Susie Xi Author-X-Name-Last: Rao Author-Name: Sebastiano Papini Author-X-Name-First: Sebastiano Author-X-Name-Last: Papini Title: A new algorithm for matching Chinese NBS firm-level with customs data Abstract: Combining accounting-type firm data and transactions-type customs data has become increasingly important for research in international and industrial economics. The statistical authorities in several countries such as the United States or France provide such linked data without details on sources, and researchers have to assume that the matching is correct and the firm identifiers are unique and flawless in the source data. For some other countries such as Switzerland or China, firm and customs data contain information which permits such linking ex post using string matching based on firm names and their meta-information like addresses. Due to spelling and typos, such matching is prone to some errors. Obtaining the largest-possible number of high-quality matches helps avoid potential biases while keeping crucial details. We report on a new algorithm which improves considerably the hitherto available linking efforts of the National Bureau of Statistics firm-level and the Customs trade data for China. Journal: China Economic Journal Pages: 311-335 Issue: 3 Volume: 14 Year: 2021 Month: 09 X-DOI: 10.1080/17538963.2021.1963046 File-URL: http://hdl.handle.net/10.1080/17538963.2021.1963046 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:14:y:2021:i:3:p:311-335 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1893141_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Moussa K. Fall Author-X-Name-First: Moussa K. Author-X-Name-Last: Fall Title: Steerer of global economic growth: did China step in role during the 2007-08 Great Recession? Evidence from some East Asian economies Abstract: In this paper, we investigate the impact of China’s fiscal stimulus on its major East Asian trading partners in the wake of the 2007–2008 world financial and economic crises, by estimating structural vector autoregressive (SVAR) models with monthly data, spanning the 2000–2013 period, for four countries within the Asian Production Chain: Singapore, Malaysia, Korea, and the Philippines. In fact, China’s fiscal stimulus has had positive effects on output in all those countries coupled with an inflationary pressure, mostly fueled by the increasing domestic demand in China. The effects vary between countries and time horizons. Journal: China Economic Journal Pages: 375-387 Issue: 3 Volume: 14 Year: 2021 Month: 09 X-DOI: 10.1080/17538963.2021.1893141 File-URL: http://hdl.handle.net/10.1080/17538963.2021.1893141 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:14:y:2021:i:3:p:375-387 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1965788_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Pingping Wang Author-X-Name-First: Pingping Author-X-Name-Last: Wang Author-Name: Xun Wang Author-X-Name-First: Xun Author-X-Name-Last: Wang Author-Name: Zhuo Huang Author-X-Name-First: Zhuo Author-X-Name-Last: Huang Author-Name: Baoqun Fan Author-X-Name-First: Baoqun Author-X-Name-Last: Fan Title: Overcoming the middle-income trap: International experiences and China’s choice Abstract: Overcoming the middle-income trap is the main task of China’s next stage of economic development. International experiences show that continuous innovation and industrial upgrading in an open market environment are the keys to overcoming the middle-income trap. An open market is a prerequisite for a high-income economy. The expansion of trade, investment, and exchange activities helps emerging economies absorb technology transfer and knowledge spillover from advanced regions, which ultimately enhance innovation capacity and promote human capital accumulation and domestic industrial upgrading. Therefore, China will need to continue promoting domestic market-oriented reform, strengthen the construction of its domestic market, and open up to a greater extent to create a strong internal institutional environment and an external market environment for innovation. These will ensure the successful transformation of China from a middle-income to a high-income economy. Journal: China Economic Journal Pages: 336-349 Issue: 3 Volume: 14 Year: 2021 Month: 09 X-DOI: 10.1080/17538963.2021.1965788 File-URL: http://hdl.handle.net/10.1080/17538963.2021.1965788 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:14:y:2021:i:3:p:336-349 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1964772_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Tao Gu Author-X-Name-First: Tao Author-X-Name-Last: Gu Title: Wage payments and fixed capital investment in imperfect financial and labor markets: the case of China Abstract: This paper examines how wage payments and fixed asset investments are determined, and their interrelationship, under China’s imperfect financial and labor markets. We collect aggregate data on wages, the financial market, and fixed asset investments from several statistical yearbooks. The main results are as follows: (1) borrowing constraints hinder wage payments, but this phenomenon is not observed in the state-owned and foreign-funded units; (2) in the nonstate-owned sector, there is a strong reliance on internal reserves that is not observed in the state-owned units, suggesting that the nonstate-owned sector is treated differently in the financial market; and (3) in the state-owned units, wage growth has a positive correlation with fixed asset investments, whereas in the nonstate-owned sector, this relationship is not observed. This implies that in the nonstate-owned sector, the underpayment of wages may be used as a survival strategy to conduct business under financial constraints. Journal: China Economic Journal Pages: 243-290 Issue: 3 Volume: 14 Year: 2021 Month: 09 X-DOI: 10.1080/17538963.2021.1964772 File-URL: http://hdl.handle.net/10.1080/17538963.2021.1964772 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:14:y:2021:i:3:p:243-290 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1840014_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Faheem Ur Rehman Author-X-Name-First: Faheem Ur Author-X-Name-Last: Rehman Author-Name: Abul Ala Noman Author-X-Name-First: Abul Ala Author-X-Name-Last: Noman Title: Trade related sectorial infrastructure and exports of belt and road countries: does belt and road initiatives make this relation structurally instable? Abstract: This study investigates the impact of infrastructure on export in Belt & Road countries during 1990–2017 by applying System GMM approach. The results confirmed the significant and positive impact of aggregate and sub-indices (i.e., transport, telecommunication, energy and financial sector) of infrastructure on export in total sample as well is in grouped samples (like Asia, Europe and Middle East, and Africa). Most importantly, this study also examines the pre and post strategy of Belt and Road initiative (BRI) in total sample of belt and road countries. The empirical outcomes reveal that the coefficient of aggregate and all other sub-indices of infrastructure improved due to BRI which in turn encourage export in the selected economies. Furthermore, the control variables of exchange rate, per capita GDP, domestic investment, and institutional quality have also significant effect on export, which strengthen the role of infrastructure in promoting export in belt & road economies. Journal: China Economic Journal Pages: 350-374 Issue: 3 Volume: 14 Year: 2021 Month: 09 X-DOI: 10.1080/17538963.2020.1840014 File-URL: http://hdl.handle.net/10.1080/17538963.2020.1840014 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:14:y:2021:i:3:p:350-374 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2006457_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: James A. Yunker Author-X-Name-First: James A. Author-X-Name-Last: Yunker Title: Is China market socialist? Comparing Western theory to Eastern practice Abstract: The question of whether the contemporary Chinese economy is more accurately characterized as market socialist or market capitalist depends to some extent on semantic issues pertaining to the meaning of terms such as capitalism, socialism, and the market. Adding to these complications is the fact that there are several market socialist plans, quite different in their specifics, extant in the systems literature produced by Western economists. The present contribution attempts to shed a more focused light on this question by comparing the contemporary Chinese economy to a specific plan of market socialism known as ‘pragmatic market socialism.’ While obviously not a perfect match, there appears to be sufficient overlap for the Chinese economy to be considered a reasonable approximation to pragmatic market socialism. Journal: China Economic Journal Pages: 93-119 Issue: 1 Volume: 15 Year: 2022 Month: 01 X-DOI: 10.1080/17538963.2021.2006457 File-URL: http://hdl.handle.net/10.1080/17538963.2021.2006457 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:15:y:2022:i:1:p:93-119 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1995246_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Tao Kong Author-X-Name-First: Tao Author-X-Name-Last: Kong Author-Name: Xiaohan Yang Author-X-Name-First: Xiaohan Author-X-Name-Last: Yang Author-Name: Ranran Wang Author-X-Name-First: Ranran Author-X-Name-Last: Wang Author-Name: Zijun Cheng Author-X-Name-First: Zijun Author-X-Name-Last: Cheng Author-Name: Changyu Ren Author-X-Name-First: Changyu Author-X-Name-Last: Ren Author-Name: Shuo Liu Author-X-Name-First: Shuo Author-X-Name-Last: Liu Author-Name: Zhenhua Li Author-X-Name-First: Zhenhua Author-X-Name-Last: Li Author-Name: Fang Wang Author-X-Name-First: Fang Author-X-Name-Last: Wang Author-Name: Xiaoyin Ma Author-X-Name-First: Xiaoyin Author-X-Name-Last: Ma Author-Name: Xiaobo Zhang Author-X-Name-First: Xiaobo Author-X-Name-Last: Zhang Title: One year after COVID: the challenges and outlook of Chinese micro-and-small enterprises Abstract: Based on a large Online Survey of Micro-and-small Enterprises (OSOME) conducted in March 2021 on micro-and-small enterprises and self-employed businesses (MSEs) operating on the Alipay platform, this paper examines the operational status, challenges, responses, and confidence of MSEs after exposure to the COVID-19 pandemic for over a year in China. The operational status of micro-and-small enterprises has significantly improved despite cash flow constraints. Rising costs and weak demand were two key challenges. In response to the COVID-19 shock, a higher percentage of newly established businesses adopted online sales and electronic information systems than those established earlier. Tax reduction was the most inclusive type of policy support. The confidence indices on market demand, production, and revenues for the next quarter returned to positive territory, indicating an optimistic outlook. The employment index remained just below the normal level, suggesting subdued expectations of expanded employment in the near future. Journal: China Economic Journal Pages: 1-28 Issue: 1 Volume: 15 Year: 2022 Month: 01 X-DOI: 10.1080/17538963.2021.1995246 File-URL: http://hdl.handle.net/10.1080/17538963.2021.1995246 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:15:y:2022:i:1:p:1-28 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2014703_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Witness Nyasha Bandura Author-X-Name-First: Witness Nyasha Author-X-Name-Last: Bandura Title: Trade uncertainty in US and China on trade openness in Sub-Saharan Africa Abstract: This study applies the system GMM technique to determine the impact of external trade uncertainty on trade openness for 35 countries in Sub-Saharan Africa, over the period 1985–2019 with 5-year non-overlapping data. Given the rapid globalisation and episodes of global economic uncertainty over the recent years, the research attempts to identify if trade uncertainty from outside of the region could affect trade openness in the region. There is strong evidence of a negative impact of trade uncertainty from both China, the US and the world on trade in Sub-Saharan Africa. The negative impact is, however, more severe from the world and followed by China. Comparatively, it can be concluded that China is more influential on Africa’s trade as compared to the US. It is, therefore, recommended that African economies should be concerned with trade uncertainty from around the world and put in place some measures to safeguard their economies. Journal: China Economic Journal Pages: 49-59 Issue: 1 Volume: 15 Year: 2022 Month: 01 X-DOI: 10.1080/17538963.2021.2014703 File-URL: http://hdl.handle.net/10.1080/17538963.2021.2014703 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:15:y:2022:i:1:p:49-59 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2003534_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Peng Zhan Author-X-Name-First: Peng Author-X-Name-Last: Zhan Author-Name: Xinxin Ma Author-X-Name-First: Xinxin Author-X-Name-Last: Ma Author-Name: Takashi Oshio Author-X-Name-First: Takashi Author-X-Name-Last: Oshio Author-Name: Yibo Mao Author-X-Name-First: Yibo Author-X-Name-Last: Mao Title: The elderly’s health capacity to work in China Abstract: China’s rapidly aging population has diminished its labor force. This study examines the extent to which the elderly’s labor force participation could be enhanced given their health status. Using national aggregated data from the population census for 1990–2015 and survey data from the Chinese Health and Retirement Longitudinal Study for 2011–2015, we simulated the potential and additional work capacity of China’s elderly using methods employed in previous studies. We obtained four main findings. First, a substantial amount of unused work capacity exists in the 60–69 years age group in urban China, accounting for approximately 30% of the potential work capacity. Second, the additional work capacity is greater for urban residents and men than for rural residents and women. Third, the additional work capacity increases for urban men but decreases for rural men and women. Fourth, the change in sensitivity of work to health reduces potential work capacity. Journal: China Economic Journal Pages: 77-92 Issue: 1 Volume: 15 Year: 2022 Month: 01 X-DOI: 10.1080/17538963.2021.2003534 File-URL: http://hdl.handle.net/10.1080/17538963.2021.2003534 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:15:y:2022:i:1:p:77-92 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2019924_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Kun Lu Author-X-Name-First: Kun Author-X-Name-Last: Lu Author-Name: Pierre Failler Author-X-Name-First: Pierre Author-X-Name-Last: Failler Author-Name: Benjamin M. Drakeford Author-X-Name-First: Benjamin M. Author-X-Name-Last: Drakeford Author-Name: Qinyi Wang Author-X-Name-First: Qinyi Author-X-Name-Last: Wang Author-Name: Tong Liu Author-X-Name-First: Tong Author-X-Name-Last: Liu Title: Impacts of the recent USA and China trade dispute on China’s aquatic products Abstract: This paper uses the Multivariable Grey Model and the Counterfactual Reasoning Method to evaluate the impact of the recent trade dispute between the USA and China from the perspective of its impact on the international trade of China’s aquatic products. Regarding imports the recent trade dispute did not have a negative impact, due to substitution possibilities with other countries. China’s aquatic products export is heavily dependent on the market in the USA. Nevertheless, the aggravation of the recent trade dispute has not caused significant effects on China’s aquatic product exports. Compared with the potential trade loss in terms of exports to China suffered by aquatic product producers and operators in the USA, the economic interests of China’s aquatic products producers and operators in terms of exports have not been affected significantly overall. In comparison, the potential trade losses of aquatic product producers and operators in the USA are relatively greater. Journal: China Economic Journal Pages: 60-76 Issue: 1 Volume: 15 Year: 2022 Month: 01 X-DOI: 10.1080/17538963.2021.2019924 File-URL: http://hdl.handle.net/10.1080/17538963.2021.2019924 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:15:y:2022:i:1:p:60-76 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1994709_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Satar Bakhsh Author-X-Name-First: Satar Author-X-Name-Last: Bakhsh Author-Name: He Yin Author-X-Name-First: He Author-X-Name-Last: Yin Author-Name: Mohsin Shabir Author-X-Name-First: Mohsin Author-X-Name-Last: Shabir Author-Name: Kishwar Ali Author-X-Name-First: Kishwar Author-X-Name-Last: Ali Title: China trade with belt and road countries: the role and impact of institutions Abstract: This article investigates the impact of institutional quality on China’s trade with belt and road economies by testing the augmented gravity model framework. Our empirical analysis is based on 16 years of balanced panel data of 65 belt and road economies. We use the instrumental variable estimator developed for a panel data model to address the potential endogeneity issue. We distinguish the vital role of institutions in trading partner countries in shaping this result. Our outcomes outline an interesting story about the association between institutional quality and China’s export to and import from belt and road countries. We find that the weaker voice and accountability and political stability in B&R countries negatively affect China exports, while China import from B&R economies shows a statistically positive effect of institutions. Our findings are robust to employs a panel pseudo-maximum likelihood (PPML) estimation method. As part of wider trade integration, we conclude that the B&R countries should strengthen their institutions. The results of this study have several implications for policymakers. Journal: China Economic Journal Pages: 29-48 Issue: 1 Volume: 15 Year: 2022 Month: 01 X-DOI: 10.1080/17538963.2021.1994709 File-URL: http://hdl.handle.net/10.1080/17538963.2021.1994709 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:15:y:2022:i:1:p:29-48 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2067685_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Lixing Li Author-X-Name-First: Lixing Author-X-Name-Last: Li Author-Name: Yiqing Mo Author-X-Name-First: Yiqing Author-X-Name-Last: Mo Author-Name: Guangsu Zhou Author-X-Name-First: Guangsu Author-X-Name-Last: Zhou Title: Platform economy and China’s labor market: structural transformation and policy challenges Abstract: The development of platform economy has accelerated the change of the nature of work, namely from manual labor to automation, from off-line to online, and from fixed employment to flexible arrangement. The share of gig workers is quickly increasing in the Chinese labor market. The structural transformation of labor market partly reflects the trend of dis-organization, featured with division of production procedures, restructuring of tasks, and large-scale outsourcing. While traditional single-employer full-time jobs are replaced by self-employment and gig jobs, the employment relationship is experiencing structural transformation, too. The current labor protection and social security systems face great challenges both in China and globally. Establishment of a flexible and portable benefit account for gig workers could be potential options to address these challenges. Journal: China Economic Journal Pages: 139-152 Issue: 2 Volume: 15 Year: 2022 Month: 05 X-DOI: 10.1080/17538963.2022.2067685 File-URL: http://hdl.handle.net/10.1080/17538963.2022.2067685 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:15:y:2022:i:2:p:139-152 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2068833_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yan Shen Author-X-Name-First: Yan Author-X-Name-Last: Shen Title: Data governance in China’s platform economy Abstract: This paper aims to study China’s data governance policy in the platform economy through reviewing its evolvement, its current challenges, and then provide possible policy recommendations. We review China’s data governance policy to show that its focus has switched from security only, to ensure security but at the same time to facility data market so as to encourage the growth of digital economy. We then discuss the governance of data from three perspectives: as a factor of production, algorithm governance, and personal information protection and data security. We recommend the establishment of data governance committee to coordinate data governance issues, including data licensing and algorithm auditing processes. Journal: China Economic Journal Pages: 202-215 Issue: 2 Volume: 15 Year: 2022 Month: 05 X-DOI: 10.1080/17538963.2022.2068833 File-URL: http://hdl.handle.net/10.1080/17538963.2022.2068833 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:15:y:2022:i:2:p:202-215 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2067688_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Hao Wang Author-X-Name-First: Hao Author-X-Name-Last: Wang Title: Platform antitrust in China Abstract: This article reviews the recent developments in digital platform antitrust in China. I first introduce the key players in China’s platform industry, particularly those that have been frequently affected by recent antitrust events. I then provide a brief overview of economic theories that are often cited in think tank reports and official documents, including network externalities, hub-and-spoke collusion, and contestable markets. Finally, recent platform antitrust events in China are reviewed, including the introduction of platform antitrust guidelines and major antitrust cases. Journal: China Economic Journal Pages: 171-186 Issue: 2 Volume: 15 Year: 2022 Month: 05 X-DOI: 10.1080/17538963.2022.2067688 File-URL: http://hdl.handle.net/10.1080/17538963.2022.2067688 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:15:y:2022:i:2:p:171-186 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2067689_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Harry X. Wu Author-X-Name-First: Harry X. Author-X-Name-Last: Wu Author-Name: Changhua Yu Author-X-Name-First: Changhua Author-X-Name-Last: Yu Title: The impact of the digital economy on China’s economic growth and productivity performance Abstract: China’s digital economy experienced a rapid development over the past two decades. How can we systematically measure the contribution of the digital economy to China’s economic growth? Has the digital economy contributed to an increase in China’s total factor productivity? This paper analyzes the impact of the information and communication technology (ICT) development on China’s economic growth since its WTO accession in an aggregate production possibility frontier framework. Our empirical analysis shows that the digital economy has been the most significant contributor to China’s economic growth and productivity improvements over the past two decades. Nevertheless, due to severe capital misallocation across industries and persistent inefficient performance of some non-ICT industries, industries with high investment growth have not been matched by industries with high TFP growth. Journal: China Economic Journal Pages: 153-170 Issue: 2 Volume: 15 Year: 2022 Month: 05 X-DOI: 10.1080/17538963.2022.2067689 File-URL: http://hdl.handle.net/10.1080/17538963.2022.2067689 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:15:y:2022:i:2:p:153-170 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2067690_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zha Daojiong Author-X-Name-First: Zha Author-X-Name-Last: Daojiong Author-Name: Ting Dong Author-X-Name-First: Ting Author-X-Name-Last: Dong Title: China in international digital economy governance Abstract: China ranks prominently in terms of capacity to engage in and benefit from the data-driven world economy. But China is more restrictive than many other countries on digital service imports, in addition to being passive in negotiations towards universal digital economic governance rules at the World Trade Organization. The world’s digital economy is getting more geopolitical, with practices of digital sovereignty and signs of a splinternet on the rise. However, with its application to join regional-free trade arrangements like the RCEP and CPTPP, China is internationalizing its digital economy governance. China’s domestic legislations and policy reforms, meanwhile, are increasingly aligning with those in Europe, in addition to industry-level interoperability with the United States. This provides a basis for further harmonization of digital economy governance with the rest of the world. Journal: China Economic Journal Pages: 187-201 Issue: 2 Volume: 15 Year: 2022 Month: 05 X-DOI: 10.1080/17538963.2022.2067690 File-URL: http://hdl.handle.net/10.1080/17538963.2022.2067690 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:15:y:2022:i:2:p:187-201 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2070941_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yan Shen Author-X-Name-First: Yan Author-X-Name-Last: Shen Title: Introduction to the special issue on platform economic in China Journal: China Economic Journal Pages: 121-124 Issue: 2 Volume: 15 Year: 2022 Month: 05 X-DOI: 10.1080/17538963.2022.2070941 File-URL: http://hdl.handle.net/10.1080/17538963.2022.2070941 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:15:y:2022:i:2:p:121-124 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2067687_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yiping Huang Author-X-Name-First: Yiping Author-X-Name-Last: Huang Title: ‘Strong regulations’ of China’s platform economy: a preliminary assessment Abstract: Within two decades, China built a very large platform economy. From the beginning of 2021, however, the Chinese government started to implement a set of new policies, popularly known as ‘strong regulations’, in order to correct improper platform behavior and improve market efficiency. These policies caused some negative effects on short-term momentum of the platform economy, including lay-offs of employees, decline of investment, and shrinkage of market valuation. This paper attempts to address the following questions: why did the authorities initiate this new policy? what are its net impacts on the platform economy? and how can the regulators do better? While acknowledging the urgent need for proper regulations for China’s platform economy, this paper argues that the authorities should find a better balance between regulation and development, with innovative thinking in dealing with issues such exclusive agreement, differential pricing and monopoly. Journal: China Economic Journal Pages: 125-138 Issue: 2 Volume: 15 Year: 2022 Month: 05 X-DOI: 10.1080/17538963.2022.2067687 File-URL: http://hdl.handle.net/10.1080/17538963.2022.2067687 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:15:y:2022:i:2:p:125-138 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2067686_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zhuo Huang Author-X-Name-First: Zhuo Author-X-Name-Last: Huang Author-Name: Li Zhu Author-X-Name-First: Li Author-X-Name-Last: Zhu Title: Innovative development and regulation of digital financial platforms in China Abstract: Digital financial platforms are important for the development of the platform economy and are a significant source of innovation for the further development of China’s financial system. At present, in terms of both market scale and technology, China’s digital finance development is leading internationally. The positive impact of China’s digital financial platforms on the real economy is evidenced by the number of innovative developments they have enabled. Nonetheless, because digital financial platforms have both technological and financial attributes, they pose potential risks and represent a challenge to regulation. For this reason, a regulatory framework adapted to the development of digital financial platforms and the digital financial industry needs to be established; one that adheres to the principles of financial support for the real economy and guides the direction of innovative digital financial platforms. Journal: China Economic Journal Pages: 216-230 Issue: 2 Volume: 15 Year: 2022 Month: 05 X-DOI: 10.1080/17538963.2022.2067686 File-URL: http://hdl.handle.net/10.1080/17538963.2022.2067686 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:15:y:2022:i:2:p:216-230 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2118458_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yiping Huang Author-X-Name-First: Yiping Author-X-Name-Last: Huang Title: China’s changing economic relations with the world: introduction Journal: China Economic Journal Pages: 231-234 Issue: 3 Volume: 15 Year: 2022 Month: 09 X-DOI: 10.1080/17538963.2022.2118458 File-URL: http://hdl.handle.net/10.1080/17538963.2022.2118458 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:15:y:2022:i:3:p:231-234 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2117198_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yuqing Xing Author-X-Name-First: Yuqing Author-X-Name-Last: Xing Title: China and global value chain restructuring Abstract: Global value chains have been a major means of manufacturing and trading goods internationally. Economic efficiency was the sole factor driving the proliferation of GVCs and the China-centered GVCs were established in a variety of manufactured products. In recent years, the China–US trade war and the unfolding COVID-19 pandemic have sent shock waves and disrupted smooth operations of GVCs, which has triggered the geographic restructuring of GVCs, in particular value chain diversification away from China. This paper analyzes the centrality of China in value chains and the vulnerabilities of GVCs exposed to the trade war and the pandemic. This paper provides comprehensive empirical evidence on GVC restructuring from different perspectives and discusses policy options that China could cope with the tide of the value chain diversification. Journal: China Economic Journal Pages: 310-329 Issue: 3 Volume: 15 Year: 2022 Month: 09 X-DOI: 10.1080/17538963.2022.2117198 File-URL: http://hdl.handle.net/10.1080/17538963.2022.2117198 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:15:y:2022:i:3:p:310-329 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2117180_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jane Golley Author-X-Name-First: Jane Author-X-Name-Last: Golley Author-Name: Vishesh Agarwal Author-X-Name-First: Vishesh Author-X-Name-Last: Agarwal Author-Name: James Laurenceson Author-X-Name-First: James Author-X-Name-Last: Laurenceson Author-Name: Tunye Qiu Author-X-Name-First: Tunye Author-X-Name-Last: Qiu Title: For better or worse, in sickness and in health: Australia-China political relations and trade Abstract: This paper quantifies the effects of shocks in bilateral political relations on Australia’s merchandise goods exports to China between 2001 and 2020. Using a vector autoregression framework, our estimates suggest that short-term fluctuations in political relations have no long-run effects on Australia’s aggregate export growth to China over this period, nor in any of three sub-periods analysed. A disaggregated analysis of 19 HS2 sectors reveals heterogenous short-run effects across sectors and time periods, with numerous sectors indicating the seemingly perverse finding that an increase in political cooperation/conflict is associated with a decrease/increase in export growth, with a lag of one to four months. We propose two hypotheses that are consistent with these findings, ‘doubling down’ and ‘dropping the ball’, contributing new understanding to the political relations-trade nexus in the context of a bilateral relationship that will likely be characterised by both cooperation and conflict in the decades ahead. Journal: China Economic Journal Pages: 290-309 Issue: 3 Volume: 15 Year: 2022 Month: 09 X-DOI: 10.1080/17538963.2022.2117180 File-URL: http://hdl.handle.net/10.1080/17538963.2022.2117180 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:15:y:2022:i:3:p:290-309 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2117185_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: David Dollar Author-X-Name-First: David Author-X-Name-Last: Dollar Title: U.S.-China trade relations in an era of great power competition Abstract: The tech war is having an effect on U.S.-China trade. For high-tech products like telecommunications equipment, semiconductors, and computer accessories, there has been a sharp drop in trade in both directions. This is not simply a drop in demand in the U.S. for these items because imports of them from other partners has soared. Vietnam’s exports to the U.S. jumped in the sensitive categories, and overall Vietnamese exports to the U.S. more than doubled between 2018 and 2021. Despite these effects from the tech war, however, overall U.S.-China trade has held up surprisingly well. The year 2022 will almost certainly see a new historical high for trade in both directions. This resilience of trade, in the face of tariffs and tech sanctions, indicates that there is a strong economic foundation for the two-way relationship. For both China and the U.S., it is hard to replace the other one as a trade partner. It is possible for production of a few specific items to shift from China to Vietnam, but there is no way to replace China’s huge manufacturing output. From China’s point of view, the technologically advanced countries are all allies of the U.S., and it is not easy for China to turn to Europe for the technology it cannot get from America. Because U.S.-China trade is based on strong fundamentals, it will probably continue at a high level, in an uneasy equilibrium in which certain trade and investment is off-limits, while other business goes on. Journal: China Economic Journal Pages: 277-289 Issue: 3 Volume: 15 Year: 2022 Month: 09 X-DOI: 10.1080/17538963.2022.2117185 File-URL: http://hdl.handle.net/10.1080/17538963.2022.2117185 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:15:y:2022:i:3:p:277-289 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2117167_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yu Yongding Author-X-Name-First: Yu Author-X-Name-Last: Yongding Title: The reemergence of the issue of US ‘external sustainability’ and what should be China’s responses Abstract: America’s current-account deficit has grown significantly since 2020, reaching 3.6% of GDP last year – its highest level since 2008. At the same time, its net foreign debt reached a staggering $18 trillion, or 78% of GDP. And fast-rising inflation has prompted the US Federal Reserve to begin raising interest rates and reducing its holdings of Treasury securities – moves that are likely to impede growth and increase the government’s borrowing cost. Will America’s “external sustainability” be at risk again? To answer that question, we must consider the four variables on which external sustainability depends: the gap between private saving and private investment, the size of the budget deficit, investment-income levels, and the rate of GDP growth. Geopolitics might compound the challenges ahead. The US has avoided a balance-of- payments and dollar crisis in the past largely because Asian central banks and oil- exporting countries have tirelessly purchased US government bonds and Treasury bills. But amid rising geopolitical tensions, these buyers might decide – or be forced – to rethink their purchases. It is against this backdrop that the Fed is pursuing rather aggressive interest-rate hikes and quantitative tightening. But increased demand for foreign capital to finance the trade deficit, together with greater reluctance by foreign investors to purchase US government bonds and Treasuries, might put America in a quandary. It is likely that America’s external balance will deteriorate significantly, unless US GDP growth slows significantly. Journal: China Economic Journal Pages: 263-276 Issue: 3 Volume: 15 Year: 2022 Month: 09 X-DOI: 10.1080/17538963.2022.2117167 File-URL: http://hdl.handle.net/10.1080/17538963.2022.2117167 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:15:y:2022:i:3:p:263-276 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2118460_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Qiyuan Xu Author-X-Name-First: Qiyuan Author-X-Name-Last: Xu Author-Name: Aizong Xiong Author-X-Name-First: Aizong Author-X-Name-Last: Xiong Title: The impact of financial sanctions on the international monetary system Abstract: After the outbreak of the conflict between Russia and Ukraine, the United States and Europe have taken financial sanctions against Russia, which have had an important impact. The frequent use of financial sanctions has exacerbated the distrust of the dollar system in emerging markets and developing countries, and shaken the logic of the dollar and the Society for Worldwide Interbank Financial Telecommunications (SWIFT) system as public goods of the international monetary system. However, the position of the US dollar and SWIFT is still hard to change. This does not mean that the international monetary system will remain the same forever. As the willingness to hold foreign exchange reserves declines, emerging markets and developing countries will either increase their tolerance of exchange rate volatility or implement more capital account regulation. Therefore, in the trend of de-globalization in the future, the international monetary system will turn out to be more volatile. Journal: China Economic Journal Pages: 253-262 Issue: 3 Volume: 15 Year: 2022 Month: 09 X-DOI: 10.1080/17538963.2022.2118460 File-URL: http://hdl.handle.net/10.1080/17538963.2022.2118460 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:15:y:2022:i:3:p:253-262 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2117193_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yanliang Miao Author-X-Name-First: Yanliang Author-X-Name-Last: Miao Author-Name: Xuan Fei Author-X-Name-First: Xuan Author-X-Name-Last: Fei Title: The international monetary system: evolution and revolution Abstract: Since the collapse of the Bretton Woods system in 1973, evolution has been the defining feature of changes in the IMS. The IMS has always been dominated by the US dollar. With it comes four structural issues: imbalance, lack of coordination, inade quacy, and weaponization of financial infrastructure. The Russia–Ukraine conflict will further accelerate the diversification and fragmentation of the IMS. But it might also lead to revolutionary changes such as balkanization of the IMS and even the end of financial globalization. Diversification of reserve currency could alleviate the imbalance and inadequacy problems of the IMS, restraining the dollar weaponization to some extent, but could not solve the problem of incoordination. Without a fair and inclusive IMS, ever larger financial spillovers will come from center countries to peripheral ones, and the global economy and financial system will face greater challenges in both efficiency and stability. Journal: China Economic Journal Pages: 235-252 Issue: 3 Volume: 15 Year: 2022 Month: 09 X-DOI: 10.1080/17538963.2022.2117193 File-URL: http://hdl.handle.net/10.1080/17538963.2022.2117193 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:15:y:2022:i:3:p:235-252 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2164950_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shiyun Li Author-X-Name-First: Shiyun Author-X-Name-Last: Li Title: Understanding China’s road to common prosperity: background, definition and path Abstract: China’s ambition to realize common prosperity for all the people has received worldwide attention since its complete victory over extreme poverty in 2020. This paper summarizes for the first time the “who, what, when and how” that essentially characterizes common prosperity, i.e. common prosperity is prosperity for all the people, is prosperity in all aspects, means step-wise prosperity and calls for joint contribution, and clarifies that it is not equivalent to “becoming rich at the same time” or “being equally well off”, nor is it the same thing as egalitarianism. Contemporary China faces challenges including the development challenge, the distribution problem and the public products supply issue in achieving this long-term goal. Possible solutions may be fostering high-quality development, optimizing income distribution, strengthening the social safety net, achieving effective digital governance and promoting high-level opening-up. Journal: China Economic Journal Pages: 1-13 Issue: 1 Volume: 16 Year: 2023 Month: 01 X-DOI: 10.1080/17538963.2023.2164950 File-URL: http://hdl.handle.net/10.1080/17538963.2023.2164950 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:16:y:2023:i:1:p:1-13 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2094585_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Qingyuan Xue Author-X-Name-First: Qingyuan Author-X-Name-Last: Xue Author-Name: Nopphol Witvorapong Author-X-Name-First: Nopphol Author-X-Name-Last: Witvorapong Title: Impacts of health insurance on health care utilization and health behaviors among older people in China Abstract: Using three waves of the Chinese Longitudinal Healthy Longevity Survey in 2005, 2008–2009, and 2011–2012, this study investigates the effect of health insurance on health care utilization and health behaviors of older people in China. Enrollment in a health insurance program represents the main explanatory variable, while total health expenditures (THE), out-of-pocket expenditures (OOP), smoking, drinking and physical inactivity represent outcomes of interest. This study finds that health insurance is associated with an increase in THE and a reduction in OOP, suggesting that insurance enhances access to health services while reducing financial burden. The effects of insurance on health behaviors are complex, associated with increased probabilities of smoking and drinking and a decreased probability of physical inactivity. Results vary across age, education and residential location groups and across time, due to the fact that the health insurance system changed significantly during the study period. Journal: China Economic Journal Pages: 80-99 Issue: 1 Volume: 16 Year: 2023 Month: 01 X-DOI: 10.1080/17538963.2022.2094585 File-URL: http://hdl.handle.net/10.1080/17538963.2022.2094585 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:16:y:2023:i:1:p:80-99 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2163463_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Bin Zhang Author-X-Name-First: Bin Author-X-Name-Last: Zhang Author-Name: He Zhu Author-X-Name-First: He Author-X-Name-Last: Zhu Author-Name: Jiajia Zhang Author-X-Name-First: Jiajia Author-X-Name-Last: Zhang Title: A portrait of China’s economic transformation: from manufacturing to services Abstract: The Chinese economy marked a turning point around 2010 to 2012, with economic growth, expenditure structure, industrial structure, and other macroeconomic indicators running counter to their earlier trends. There was a common cause behind all the changes: economic transformation from manufacturing to services. Starting with saturation in demand for manufactured goods, household consumption began to shift toward more human capital – intensive services, which led to a chain of effects in the industrial structure, slower economic growth, altered labor flows, as well as changes in the features of the business cycle. Compared with other high-income economies when they were at a similar development stage, China’s economic transformation from manufacturing to services has been the standard practice. Journal: China Economic Journal Pages: 14-27 Issue: 1 Volume: 16 Year: 2023 Month: 01 X-DOI: 10.1080/17538963.2023.2163463 File-URL: http://hdl.handle.net/10.1080/17538963.2023.2163463 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:16:y:2023:i:1:p:14-27 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2079194_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Mortaza Ojaghlou Author-X-Name-First: Mortaza Author-X-Name-Last: Ojaghlou Author-Name: Erginbay Uğurlu Author-X-Name-First: Erginbay Author-X-Name-Last: Uğurlu Title: Is there a J-curve under COVID-19 effects Abstract: Because of the outbreak of pandemic COVID-19, the economy and financial markets had a sharp decline. Also, based on the lockdown, we saw that amount of production and trade had decreased. This situation continues, and the effect on trade is still an important concern. In this paper, we investigate whether COVID-19 has an effect on trade by means of the real exchange rate in China-EU27 and China-USA. By using J-curve concept, for each trade partner, we use three models, which are ARDL, NARDL, and Multiplier NARDL, using three different data periods considering COVID-19. The results show that inverted J-Curve is proved with the long-run J-Curve effects for both partners, while COVID-19 makes factors favor J-Curve. Although J-Curve was inverted before the pandemic of COVID-9, during the COVID-19, we recognize the effect of J-Curve, which shows that the effect of real exchange rate on trade of China-EU27 and China-USA seems to favor China. Journal: China Economic Journal Pages: 44-62 Issue: 1 Volume: 16 Year: 2023 Month: 01 X-DOI: 10.1080/17538963.2022.2079194 File-URL: http://hdl.handle.net/10.1080/17538963.2022.2079194 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:16:y:2023:i:1:p:44-62 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2145629_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Statement of Retraction: Why did they get in trouble? The influence of firm characteristics and institutional distance in the case of Chinese outward foreign direct investment Journal: China Economic Journal Pages: 100-100 Issue: 1 Volume: 16 Year: 2023 Month: 01 X-DOI: 10.1080/17538963.2022.2145629 File-URL: http://hdl.handle.net/10.1080/17538963.2022.2145629 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:16:y:2023:i:1:p:100-100 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2042066_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Mei Li Author-X-Name-First: Mei Author-X-Name-Last: Li Title: Market expectation management and renminbi exchange rate policy under depreciation pressure Abstract: Motivated by the capital outflow episode after the 8/11 renminbi exchange rate reform, we establish formal models to study renminbi exchange rate policy under depreciation pressure with a focus on its effect on market expectations. In an economy where capital controls are imposed, a central bank aims both to discourage speculative capital outflows and to reduce exchange rate misalignment. We find that (i) both capital controls and speculators’ uncertainty about the central bank’s exchange rate target can effectively discourage capital outflows; (ii) Any action taken by the central bank will send a signal to speculators about the central bank’s exchange rate target, causing a change in speculators’ expectations and subsequently in capital flows. This explains large capital outflows triggered by the 8/11 reform. A key takeaway is that exchange rate policy should take into account its effect on market expectations to avoid unnecessary exchange rate and capital flow volatility. Journal: China Economic Journal Pages: 63-79 Issue: 1 Volume: 16 Year: 2023 Month: 01 X-DOI: 10.1080/17538963.2022.2042066 File-URL: http://hdl.handle.net/10.1080/17538963.2022.2042066 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:16:y:2023:i:1:p:63-79 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2033394_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Lixin Sun Author-X-Name-First: Lixin Author-X-Name-Last: Sun Title: Optimal public debt under demographic changes in China Abstract: In this paper, we use an overlapping-generations model to estimate the optimal public debt level in terms of the growth-maximizing theory under changing demographics and examine the fiscal sustainability in China. The results suggest that the optimal level of public debt in China lies in a scope of 70% to 88%, which varies as a function of the driving force of the production, the number of children, and the subsidy policy for rearing the children. On the basis of fiscal space framework, we can conclude that China’s public debt and thereby the fiscal position is sustainable in the near and medium terms. Sensitivity analyses and robustness tests also support our empirical findings. Our study provides insights into public debt management, population policy, and strategies for economic growth in China. Journal: China Economic Journal Pages: 28-43 Issue: 1 Volume: 16 Year: 2023 Month: 01 X-DOI: 10.1080/17538963.2022.2033394 File-URL: http://hdl.handle.net/10.1080/17538963.2022.2033394 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:16:y:2023:i:1:p:28-43 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_386177_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Kazuyuki Motohashi Author-X-Name-First: Kazuyuki Author-X-Name-Last: Motohashi Title: Catching up or lagging behind? Assessment of technological capacity of China by patent database Abstract: Using the database consisting of 679,056 individual patents from the years 1985 through 2005, we analyzed technological capabilities of China. In general, we can see a substantial trend of Chinese firms catching up with Western counterparts in patent statistics. However, there are substantially heterogeneous patterns in technology catching up. This paper provides detailed case studies in two high-tech sectors: the pharmaceutical industry and mobile communications technology. These two fields show contrasting trends, in the sense that rapid catching up can be found in mobile communications technology, while Chinese companies are still lagging behind Western counterparts in the pharmaceutical industry. Journal: China Economic Journal Pages: 1-24 Issue: 1 Volume: 2 Year: 2009 X-DOI: 10.1080/17538960902860055 File-URL: http://hdl.handle.net/10.1080/17538960902860055 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:2:y:2009:i:1:p:1-24 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_386178_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Keun Lee Author-X-Name-First: Keun Author-X-Name-Last: Lee Author-Name: Seong-Jae Cho Author-X-Name-First: Seong-Jae Author-X-Name-Last: Cho Author-Name: Jia Jin Author-X-Name-First: Jia Author-X-Name-Last: Jin Title: Dynamics of catch-up in mobile phones and automobiles in China: sectoral systems of innovation perspective Abstract: This paper looks at interesting stories of catch-up in the automobile and mobile phone sectors in China. It assesses the two sectors from the sectoral systems of innovation (SSI) framework. Among the building blocks of the SSI, the focus has been on the regime of technologies and knowledge, such as modularity, degree of embodied technical change, tacit knowledge, knowledge access, and frequency of innovations. According to this framework, indigenous automakers in China have been making a quick catch-up upon entry because the auto sectors tend to feature a higher degree of embodied technical change and increasing modularity in many components. However, their long-term destiny is sill uncertain given the considerable tacit knowledge in the sector and critical importance of integration capability. In mobile phones, early catch-up by indigenous Chinese makers and more recent setbacks are also explained. Early catch-up was possible owing to the high modularity of production and availability of a knowledge pool around the nation. The long-term prospects of this sector might be brighter than that of automobiles owing to high explicitness of knowledge of the sector. But a remaining bottleneck for Chinese makers might be the higher frequency of innovation which poses some challenge to late-comers. In addition to the regimes of technologies and knowledge, the paper also looks at the market regimes and the role of government in explaining the two industries in China. Journal: China Economic Journal Pages: 25-53 Issue: 1 Volume: 2 Year: 2009 X-DOI: 10.1080/17538960902860063 File-URL: http://hdl.handle.net/10.1080/17538960902860063 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:2:y:2009:i:1:p:25-53 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_386180_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Rudai Yang Author-X-Name-First: Rudai Author-X-Name-Last: Yang Author-Name: Yang Yao Author-X-Name-First: Yang Author-X-Name-Last: Yao Author-Name: Ye Zhang Author-X-Name-First: Ye Author-X-Name-Last: Zhang Title: Technological structure and its upgrading in China's exports Abstract: Based on several indexes, this article investigates technological upgrading in China's exports. It demonstrates that the whole technological contents of China's exports have been improved dramatically since the early 1980s. In the meantime, the domestic technological contents are likely experiencing a V-curve, i.e. decreasing first and then increasing later. Native enterprises grow faster than their foreign direct investment (FDI) counterparts through ‘learning-by-doing’, and the gap between them is narrowing. It is shown that China's exports have adopted a limited catch-up strategy rather than solely following its comparative advantage. Under the limited catch-up strategy, China exports products with technological contents higher than what was predicted by its comparative advantage. In addition, the experience of South Korea and Taiwan as well as cross-country comparison demonstrates that adopting a limited catch-up strategy is conducive to economic development. We argue that this is what is taking place in China. Journal: China Economic Journal Pages: 55-71 Issue: 1 Volume: 2 Year: 2009 X-DOI: 10.1080/17538960902860089 File-URL: http://hdl.handle.net/10.1080/17538960902860089 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:2:y:2009:i:1:p:55-71 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_386185_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Chih-Hai Yang Author-X-Name-First: Chih-Hai Author-X-Name-Last: Yang Title: Technological sources and regional productivity growth in China Abstract: This paper looks into whether China's continuously high economic growth is mainly contributed by productivity growth after the mid-1990s when it has devoted more efforts to innovative activity. More importantly, I also systematically investigate how and to what extent various technological sources contribute to productivity growth in China. Identifying the internal and external technological sources, this paper adopts a newly developed technique of the stochastic metafrontier function to evaluate regional productivity growth in China and then analyzes the impacts of technological sources on moving up the technology ladder in China. The first-step estimation shows that the average productivity growth is 2.821% during 1996–2004, which is similar to that before 1995. However, the coastal and non-coastal regions witnessed an apparent difference in total factor productivity (TFP) growth, 4.567% vs. 1.718%. Concerning the effects of technological sources, in-house research and development (R&D), foreign direct investment (FDI) and technology import are all positive on significantly promoting productivity. Relative to R&D and FDI, the contribution through importing technologies seems to be larger, implying that China's technological progress relies heavily on more advanced foreign knowledge. However, neither technological source is found to have a larger influence on productivity growth among non-coastal regions. Journal: China Economic Journal Pages: 73-92 Issue: 1 Volume: 2 Year: 2009 X-DOI: 10.1080/17538960902860139 File-URL: http://hdl.handle.net/10.1080/17538960902860139 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:2:y:2009:i:1:p:73-92 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_386186_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xiaobo Wu Author-X-Name-First: Xiaobo Author-X-Name-Last: Wu Author-Name: Rufei Ma Author-X-Name-First: Rufei Author-X-Name-Last: Ma Author-Name: Yongjiang Shi Author-X-Name-First: Yongjiang Author-X-Name-Last: Shi Author-Name: Ke Rong Author-X-Name-First: Ke Author-X-Name-Last: Rong Title: Secondary innovation: the path of catch-up with ‘Made in China’ Abstract: Is endogenous innovation merely in the form of original innovation? In this paper, we attempt to illustrate a typical catch-up path with ‘Made in China’ named ‘secondary innovation’, which goes towards the virtuous circle of foreign technology acquisition and endogenous technological innovation, through an indepth longitudinal case study. Although secondary innovation is based on foreign imported technology, it is fundamentally different from simple imitation and adaptation of imported technology. Basic assimilation is just the first step of secondary innovation, and is further followed by ‘structural understanding’, ‘functional understanding’ and ‘conceptual understanding’. Without considerable active assimilation and absorption, the latecomer firm would probably fall into a vicious circle of ‘import – lag behind – import again’. Journal: China Economic Journal Pages: 93-104 Issue: 1 Volume: 2 Year: 2009 X-DOI: 10.1080/17538960902860147 File-URL: http://hdl.handle.net/10.1080/17538960902860147 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:2:y:2009:i:1:p:93-104 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_386188_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Elias Sanidas Author-X-Name-First: Elias Author-X-Name-Last: Sanidas Title: Patterns and distances of catch-up in trade: China and East Asia Abstract: The main purpose of this paper is to determine the relative position (distances) of East Asian countries (including South East Asia) within their own geographical area and in relation to the rest of the world. For this purpose, Balassa's (1965) ‘revealed comparative advantage’ (RCA) in exports will be used to assess trade performance and economic growth. We use multidimensional scaling to ascertain our contentions. First, East Asian countries are forming a ‘flying geese’ formation whose leader is Japan followed by Korea and Taiwan and further behind China and the ASEAN countries. Second, this flying geese flock in terms of RCA ranks is paralleled with a similar flying geese formation in terms of economic development. Furthermore the mapping of 100 countries (and a close-up of 45 countries) tell us as to how all relevant countries are positioned in terms of 14 industrial sectors (here we also used factor analysis to classify these sectors). Journal: China Economic Journal Pages: 105-118 Issue: 1 Volume: 2 Year: 2009 X-DOI: 10.1080/17538960902860162 File-URL: http://hdl.handle.net/10.1080/17538960902860162 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:2:y:2009:i:1:p:105-118 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_408518_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Qiren Zhou Author-X-Name-First: Qiren Author-X-Name-Last: Zhou Title: The unfolding of Deng's drama Abstract: Based upon the author's personal observation and research experience, the article summarizes and interprets Deng Xiaoping's great contributions to China's economic reform from four perspectives: delineation of property rights in Deng's style, bringing entrepreneurship back into China, facilitating the ‘invisible hand’ again, the challenges of corruption. Journal: China Economic Journal Pages: 119-132 Issue: 2 Volume: 2 Year: 2009 X-DOI: 10.1080/17538960903083459 File-URL: http://hdl.handle.net/10.1080/17538960903083459 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:2:y:2009:i:2:p:119-132 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_408519_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Peter Drysdale Author-X-Name-First: Peter Author-X-Name-Last: Drysdale Author-Name: Christopher Findlay Author-X-Name-First: Christopher Author-X-Name-Last: Findlay Title: Chinese foreign direct investment in Australia: policy issues for the resource sector Abstract: The past 18 months have seen Chinese foreign direct investment (FDI) in the Australian resource sector become an issue of policy interest. There are two big questions that the prospects of a significant rise in FDI from China into the Australian resources sector have raised. Is the surge of FDI into Australian mining and energy consistent with achieving the traditional gains from foreign investment? And are there any particular problems associated with investment from foreign state-owned enterprises or state-managed sovereign wealth funds? These are among the questions addressed in this paper. The paper argues that there are no issues that cannot be dealt with under the umbrella of the established test of ‘national interest’ in managing the growth of Chinese FDI into the Australian minerals sector. It argues that a confusion has been introduced into policy over the questions of state ownership and supplier–buyer relations in respect of Chinese investments and that clarifying these issues is likely to be important to Australia's capturing the full benefits from the growth of Chinese resources demand and longer term economic and strategic interests in China. Journal: China Economic Journal Pages: 133-158 Issue: 2 Volume: 2 Year: 2009 X-DOI: 10.1080/17538960903083467 File-URL: http://hdl.handle.net/10.1080/17538960903083467 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:2:y:2009:i:2:p:133-158 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_408520_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Feng Guo Author-X-Name-First: Feng Author-X-Name-Last: Guo Author-Name: Ataman Ozyildirim Author-X-Name-First: Ataman Author-X-Name-Last: Ozyildirim Author-Name: Victor Zarnowitz Author-X-Name-First: Victor Author-X-Name-Last: Zarnowitz Title: On the measurement and analysis of aggregate economic activity for China: the coincident economic indicators approach Abstract: This paper reviews some of China's high-frequency economic indicators and our principal findings on their selection and use. Our aim is to develop a composite index of coincident economic indicators (coincident economic index, CEI) which can be used to obtain timely information on the present state of the China's economy and provide an appropriate measure to analyze China's short-term macroeconomic dynamics. Notably, combining industrial production, retail sales, manufacturing employment, income of financial institutions and passenger traffic volume, they work well as the method for dating business cycles for China. It shows that, over the past two decades, there was one marked recession which occurred in 1988:8 to 1989:12. In addition to this business cycle chronology we also develop a growth cycle chronology based on the deviations from trend of the CE which shows that there have been four cyclical slowdowns since 1986. Whereas GDP growth lacks cyclical movements and appears to be dominated by trend and irregular movements, in contrast to GDP, the CEI works well as a measure of cyclical dynamics and can contribute to the analysis of short-term fluctuations of Chinese economic activity relative to its long-term growth. Journal: China Economic Journal Pages: 159-186 Issue: 2 Volume: 2 Year: 2009 X-DOI: 10.1080/17538960903083475 File-URL: http://hdl.handle.net/10.1080/17538960903083475 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:2:y:2009:i:2:p:159-186 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_408523_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xinhua Gu Author-X-Name-First: Xinhua Author-X-Name-Last: Gu Author-Name: Li Sheng Author-X-Name-First: Li Author-X-Name-Last: Sheng Title: The myth of a booming town: a two-sector model of Macau economic growth Abstract: This paper builds a trade-based equilibrium, two-sector model to reveal the inefficiency of a foreign-dominated, gaming-biased, bubble growth in Macau. This fast GDP growth that has not led to much real development as measured by the effective GNP would likely have adverse impacts on the city's long-term prosperity. We employ the model to analyze why various gaming markets have adopted differing tax rates. This work provides a rigorous argument against the problematic attempts to push for low tax convergence in the Asian gaming market. To neutralize the damaging effects of foreign domination in the local economy, we offer several policy recommendations for reviving home businesses and enhancing domestic welfare in Macau. It is suggested that enforceable laws should be made to prevent the foreign firms with cross-market operations from stealing away Macau customers, that differential taxes on casino operators and income taxes on player winnings should be chosen to support Chinese-owned casinos and curb pathological gambling, and that a sovereign wealth fund should be established to stop too much of Chinese gaming money from being lost too fast and foster Macau's economic autonomy by reducing its overreliance on foreign concerns for output growth. Journal: China Economic Journal Pages: 187-202 Issue: 2 Volume: 2 Year: 2009 X-DOI: 10.1080/17538960903083509 File-URL: http://hdl.handle.net/10.1080/17538960903083509 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:2:y:2009:i:2:p:187-202 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_408524_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Terence Tai-Leung Chong Author-X-Name-First: Terence Tai-Leung Author-X-Name-Last: Chong Author-Name: Xiaobing Zhang Author-X-Name-First: Xiaobing Author-X-Name-Last: Zhang Title: The nexus between stock market value and demand for money in China Abstract: This paper examines the influence of the stock market development on money demand in China during the period 1994Q1–2007Q2. A long-run cointegration relationship is found between the real money demand, stock market capitalization, real GDP, real interest rate and the CPI. Specifically, we show that the development of the stock market has a positive impact on money demand in the long run. In the short run, however, a boom in the stock market will lower money demand. Our work can be considered as a complement to Baharumshah, Mohd, and Yol (2009). Journal: China Economic Journal Pages: 203-207 Issue: 2 Volume: 2 Year: 2009 X-DOI: 10.1080/17538960903083517 File-URL: http://hdl.handle.net/10.1080/17538960903083517 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:2:y:2009:i:2:p:203-207 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_408525_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Michael Ngee Tiong Tan Author-X-Name-First: Michael Ngee Tiong Author-X-Name-Last: Tan Title: Foreign investments in China's local banking sector – the Australian experience Abstract: This article investigates the experience of Australian banks who invested in China's city commercial banks. Special emphasis is paid to corporate governance before and after they invested in the Chinese banks. Interviews were conducted with senior personnel from the ANZ (Australia and New Zealand) Banking Group who invested in the Tianjin City Commercial Bank and the Shanghai Rural Commercial Bank and the Commonwealth Bank of Australia who invested in the Hangzhou City Commercial Bank and the Jinan City Commercial bank. Our investigations showed that corporate governance in the Chinese city commercial banks was minimal before the Australian banks invested. Since then, there have been substantial improvements but differences still persist. The article also outlines the steps and strategies adopted by the two banks to improve corporate governance. Journal: China Economic Journal Pages: 209-217 Issue: 2 Volume: 2 Year: 2009 X-DOI: 10.1080/17538960903083525 File-URL: http://hdl.handle.net/10.1080/17538960903083525 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:2:y:2009:i:2:p:209-217 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_408526_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Sara Hsu Author-X-Name-First: Sara Author-X-Name-Last: Hsu Author-Name: Shelley Nauss Author-X-Name-First: Shelley Author-X-Name-Last: Nauss Title: Employment impacts of a ‘green’ energy transition in China Abstract: Before the US financial crisis that began in 2008, China was the ‘factory’ of the world, utilizing energy intensively for such processes as steelmaking, papermaking and concrete production. As such, energy emissions in China increased dramatically until 2007, with much of the energy being provided by the labor-intensive coal industry. Under the 11th five-year plan, China resolved to increase its energy efficiency, setting out to reduce energy consumption while continuing to increase economic growth, and to increase the usage of ‘green’ technologies to 15% of all energy used by 2020. The Renewable Energy Law of 2007 set a guideline for China's energy reduction goals, to quadruple the national GDP while only doubling the country's electricity usage by the year 2020. Currently, there are virtually no studies on the employment effects of a ‘green’ transition to explore what impact the current energy goals, or potentially ‘greener’ energy goals, would have on China's labor force. This paper seeks to analyze the effects on employment of a ‘green’ transition. Journal: China Economic Journal Pages: 219-237 Issue: 2 Volume: 2 Year: 2009 X-DOI: 10.1080/17538960903083533 File-URL: http://hdl.handle.net/10.1080/17538960903083533 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:2:y:2009:i:2:p:219-237 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_453408_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yi Gang Author-X-Name-First: Yi Author-X-Name-Last: Gang Title: Assessment of China's macroeconomic situation: relevance of the zero interest rate and quantitative easing polices Abstract: Using the data available until mid-February, 2009, the article examines China's macroeconomic situation and looks at the prospect of China's economy. It analyzes the zero interest rate and quantitative easing policies in terms of relevant empirical evidences in Japan and the prospect of using this kind of policy in the US. It argues that a zero interest rate and quantitative easing policies are not optimal choices for China. Journal: China Economic Journal Pages: 239-255 Issue: 3 Volume: 2 Year: 2009 X-DOI: 10.1080/17538960903529444 File-URL: http://hdl.handle.net/10.1080/17538960903529444 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:2:y:2009:i:3:p:239-255 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_453411_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ari Kokko Author-X-Name-First: Ari Author-X-Name-Last: Kokko Author-Name: Christer Ljungwall Author-X-Name-First: Christer Author-X-Name-Last: Ljungwall Author-Name: Patrik Gustavsson Tingvall Author-X-Name-First: Patrik Author-X-Name-Last: Gustavsson Tingvall Title: Economic growth and growth linkages in China 1994–2003 Abstract: This paper investigates to what extent income growth in the Chinese provinces is linked to growth and income levels in neighboring provinces. We find that the rate of income growth in a province is positively related to income and growth in neighboring provinces. However, we find no evidence of such positive interdependence between growth in rich coastal provinces and their immediate inland neighbors. This suggests that there has been little synchronization in economic growth rates between these regions, and/or that the immediate hinterland of the coastal growth centers might have been bypassed as China's manufacturing sector has migrated westward. Journal: China Economic Journal Pages: 257-275 Issue: 3 Volume: 2 Year: 2009 X-DOI: 10.1080/17538960903529477 File-URL: http://hdl.handle.net/10.1080/17538960903529477 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:2:y:2009:i:3:p:257-275 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_453414_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yi Zeng Author-X-Name-First: Yi Author-X-Name-Last: Zeng Title: Challenges of population aging in China Abstract: Utilizing the most recent census and survey data as well as the new ProFamy method, this paper presents and analyzes the trends of challenges of population aging and elderly living arrangements in China in the first half of twenty-first century. It discusses the serious challenges and related policy recommendations concerning the old-age insurance program in rural China. Journal: China Economic Journal Pages: 277-283 Issue: 3 Volume: 2 Year: 2009 X-DOI: 10.1080/17538960903529501 File-URL: http://hdl.handle.net/10.1080/17538960903529501 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:2:y:2009:i:3:p:277-283 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_453415_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yuan Yuan Author-X-Name-First: Yuan Author-X-Name-Last: Yuan Author-Name: Hiroshi Gunji Author-X-Name-First: Hiroshi Author-X-Name-Last: Gunji Title: The impact of foreign capital on the Chinese banking market Abstract: In China, the foreign capital share of banks was restricted to 25% until 2006. Does such a relatively low share of foreign capital have any impact on the banking sector? In this paper, we use panel data on 19 major banks during 1996–2004 to shed light on the impact of foreign capital participation on the Chinese banking industry. We find that although the operating performance of foreign-owned banks is basically worse than that of domestic banks, as the market share of foreign-owned banks rises, they improve. For domestic banks, non-interest income decreases, while interest income increases. Therefore, the net effect of the foreign-owned banks' share on the profitability of domestic banks is small. Journal: China Economic Journal Pages: 285-296 Issue: 3 Volume: 2 Year: 2009 X-DOI: 10.1080/17538960903529519 File-URL: http://hdl.handle.net/10.1080/17538960903529519 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:2:y:2009:i:3:p:285-296 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_453417_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xin Li Author-X-Name-First: Xin Author-X-Name-Last: Li Author-Name: Kjeld Erik Brødsgaard Author-X-Name-First: Kjeld Erik Author-X-Name-Last: Brødsgaard Author-Name: Michael Jacobsen Author-X-Name-First: Michael Author-X-Name-Last: Jacobsen Title: Redefining Beijing Consensus: ten economic principles Abstract: We argue that, owing to the conspicuous failure of Washington Consensus-guided reforms in most parts of the developing world in the 1990s and the outbreak of the current global financial crisis, the Washington Consensus, as a general term of neoliberal free market economic thinking, has been withering. In the meantime, the Chinese economic model has gained wide recognition and praise worldwide. Joshua C. Ramo coined the term ‘Beijing Consensus’ as an alternative approach to economic development for developing nations. There has been hot debate on the notion of a Beijing Consensus. We argue that even though there are some problems in Ramo's original definition of Beijing Consensus, we should not reject this notion altogether. Instead, we should try to come up with better conceptualizations of this term. In this paper, we sum up 10 general principles of the Chinese development model as our new definition of the Beijing Consensus. Journal: China Economic Journal Pages: 297-311 Issue: 3 Volume: 2 Year: 2009 X-DOI: 10.1080/17538960903529535 File-URL: http://hdl.handle.net/10.1080/17538960903529535 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:2:y:2009:i:3:p:297-311 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_453418_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shiyou Zhu Author-X-Name-First: Shiyou Author-X-Name-Last: Zhu Author-Name: Min-Hwan Lee Author-X-Name-First: Min-Hwan Author-X-Name-Last: Lee Author-Name: Kyu Sun Hwang Author-X-Name-First: Kyu Sun Author-X-Name-Last: Hwang Title: Long memory in the volatility of China stock returns Abstract: In this paper, we empirically examine the volatility process of China's stock market returns using daily and weekly Shanghai and Shenzhen stock indices during January 1990 to August 2008. To investigate the property of the process, we used the FIGARCH (fractionally integrated GARCH) model including GARCH and IGARCH processes as special cases. Since the FIGARCH model allows fractional integration order, it can detect hyperbolically decaying volatility processes which cannot be explained by previous models with integer integration order. Our results show that the Shanghai and Shenzhen stock indices exhibit long-term dependencies. The long memory properties of the Shanghai and Shenzhen stock markets do not seem to be spuriously induced without exception. Journal: China Economic Journal Pages: 313-323 Issue: 3 Volume: 2 Year: 2009 X-DOI: 10.1080/17538960903529543 File-URL: http://hdl.handle.net/10.1080/17538960903529543 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:2:y:2009:i:3:p:313-323 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_453420_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Carsten Herrmann-Pillath Author-X-Name-First: Carsten Author-X-Name-Last: Herrmann-Pillath Title: Social capital, Chinese style: individualism, relational collectivism and the cultural embeddedness of the institutions–performance link Abstract: China is the odd man out in the research on social capital and economic performance. A brief survey of recent World Values Survey data shows China to be a high-trust, achievement-oriented society, which does not fit into popular pictures of rampant corruption and abuses of power. I argue that one difficulty results from methodological issues in research on social capital, where a universally accepted theory of social capital is lacking, including theoretically grounded methods of measurement. These resulting applications often generalize a Western notion of civil society as a benchmark, implicitly. I propose that social capital has to be conceived as a context-bound intermediate level theoretical term, putting methodological arguments by Durlauf (economics) and Little (Chinese studies) together. The resulting empirical method is that of triangulation across different disciplines, combining emic and etic approaches. I present an application on the notorious phenomenon of guanxi in China, which results in its re-conceptualization as ego-centric networking and relational collectivism, based on a culturally specific framing of affectual aspects of social relations. With this notion of culturally specific social capital, we can better understand the relation between institutions and economic performance in China. Journal: China Economic Journal Pages: 325-350 Issue: 3 Volume: 2 Year: 2009 X-DOI: 10.1080/17538960903529568 File-URL: http://hdl.handle.net/10.1080/17538960903529568 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:2:y:2009:i:3:p:325-350 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_455753_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Feng Lu Author-X-Name-First: Feng Author-X-Name-Last: Lu Author-Name: Yuanfang Li Author-X-Name-First: Yuanfang Author-X-Name-Last: Li Title: The China factor in recent global commodity price and shipping freight volatilities Abstract: This paper attempts an investigation of the impact of the China factor on the global commodity and ocean shipping freight volatilities in recent years. It measures China's contribution to the incremental growth in demand for selected bulk commodities and ocean shipping in the world. China's impact on price volatilities is statistically analyzed through a conventional econometric framework. Journal: China Economic Journal Pages: 351-377 Issue: 3 Volume: 2 Year: 2009 X-DOI: 10.1080/17538960903552891 File-URL: http://hdl.handle.net/10.1080/17538960903552891 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:2:y:2009:i:3:p:351-377 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_462462_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: China Economic Journal Journal: Pages: 378-380 Issue: 3 Volume: 2 Year: 2009 X-DOI: 10.1080/17538961003619531 File-URL: http://hdl.handle.net/10.1080/17538961003619531 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:2:y:2009:i:3:p:378-380 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_480423_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Announcement Journal: Pages: 105-105 Issue: 1 Volume: 3 Year: 2010 X-DOI: 10.1080/17538961003799010 File-URL: http://hdl.handle.net/10.1080/17538961003799010 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:3:y:2010:i:1:p:105-105 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_487348_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Justin Yifu Lin Author-X-Name-First: Justin Yifu Author-X-Name-Last: Lin Author-Name: Hinh Dinh Author-X-Name-First: Hinh Author-X-Name-Last: Dinh Author-Name: Fernando Im Author-X-Name-First: Fernando Author-X-Name-Last: Im Title: US–China external imbalance and the global financial crisis Abstract: This paper advances an alternative explanation of the large external imbalance between the United States and China, and its linkages to the current global financial crisis. We show that US current account deficits dated back long before the emergence of China's recent large trade surpluses, with China accounting at its peak for at most one-third of this deficit. The relative rise in China's savings in recent years can be attributed to an increase in its corporate savings, a trend that reflects distortions arising from the transition process from a planned to a market economy. These distortions exacerbate China's income inequality, causing domestic consumption to remain a small share of GDP. Large recent current account deficits in the United States, on the other hand, can be attributed to public sector disserving and perverse incentives generated by housing and equity bubbles, made possible by loose monetary policy and by “innovative” financial derivatives arising from the financial deregulation in the early 1980s. The paper shows that short-run measures are unlikely to fully address these external imbalances. Both countries require long-run, structural measures to resolve the underlying problems and to restore a sustainable foundation for growth. Journal: China Economic Journal Pages: 1-24 Issue: 1 Volume: 3 Year: 2010 X-DOI: 10.1080/17538963.2010.487348 File-URL: http://hdl.handle.net/10.1080/17538963.2010.487348 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:3:y:2010:i:1:p:1-24 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_487349_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Qiren Zhou Author-X-Name-First: Qiren Author-X-Name-Last: Zhou Title: The institutional foundation of China's economic growth Abstract: China's economic growth is (undoubtedly, undeniably, unquestionably) regarded as a miracle due to the changes it has brought to the lives of the Chinese as well as to the global economic structure. This paper analyzes China's economic growth from the perspective of institutional reforms. The main argument is that, through the redefinition of property rights, the operation costs of China's planned economy under full public ownership have been reduced dramatically. Human resources have greatly improved in terms of productivity and creativity, thus providing China with competitive advantages in the global market. Journal: China Economic Journal Pages: 25-32 Issue: 1 Volume: 3 Year: 2010 X-DOI: 10.1080/17538963.2010.487349 File-URL: http://hdl.handle.net/10.1080/17538963.2010.487349 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:3:y:2010:i:1:p:25-32 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_487350_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Linda Yueh Author-X-Name-First: Linda Author-X-Name-Last: Yueh Title: The US, China, and global imbalances Abstract: Although there have been surplus and deficit nations in the world for some time, the magnitude of the so-called global imbalances in the 2000s provided the macroeconomic backdrop to the worst financial crisis in nearly a century. The key players are the United States and China, but the global macroeconomic imbalances involve many other emerging economies. Although the genesis of the financial crisis is much more complex and has to do with financial innovation and deregulation, this paper examines the role of global macroeconomic imbalances. It argues that the reserve currency effect of the US dollar alongside an acceleration of global imbalances in the 2000s meant that the reserve accumulation of China and other large surplus countries contributed to an unsustainable level of liquidity in the US economy which fuelled the housing boom, whose collapse in 2007 was a trigger in the ensuing global recession and the subsequent global financial crisis. The findings point to the importance of monitoring global capital flows associated with the US dollar's reserve currency role in the context of persistent global imbalances as part of the G20’s efforts to coordinate global governance of markets. Journal: China Economic Journal Pages: 33-48 Issue: 1 Volume: 3 Year: 2010 X-DOI: 10.1080/17538963.2010.487350 File-URL: http://hdl.handle.net/10.1080/17538963.2010.487350 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:3:y:2010:i:1:p:33-48 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_487351_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Albert Park Author-X-Name-First: Albert Author-X-Name-Last: Park Author-Name: Dewen Wang Author-X-Name-First: Dewen Author-X-Name-Last: Wang Title: Migration and urban poverty and inequality in China Abstract: Using data from recent surveys of migrants and local residents in ten cities in 2005, this paper examines how migration influences measurements of urban poverty and inequality in China, and also compares how other indicators of well-being differ for migrants and local residents. Contrary to previous studies that report that the income poverty rate of migrant households is 1.5 times that of local resident households, we find relatively small differences in the poverty rates of migrants and local residents. Although the hourly wages of migrants are much lower than those of local residents, migrant workers work longer hours and have lower dependency ratios and higher labor force participation rates. Including migrants increases somewhat measures of urban income inequality. Significant differences between migrants and local residents are found for non-income welfare indicators such as housing conditions and access to social insurance programs. Journal: China Economic Journal Pages: 49-67 Issue: 1 Volume: 3 Year: 2010 X-DOI: 10.1080/17538963.2010.487351 File-URL: http://hdl.handle.net/10.1080/17538963.2010.487351 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:3:y:2010:i:1:p:49-67 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_487352_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yiping Huang Author-X-Name-First: Yiping Author-X-Name-Last: Huang Author-Name: Xun Wang Author-X-Name-First: Xun Author-X-Name-Last: Wang Author-Name: Xiuping Hua Author-X-Name-First: Xiuping Author-X-Name-Last: Hua Title: What determines China's inflation? Abstract: We examine determinants of inflation in China. Analyses of both year-on-year and month-on-month growth data confirm that excess liquidity, output gap, housing prices, and stock prices positively affect inflation. Impulse response analyses indicate that most effects occur during the initial five months and disappear after ten months. Effects of real interest rates and exchange rates on inflation are relatively weak. Our results suggest that the output gap is as important as excess liquidity in explaining the inflation trajectory. The central bank should closely monitor asset prices given their spillovers to inflation. Currently liquidity measures are still central for controlling inflation, but further liberalization of interest rates and exchange rates are crucial. Journal: China Economic Journal Pages: 69-86 Issue: 1 Volume: 3 Year: 2010 X-DOI: 10.1080/17538963.2010.487352 File-URL: http://hdl.handle.net/10.1080/17538963.2010.487352 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:3:y:2010:i:1:p:69-86 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_487353_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jianguo Xu Author-X-Name-First: Jianguo Author-X-Name-Last: Xu Title: Short sale constraints and the information content of trading Abstract: We examine changes in the information content of trading when short sale constraints between prohibition and restriction exist on a stock exchange. This is made possible by a unique institutional arrangement at the Stock Exchange of Hong Kong. It maintains a list of stocks which can be sold short under regulations. Stocks not on the list are prohibited from short selling. The list is revised on a quarterly basis based on predetermined criteria. We find that the probability of information-based trading (PIN) significantly increases when a stock is added to the list. Further analysis shows that this is mainly because uninformed traders are driven out of the market. Elimination of uninformed traders also causes the aggregate trading volume to decrease rather than increase. In comparison, the PIN does not change when a stock is dropped from the list. We also find that market liquidity, measured by volatility and bid–ask spreads, slightly decreases when a stock is added to the list and significantly increases when a stock is dropped from the list. Possible explanations are discussed. Journal: China Economic Journal Pages: 87-104 Issue: 1 Volume: 3 Year: 2010 X-DOI: 10.1080/17538963.2010.487353 File-URL: http://hdl.handle.net/10.1080/17538963.2010.487353 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:3:y:2010:i:1:p:87-104 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_511482_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Erratum Journal: China Economic Journal Pages: 221-221 Issue: 2 Volume: 3 Year: 2010 X-DOI: 10.1080/17538963.2010.511482 File-URL: http://hdl.handle.net/10.1080/17538963.2010.511482 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:3:y:2010:i:2:p:221-221 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_511899_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Fang Cai Author-X-Name-First: Fang Author-X-Name-Last: Cai Title: Demographic transition, demographic dividend, and Lewis turning point in China Abstract: The disagreements on changed stages of demographic transition and the role of a demographic dividend in a dual economy development process often lead to wide debates among scholars about China's development stages. This paper tries to reveal the nexus between demographic transition and dual economy development: the common starting point, close-related processes, and identical characteristics of stages. Based on the empirical evidence of population dynamics, the paper supports the judgment of diminishing demographic dividends and an imminent Lewis turning point in China. The paper also argues that keeping a sustainable and steady economic growth, and becoming a high-income country as early as possible is the key and only way to close the ‘aging before affluence’ gap. Accordingly, the paper concludes by proposing measures to exploit the potential of the first demographic dividend, creating conditions for a second demographic dividend, and tapping new sources of economic growth. Journal: China Economic Journal Pages: 107-119 Issue: 2 Volume: 3 Year: 2010 X-DOI: 10.1080/17538963.2010.511899 File-URL: http://hdl.handle.net/10.1080/17538963.2010.511899 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:3:y:2010:i:2:p:107-119 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_511902_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yang Du Author-X-Name-First: Yang Author-X-Name-Last: Du Author-Name: Wang Meiyan Author-X-Name-First: Wang Author-X-Name-Last: Meiyan Title: Discussions on potential bias and implications of Lewis turning point Abstract: Thanks to the fast economic growth and quick demographic transition, long-term factors have dominated the Chinese labor market. Therefore, with a short-lived shock in employment due to the global financial crisis, the labor shortage reappeared in the spring of 2010. Taking advantage of the recent aggregated data, this paper predicts the potentials of employment demand in the coming years. Also, the impact of demographic transition is discussed. In addition to quantity shortage, the rising wages for migrant workers characterize the labor market in recent years. Using the national representative data, this paper discusses the trend of labor cost changes when the Chinese economy approaches the Lewis turning point. The implications of large-scale migration to inequality are explored by using 1% population sampling data. This paper also tries to clarify some misunderstandings incurred by misuses of data. Journal: China Economic Journal Pages: 121-136 Issue: 2 Volume: 3 Year: 2010 X-DOI: 10.1080/17538963.2010.511902 File-URL: http://hdl.handle.net/10.1080/17538963.2010.511902 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:3:y:2010:i:2:p:121-136 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_511905_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Wang Meiyan Author-X-Name-First: Wang Author-X-Name-Last: Meiyan Title: The rise of labor cost and the fall of labor input: Has China reached Lewis turning point? Abstract: With the emergence and expansion of a shortage of migrant workers, there is much debate over whether China has reached Lewis turning point (LTP). This paper uses China's national farm product cost-benefit survey data to analyze changes of labor cost, labor input, capital input and marginal labor productivity in the agricultural sector. This paper finds that rapid rise of labor cost has happened in the agricultural sector since 2004, accompanied by rapid and significant wage increases for unskilled workers. Total labor input and labor input per unit of three major grain crops have been falling and capital-labor ratio has risen rapidly since the mid-1990s. Output elasticity of labor and marginal labor productivity of japonica rice has risen by a large extent between the period 1980–2004 and 2005–2008. The evidence provided in this paper can help people clarify the debate on whether China has reached LTP. Journal: China Economic Journal Pages: 137-153 Issue: 2 Volume: 3 Year: 2010 X-DOI: 10.1080/17538963.2010.511905 File-URL: http://hdl.handle.net/10.1080/17538963.2010.511905 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:3:y:2010:i:2:p:137-153 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_511908_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yang Yao Author-X-Name-First: Yang Author-X-Name-Last: Yao Author-Name: Ke Zhang Author-X-Name-First: Ke Author-X-Name-Last: Zhang Title: Has China passed the Lewis turning point? A structural estimation based on provincial data Abstract: Using provincial data for the period 1998–2007, this paper estimates the supply and demand functions of migrant workers in each year for a typical Chinese province in a structural framework that explicitly takes into account the Lewis turning point (LTP) in the supply function. The results are extrapolated to the national level and the turning point and the equilibrium level of migrant employment are both estimated for each year. The comparison of those two estimates shows that China has not passed the Lewis turning point. Journal: China Economic Journal Pages: 155-162 Issue: 2 Volume: 3 Year: 2010 X-DOI: 10.1080/17538963.2010.511908 File-URL: http://hdl.handle.net/10.1080/17538963.2010.511908 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:3:y:2010:i:2:p:155-162 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_511912_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ryoshin Minami Author-X-Name-First: Ryoshin Author-X-Name-Last: Minami Author-Name: Xinxin Ma Author-X-Name-First: Xinxin Author-X-Name-Last: Ma Title: The Lewis turning point of Chinese economy: Comparison with Japanese experience Abstract: In this article, we estimate production function and calculate surplus labor in agriculture. The estimation results revealed that the Lewis turning point (LTP) was not yet passed in China. This study is also made in comparison with Japanese historical experience. The main contents are as follows. First, we survey the recent change in the urban labor market by using unemployment rate as an index to express the balance of labor demand and labor supply, and wage differentials between agriculture and urban industries with high productivity and high wages. Second, we estimate agricultural production function and calculate the marginal productivity of labor and surplus labor in order to demarcate LTP. Third, we reveal factors for the change in agricultural labor by referring to a growth in urban industry and argue on the role of rural industries in absorbing surplus labor. Finally, we refer to several important issues which are left for future studies. Journal: China Economic Journal Pages: 163-179 Issue: 2 Volume: 3 Year: 2010 X-DOI: 10.1080/17538963.2010.511912 File-URL: http://hdl.handle.net/10.1080/17538963.2010.511912 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:3:y:2010:i:2:p:163-179 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_511916_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ross Garnaut Author-X-Name-First: Ross Author-X-Name-Last: Garnaut Title: Macro-economic implications of the turning point Abstract: China's rapid growth in the reform era has been built around the availability of large amounts of migration from the countryside to the industrial cities, associated with only small increases in real wages. This pattern of growth has generated high savings, investment, rates of output growth, external payments imbalances, and high and growing inequality in the distribution of income. Slow and soon negative population and work force growth, rapid increase in modern sector demand for labor from an ever-higher base, and rapidly increasing investment in education per school-age person have absorbed most or all of the ‘surplus’ labor from the countryside, and rapid urban demand for labor is now associated with large increases in real wages in town and village. This paper explores analytically the effects of the exhaustion of underemployed labor in the countryside on these economic variables, and on the structure of trade and industry. It suggests some approaches to policy that can make this a favorable time for growth with equity in China. Journal: China Economic Journal Pages: 181-190 Issue: 2 Volume: 3 Year: 2010 X-DOI: 10.1080/17538963.2010.511916 File-URL: http://hdl.handle.net/10.1080/17538963.2010.511916 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:3:y:2010:i:2:p:181-190 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_511920_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yiping Huang Author-X-Name-First: Yiping Author-X-Name-Last: Huang Author-Name: Tingsong Jiang Author-X-Name-First: Tingsong Author-X-Name-Last: Jiang Title: What does the Lewis turning point mean for China? A computable general equilibrium analysis Abstract: We apply a computable general equilibrium framework to assess likely impacts of the Lewis turning point (LTP) on China and the rest of the world. Modeling results suggest that China will probably transition from an abnormal economy to a normal economy with somewhat lower growth but higher inflation, which requires significant revision to the macroeconomic policy framework. China would lose competitiveness in labor-intensive activities, its current account surplus should fall but overinvestment risk could rise. These changes in China should help improve other countries' current accounts and boost low-cost countries' production. The LTP, however, does not provide automatic solutions to some of the key challenges, such as service sector development and innovation capability. China will need to make serious policy efforts to avoid the so-called ‘middle-income trap’. Journal: China Economic Journal Pages: 191-207 Issue: 2 Volume: 3 Year: 2010 X-DOI: 10.1080/17538963.2010.511920 File-URL: http://hdl.handle.net/10.1080/17538963.2010.511920 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:3:y:2010:i:2:p:191-207 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_511926_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ligang Song Author-X-Name-First: Ligang Author-X-Name-Last: Song Author-Name: Yongsheng Zhang Author-X-Name-First: Yongsheng Author-X-Name-Last: Zhang Title: Will Chinese growth slow after the Lewis turning point? Abstract: The paper argues that China's economic growth will not necessarily slow after China reaches the Lewis turning point (LTP) when wages and subsequently costs of production, as a result of the exhaustion of the unlimited supplies of labor from rural areas, are increasing. Reaching the turning point leads to significant structural change signifying that China enters a new phase of development in which those endogenously determined factors such as human capital, innovation, R&D expenditure and technological progress begin to play more important roles than contributions made simply by inputs of physical capital, labor and resources in enhancing economic growth. To achieve the continual growth, certain conditions are needed in the transition toward and beyond the turning point including among others the institutional reform which enables China to further transform itself in order to embrace a new mode of economic growth driven predominantly by efficient, sustainable and equitable considerations. Journal: China Economic Journal Pages: 209-219 Issue: 2 Volume: 3 Year: 2010 X-DOI: 10.1080/17538963.2010.511926 File-URL: http://hdl.handle.net/10.1080/17538963.2010.511926 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:3:y:2010:i:2:p:209-219 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_562028_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Matthew Yiu Author-X-Name-First: Matthew Author-X-Name-Last: Yiu Author-Name: Kenneth Chow Author-X-Name-First: Kenneth Author-X-Name-Last: Chow Title: Nowcasting Chinese GDP: information content of economic and financial data Abstract: This article applies the factor model proposed by Giannone, Reichlin, and Small (2005) on a large data set to nowcast (i.e. current-quarter forecast) the annual growth rate of China's quarterly GDP. The data set contains 189 indicator series of several categories, such as prices, industrial production, fixed asset investment, external sector, money market, and financial market. This article also applies Bai and Ng's criteria (2002) to determine the number of common factors in the factor model. The identified model generates out-of-sample nowcasts for China's GDP with smaller mean-squared forecast errors than those of the random walk benchmark. Moreover, using the factor model, we find that interest rate data is the single most important block of information to improve estimates of current-quarter GDP in China. Other important blocks are consumer and retail prices data and fixed asset investment indicators. Journal: China Economic Journal Pages: 223-240 Issue: 3 Volume: 3 Year: 2010 X-DOI: 10.1080/17538963.2010.562028 File-URL: http://hdl.handle.net/10.1080/17538963.2010.562028 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:3:y:2010:i:3:p:223-240 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_562043_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Frank Bickenbach Author-X-Name-First: Frank Author-X-Name-Last: Bickenbach Author-Name: Wan-Hsin Liu Author-X-Name-First: Wan-Hsin Author-X-Name-Last: Liu Title: On the role of personal relationships for doing business in the Greater Pearl River Delta, China Abstract: This article investigates the role of personal relationships for doing business in the Greater Pearl River Delta, China (GPRD). First, it discusses the interplay of formal and informal (relationship-based) institutions based on institutional economics. Second, it describes the institutional environment for doing business in China, and in the GPRD in particular. Third, it uses data obtained from a survey among executives of Hong Kong electronics SMEs with business operations in the Pearl River Delta (PRD) to gain insights into their perceptions of the importance and the motives of using personal relationships for business in PRD in general, and on the impact of personal relationships on location and partner decisions for companies' production as well as innovation activities, in particular. The results confirm the importance of personal relationships for doing business in the GPRD and suggest that companies rely on personal relationships for business not only for cultural reasons but also to cope with deficient legal and political institutions. Journal: China Economic Journal Pages: 281-306 Issue: 3 Volume: 3 Year: 2010 X-DOI: 10.1080/17538963.2010.562043 File-URL: http://hdl.handle.net/10.1080/17538963.2010.562043 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:3:y:2010:i:3:p:281-306 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_562031_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Chu-Chia Lin Author-X-Name-First: Chu-Chia Author-X-Name-Last: Lin Author-Name: Chung-Rou Fang Author-X-Name-First: Chung-Rou Author-X-Name-Last: Fang Author-Name: Hui-Pei Cheng Author-X-Name-First: Hui-Pei Author-X-Name-Last: Cheng Title: Relationships between oil price shocks and stock market: an empirical analysis from Greater China Abstract: Although a lot of empirical research has studied the relationship between changes in oil price and economic activity, it is surprising that little research has been conducted on the relationship between oil price shocks and the Greater China region (China, Hong Kong and Taiwan). Therefore, the main goal of this article is to apply detailed monthly data from 1997/7 to 2008/9 to fill this gap. Compared to the effect of US stock market returns described by Kilian (2009) and Kilian and Park (2009), we found that the impact of oil price shocks on stock prices in Greater China has been mixed. First, the impact of oil price shocks on Taiwan's stock market is very similar to that on the US stock market. Additionally, all three shocks have had significantly positive impacts on Hong Kong's stocks, partially in contrast to the effects on the US stock market. However, in contrast to the effect in the US stock market, we found that only global oil supply shock has a significantly positive impact on China's stock returns, but global oil demand shock and the oil specific demand shock have no significant impacts. The reason for the lack of significant impacts is that the positive expectation effect of China's fast economic growth may be just offset by the negative effect of a precautionary demand-driven effect. This result is also consistent with the previous empirical findings that the segmented and integrated China stock market is mixed, and it implies that the China stock market is ‘partially integrated’ with the other stock markets and oil price shocks. Journal: China Economic Journal Pages: 241-254 Issue: 3 Volume: 3 Year: 2010 X-DOI: 10.1080/17538963.2010.562031 File-URL: http://hdl.handle.net/10.1080/17538963.2010.562031 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:3:y:2010:i:3:p:241-254 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_562044_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Wan-wen Chu Author-X-Name-First: Wan-wen Author-X-Name-Last: Chu Title: Market socialism, Chinese style: bringing development back into economic theory Abstract: China became an important engine of growth for the world during the recent global financial crisis, mainly because of the Chinese government's willingness and ability to stimulate aggregate demand quickly and effectively. China has been able to achieve that partly because of the legacy of central planning before the reform. The local governments implement infrastructure and other projects effectively and quickly, and the state-owned banks lend freely, under the guidance of the central government. These institutional arrangements, however, have been responsible for China's sustained growth since reform began in 1978. They are more for development than for aggregate demand management. The recent event only heightens the merits of its growth-promoting system. A question arises regarding the merits of the Chinese system of market socialism in general. Regarding economic theories, the outstanding performance of the Chinese economy has three implications: (1) Keynesianism is still alive; (2) Gerschenkron's theories of economic backwardness remain valid – that is, the larger the gap, the greater the need to socialize investment risks, and the more forceful the government's intervention needs to be; and hence (3) the more imbalanced the development process will be. These imbalances present daunting challenges. Journal: China Economic Journal Pages: 307-312 Issue: 3 Volume: 3 Year: 2010 X-DOI: 10.1080/17538963.2010.562044 File-URL: http://hdl.handle.net/10.1080/17538963.2010.562044 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:3:y:2010:i:3:p:307-312 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_562047_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ho-Mou Wu Author-X-Name-First: Ho-Mou Author-X-Name-Last: Wu Author-Name: Changrong Deng Author-X-Name-First: Changrong Author-X-Name-Last: Deng Title: A study of prepayment risks in China's mortgage-backed securitization Abstract: Prepayment decisions bring risks to the process of mortgage-backed securitization (MBS) and make pricing of these assets difficult. With data from a Chinese bank's mortgage-backed security pool, we examine prepayment decisions of the borrowers. Since multiple prepayments are allowed without penalty in China, we also distinguish between the probability and the proportion of prepayment. With discrete choice models and a Type II Tobit model, we conclude that the probability of prepayment is affected by the starting account balance, monthly effects, duration, term of debt, house type, trading type of loan, house value and size of mortgage. The probability is also affected by individual factors, including gender, age, education level, individual income and family income. Interestingly, the female borrowers are more likely to prepay, while older borrowers intend to prepay a fewer number of times but with a larger amount each time. In addition, similar factors as above are also shown to explain the choices of proportions of prepayment, with some reasonable adjustments. Our results imply that the variations in income, expenditure, geographic difference and opportunities in the financial market should be included for consideration of risk in the MBS process in China. Journal: China Economic Journal Pages: 313-326 Issue: 3 Volume: 3 Year: 2010 X-DOI: 10.1080/17538963.2010.562047 File-URL: http://hdl.handle.net/10.1080/17538963.2010.562047 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:3:y:2010:i:3:p:313-326 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_562039_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Fadzlan Sufian Author-X-Name-First: Fadzlan Author-X-Name-Last: Sufian Author-Name: Muzafar Shah Habibullah Author-X-Name-First: Muzafar Shah Author-X-Name-Last: Habibullah Title: Has economic freedom fostered bank performance? Panel evidence from China Abstract: The impact of economic freedom on the well-being of the economy has been widely documented. Noticeably absent from the literature is empirical evidence on the impact of economic freedom on the banking sector. This article employs data on the Chinese banking sector and provides for the first time empirical evidence on the impact of economic freedom. We find evidence supporting far greater freedom for entrepreneurs to start businesses. The empirical findings seem to suggest that greater freedom of trade positively influences the performance of banks operating in the Chinese banking sector. However, the impact of the different dimensions of economic freedom is not uniform across Chinese banks with different ownership structures. Journal: China Economic Journal Pages: 255-279 Issue: 3 Volume: 3 Year: 2010 X-DOI: 10.1080/17538963.2010.562039 File-URL: http://hdl.handle.net/10.1080/17538963.2010.562039 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:3:y:2010:i:3:p:255-279 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_618696_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: John Williamson Author-X-Name-First: John Author-X-Name-Last: Williamson Title: China's interest in a revaluation of the yuan Abstract: This paper aims to illustrate how an equilibrium exchange rate of the Yuan would contribute to China's achievement of non-inflationary full employment – defined as internal balance by James Meade in 1951, as well as the balance of international payments. In terms of Meade's model, China currently has both excess demand and a payments surplus, so that it would benefit from revaluation, which helps curb internal inflation and the external foreign surplus simultaneously. For China, specifically, revaluation would support combating price increases and facilitate a shift of resources into consumption and raising living standards. The paper also examines three common reasons advanced by groups in favor of avoiding appreciation of the RMB, finding none of them theoretically or empirically convincing. The pursuit of both growth/employment and price stability objectives makes China unable to afford having an undervalued exchange rate. Journal: China Economic Journal Pages: 15-23 Issue: 1 Volume: 4 Year: 2011 X-DOI: 10.1080/17538963.2011.618696 File-URL: http://hdl.handle.net/10.1080/17538963.2011.618696 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:4:y:2011:i:1:p:15-23 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_608507_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Wan-wen Chu Author-X-Name-First: Wan-wen Author-X-Name-Last: Chu Title: Entrepreneurship and bureaucratic control: the case of the Chinese automotive industry Abstract: Whether and how will the state treat different kinds of enterprises, state-owned enterprises (SOEs) and non-SOEs, in the related industry differently? Does this concern give its industrial policy any special Chinese characteristics? This article looks at a particular aspect of the Chinese automotive industry policy, that is, regulating entries, which poses special problems for the government. It explores why the government still retains this method of control even after it has been shown to be ineffective, and how the government tries to reconcile it with the aim of promoting entrepreneurship. The government finds that it cannot do away with entrepreneurship brought by the unplanned entrants (SOEs or not) to keep the industry competitive. Moreover, with SOEs accounting for the major part of the auto industry, the government has to protect the SOEs and propel them to upgrade at the same time. The government is thus likely to continue regulating entries, while trying to find a balance between the needs of keeping entrepreneurship and managing SOEs. Journal: China Economic Journal Pages: 65-80 Issue: 1 Volume: 4 Year: 2011 X-DOI: 10.1080/17538963.2011.608507 File-URL: http://hdl.handle.net/10.1080/17538963.2011.608507 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:4:y:2011:i:1:p:65-80 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_609612_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Justin Yifu Lin Author-X-Name-First: Justin Yifu Author-X-Name-Last: Lin Title: China and the global economy Abstract: As a result of the extraordinary performance in the past 20 years, China's status in the global economy has dramatically changed. In this article, I reflect on China's unprecedented growth, examine the reasons for that growth, and discuss promising prospects for the Chinese economy to maintain an 8% annual growth rate in the coming two decades. Although to maintain that growth rate, China will definitely encounter many challenges – both internally and externally. The twenty-first century has witnessed the emergence of a multi-polar growth world, with many of the new growth poles being emerging market economies. China has become the top contributor to global GDP growth in the decade of 2000–2009. If China copes appropriately with its challenges and deepens its structural reforms, it has the potential to continue its role as a leading power in supporting a multi-polar global economic architecture that benefits both developing and high-income countries in various ways. Journal: China Economic Journal Pages: 1-14 Issue: 1 Volume: 4 Year: 2011 X-DOI: 10.1080/17538963.2011.609612 File-URL: http://hdl.handle.net/10.1080/17538963.2011.609612 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:4:y:2011:i:1:p:1-14 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_609329_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Chia-Shang James Chu Author-X-Name-First: Chia-Shang James Author-X-Name-Last: Chu Author-Name: Tianyi Wang Author-X-Name-First: Tianyi Author-X-Name-Last: Wang Author-Name: Huihui Li Author-X-Name-First: Huihui Author-X-Name-Last: Li Title: China's macroeconomic stability – an empirical study based on survey data Abstract: A complete financial stability analysis should include investigation on macroeconomic stability since macroeconomic development and potential imbalance can increase the financial instability and trigger a financial crisis. Survey data of rating on China's macroeconomic stability is analyzed by estimating an ordered logit model with random effect. Among the candidate macroeconomic indicators, we found that inflation is the key variable that determines China's macroeconomic stability, followed by the change in budget balance and GDP growth gap. Journal: China Economic Journal Pages: 43-64 Issue: 1 Volume: 4 Year: 2011 X-DOI: 10.1080/17538963.2011.609329 File-URL: http://hdl.handle.net/10.1080/17538963.2011.609329 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:4:y:2011:i:1:p:43-64 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_609645_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yiping Huang Author-X-Name-First: Yiping Author-X-Name-Last: Huang Author-Name: Xun Wang Author-X-Name-First: Xun Author-X-Name-Last: Wang Author-Name: Qin Gou Author-X-Name-First: Qin Author-X-Name-Last: Gou Author-Name: Daili Wang Author-X-Name-First: Daili Author-X-Name-Last: Wang Title: Achieving capital account convertibility in China Abstract: China has been delaying the plan of achieving capital account convertibility since the Asian financial crisis, although restrictions on capital flows have been reduced steadily, confirmed by the falling Capital Account Control Index. Current restrictions exist mainly for cross-border portfolio investment, debt financing and outward direct investment (ODI). Effectiveness of these restrictions, however, has been declining over time. While capital controls probably helped support domestic financial stability in the past, their potential costs are rising quickly, evidenced by losing independence of the monetary policy. China already possesses a range of favorable conditions for capital account liberalization, including stable macroeconomic situation, healthy fiscal and financial systems, and strong external accounts. Some of these conditions may be reversed in the coming years. Therefore, China should probably try to achieve basic capital account convertibility within the next three to five years. This requires, among others, establishment of market-based interest rates and exchange rates. The authorities could probably remove restrictions on debt financing and ODI quickly. For the more volatile portfolio investment, they could retain the existing qualified foreign institutional investor and qualified domestic institutional investor schemes, with significantly increased quotas but substantially reduced restrictions during the transition period. Journal: China Economic Journal Pages: 25-42 Issue: 1 Volume: 4 Year: 2011 X-DOI: 10.1080/17538963.2011.609645 File-URL: http://hdl.handle.net/10.1080/17538963.2011.609645 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:4:y:2011:i:1:p:25-42 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_698086_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ya-Hwei Yang Author-X-Name-First: Ya-Hwei Author-X-Name-Last: Yang Author-Name: Daw Ma Author-X-Name-First: Daw Author-X-Name-Last: Ma Title: Capital structure choice and ownership: evidence from electronics enterprises in China Abstract: Empirical studies on capital structure mostly focus on listed companies and also on countries other than China. In this paper, we employ a panel dataset for 4,716 large and medium-sized enterprises in the Chinese electronics industry during the period 2005–2007 in order to investigate the determinants of their capital structure choice. Using the debt ratio as the dependent variable, we find that firm size and potential growth have a positive effect on the debt ratio whereas profitability has a negative effect. We show that decisions on the debt ratio are based on mixed factors that the various theories suggest. The unlisted Chinese companies which are unable to access to the securities market are prone to acquire bank loans as sources for funds which provides room for the modification of pecking order theory based on listed companies. As to ownership structure, we find that those Chinese electronics enterprises with higher portions of foreign equity tend to have lower debt ratios. Journal: China Economic Journal Pages: 145-158 Issue: 2-3 Volume: 4 Year: 2011 X-DOI: 10.1080/17538963.2011.698086 File-URL: http://hdl.handle.net/10.1080/17538963.2011.698086 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:4:y:2011:i:2-3:p:145-158 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_666056_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Hao Yu Author-X-Name-First: Hao Author-X-Name-Last: Yu Title: Uncertainty and risk analysis of the Langrun Chinese GDP Forecast: Fan Charts revisited Abstract: In this paper, we develop a fan chart methodology for Chinese economic growth to incorporate uncertainty analysis into the gross domestic product growth forecast. Using the ‘Langrun Forecast’ project results exclusively, we estimate the density distribution for Chinese gross domestic product growth forecasts and build corresponding fan charts for the first time. Our analysis shows that the fan chart method effectively highlights the overall uncertainty and balance of risks surrounding Chinese gross domestic product growth, especially during the past international financial crisis between 2007 and 2009. Wallis' interval forecast test is conducted to evaluate the performance of the produced fan charts, and the results indicate that our forecasts perform well for the period being investigated. Journal: China Economic Journal Pages: 81-104 Issue: 2-3 Volume: 4 Year: 2011 X-DOI: 10.1080/17538963.2011.666056 File-URL: http://hdl.handle.net/10.1080/17538963.2011.666056 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:4:y:2011:i:2-3:p:81-104 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_666058_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Wenjun Liu Author-X-Name-First: Wenjun Author-X-Name-Last: Liu Title: Regional technical efficiency and technology gaps in rural China: evidence from CHIP surveys Abstract: This paper uses household-level datasets called Chinese Household Income Project (CHIP) surveys to investigate the regional technical efficiency, technology gap, and their determinants in rural China. A metafrontier production function approach is employed to fit the values of the technical efficiency and the technology gap ratio of rural households in six regions of China. The findings indicate that the technical efficiency improved remarkably from 1988 to 2002, but the technology gap ratio among regions changed slightly in the same period. The findings also show a negative relationship between the technology gap ratio and the regional technical efficiency for all regions except the northwest that has the lowest value of both the technical efficiency and the technology gap ratio. Next, the Tobit model is employed to discern the sources of efficiency and technology gaps. The results show that quality of agricultural labor, agricultural infrastructure, natural conditions, and farmer's political status have significant effects on farms' technical efficiency and technology gap ratio. Journal: China Economic Journal Pages: 125-144 Issue: 2-3 Volume: 4 Year: 2011 X-DOI: 10.1080/17538963.2011.666058 File-URL: http://hdl.handle.net/10.1080/17538963.2011.666058 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:4:y:2011:i:2-3:p:125-144 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_666059_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Horatio Morgan Author-X-Name-First: Horatio Author-X-Name-Last: Morgan Title: The international competitiveness of Chinese manufacturing firms and the exit of the renminbi–dollar peg Abstract: This paper evaluates the implications of a shift from a pegged to a floating exchange rate regime for the international competitiveness and the economic behavior of Chinese manufacturing firms. Using a conceptual framework that characterizes the relationship between the exchange rate regime and the potential source of a firm's competitive advantage, it yields two key analytical results. First, Chinese manufacturing firms may increase their reliance on a low-margin pricing strategy as the exchange rate regime shifts towards a more flexible one. As a corollary, a low-margin pricing strategy may discourage Chinese manufacturing firms from undertaking costly research and development (R&D) activities, and investments in human capital development. Second, Chinese manufacturing firms have the incentive to employ various wage restraint measures under a floating exchange rate regime at least in the short term. These key analytical results provide insights into a number of policy-relevant issues that may arise at the firm-level. It concludes by providing some general directions on the timing of a complete transition to a floating exchange rate regime. Journal: China Economic Journal Pages: 159-168 Issue: 2-3 Volume: 4 Year: 2011 X-DOI: 10.1080/17538963.2011.666059 File-URL: http://hdl.handle.net/10.1080/17538963.2011.666059 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:4:y:2011:i:2-3:p:159-168 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_666060_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shin-Horng Chen Author-X-Name-First: Shin-Horng Author-X-Name-Last: Chen Author-Name: Meng-chun Liu Author-X-Name-First: Meng-chun Author-X-Name-Last: Liu Author-Name: Pei-Chang Wen Author-X-Name-First: Pei-Chang Author-X-Name-Last: Wen Title: The ECFA and its expected effect on cross-strait trade and investment: a Taiwanese perspective Abstract: To come to terms with the realization of ASEAN+1, Taiwan had concluded with mainland China a special free trade agreement (FTA), the Economic Cooperation Framework Agreement (ECFA) in June 2010. This framework agreement provides an early harvest agreement of near-term tariff elimination, including detailed product schedules for goods and services from each side, with the final shape of fuller trade liberalization in goods and services taking years to negotiate and realize. The conclusion of the ECFA has been considered as a major breakthrough in cross-strait talks and economic relationships, even though it is by no means free from controversies inside Taiwan. The authors are therefore motivated by hot debates in Taiwan to reflect on the expected trade effect of the ECFA by taking into account the factor of cross-strait global production networks. In particular, we examine with a proposed model and statistical robustness, the trend of Taiwan-based firms' localization in mainland China, driven in part by constant movements in global production networks, which generates complicated and dynamic relationships between Taiwan's investment-induced trade and structural shift in Taiwan's exports to mainland China. Based on our empirical findings, we reflect on the conventional views on the trade effect of the free trade agreement. The results of our analyses tend to support a cautious view about the trade effect of the ECFA. Without denying the significance of the ECFA and deepening cross-strait economic relationships, we argue that the impact of the ECFA should be interpreted in a wider context than just the trade perspective, as the conventional wisdom and the existing evaluations suggested. Journal: China Economic Journal Pages: 105-124 Issue: 2-3 Volume: 4 Year: 2011 X-DOI: 10.1080/17538963.2011.666060 File-URL: http://hdl.handle.net/10.1080/17538963.2011.666060 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:4:y:2011:i:2-3:p:105-124 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_698087_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Aviral Kumar Tiwari Author-X-Name-First: Aviral Kumar Author-X-Name-Last: Tiwari Author-Name: Suresh K.G. Author-X-Name-First: Suresh Author-X-Name-Last: K.G. Title: Structural changes and regional disparity in China's inflation: a revisit Abstract: The study re-examined the time series properties and regional disparities in Chinese inflation by extending the work of Chong, Zhang, and Feng (2011). For this purpose we employed the Lagrange Multiplier (LM) unit root test with one structural break and two structural breaks suggested by Lee and Strazicich (2003, 2004) and a recently developed ADF type unit root test with two structural breaks of Narayan and Popp (2010). We found that national, urban and rural series of the overall inflation series, clothing, and food, national series of education and residence and the rural series of residence and education are stationary. We also found regional disparity in Chinese inflation, but the disparities existed only in education inflation series. Journal: China Economic Journal Pages: 17-28 Issue: 1 Volume: 5 Year: 2012 X-DOI: 10.1080/17538963.2011.698087 File-URL: http://hdl.handle.net/10.1080/17538963.2011.698087 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:5:y:2012:i:1:p:17-28 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_719287_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Lixing Li Author-X-Name-First: Lixing Author-X-Name-Last: Li Title: Land titling in China: Chengdu experiment and its consequences Abstract: The lack of transfer rights for collectively owned land has led to inefficient land use and rising urban–rural income inequality in China, which calls for property rights reform in the rural area. This article studies the land titling experiment in Chengdu since 2008. Based on field surveys and analysis of data on land transactions, we find that rural residents' income and wealth increased significantly after achieving transfer rights on collectively owned land. The implied land price is found to be correlated with the strength of property rights. With land titling, the market for rural construction land is growing in Chengdu. We argue that a property rights reform that changes the primary role of rural land from welfare to property will provide China with an opportunity to achieve urban–rural harmony and land-use efficiency while maintaining its fast urbanization process. Journal: China Economic Journal Pages: 47-64 Issue: 1 Volume: 5 Year: 2012 X-DOI: 10.1080/17538963.2012.719287 File-URL: http://hdl.handle.net/10.1080/17538963.2012.719287 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:5:y:2012:i:1:p:47-64 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_723861_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xiaoyan Lei Author-X-Name-First: Xiaoyan Author-X-Name-Last: Lei Author-Name: Yan Shen Author-X-Name-First: Yan Author-X-Name-Last: Shen Author-Name: Xiaxin Wang Author-X-Name-First: Xiaxin Author-X-Name-Last: Wang Title: How will fertility imbalances affect the human capital structure in China? Evidence from the National Family Planning and Fertility Health Survey Abstract: Using the National Family Planning and Fertility Health Survey of 1997 and 2001, we document the preferred fertility level, the actual fertility level and the imbalance between these two for Chinese women. We further study the associations of these outcomes with human capital structure measured by education levels and try to explore the mechanisms behind these associations. The main finding is that there exists severe fertility imbalance in China, and the direction of imbalance is opposite in urban and rural regions. Education plays an important role in determining such imbalance even taking into account other socioeconomic factors. In addition, we find evidence showing that besides economic factors, institutional factors such as the family planning policy may have contributed to the fertility imbalance and the role of education. Journal: China Economic Journal Pages: 29-45 Issue: 1 Volume: 5 Year: 2012 X-DOI: 10.1080/17538963.2012.723861 File-URL: http://hdl.handle.net/10.1080/17538963.2012.723861 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:5:y:2012:i:1:p:29-45 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_733062_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Sumie Sato Author-X-Name-First: Sumie Author-X-Name-Last: Sato Author-Name: Mototsugu Fukushige Author-X-Name-First: Mototsugu Author-X-Name-Last: Fukushige Title: The Chinese economy and income inequality among East Asian countries Abstract: Using the Atkinson inequality measure of income distribution, we analyze the impact of China as a single country and examine the effect of its domestic income inequality on total income inequality among East Asian countries. First, we find that China's domestic income inequality has increased since 1990. However, the inequality of China's domestic income distribution is still at a low level among East Asian countries as a whole. Second, the growth of China's per capita gross domestic product (GDP) had an equalizing effect on income distribution in a framework of Association of South East Asian Nations (ASEAN) + China, but this effect was reversed around 1997. However, relative to higher income countries such as Japan and South Korea, China's per capita GDP remains low, and although China has in the past contributed to income inequality in the area, it has recently had a more equalizing effect. Journal: China Economic Journal Pages: 1-15 Issue: 1 Volume: 5 Year: 2012 X-DOI: 10.1080/17538963.2012.733062 File-URL: http://hdl.handle.net/10.1080/17538963.2012.733062 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:5:y:2012:i:1:p:1-15 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_779810_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Editorial Board Journal: China Economic Journal Pages: ebi-ebi Issue: 2-3 Volume: 5 Year: 2012 X-DOI: 10.1080/17538963.2012.779810 File-URL: http://hdl.handle.net/10.1080/17538963.2012.779810 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:5:y:2012:i:2-3:p:ebi-ebi Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_761837_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: James Liang Author-X-Name-First: James Author-X-Name-Last: Liang Title: Will one child policy reduce entrepreneurship in China? Abstract: This paper argues that one child policy in China will negatively affect entrepreneurship in China 20 to 30 years later. The author first presents evidence that aging has been partially responsible Japan's recent economic stagnation. Then the paper presents evidence that young people are more able entrepreneurs. Moreover, the aging of the workforce can negatively affect entrepreneurship particularly for young people, because young people are promoted more slowly in an aging organization, and therefore accumulated less human capital to be successful entrepreneurs. Lastly, the paper predicts that entrepreneurship will suffer a great deal if China continues its one child policy. Journal: China Economic Journal Pages: 85-95 Issue: 2-3 Volume: 5 Year: 2012 X-DOI: 10.1080/17538963.2012.761837 File-URL: http://hdl.handle.net/10.1080/17538963.2012.761837 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:5:y:2012:i:2-3:p:85-95 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_772765_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Dr. Werner Jackstädt Best Paper Award Journal: China Economic Journal Pages: 151-151 Issue: 2-3 Volume: 5 Year: 2012 X-DOI: 10.1080/17538963.2012.772765 File-URL: http://hdl.handle.net/10.1080/17538963.2012.772765 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:5:y:2012:i:2-3:p:151-151 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_764675_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Li Pan Author-X-Name-First: Li Author-X-Name-Last: Pan Author-Name: Jianguo Xu Author-X-Name-First: Jianguo Author-X-Name-Last: Xu Title: Housing price and fertility rate Abstract: The 6th National Population Census in 2010 shows China's total fertility rate is lower than the earlier estimation. It is also far below the replacement rate and world average fertility rate. China's low fertility rate is particularly worrisome in the background of emerging labor shortage and fast population aging when its per capita income is still low. In addition, low fertility rates in neighboring East Asian countries (regions) ignite more concern. We find that the urban fertility rate is strongly correlated with housing prices. Particularly, the fertility rate is higher in cities where housing is more spacious or housing price is cheaper. High housing price implies heavy living costs, which reduces resources available for raising children and the willingness to have children. Journal: China Economic Journal Pages: 97-111 Issue: 2-3 Volume: 5 Year: 2012 X-DOI: 10.1080/17538963.2013.764675 File-URL: http://hdl.handle.net/10.1080/17538963.2013.764675 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:5:y:2012:i:2-3:p:97-111 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_764674_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Feng Lu Author-X-Name-First: Feng Author-X-Name-Last: Lu Author-Name: Yang Yewei Author-X-Name-First: Yang Author-X-Name-Last: Yewei Title: Analysis on factors behind the decline of the agricultural labor share in total labor force of China (1990–2030) Abstract: The agricultural labor share in total labor force is determined by many factors, such as number of new participators and those leaving from labor force and transferring to non-farming. This article estimates the contribution of the determining factors for the changes of agricultural labor share during the period 1990–2030. Given the assumption about the average annual decline of the agricultural labor share in the future, the number of new participators in agricultural labor is estimated to decline from 20.23 million during 2005–2010 to 11.42 million during 2025–2030, and the numbers of leaving and transferring are estimated to change from 42.47 million and 38.32 million to 27.04 million and 29.49 million, respectively, during the same period. The average annual non-farming job creation may decline from 13.938 million to 7.016 million. Given the fact that pressure on agricultural labor transfer and non-farming job creation tends to ease but will exist in the long term. China shall adjust its employment policies from focusing only on quantity expansion to equally stress on ‘quantity and quality, speed, and structure’. Journal: China Economic Journal Pages: 113-130 Issue: 2-3 Volume: 5 Year: 2012 X-DOI: 10.1080/17538963.2013.764674 File-URL: http://hdl.handle.net/10.1080/17538963.2013.764674 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:5:y:2012:i:2-3:p:113-130 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_764677_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yi Zeng Author-X-Name-First: Yi Author-X-Name-Last: Zeng Title: Toward deeper research and better policy for healthy aging – using the unique data of Chinese longitudinal healthy longevity survey Abstract: The objectives of this article are to facilitate deeper research and promote better policy analysis for healthy aging with sound policy and intervention programs. Toward these objectives, we introduce the Chinese Longitudinal Healthy Longevity Survey (CLHLS), which has been conducted by Center for Healthy Aging and Development Studies, National School of Development of Peking University since 1998. We cover the CLHLS study design, sample distributions, contents, general quality assessment and availability of the CLHLS data collected. Such an introduction would be helpful to our colleagues who may be interested in using this unique and more-than-14-year longitudinal survey data resource for deeper interdisciplinary research and better policy analysis on healthy aging. To illustrate how the unique data resources of CLHLS may be useful, we also summarize and discuss ten selected healthy aging policy related researches based on data from the CLHLS. Finally, we discussed the future prospects using the unique and rich CLHLS datasets. Journal: China Economic Journal Pages: 131-149 Issue: 2-3 Volume: 5 Year: 2012 X-DOI: 10.1080/17538963.2013.764677 File-URL: http://hdl.handle.net/10.1080/17538963.2013.764677 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:5:y:2012:i:2-3:p:131-149 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_761834_O.xml processed with: repec_from_tfja.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zhigang Guo Author-X-Name-First: Zhigang Author-X-Name-Last: Guo Title: The low fertility rate is the major demographic risk in China Abstract: In this paper, I argue that China's population has retained a low fertility rate for 20 years. However, population research has failed to raise sufficient awareness on this major change over a long period of time. As it is proven by the data from the Sixth National Population Census in China, birth rate level and fertility level both have been seriously overestimated in the past, while population aging process has been underestimated at the same time. China has repeatedly failed to achieve its goals in population development plans by large gaps. Results in population forecast and simulation indicate that the main problem of China's population in the twenty-first century has already shifted from the excessive growth of total population to the issue of population age structure. Population over-aging becomes a serious problem that looms large over the country's future. The biases in the publicity on population theories and in relevant estimation and forecast in the past prohibited the correct understanding on China's general population trend. This mistake causes seriously low fertility rate in China and will bring population risks of too few children and over-aging in the future. Journal: China Economic Journal Pages: 65-84 Issue: 2-3 Volume: 5 Year: 2012 X-DOI: 10.1080/17538963.2012.761834 File-URL: http://hdl.handle.net/10.1080/17538963.2012.761834 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:5:y:2012:i:2-3:p:65-84 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_830807_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Justin Yifu Lin Author-X-Name-First: Justin Yifu Author-X-Name-Last: Lin Title: China's economic development and cultural renaissance in the multipolar growth world of the twenty-first century Abstract: Based on Malinowski's definition of culture as an integral whole of artifacts, organizations, and values, this paper analyzes the possibility of China's rapid economic development leading to a revival of Chinese culture with ren (benevolence) as its core value. Emerging economies such as India, Brazil, Russia, South Africa, and Indonesia have their own unique cultural heritages. In the twenty-first century multipolar growth world, they are also likely to maintain their respective core values and become modern nations like the forerunning Western industrialized nations, Japan, and Korea. The twenty-first century is likely to be a time of all civilizations developing, prospering, and shining together. Journal: China Economic Journal Pages: 1-11 Issue: 1 Volume: 6 Year: 2013 Month: 2 X-DOI: 10.1080/17538963.2013.830807 File-URL: http://hdl.handle.net/10.1080/17538963.2013.830807 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:6:y:2013:i:1:p:1-11 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_831236_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: James Laurenceson Author-X-Name-First: James Author-X-Name-Last: Laurenceson Title: Interpreting fluctuations in output growth in China Abstract: Unlike in OECD countries, fluctuations in output growth in China are not straightforward in their interpretation. On the one hand, they reflect the business cycle, which results from shocks to aggregate demand. On the other hand, they also reflect the structural transformations that have accompanied China’s transition to a market economy. Demand shocks can be identified by virtue of the persistence of their impact. This paper decomposes the variance in provincial, regional, and national output growth according to its persistence characteristics. The results suggest that during the reform period, only a minority of output growth variance can be attributed to demand shocks and business cycle fluctuations. It is also found that there is substantial heterogeneity in the persistence characteristics of output growth across provinces. Implications of the findings for macroeconomic policy are discussed. Journal: China Economic Journal Pages: 12-20 Issue: 1 Volume: 6 Year: 2013 Month: 2 X-DOI: 10.1080/17538963.2013.831236 File-URL: http://hdl.handle.net/10.1080/17538963.2013.831236 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:6:y:2013:i:1:p:12-20 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_831229_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Akira Era Author-X-Name-First: Akira Author-X-Name-Last: Era Author-Name: Shota Moriwaki Author-X-Name-First: Shota Author-X-Name-Last: Moriwaki Title: Labor scarcity and the turning point in the Chinese rural sectors: empirical evidences from a frontier production function study Abstract: The purpose of this study is to examine whether overemployment has existed in the Chinese agricultural sector since 2000. The moment when overemployment ceases to exist is called the ‘turning point.’ After the turning point, an economy would be classified as entering the developed stage. Since the later half of the 2000s, many studies have analyzed the turning point of the Chinese economy. However, these studies have not reached a consensus as to the existence of overemployment. Varieties of data sources for the empirical studies have affected the discrepancies of these results. This study uses the flow data (e.g., the days of work and the daily wage) rather than stock. From our estimation results, we confirm that the Chinese agricultural sector has been increasing its production efficiency. In addition, our study indicates that overemployment is decreasing in almost all provinces and some regions have achieved a turning point. Journal: China Economic Journal Pages: 21-45 Issue: 1 Volume: 6 Year: 2013 Month: 2 X-DOI: 10.1080/17538963.2013.831229 File-URL: http://hdl.handle.net/10.1080/17538963.2013.831229 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:6:y:2013:i:1:p:21-45 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_831235_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Hsiao-Chuan Chang Author-X-Name-First: Hsiao-Chuan Author-X-Name-Last: Chang Title: Housing affordability in Macau: evidence and policy Abstract: This paper investigates a contemporary issue of housing affordability in Macau. A theoretical general-equilibrium model substantiates that government policies influence the house price and quantity differently in different scenarios. Data of earnings by industry and occupation are employed to disclose the variation of affordability among different groups over the past seven years. The year of 2004 was the golden age of homeownership. In 2011, the situation deteriorated and the market price cast huge pressure on home buyers. Unaffordable house prices coexist with many vacant units. Facing such a market failure, people of Macau continuously request government intervention. The core of curbing soaring house prices is to reduce profits in house flipping. Policy suggestions mainly fall into aspects of taxation and regulations of financial assistance for mortgage. Journal: China Economic Journal Pages: 46-56 Issue: 1 Volume: 6 Year: 2013 Month: 2 X-DOI: 10.1080/17538963.2013.831235 File-URL: http://hdl.handle.net/10.1080/17538963.2013.831235 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:6:y:2013:i:1:p:46-56 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_861115_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yiping Huang Author-X-Name-First: Yiping Author-X-Name-Last: Huang Title: Introduction to special issue on assessing quality of Chinese statistics Journal: China Economic Journal Pages: 59-62 Issue: 2-3 Volume: 6 Year: 2013 Month: 10 X-DOI: 10.1080/17538963.2013.861115 File-URL: http://hdl.handle.net/10.1080/17538963.2013.861115 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:6:y:2013:i:2-3:p:59-62 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_861624_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xianchun Xu Author-X-Name-First: Xianchun Author-X-Name-Last: Xu Title: Understanding China’s official statistics Abstract: In response to the three influential doubts about government statistics, this article expounds the differences between relevant common economic statistical indicators and the national account indicators that reflect demand structure and national income distribution structure. The comparisons include the following aspects: the differences between household consumption expenditure from household survey and from expenditure-based GDP; the differences between total retail sales of consumer goods and final consumption expenditure from expenditure-based GDP; the differences between government expenditure from government fiscal statistics and government consumption expenditure from expenditure-based GDP; the differences between total investment in fixed assets from investment statistics and gross fixed capital formation from expenditure-based GDP; the differences between inventories and change in inventories from expenditure-based GDP; the differences between foreign trade balance from customs statistics and net exports of goods and services from expenditure-based GDP; and the differences between household disposable income from the household survey and from the Flow of Funds Table, etc. In addition, this article answers the questions proposed by the three doubts correspondingly. Journal: China Economic Journal Pages: 63-79 Issue: 2-3 Volume: 6 Year: 2013 Month: 10 X-DOI: 10.1080/17538963.2013.861624 File-URL: http://hdl.handle.net/10.1080/17538963.2013.861624 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:6:y:2013:i:2-3:p:63-79 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_860678_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Harry X. Wu Author-X-Name-First: Harry X. Author-X-Name-Last: Wu Title: How fast has Chinese industry grown? – The upward bias hypothesis revisited Abstract: This study addresses two potential problems when single-benchmark price weights are applied to commodity indicators to assess the official estimates of China’s industrial growth, i.e., the substitution bias and the constant value-added ratio given by a fixed input–output table. It introduces the 2002 and 2007 input–output tables and price weights in order to capture changes in a more market-based pricing and more liberal policy environment following China’s WTO entry. My new findings have not only lent a further and stronger support to the upward-bias hypothesis but also confirmed the Maddison–Wu conjecture (2008) that official estimates tend to smooth out high-growth volatility. By the alternative index, the impact of external shocks to Chinese industry appears to be more pronounced than the official index. Journal: China Economic Journal Pages: 80-102 Issue: 2-3 Volume: 6 Year: 2013 Month: 10 X-DOI: 10.1080/17538963.2013.860678 File-URL: http://hdl.handle.net/10.1080/17538963.2013.860678 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:6:y:2013:i:2-3:p:80-102 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_860679_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jun Zhang Author-X-Name-First: Jun Author-X-Name-Last: Zhang Author-Name: Tian Zhu Author-X-Name-First: Tian Author-X-Name-Last: Zhu Title: Debunking the myth about China’s low consumption Abstract: This article argues that the generally held belief about China’s consumption being too low is a myth based on the misapplied Keynesian theory and inaccurate official statistics. The article identifies three sources of underestimation of household consumption by China’s official statistics: housing consumption is grossly underestimated, private consumption paid by companies is not accounted for, and most importantly, high income households are significantly underrepresented in the household surveys on which household consumption statistics are based. A re-estimation suggests that the rate of China’s consumption is more than 60% of GDP, not the official 48–49%, and it is comparable to the level experienced by the high income East Asian economies during their rapid growing years. Journal: China Economic Journal Pages: 103-112 Issue: 2-3 Volume: 6 Year: 2013 Month: 10 X-DOI: 10.1080/17538963.2013.860679 File-URL: http://hdl.handle.net/10.1080/17538963.2013.860679 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:6:y:2013:i:2-3:p:103-112 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_861625_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ximing Yue Author-X-Name-First: Ximing Author-X-Name-Last: Yue Author-Name: Shi Li Author-X-Name-First: Shi Author-X-Name-Last: Li Author-Name: Xia Gao Author-X-Name-First: Xia Author-X-Name-Last: Gao Title: How large is income inequality in China: assessment on different estimates of Gini coefficient Abstract: The rising income inequality in China has attracted social attentions, especially since SWUFE published the unbelievably high Gini coefficient in December 2012. In order to answer the question how large income inequality in current China is, this paper compares existing different Gini coefficients estimated from four different household surveys, which are the NBS household survey, the CHIP survey, the CHFS of SWUFE, and the CFPS of Peking University, and then assesses these household surveys themselves. The relevant evidences indicate that the national Gini coefficient in current China is between 0.47~0.52. The sampling defects of the CHFS are significantly major and that the national Gini coefficient of 0.61 published by SWUFE is seriously overestimated. Journal: China Economic Journal Pages: 113-122 Issue: 2-3 Volume: 6 Year: 2013 Month: 10 X-DOI: 10.1080/17538963.2013.861625 File-URL: http://hdl.handle.net/10.1080/17538963.2013.861625 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:6:y:2013:i:2-3:p:113-122 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_861116_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Fang Cai Author-X-Name-First: Fang Author-X-Name-Last: Cai Author-Name: Yang Du Author-X-Name-First: Yang Author-X-Name-Last: Du Author-Name: Meiyan Wang Author-X-Name-First: Meiyan Author-X-Name-Last: Wang Title: Demystify the labor statistics in China Abstract: In contrast to the great changes from a planning economy to market economic system, the transition in statistics system is left behind. The problem is quite serious in labor statistics. The paper reviews how the current labor statistical system collects the data and its reliability. By analyzing relevant indicators, the paper points out that policy-making based on the current labor statistics may mislead the outcomes in the Chinese labor market. To improve the labor statistics, a deep and comprehensive reform in the statistical system is required. Journal: China Economic Journal Pages: 123-133 Issue: 2-3 Volume: 6 Year: 2013 Month: 10 X-DOI: 10.1080/17538963.2013.861116 File-URL: http://hdl.handle.net/10.1080/17538963.2013.861116 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:6:y:2013:i:2-3:p:123-133 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_860681_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xin Li Author-X-Name-First: Xin Author-X-Name-Last: Li Author-Name: Dianqing Xu Author-X-Name-First: Dianqing Author-X-Name-Last: Xu Title: Clarification of misled statistic data: overestimated per-capita housing area Abstract: The per-capita urban housing area determines trends in the real estate market largely. These trends are important in formulating economic policies. The China Statistical Yearbook provides two groups of data for ‘per-capita urban housing.’ The demand–supply situation of the Chinese housing market must be analyzed and predicted by using different versions of data. This study uses data from Ministry of Housing and Urban-Rural Development of the People’s Republic of China, which comprise projected timing comparative data of the Chinese per-capita urban housing area, and predicts the future demand–supply situation of the Chinese housing market using the Gompertz model. The result shows that the per-capita urban housing area has declined since 2001, but the tight trend of the Chinese real estate market and the pressure of rising house prices will last for a relatively long time. The construction speed of commercial houses will only slow down if the urbanization proportion reaches 75%. Journal: China Economic Journal Pages: 134-151 Issue: 2-3 Volume: 6 Year: 2013 Month: 10 X-DOI: 10.1080/17538963.2013.860681 File-URL: http://hdl.handle.net/10.1080/17538963.2013.860681 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:6:y:2013:i:2-3:p:134-151 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_861118_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jian Chang Author-X-Name-First: Jian Author-X-Name-Last: Chang Author-Name: Lingxiu Yang Author-X-Name-First: Lingxiu Author-X-Name-Last: Yang Author-Name: Yiping Huang Author-X-Name-First: Yiping Author-X-Name-Last: Huang Title: How big is the Chinese Government debt? Abstract: China’s public debt does not provide a meaningful guidance about the government’s overall debt burden, since it also has various forms of contingent liabilities such as shortfalls in the pension fund, debts of local government investment vehicles, and nonperforming loans of the state-owned commercial banks. However, there is no authoritative data on the government’s overall debt burden. In this paper, we try to put together a complete picture by piecing together information available, following a consistent framework. Our results suggest that the Chinese Government’s total debt could be already above 100% of GDP, in contrast to the public debt/GDP ratio of 15.5. Urgent reforms are needed in order to reduce fiscal risks, although risks of debt crisis look small in the short term, given sound balance sheet of the public sector. Local governments’ borrowing without hard budget constraint presents the greatest risk to sustainability of China’s fiscal system. Journal: China Economic Journal Pages: 152-171 Issue: 2-3 Volume: 6 Year: 2013 Month: 10 X-DOI: 10.1080/17538963.2013.861118 File-URL: http://hdl.handle.net/10.1080/17538963.2013.861118 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:6:y:2013:i:2-3:p:152-171 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_860684_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Announcement: Dr Werner Jackstädt best paper award announcement Journal: China Economic Journal Pages: 172-172 Issue: 2-3 Volume: 6 Year: 2013 Month: 10 X-DOI: 10.1080/17538963.2013.860684 File-URL: http://hdl.handle.net/10.1080/17538963.2013.860684 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:6:y:2013:i:2-3:p:172-172 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_876141_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Editorial Board Journal: China Economic Journal Pages: ebi-ebi Issue: 2-3 Volume: 6 Year: 2013 Month: 10 X-DOI: 10.1080/17538963.2013.876141 File-URL: http://hdl.handle.net/10.1080/17538963.2013.876141 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:6:y:2013:i:2-3:p:ebi-ebi Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_880209_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Peter Drysdale Author-X-Name-First: Peter Author-X-Name-Last: Drysdale Title: Foreword Journal: China Economic Journal Pages: 1-3 Issue: 1 Volume: 7 Year: 2014 Month: 1 X-DOI: 10.1080/17538963.2014.880209 File-URL: http://hdl.handle.net/10.1080/17538963.2014.880209 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:7:y:2014:i:1:p:1-3 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_874067_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Fan He Author-X-Name-First: Fan Author-X-Name-Last: He Author-Name: Bijun Wang Author-X-Name-First: Bijun Author-X-Name-Last: Wang Title: Chinese interests in the global investment regime Abstract: China is rising as a major source of outward direct investment (ODI), but barriers to and protectionism against Chinese investment have been strengthened as well. This situation reflects inherent flaws in the architecture governing international investment. This article identifies three of China’s key interests in the global investment regime: (1) to reduce investment barriers and depoliticize foreign regulatory review processes; (2) to ensure better protection of its overseas investment; and (3) to secure international recognition of its unique identity in terms of institutional characteristics and development strategy. As China shows more and more interest in building the architecture governing international investment, we suggest that improving investment governance at the bilateral, regional, and multilateral levels is the best strategy for China to adopt. Strategies that China should pursue include (1) accelerating the negotiation and revision of bilateral investment treaties (BITs); (2) promoting regional and sub-regional cooperation; and (3) contributing to the architecture governing global investment. Journal: China Economic Journal Pages: 4-20 Issue: 1 Volume: 7 Year: 2014 Month: 1 X-DOI: 10.1080/17538963.2013.874067 File-URL: http://hdl.handle.net/10.1080/17538963.2013.874067 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:7:y:2014:i:1:p:4-20 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_874073_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yuen Pau Woo Author-X-Name-First: Yuen Pau Author-X-Name-Last: Woo Title: Chinese lessons: state-owned enterprises and the regulation of foreign investment in Canada Abstract: A recent influx of Asian investment is changing the character of the Canadian oil and gas industry and reviving old debates on the regulation of foreign investment. Particular attention has been placed on investment by state-owned enterprises (SOEs), driven in part by public suspicion about investment from China, which has been the largest source of SOE capital flows to Canada. Recent amendments to the Investment Canada Act have made SOE investment more difficult and have raised questions about the country’s attractiveness as an investment destination. This paper makes the case for non-discrimination of SOEs in the investment review process. In the context of a policy framework that is fundamentally supportive of inward foreign direct investment (FDI), the Canadian government does not require a set of redundant measures to protect against the relatively low risk of undesirable investment. Journal: China Economic Journal Pages: 21-38 Issue: 1 Volume: 7 Year: 2014 Month: 1 X-DOI: 10.1080/17538963.2013.874073 File-URL: http://hdl.handle.net/10.1080/17538963.2013.874073 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:7:y:2014:i:1:p:21-38 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_874069_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Theodore H. Moran Author-X-Name-First: Theodore H. Author-X-Name-Last: Moran Title: Toward a multilateral framework for identifying national security threats posed by foreign acquisitions: with special reference to Chinese acquisitions in the United States, Canada, and Australia Abstract: This article presents a framework for differentiating between foreign acquisitions of companies that might plausibly pose a national security threat to the home country of the target acquisition and those that do not. This framework originally derives from the experience of the United States. The framework is then shown to be relevant and useful for foreign acquisitions in Canada and Australia. In each case, Chinese acquisitions of US, Canadian, or Australian firms are highlighted. The article concludes by arguing that this framework can serve as an effective nondiscriminatory basis for separating genuine from implausible national security threats from foreign acquisitions across OECD states, to include all countries around the world. Journal: China Economic Journal Pages: 39-58 Issue: 1 Volume: 7 Year: 2014 Month: 1 X-DOI: 10.1080/17538963.2013.874069 File-URL: http://hdl.handle.net/10.1080/17538963.2013.874069 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:7:y:2014:i:1:p:39-58 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_874068_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Rebecca Mendelsohn Author-X-Name-First: Rebecca Author-X-Name-Last: Mendelsohn Author-Name: Allan Fels Author-X-Name-First: Allan Author-X-Name-Last: Fels Title: Australia’s foreign investment review board and the regulation of Chinese investment Abstract: Foreign investment has played an important role in the Australian economy since the country’s foundation. Part of the latest wave of foreign direct investment (FDI) in Australia has been by Chinese firms, and largely by state-owned enterprises with connections to the Chinese state. Despite the value it has generated for the Australian economy, Chinese FDI has been controversial and has exposed some of the shortcomings in Australia’s foreign investment review process. This article evaluates Australia’s foreign investment regime, and pays particular attention to the Foreign Investment Review Board (FIRB). Questions are asked about how closely the FIRB’s role and processes resemble regulatory best practice. The article also considers whether greater fidelity by the FIRB to principles of good governance could better serve Australia’s broad policy interests and reduce Chinese perceptions of an opaque and discriminatory foreign investment regime. Journal: China Economic Journal Pages: 59-83 Issue: 1 Volume: 7 Year: 2014 Month: 1 X-DOI: 10.1080/17538963.2013.874068 File-URL: http://hdl.handle.net/10.1080/17538963.2013.874068 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:7:y:2014:i:1:p:59-83 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_874071_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Daniel H. Rosen Author-X-Name-First: Daniel H. Author-X-Name-Last: Rosen Author-Name: Thilo Hanemann Author-X-Name-First: Thilo Author-X-Name-Last: Hanemann Title: The changing US–China investment relationship Abstract: The United States and China are at a turning point in their investment relationship. China’s previous investments in the United States were predominantly in government securities, while other holdings were negligible. Recently, the accumulation of treasury securities has slowed and direct investments by Chinese firms have risen steeply, with Beijing signaling greater support for portfolio investment outflows as well. This article describes the nascent shift in patterns of Chinese investment in the United States and uses the case of direct investment to examine the implications for US–China relations. We discuss current and future policy issues presented by Chinese foreign direct investment (FDI) in the United States, including national security, market access, and antitrust. Journal: China Economic Journal Pages: 84-102 Issue: 1 Volume: 7 Year: 2014 Month: 1 X-DOI: 10.1080/17538963.2013.874071 File-URL: http://hdl.handle.net/10.1080/17538963.2013.874071 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:7:y:2014:i:1:p:84-102 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_874070_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Françoise Nicolas Author-X-Name-First: Françoise Author-X-Name-Last: Nicolas Title: China’s direct investment in the European Union: challenges and policy responses Abstract: The dramatic rise of Chinese direct investment into the European Union (EU) has sparked a debate about the control that China may be seeking to take over European economies. Quite naturally, these concerns have led to repeated calls that action be taken to slow down, if not to halt entirely, this growing trend. The objective of the article is to shed light on this debate. Following a thorough analysis of Chinese direct investment in the EU, this article suggests that the challenges posed by these inflows are widely overblown. Despite this, the article concludes that it is necessary to have a systematic approach to regulating inbound foreign investment (including from China) in the EU. Such an approach may help guard against the risk of a protectionist drift inside the EU, as well as the possibility that some investors may one day pose a threat to national security. This article concludes that although the current fragmented regulatory approach is unsatisfactory, because of the difficulties associated with a unified EU-wide review process, the most realistic option is to promote a more systematic and coordinated use of existing mechanisms such as competition policy. Also, pushing for the negotiation of a China–EU BIT is certainly a promising avenue to enhance the EU’s bargaining leverage based on the principle of positive reciprocity. Journal: China Economic Journal Pages: 103-125 Issue: 1 Volume: 7 Year: 2014 Month: 1 X-DOI: 10.1080/17538963.2013.874070 File-URL: http://hdl.handle.net/10.1080/17538963.2013.874070 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:7:y:2014:i:1:p:103-125 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_874074_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shuping Liao Author-X-Name-First: Shuping Author-X-Name-Last: Liao Author-Name: Yongsheng Zhang Author-X-Name-First: Yongsheng Author-X-Name-Last: Zhang Title: A new context for managing overseas direct investment by Chinese state-owned enterprises Abstract: Chinese state-owned enterprises (SOEs) and their overseas direct investment (ODI) have played an important role in China’s economic development. But the rapid expansion of SOE-dominated ODI has also raised concerns, including about state capitalism and the need for competitive neutrality. This paper considers China’s strategy for managing ODI by its SOEs given a changing context. On the one hand, the Chinese economy is rapidly growing and will soon become the largest economy in the world. China’s role in the world, as well as its global responsibility, is therefore changing. China needs to establish a win-win and harmonious relationship with the rest of the world, and ODI has a role to play in this. On the other hand, China’s growth model is shifting to become greener, more balanced, and innovation-driven. China’s changing international role and the changing growth model have created new imperatives for, and constraints on, ODI by SOEs and reforms to SOEs. This paper aims to examine ODI by Chinese SOEs from the two dimensions of China’s changing role and growth model. It discusses strategies for better managing ODI by Chinese SOEs in the new context that is emerging. Journal: China Economic Journal Pages: 126-140 Issue: 1 Volume: 7 Year: 2014 Month: 1 X-DOI: 10.1080/17538963.2013.874074 File-URL: http://hdl.handle.net/10.1080/17538963.2013.874074 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:7:y:2014:i:1:p:126-140 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_874072_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Karl P. Sauvant Author-X-Name-First: Karl P. Author-X-Name-Last: Sauvant Author-Name: Victor Zitian Chen Author-X-Name-First: Victor Zitian Author-X-Name-Last: Chen Title: China’s regulatory framework for outward foreign direct investment Abstract: China has become the world’s third largest outward investor, behind the United States and Japan. A growing body of literature suggests that China’s regulatory framework for outward foreign direct investment (OFDI) is a determinant of the country’s rising OFDI. This article presents a holistic review of that framework, including some possibilities for its improvement. Overall, China’s framework serves two objectives: to help Chinese firms become more competitive internationally and to assist the country in its development effort. In pursuing these objectives, the regulatory framework has moved from restricting, to facilitating, to supporting, to encouraging OFDI, but there are still strong elements of administrative control that make it cumbersome. State-owned enterprises (SOEs) seem to benefit particularly from the current framework when internationalizing through FDI. Journal: China Economic Journal Pages: 141-163 Issue: 1 Volume: 7 Year: 2014 Month: 1 X-DOI: 10.1080/17538963.2013.874072 File-URL: http://hdl.handle.net/10.1080/17538963.2013.874072 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:7:y:2014:i:1:p:141-163 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_929251_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jiandong Ju Author-X-Name-First: Jiandong Author-X-Name-Last: Ju Author-Name: Miaojie Yu Author-X-Name-First: Miaojie Author-X-Name-Last: Yu Title: Introduction to the Special Issue on China's Growing Trade and Trans-Pacific Trade Agreements Journal: China Economic Journal Pages: 165-167 Issue: 2 Volume: 7 Year: 2014 Month: 5 X-DOI: 10.1080/17538963.2014.929251 File-URL: http://hdl.handle.net/10.1080/17538963.2014.929251 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:7:y:2014:i:2:p:165-167 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_928967_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Larry D. Qiu Author-X-Name-First: Larry D. Author-X-Name-Last: Qiu Author-Name: Ying Xue Author-X-Name-First: Ying Author-X-Name-Last: Xue Title: Understanding China’s foreign trade: a literature review (I) Abstract: With the objective of gaining a better understanding of China’s foreign trade, this paper provides a literature survey based on recent research output published in major economic journals. It covers topics on the general features and characteristics of China’s trade described at the country level and industry level, the impacts of China’s foreign trade on economic growth and technology progress, and the performance of Chinese firms engaging in international trade. We also provide some critical summaries and comments on the existing studies for each topic. Journal: China Economic Journal Pages: 168-186 Issue: 2 Volume: 7 Year: 2014 Month: 5 X-DOI: 10.1080/17538963.2014.928967 File-URL: http://hdl.handle.net/10.1080/17538963.2014.928967 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:7:y:2014:i:2:p:168-186 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_928968_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Bo Chen Author-X-Name-First: Bo Author-X-Name-Last: Chen Author-Name: Zhiyuan Li Author-X-Name-First: Zhiyuan Author-X-Name-Last: Li Title: An Anatomy of Intermediaries in China’s Export Market Abstract: Analyzing firm-level exports of China, especially those conducted by intermediaries, from 2000 to 2006 reveals a number of interesting findings. Regarding the role of intermediaries in China’s exports, we find the following: first, intermediaries became less important when China’s overall export grew. Second, intermediaries are more important for ordinary exports than for processing exports. Third, intermediaries are more important for relatively homogeneous products such as textiles and apparel than for differentiated products such as machinery. Fourth, intermediaries are concentrated in economically developed cities. However, intermediaries became less important for a particular city if that city’s GDP per capita grew. Fifth, intermediaries ship a smaller share of exports through Hong Kong than do manufacturing firms, indicating that intermediaries assumed some of the intermediating function of Hong Kong. For policy changes over this period that affected intermediaries, we find that: first, deregulation policies on setting up intermediaries induced a growing proportion of privately owned intermediaries among all intermediary exporters. Second, trade liberalization, characterized by trade policy uncertainty reduction due to World Trade Organization (WTO) accession, caused more entries into the export market by manufacturing firms than by intermediaries. Journal: China Economic Journal Pages: 187-213 Issue: 2 Volume: 7 Year: 2014 Month: 5 X-DOI: 10.1080/17538963.2014.928968 File-URL: http://hdl.handle.net/10.1080/17538963.2014.928968 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:7:y:2014:i:2:p:187-213 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_928971_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zhonghua Liang Author-X-Name-First: Zhonghua Author-X-Name-Last: Liang Author-Name: Miaojie Yu Author-X-Name-First: Miaojie Author-X-Name-Last: Yu Title: Exchange Rate Movements and Exporter Profitability: Empirical Evidence from Chinese Manufacturing Sectors Abstract: Most products exported by Chinese manufacturing firms are characterized by high labor-intensity and low markup. Renminbi (RMB) appreciation undoubtedly worsens this situation as exporters have to pay RMB-denominated wages and charge dollar-denominated prices. This paper studies the correlation between exchange rate movements and the profitability of exporters. We find significant negative effects of RMB appreciation on the profitability of exporters. Journal: China Economic Journal Pages: 214-220 Issue: 2 Volume: 7 Year: 2014 Month: 5 X-DOI: 10.1080/17538963.2014.928971 File-URL: http://hdl.handle.net/10.1080/17538963.2014.928971 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:7:y:2014:i:2:p:214-220 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_928972_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xin Li Author-X-Name-First: Xin Author-X-Name-Last: Li Author-Name: Yang Yao Author-X-Name-First: Yang Author-X-Name-Last: Yao Title: Asia–Pacific integration within a broader Trans-Pacific Partnership Agreement Abstract: The current progress and status of regional trade arrangements worldwide reveals competition between countries for dominance of new global trade rules. To a great extent, safeguarding the interests of China in the post-crisis era will be a significant political project that will enable China to participate in the new round of global economic governance. This paper uses the updated GTAP CGE framework to describe potential outcomes for the different choices of the Chinese government. First, if the TPP Agreement, which includes China, clearly promotes the economies of the U.S. and Japan. Second, Southeast Asian countries that mainly undertake the transfer of general labor-intensive manufacturing from China can benefit more if the TPP Agreement excludes China, whereas the countries that mainly undertake the transfer of processing manufacturing from China can obtain more benefits if the TPP Agreement includes China. Finally, the TPP Agreement with China is conducive to further strengthening China’s influence on the process of economic integration in the Asia–Pacific region. Journal: China Economic Journal Pages: 221-236 Issue: 2 Volume: 7 Year: 2014 Month: 5 X-DOI: 10.1080/17538963.2014.928972 File-URL: http://hdl.handle.net/10.1080/17538963.2014.928972 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:7:y:2014:i:2:p:221-236 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_928973_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Rui Zhuang Author-X-Name-First: Rui Author-X-Name-Last: Zhuang Author-Name: Junjie Hong Author-X-Name-First: Junjie Author-X-Name-Last: Hong Author-Name: Guangyu Bai Author-X-Name-First: Guangyu Author-X-Name-Last: Bai Title: Sino-Korea Free Trade Agreement and Asia-Pacific economic integration: the China perspective Abstract: As an important element of Asian economic integration, a Sino-Korea (hereinafter referred to as South Korea only) Free Trade Agreement (FTA) is currently under negotiation. This paper analyses the potentially sensitive issues that might hinder the progress of the negotiations. We believe that a Sino-Korea FTA would exert great pressure on Japan, which may push forward China—Japan—Korea FTA negotiations. Economic integration in Northeast Asia will promote RCEP and FTAAP as well. Therefore, the Sino—Korea FTA should be viewed from a strategic perspective, and could be an important step towards Asia-Pacific economic integration. Journal: China Economic Journal Pages: 237-250 Issue: 2 Volume: 7 Year: 2014 Month: 5 X-DOI: 10.1080/17538963.2014.928973 File-URL: http://hdl.handle.net/10.1080/17538963.2014.928973 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:7:y:2014:i:2:p:237-250 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_928975_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Bo Chen Author-X-Name-First: Bo Author-X-Name-Last: Chen Title: Trans-Pacific Tariff Barriers: a Case Study of Five Asia—Pacific Developing Countries and Canada Abstract: Though the Trans Pacific Partnership (TPP) is believed to greatly benefit the developing countries of the Asia—Pacific (AP) region, most of the countries, such as China, are still hesitant to join. The major concern for these countries is whether or not the gains from the free trade provisions of the TPP will provide enough of an advantage given that most of them have already joined the WTO. In this paper, I first apply Feenstra’s (1995) TRI to gauge the actual Canadian tariff barriers facing five Asia—Pacific developing countries: China, Thailand, Malaysia, the Philippines, and Indonesia. The calculation of TRIs enables us to estimate the gains (from retrieving deadweight loss due to tariff distortion) to Canada if it completely removes its tariff barriers from the 2010 level against the five exporting countries. The gains for Canada would reach USD 276.45 million solely from China’s exports, and another USD 33.96 million total from the four other countries. Then, based on the gravity model, I estimate the impact of tariff reduction on imports and the gains, in terms of possible export growth, to the five developing countries. I find China’s exports to Canada may increase by 60.58%. Export growth then would be 68.21% for Indonesia, 39.77% for Malaysia, 69.64% for the Philippines, and 42.62% for Thailand. Journal: China Economic Journal Pages: 251-260 Issue: 2 Volume: 7 Year: 2014 Month: 5 X-DOI: 10.1080/17538963.2014.928975 File-URL: http://hdl.handle.net/10.1080/17538963.2014.928975 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:7:y:2014:i:2:p:251-260 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_933497_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xiaopeng Yin Author-X-Name-First: Xiaopeng Author-X-Name-Last: Yin Author-Name: Zhe Wang Author-X-Name-First: Zhe Author-X-Name-Last: Wang Title: Revisiting the Role of Regional Integration in China from 1978–1992: Incentive, Pattern, and Growth Abstract: We reexamine the role of regional integration (or local protectionism) in China, by exploring its effect on local growth rates from 1978–1992, the first fifteen years of China’s economic reform and “open door” period. Our results show that at least in the initial period of China’s reform, domestic interregional trade was the main factor driving regional growth, much higher than corresponding international trade. Additionally, given such circumstances, the paper studies the effects that could have been obtained if regional, i.e., provincial, governments had put different restrictions on interregional trade, and what the incentives would be for such a policy. We find that any form of economic integration always makes both regions better off, as long as the level of technology in each region is different. We also explore other protectionist policies such as a prohibition on local human capital out-flows, and local intellectual property protection within a region. We include a discussion of relevant policies. Journal: China Economic Journal Pages: 261-276 Issue: 2 Volume: 7 Year: 2014 Month: 5 X-DOI: 10.1080/17538963.2014.933497 File-URL: http://hdl.handle.net/10.1080/17538963.2014.933497 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:7:y:2014:i:2:p:261-276 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_961688_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ho-Mou Wu Author-X-Name-First: Ho-Mou Author-X-Name-Last: Wu Author-Name: Shiliang Feng Author-X-Name-First: Shiliang Author-X-Name-Last: Feng Title: A Study of China’s Local Government Debt with Regional and Provincial Characteristics Abstract: China’s Local Government Debt (LGD) grew rapidly after 2009. By using the National Audit Reports and self-collected data from provincial governments, we provide a decomposition of China’s LGD to the regional and provincial levels. We document regional characteristics regarding various aspects of LGD. When exploring provincial characteristics of LGD, we relate the causes of LGD to the mismatch of revenues and responsibilities in local government. By analyzing the structure of Local Government Fiscal Resources (LGFRs), we point out that LGD poses an essential challenge to China’s economic health due to the lack of fiscal transparency. We concisely analyze the expansion of Local Government Funding Platforms (LGFPs) and the issuance of Urban Development Investment Bonds (UDIBs). Finally, we propose several directions for a better management of LGD in both the short and long run, emphasizing adjustments of LGD term structures, improvement of financing channels, and reforms of fiscal systems to bring in more transparency and accountability. We suggest that the policies designed to resolve the LGD problem need to take into consideration the varying characteristics of LGD of different regions and provinces. Journal: China Economic Journal Pages: 277-298 Issue: 3 Volume: 7 Year: 2014 Month: 9 X-DOI: 10.1080/17538963.2014.961688 File-URL: http://hdl.handle.net/10.1080/17538963.2014.961688 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:7:y:2014:i:3:p:277-298 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_947707_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yuan Yuan Author-X-Name-First: Yuan Author-X-Name-Last: Yuan Author-Name: Kazuyuki Motohashi Author-X-Name-First: Kazuyuki Author-X-Name-Last: Motohashi Title: Impact of Leverage on Investment by Major Shareholders: Evidence from Listed Firms in China Abstract: In this paper, we analyze whether leverage had impacts on investment in the period 1999–2009, and whether these impacts, if they exist, differed among companies with different investment opportunities and with different major shareholders. In order to identify governance with different major shareholders, we grouped China’s listed firms into central government owned firms (CSOEs), local government owned firms (LSOEs) and non-state-owned firms (NONSOEs). Our results are as follows. First, our analysis reveals that leverage does have significantly negative impacts on CSOE, LSOE and NONSOE investments. Secondly, in LSOEs and NONSOEs, negative leverage impacts on low-growth firms are stronger than average firms, implying that a disciplinary effect of leverage over investment can be found in LSOEs and NONSOEs. Finally, however, no such effect can be observed in CSOEs. We have provided a first finding that the effect of leverage varies according to a firm’s major shareholders. Journal: China Economic Journal Pages: 299-319 Issue: 3 Volume: 7 Year: 2014 Month: 9 X-DOI: 10.1080/17538963.2014.947707 File-URL: http://hdl.handle.net/10.1080/17538963.2014.947707 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:7:y:2014:i:3:p:299-319 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_947706_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Simon Sturn Author-X-Name-First: Simon Author-X-Name-Last: Sturn Title: From internal imbalances to global imbalances: a survey on the causes of China’s export-led growth Abstract: There is a broad consensus that China’s export- and investment-led growth model is unsustainable and therefore needs to become more balanced. In the public debate, Chinese exchange rate interventions are mostly made (solely) responsible for this. But it is unclear whether and how much the Renminbi is undervalued, and if an exchange rate appreciation helps to reduce China’s current account surplus significantly. This survey reviews the international literature on China’s export-oriented growth model. Internal structural imbalances in the Chinese economy, resulting in an extremely low consumption-to-GDP share by historical and international standards, play hereby a central role. Related to this are: 1) the drop in household and wage income as a share of GDP and low employment growth, and its impact on consumption demand; 2) the increase in income uncertainty and inequality, and its impact on household savings; and 3) the role of government spending, i.e., high and increasing public surpluses. The central policy challenge is therefore to increase household incomes, and to reduce income inequality and uncertainty. Journal: China Economic Journal Pages: 320-342 Issue: 3 Volume: 7 Year: 2014 Month: 9 X-DOI: 10.1080/17538963.2014.947706 File-URL: http://hdl.handle.net/10.1080/17538963.2014.947706 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:7:y:2014:i:3:p:320-342 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_947701_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xin Li Author-X-Name-First: Xin Author-X-Name-Last: Li Title: Effect of China’s Real Exchange Rate Appreciation in the Next Decade: A Recursive Dynamic CGE Analysis Abstract: Although the renminbi has appreciated over 30% against the US dollar since China launched exchange rate reform in the mid of 2005, the US Treasury Department still claims that the renminbi remains “significantly undervalued”. If that is true, how to adjust the currency effectively and rebalance the current account are challenges for the Chinese government. This paper explores the effect of alternative adjustments of China’s real exchange rate. Unlike previous simulation designs, this paper considers the formation mechanism of the real exchange rate. By assuming the same change in factor price during different periods and by using the recursive dynamic computable general equilibrium model, two different scenarios are simulated against the baseline. One scenario adjusts the macro-structural imbalance by decreasing the gross national savings rate in China, and the other adjusts the micro-structural imbalance by increasing the real wage rate of Chinese labor. The external imbalance is improved by both internal structural adjustments in the long term. The effect of macro-adjustment is more significant than the micro-adjustment. A real appreciation will be sufficient for China to improve its terms of trade and to change the export-oriented model into the demand-oriented model of development in the next decade. Journal: China Economic Journal Pages: 343-360 Issue: 3 Volume: 7 Year: 2014 Month: 9 X-DOI: 10.1080/17538963.2014.947701 File-URL: http://hdl.handle.net/10.1080/17538963.2014.947701 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:7:y:2014:i:3:p:343-360 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_947703_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Biao Gu Author-X-Name-First: Biao Author-X-Name-Last: Gu Author-Name: Jianfeng Wang Author-X-Name-First: Jianfeng Author-X-Name-Last: Wang Author-Name: Jingfei Wu Author-X-Name-First: Jingfei Author-X-Name-Last: Wu Title: Business Cycles in an Estimated DSGE Model of China Abstract: A small-scale New-Keynesian dynamic stochastic general equilibrium model is estimated by maximum likelihood method using quarterly data of China. Model specifications and parameter equalities between various competing model variants are addressed by formal statistical hypothesis tests, while implications for business cycle fluctuations are evaluated via a variance decomposition experiment, second-moments matching, and some out-of-sample forecast exercises. It is highlighted that both forward and backward components are important for the dynamics of output, inflation and real balances. The monetary authority will take a sufficient aggressive stance, with a significant lagged response, to the current inflation pressure, while leaving less attention to changes in aggregate output. Variance decomposition reveals that large percentages of variations in real and nominal variables are explained by the highly volatile preference shock and potential output shock, respectively. When nominal and real frictions as well as additional shocks are included, our estimated model overall can successfully reproduce the stylized facts of business cycles in the actual data of China and even frequently outperform those forecasts from an unconstrained VAR. Journal: China Economic Journal Pages: 361-381 Issue: 3 Volume: 7 Year: 2014 Month: 9 X-DOI: 10.1080/17538963.2014.947703 File-URL: http://hdl.handle.net/10.1080/17538963.2014.947703 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:7:y:2014:i:3:p:361-381 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_949025_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Justin Yifu Lin Author-X-Name-First: Justin Yifu Author-X-Name-Last: Lin Title: Industrial policy revisited: a new structural economics perspective Abstract: Whether or not governments should play a facilitating role in economic development has long been a topic for economic discourse and research. As an important instrument to promote economic development, throughout history even to the present, industrial policy is often and actively used by governments. Much controversy surrounds whether and how governments should implement industrial policy.In this article, failures and successes of implementing such policies are analyzed through a new structural economics perspective. Specifically, the article argues that (1) sector-targeted industrial policy is essential to achieve dynamic structural change and rapid, sustained growth in an economy; (2) most industrial policies fail because they target industries that are not compatible with the country’s comparative advantages; (3) successful industrial policy should target industries that reflerct the country’s latent comparative advantages; (4) historical experiences show that in the catching-up stage, the industrial policies of successful countries, in general, have targeted the industries in countries with a similar endowment structure and somewhat higher per capita income; and (5) the Growth Identification and Facilitation Framework (GIFF), based on new structural economics, is a new, effective way to target latent comparative-advantage industries and support their growth. Journal: China Economic Journal Pages: 382-396 Issue: 3 Volume: 7 Year: 2014 Month: 9 X-DOI: 10.1080/17538963.2014.949025 File-URL: http://hdl.handle.net/10.1080/17538963.2014.949025 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:7:y:2014:i:3:p:382-396 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_986021_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Editorial Board Journal: China Economic Journal Pages: ebi-ebi Issue: 3 Volume: 7 Year: 2014 Month: 9 X-DOI: 10.1080/17538963.2014.986021 File-URL: http://hdl.handle.net/10.1080/17538963.2014.986021 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:7:y:2014:i:3:p:ebi-ebi Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1001013_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yuming Cui Author-X-Name-First: Yuming Author-X-Name-Last: Cui Title: China’s exchange rate regime reform: Implications from the experiences of Japan, Korea and Taiwan Abstract: This paper reviews the process of exchange rate regime reform of three economies: Japan, Korea and Taiwan, with emphasis on background, policies applied, and corresponding consequence in different periods. Lessons drawn from the experiences of these three economies are important and valuable for China’s ongoing exchange rate regime reform, although some could argue that China today is different from the three countries then. We argue that the Gradualism approach is the optimal option for RMB revaluation rather than the One-off approach. Follow-up monetary and fiscal policies are needed to maintain export and economic growth when the currency is being revaluated, but the timing and scale of policies are equally important. China’s exchange rate regime reform should be regarded as an integral component of a broad financial system reform rather than considered alone. In addition, an integrated financial market reform is a pre-condition for achieving smooth exchange rate regime reform. Last but not least, the policies for long-term economic structure adjustment and industry upgrading need to be prepared by China’s authority in order to respond to the possible adverse impact of RMB exchange rate region reform on its economy. Journal: China Economic Journal Pages: 1-17 Issue: 1 Volume: 8 Year: 2015 Month: 1 X-DOI: 10.1080/17538963.2015.1001013 File-URL: http://hdl.handle.net/10.1080/17538963.2015.1001013 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:8:y:2015:i:1:p:1-17 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1001051_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Kristijan Kotarski Author-X-Name-First: Kristijan Author-X-Name-Last: Kotarski Title: Financial deepening and income inequality: Is there any financial Kuznets curve in China? The political economy analysis Abstract: The interconnectedness of financial deepening and income inequality has been a highly controversial discussion which has not been concluded despite many empirical and theoretical studies up to date. One of the basic building blocks for many research designs is the reliance upon the Kuznets inverted U-shaped curve which postulates that in the first phase of economic growth income inequality increases, peaks and then decreases to a tolerable level in the later phase after a certain income level had been attained. The role of financial deepening in financing economic growth is an indispensable and necessary condition enabling us to easily draw an analogy between financial deepening and income inequality in a financial version of the Kuznets curve. In spite of 30 years of economic and financial reforms in China, which represents a fairly young history of economic growth and development, there are many indicators that Chinese experience significantly deviates from the presupposed inverted U-shaped curve trajectory and its final equalizing effect. This paper relies on financial deepening data measured by monetary aggregate M2/GDP and domestic banking credit/GDP ratios in its claim that they significantly correlate with rising income inequality. The author’s intention consists not in claiming that financial deepening per se causes income inequality, but provides a political economy analysis of the specific institutional and power configuration which leads to their positive relationship. This configuration is determined by the prevailing banking model, the hukou system, financial repression and the decentralized authoritarian system. On the other hand, the absence of inequality-narrowing institutitons further aggravate the problem. All the aforementioned factors are geared at avoiding mechanical and spurious claims that financial deepening increases or decreases income inequality across countries. A historical institutionalism approach to explain China’s path related to the Kuznets curve prediction shows the central validity of open and inclusive institutions in generating inequality-narrowing benefits of financial deepening. Journal: China Economic Journal Pages: 18-39 Issue: 1 Volume: 8 Year: 2015 Month: 1 X-DOI: 10.1080/17538963.2015.1001051 File-URL: http://hdl.handle.net/10.1080/17538963.2015.1001051 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:8:y:2015:i:1:p:18-39 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1001052_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yu Yongding Author-X-Name-First: Yu Author-X-Name-Last: Yongding Title: Understanding China’s external imbalances Abstract: The paper is intended to provide a comprehensive explanation of China’s external imbalances, which are characterized by current account surplus and financial account surplus. The thrust of the paper is that China’s current account surplus is not simply an effect of the savings gap. Rather, it is a result of complicated interactions among various factors in a dynamic fashion. Hence, to keep the current account surplus-to-GDP ratio at a rational level, the implementation of comprehensive policies that address all relevant factors at the same time as well as fundamental restructuring are necessary. Journal: China Economic Journal Pages: 40-54 Issue: 1 Volume: 8 Year: 2015 Month: 1 X-DOI: 10.1080/17538963.2015.1001052 File-URL: http://hdl.handle.net/10.1080/17538963.2015.1001052 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:8:y:2015:i:1:p:40-54 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1001053_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Daili Wang Author-X-Name-First: Daili Author-X-Name-Last: Wang Author-Name: Yiping Huang Author-X-Name-First: Yiping Author-X-Name-Last: Huang Author-Name: Gang Fan Author-X-Name-First: Gang Author-X-Name-Last: Fan Title: Will the Renminbi become a reserve currency? Abstract: In recent years, the authorities in the People’s Republic of China (PRC) have made great efforts to internationalize its currency. Will Renminbi (RMB) finally become a reserve currency? This paper addresses the above question from an institutional analytical framework. We find that if only economic fundamentals are used in the prediction, the expected share of the RMB in global currency reserves could reach 10% at the end of 2011. However, if institutional variables are included, the predicted share comes down to around 2%, which is a more realistic prediction. The work then proposes reform actions in developing China’s institutional environment so as to facilitate the RMB to realize the 10% potential. In general, we believe that the RMB’s international role should increase in the coming years, but it will take a relatively long period before it plays the role of a global reserve currency. Journal: China Economic Journal Pages: 55-73 Issue: 1 Volume: 8 Year: 2015 Month: 1 X-DOI: 10.1080/17538963.2015.1001053 File-URL: http://hdl.handle.net/10.1080/17538963.2015.1001053 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:8:y:2015:i:1:p:55-73 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1002175_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Chuanchuan Zhang Author-X-Name-First: Chuanchuan Author-X-Name-Last: Zhang Author-Name: Xiaoyan Lei Author-X-Name-First: Xiaoyan Author-X-Name-Last: Lei Title: Short-term jobs and long-term job loss of large supermarket entry Abstract: This paper examines the effects of emerging supermarkets on local employment at the city level. Using a panel dataset for the period between 2000 and 2006, we find that entry of supermarkets largely increases employment in the wholesale and retail sector and other related sectors in the year of entry, but the positive effect on employment on the wholesale and retail sector only persists for a short period of time. It reverses two years later, due possibly to exits or contracting of small retailers. Further evidence from another dataset at the community level supports this explanation. Journal: China Economic Journal Pages: 74-85 Issue: 1 Volume: 8 Year: 2015 Month: 1 X-DOI: 10.1080/17538963.2015.1002175 File-URL: http://hdl.handle.net/10.1080/17538963.2015.1002175 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:8:y:2015:i:1:p:74-85 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1002178_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Justin Yifu Lin Author-X-Name-First: Justin Yifu Author-X-Name-Last: Lin Title: Why I Do Not Support Complete Capital Account Liberalization Journal: China Economic Journal Pages: 86-93 Issue: 1 Volume: 8 Year: 2015 Month: 1 X-DOI: 10.1080/17538963.2015.1002178 File-URL: http://hdl.handle.net/10.1080/17538963.2015.1002178 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:8:y:2015:i:1:p:86-93 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1061247_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Nicholas Lardy Author-X-Name-First: Nicholas Author-X-Name-Last: Lardy Title: China’s economic reforms and growth prospects Abstract: Conventional wisdom attributes China’s rapid economic growth to its model of state capitalism, which combines direct state ownership of the commanding heights of the economy and indirect state control of the rest of the economy through industrial policies and the allocation of credit through state-owned banks. This article argues that China’s growth since 1978 is largely due to the result of the expanding role of markets and the rise of private business. If China systematically adopts the economic reform agenda endorsed by the Chinese Communist Party in the fall of 2013, it likely will avoid a sustained period of much slower growth that some have forecast. Journal: China Economic Journal Pages: 95-108 Issue: 2 Volume: 8 Year: 2015 Month: 5 X-DOI: 10.1080/17538963.2015.1061247 File-URL: http://hdl.handle.net/10.1080/17538963.2015.1061247 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:8:y:2015:i:2:p:95-108 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1070481_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Weiying Zhang Author-X-Name-First: Weiying Author-X-Name-Last: Zhang Title: Reflections on economics: market failure or market theory failure? Journal: China Economic Journal Pages: 109-121 Issue: 2 Volume: 8 Year: 2015 Month: 5 X-DOI: 10.1080/17538963.2015.1070481 File-URL: http://hdl.handle.net/10.1080/17538963.2015.1070481 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:8:y:2015:i:2:p:109-121 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1046219_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zhuan Xie Author-X-Name-First: Zhuan Author-X-Name-Last: Xie Author-Name: Xiaobo Zhang Author-X-Name-First: Xiaobo Author-X-Name-Last: Zhang Title: The patterns of patents in China Abstract: Innovations are a key driver of long-term economic growth. There has been an explosion of patent filings in China in the past three decades. But empirical studies on the pattern of innovations at the firm level are rather scant primarily due to lack of firm-specific patent data. We have made concerted efforts to match Chinese patent data with a large firm-level database. The matched dataset enables us to examine the patterns of patents at the firm level. Our analysis has revealed several interesting patterns: (1) domestic firms have become increasingly more innovative in terms of patent application; (2) private firms, rather than state-owned enterprises, have been the engine of innovation; (3) rising wages have propelled labor-intensive sectors to become more innovative; and (4) in response to increasing sex ratio imbalances, firms in female-intensive industries have exhibited more innovations than those in male-intensive industries. Journal: China Economic Journal Pages: 122-142 Issue: 2 Volume: 8 Year: 2015 Month: 5 X-DOI: 10.1080/17538963.2015.1046219 File-URL: http://hdl.handle.net/10.1080/17538963.2015.1046219 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:8:y:2015:i:2:p:122-142 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1061738_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Changwen Zhao Author-X-Name-First: Changwen Author-X-Name-Last: Zhao Author-Name: Yongwei Zhang Author-X-Name-First: Yongwei Author-X-Name-Last: Zhang Title: Several major issues on deepening state-owned enterprises reform Abstract: This paper evaluates the situations that state-owned enterprises (SOEs) reform in the new round are likely to be happened, proposes theoretical innovation will play an essential role in the current deepening SOEs reform; and emphasizes several important issues that need to be taken to help ensure the success, including: clear objectives and important tasks; exploring different ways of implementing SOEs reform; to further improve the state-owned capital management system, and so on. Journal: China Economic Journal Pages: 143-157 Issue: 2 Volume: 8 Year: 2015 Month: 5 X-DOI: 10.1080/17538963.2015.1061738 File-URL: http://hdl.handle.net/10.1080/17538963.2015.1061738 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:8:y:2015:i:2:p:143-157 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1070492_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ping Yan Author-X-Name-First: Ping Author-X-Name-Last: Yan Title: What did China’s labor contract law do to its private manufacturing firms? Abstract: Well-intended employment protection legislation may have adverse consequences. This paper uses Chinese firm-level data to assess the impacts of China’s Labor Contract Law, effective on January 1, 2008. My results show that, relative to public firms, private firms as a whole were negatively affected in terms of firm-level year-to-year employment changes. The law had negligible effects on employment and wages in firms with high wages. At the same time, employment fell and wages rose in firms with low wages. Moreover, firms who did not train workers intensively to acquire firm-specific skills had more job turnover than firms who did. Finally, I study how labor demand responded to the law along the extensive margin. For regions that experienced abrupt declines in labor mobility, possibly due to stricter labor regulation enforcement following the enactment of the Labor Contract Law, firm exit rose significantly, suggesting large incidence of mass layoff. Journal: China Economic Journal Pages: 158-171 Issue: 2 Volume: 8 Year: 2015 Month: 5 X-DOI: 10.1080/17538963.2015.1070492 File-URL: http://hdl.handle.net/10.1080/17538963.2015.1070492 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:8:y:2015:i:2:p:158-171 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1080907_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Creina Day Author-X-Name-First: Creina Author-X-Name-Last: Day Title: Fertility and housing Abstract: Young households in Hong Kong face particularly steep increases in house prices and low fertility despite low gender wage gaps. The model of fertility and housing in this paper explains why fertility decline need not reverse as female wages rise relative to male wages where housing land is scarce. For given house prices, demand for children may rise with female relative wages if housing comprises a sufficiently large share of childrearing. If the user cost of housing falls with rising house prices then fertility also rises. For endogenous house prices, however, growth in wages and a burgeoning working age population raises the market price of housing. In turn, fertility no longer rises with female relative wages. The analysis provides a novel mechanism whereby high population support ratios depress fertility and the results fit recent evidence that house prices affect fertility. Journal: China Economic Journal Pages: 172-190 Issue: 2 Volume: 8 Year: 2015 Month: 5 X-DOI: 10.1080/17538963.2015.1080907 File-URL: http://hdl.handle.net/10.1080/17538963.2015.1080907 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:8:y:2015:i:2:p:172-190 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1102473_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xiaoyan Lei Author-X-Name-First: Xiaoyan Author-X-Name-Last: Lei Author-Name: John Strauss Author-X-Name-First: John Author-X-Name-Last: Strauss Author-Name: Meng Tian Author-X-Name-First: Meng Author-X-Name-Last: Tian Author-Name: Yaohui Zhao Author-X-Name-First: Yaohui Author-X-Name-Last: Zhao Title: Living arrangements of the elderly in China: evidence from the CHARLS national baseline Abstract: Declining fertility in China has raised concerns about elderly support, especially when public support is inadequate. Using rich information from the nationally representative China Health and Retirement Longitudinal Study (CHARLS) baseline survey, we describe the patterns of current living arrangements of the Chinese elderly and investigate their determinants and correlation with intergenerational transfers. We find that roughly 41% of Chinese aged 60 and over live with an adult child; living with a male adult child being strongly preferred. However another 34% have an adult child living in the same immediate neighborhood and 14% in the same county; only 5% have an adult child with none of them living in the same county. At the same time, a large fraction of the elderly, 45% in our sample, live alone or with only a spouse. In general, women, those from western provinces, and those from rural areas are more likely to live with or close to their adult children than their corresponding counterparts, but different types of intergenerational transfers play a supplementary role in the unequal distribution of living arrangements. Among non-co-resident children, those living close by visit their parents more frequently and have more communications by other means. In contrast, children who live farther away are more likely to send financial and in-kind transfers and send larger amounts. Journal: China Economic Journal Pages: 191-214 Issue: 3 Volume: 8 Year: 2015 Month: 9 X-DOI: 10.1080/17538963.2015.1102473 File-URL: http://hdl.handle.net/10.1080/17538963.2015.1102473 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:8:y:2015:i:3:p:191-214 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1102474_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Qingtao Wang Author-X-Name-First: Qingtao Author-X-Name-Last: Wang Author-Name: Xuanli Xie Author-X-Name-First: Xuanli Author-X-Name-Last: Xie Author-Name: Min Wang Author-X-Name-First: Min Author-X-Name-Last: Wang Title: Environmental regulation and firm location choice in China Abstract: How may environmental regulation affect firm location choice? While this question has generated great research interest from high-standard, industrial economies, in this article we turn the spotlight to low-standard, developing countries and use China’s Census of Manufactures data during 2003–2008 to explore how firms with different ownership, during different policy regimes as well as from different industries may respond to environmental regulations in different ways. Results show environmental stringency has a positive effect on state-owned enterprises’ location choice during 2003–2005, but the effect becomes insignificant during 2006–2008. Private-owned enterprises, foreign-owned enterprises and collective-owned enterprises are more likely to enter areas with less stringent environmental regulations during 2003–2005. However, this pattern is reversed for the period of 2006–2008. Furthermore, the above relationships are more pronounced for firms in polluting industries. Journal: China Economic Journal Pages: 215-234 Issue: 3 Volume: 8 Year: 2015 Month: 9 X-DOI: 10.1080/17538963.2015.1102474 File-URL: http://hdl.handle.net/10.1080/17538963.2015.1102474 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:8:y:2015:i:3:p:215-234 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1108118_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yu Xie Author-X-Name-First: Yu Author-X-Name-Last: Xie Author-Name: Xiaobo Zhang Author-X-Name-First: Xiaobo Author-X-Name-Last: Zhang Author-Name: Qi Xu Author-X-Name-First: Qi Author-X-Name-Last: Xu Author-Name: Chunni Zhang Author-X-Name-First: Chunni Author-X-Name-Last: Zhang Title: Short-term trends in China’s income inequality and poverty: evidence from a longitudinal household survey Abstract: In the past three decades, income inequality in China has increased rapidly relative to both China’s own past and other countries at similar levels of economic development. Using recent longitudinal data from the China Family Panel Studies (CFPS), this article examines changes in income inequality and poverty prevalence between 2010 and 2012. Surprisingly, we find a modest decline in income inequality as measured by the Gini coefficients in the CFPS data. The urban–rural gap narrowed, with rural families enjoying faster income growth than urban families enjoyed. Income growth was greater for middle-income families than for families with either high or low incomes in 2010. By all measures, poverty was greatly reduced between 2010 and 2012. Two-thirds of families that had been poor in 2010 escaped poverty by 2012. Journal: China Economic Journal Pages: 235-251 Issue: 3 Volume: 8 Year: 2015 Month: 9 X-DOI: 10.1080/17538963.2015.1108118 File-URL: http://hdl.handle.net/10.1080/17538963.2015.1108118 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:8:y:2015:i:3:p:235-251 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1108119_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xiaoyan Lei Author-X-Name-First: Xiaoyan Author-X-Name-Last: Lei Author-Name: Yan Shen Author-X-Name-First: Yan Author-X-Name-Last: Shen Title: Inequality in educational attainment and expectation: evidence from the China Family Panel Studies Abstract: This article studies educational inequalities in China by measuring both educational attainment and educational expectations using the 2010 nationally representative data from the China Family Panel Study. We find that educational inequalities have increased over the past several decades, and these inequalities are mainly reflected in the widening gaps in higher education between rural and urban residents. This is true for both educational attainment and expectations. Because parental education level is another significant factor affecting both educational attainment and expectations, imminent measures are needed to stop the vicious cycle of translating existing educational inequalities into larger inequalities in later generations. Journal: China Economic Journal Pages: 252-263 Issue: 3 Volume: 8 Year: 2015 Month: 9 X-DOI: 10.1080/17538963.2015.1108119 File-URL: http://hdl.handle.net/10.1080/17538963.2015.1108119 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:8:y:2015:i:3:p:252-263 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1110338_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shi Li Author-X-Name-First: Shi Author-X-Name-Last: Li Author-Name: Haiyuan Wan Author-X-Name-First: Haiyuan Author-X-Name-Last: Wan Title: Evolution of wealth inequality in China Abstract: Household wealth is a key indicator that reflects national economic competiveness and individual income levels. The distribution of wealth is central for evaluating social justice in a country. This article uses a data set composed of the 2002 China Household Income Project and the 2010 Chinese Family Panel Survey to analyze the level of wealth and wealth inequality in China during 2002 and 2010. The analysis decomposes the evolution of wealth inequality during that period in terms of the structure and composition of wealth. The findings show that there was a large increase in the quantity of wealth and wealth inequality between 2002 and 2010. The level of wealth in 2010 was four times that of 2002, and housing assets were the greatest component of overall wealth in 2010. Wealth inequality also rose dramatically after 2002, with the Gini coefficient of the distribution of wealth increasing from 0.538 in 2002 to 0.739 in 2010. The rapidly escalating price of housing has been the main contributor to increasing wealth inequality in recent years. Journal: China Economic Journal Pages: 264-287 Issue: 3 Volume: 8 Year: 2015 Month: 9 X-DOI: 10.1080/17538963.2015.1110338 File-URL: http://hdl.handle.net/10.1080/17538963.2015.1110338 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:8:y:2015:i:3:p:264-287 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1110339_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Albert Park Author-X-Name-First: Albert Author-X-Name-Last: Park Author-Name: Yan Shen Author-X-Name-First: Yan Author-X-Name-Last: Shen Title: Understanding wealth and housing inequality among China’s older population Abstract: In this article we study wealth inequality of China’s older population aged 45 and older using data from the 2011 national baseline of the China Health and Retirement Longitudinal Study (CHARLS). As housing wealth accounts for the lion’s share of household wealth in China, we provide detailed analysis of housing wealth differences in China, including an assessment of the importance of housing windfalls associated with housing reforms in the 1990s and market price increases for housing. Our calculations indicate that in 2010, the wealth Gini coefficient is 0.69, and the wealthiest 20% of the population account for about three-quarters of total wealth while the bottom 50% account for only 5.73% of total wealth. We show that the majority of today’s wealth is the result of windfall gains, especially rapid increases in housing prices. Journal: China Economic Journal Pages: 288-307 Issue: 3 Volume: 8 Year: 2015 Month: 9 X-DOI: 10.1080/17538963.2015.1110339 File-URL: http://hdl.handle.net/10.1080/17538963.2015.1110339 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:8:y:2015:i:3:p:288-307 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1130281_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Editorial Board Journal: China Economic Journal Pages: ebi-ebi Issue: 3 Volume: 8 Year: 2015 Month: 9 X-DOI: 10.1080/17538963.2015.1130281 File-URL: http://hdl.handle.net/10.1080/17538963.2015.1130281 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:8:y:2015:i:3:p:ebi-ebi Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1121684_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Seo Hyeong Lee Author-X-Name-First: Seo Hyeong Author-X-Name-Last: Lee Author-Name: Shiyou Zhu Author-X-Name-First: Shiyou Author-X-Name-Last: Zhu Title: Time-varying transmission effects of external shocks into inflation: how different is China from Korea? Abstract: This article examined the time-varying effects of external shocks that determine inflation on Chinese and Korean consumer price index (CPI) inflation, using data from the period 2010:1 to 2013:4. For this experimentation, we adopted the Kalman filter algorithm. Key findings include the following: first, the lagged CPI inflation is the main determinant of inflation rate in both China and Korea that is significant and has positive effects. Second, as expected, the effects of independent variables on CPI inflation rate have a considerable difference in China and Korea from the coefficients’ size and sign. Especially, China’s CPI inflation is mainly affected by domestic output growth, while Korea is more readily affected by external shocks. Third, we confirmed the time-varying effects. For instance, the positive effect of the output variable is decreasing in the Chinese inflation equation, but its negative effect is decreasing in the Korean inflation equation. Finally, we can guess Korea is a more import dependent economy than China and also the trends of estimated coefficients of China’s inflation are changing similarly to Korea. It has been proved from recent changes that there is a decreasing effect of output growth, but negatively and increasing effects of exchange rate and import dependence. Hence, those recent changes imply that this is caused by the change of the Chinese economy to be more trade dependent as well as we cannot deny the possibility of the external factors that play a role in CPI inflation, and its influence is gradually increasing in China. Journal: China Economic Journal Pages: 1-16 Issue: 1 Volume: 9 Year: 2016 Month: 1 X-DOI: 10.1080/17538963.2015.1121684 File-URL: http://hdl.handle.net/10.1080/17538963.2015.1121684 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:9:y:2016:i:1:p:1-16 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1122882_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yiping Huang Author-X-Name-First: Yiping Author-X-Name-Last: Huang Title: Can China escape the middle-income trap? Abstract: Can China continue its relatively rapid economic growth and rise to the high-income status in the coming decade? In this article we address this question by examining three issues. One, is the current slowdown mainly a cyclical or a structural phenomenon? Two, can China successfully transform its growth model? And, three, what does China need to do to foster its capability of technological innovation and industrial upgrading? We conclude that, with necessary reforms, such as improvement in the education and research capability, liberalization of the financial system and introduction of a more transparent and accountable political system, China will most likely be able to escape the middle-income trap in the next 10 years. Journal: China Economic Journal Pages: 17-33 Issue: 1 Volume: 9 Year: 2016 Month: 1 X-DOI: 10.1080/17538963.2015.1122882 File-URL: http://hdl.handle.net/10.1080/17538963.2015.1122882 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:9:y:2016:i:1:p:17-33 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1125591_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ghassen El Montasser Author-X-Name-First: Ghassen Author-X-Name-Last: El Montasser Author-Name: John Fry Author-X-Name-First: John Author-X-Name-Last: Fry Author-Name: Nicholas Apergis Author-X-Name-First: Nicholas Author-X-Name-Last: Apergis Title: Explosive bubbles in the US–China exchange rate? Evidence from right-tailed unit root tests Abstract: In this article we apply novel right-tailed unit root (sup Augmented Dickey-Fuller (SADF) and generalized sup ADF) tests to the China–US exchange rate. The empirical results document that the recent financial crisis in 2008 may be preceded by early warning signs of exuberance. Using the SADF test, evidence of an explosive behavior in the nominal exchange is found from 2005 onwards. This period coincides with both financial reforms in China and early indications of an impending US crisis that both have been reported in the literature. Our findings suggest that such an explosive behavior may be attributable to differences in the relative prices of traded goods. Policy implications are also derived. Journal: China Economic Journal Pages: 34-46 Issue: 1 Volume: 9 Year: 2016 Month: 1 X-DOI: 10.1080/17538963.2015.1125591 File-URL: http://hdl.handle.net/10.1080/17538963.2015.1125591 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:9:y:2016:i:1:p:34-46 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1126973_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Miaojie Yu Author-X-Name-First: Miaojie Author-X-Name-Last: Yu Author-Name: Fan Zhang Author-X-Name-First: Fan Author-X-Name-Last: Zhang Title: The potential impact of China–US BIT on China’s manufacturing sectors Abstract: This article finds that the overall effect of the foreign direct investment (FDI) and thereby the China–US bilateral investment treaties (BIT) on Chinese manufacturing sector is positive, which raises the productivity and profitability of the firms, using various econometric models and other evidence. The manufacturing sector as a whole has already opened up to the world economy and needs to continue this process. The industries in the manufacturing sector do not need to be protected, except for in limited fields related to national security, scarce natural resources and well-defined strategic sectors. Gradual lifting of the protection may be needed in the short-run for a small number of vulnerable sectors. A moderate relaxing of the current restrictions will increase FDI in manufacturing from all countries by 4–8% under different assumptions. This effect will be small when only considering FDI from the USA. Domestic firms need to update their technology, reduce costs and learn management skills from their foreign competitors, while using the national treatment terms in BIT to enter the fields that are not open to domestic firms under current regulations. Domestic firms also need to set up firm-level global strategies and reallocate firms’ resources according to the changing investment environment, taking advantage of profit opportunities outside the domestic markets. Journal: China Economic Journal Pages: 47-64 Issue: 1 Volume: 9 Year: 2016 Month: 1 X-DOI: 10.1080/17538963.2015.1126973 File-URL: http://hdl.handle.net/10.1080/17538963.2015.1126973 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:9:y:2016:i:1:p:47-64 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1132816_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Daili Wang Author-X-Name-First: Daili Author-X-Name-Last: Wang Title: Measurement matters: understanding China’s growth rates Abstract: The recent decline in year-on-year (y/y) growth rate has sparked fear of a China ‘hard landing’. However, the literature found that y/y measures can be inadequate in catching cyclical turning points, especially when, as now in China, a short, sharp deceleration has occurred but bottomed out within the past 12 months. We regard three-month/three-month seasonally adjusted annualized growth rates (QSAA) as a better leading indicator for identifying patterns than y/y growth rates given that QSAA not only irons out very short-term volatility by taking a three-month moving average, it summarizes information from the previous six months (y/y indicators only exhibit the latest data point and information 12 months ago). Based on a sample of six important Chinese economic indicators, we find the new measure shows a different growth trajectory relative to that measured by the y/y growth rate. Thus, policy makers may find the new measures complementary to the widely used y/y growth rates in decision making. Journal: China Economic Journal Pages: 65-74 Issue: 1 Volume: 9 Year: 2016 Month: 1 X-DOI: 10.1080/17538963.2015.1132816 File-URL: http://hdl.handle.net/10.1080/17538963.2015.1132816 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:9:y:2016:i:1:p:65-74 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1138695_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Paul Hubbard Author-X-Name-First: Paul Author-X-Name-Last: Hubbard Title: Where have China’s state monopolies gone? Abstract: If China’s economy is an example of “state-capitalism,” then its large, state-owned enterprises (SOEs) could be expected to monopolize key sectors. But previous estimates of industrial concentration, using the Herfindahl—Hirschman Index (HHI), have suggested that the level of industrial concentration—and therefore the potential for the abuse of monopoly power—is very low. These studies have significantly underestimated HHI, since they do not consolidate subsidiary enterprises in Chinese survey data into larger business groups, or according to ultimate ownership. After making these adjustments, a measure of potential HHI shows that large state monopolies remain in oil and gas, electricity, tobacco and, potentially, automobiles. In particular, SOEs supervised by the central government are heavily invested in potentially concentrated industries. But aggregate profits of the state sector are driven more by the portfolio distribution of assets between resources, manufacturing and utilities, rather than industrial concentration within sectors. Journal: China Economic Journal Pages: 75-99 Issue: 1 Volume: 9 Year: 2016 Month: 1 X-DOI: 10.1080/17538963.2016.1138695 File-URL: http://hdl.handle.net/10.1080/17538963.2016.1138695 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:9:y:2016:i:1:p:75-99 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1160535_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Fei Yu Author-X-Name-First: Fei Author-X-Name-Last: Yu Author-Name: Yanrui Wu Author-X-Name-First: Yanrui Author-X-Name-Last: Wu Author-Name: Jin Chen Author-X-Name-First: Jin Author-X-Name-Last: Chen Title: Biases in patent examination and firms’ responses: Evidence from the pharmaceutical industry Abstract: Empirical analysis of matched patent application data in the world’s major patent offices has shown considerable variation in patent granting probability and examination duration across different countries. This phenomenon is attributed to institutional misclassifications or patent examiners’ mistakes by some authors. Others argued that cross-country heterogeneity could also be caused by deliberate manipulation of patent examination procedures with the goal to foster native inventors through suppressing foreign patent applicants. To explore whether manipulation exists, this study presents a case study of pharmaceutical patents granted by the US patent office and approved by the US FDA. Especially it focuses on the filing behavior of pharmaceutical companies in Korea, Japan and China. The regression results show that the granting ratio of the previous applications of a foreign company is correlated with the company’s probability of lodging a new patent application, which provides a supplementary evidence of the existence of the manipulated patent examination procedures. Journal: China Economic Journal Pages: 101-115 Issue: 2 Volume: 9 Year: 2016 Month: 5 X-DOI: 10.1080/17538963.2016.1160535 File-URL: http://hdl.handle.net/10.1080/17538963.2016.1160535 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:9:y:2016:i:2:p:101-115 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1162970_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Mike Callaghan Author-X-Name-First: Mike Author-X-Name-Last: Callaghan Author-Name: Paul Hubbard Author-X-Name-First: Paul Author-X-Name-Last: Hubbard Title: The Asian Infrastructure Investment Bank: Multilateralism on the Silk Road Abstract: Initial English-language media coverage of the Asian Infrastructure Investment Bank (AIIB) was framed in terms of strategic rivalry between China and the United States and China’s frustration with slow reform to existing multilateral development banks (MDBs). But the United States, not China, turned the AIIB into a battle for global influence, which the United States lost when key allies joined the bank.China had a positive agenda for establishing the AIIB, particularly as part of its flagship ‘one belt, one road’ regional initiative. By establishing a multilateral lender for Asian infrastructure, China can de-politicize what can be fraught bilateral financing deals as well as boost its image in the region. This requires the AIIB being a truly multilateral institution.The AIIB will have to meet the standards of other MDBs, particularly for safeguards, procurement and transparency. The bank will be under international scrutiny and AIIB shareholders should build the bank cautiously, initially focusing on co-financing with other MDBs. The AIIB need not mirror existing lenders, but can learn from their experience and improve on their efficiency. The AIIB will be a learning experience for China and could boost its credentials for future multilateral leadership. Journal: China Economic Journal Pages: 116-139 Issue: 2 Volume: 9 Year: 2016 Month: 5 X-DOI: 10.1080/17538963.2016.1162970 File-URL: http://hdl.handle.net/10.1080/17538963.2016.1162970 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:9:y:2016:i:2:p:116-139 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1163813_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Hao Liu Author-X-Name-First: Hao Author-X-Name-Last: Liu Author-Name: Shihan Shen Author-X-Name-First: Shihan Author-X-Name-Last: Shen Author-Name: Tianyi Wang Author-X-Name-First: Tianyi Author-X-Name-Last: Wang Author-Name: Zhuo Huang Author-X-Name-First: Zhuo Author-X-Name-Last: Huang Title: Revisiting the risk-return relation in the Chinese stock market: Decomposition of risk premium and volatility feedback effect Abstract: The empirical results of the risk-return relationship are mixed for both mature and merging markets. In this paper, we develop a new volatility model to revisit the risk-return relation of the aggregate stock market index by extending the Realized GARCH model of Hansen et al. (2012) with the Wang and Yang (2013) framework, in which the overall risk-return relation is decomposed into a risk premium and a volatility feedback effect. An empirical analysis of three major Chinese stock indices reveals positive risk premium and negative volatility feedback effect, and those findings are stable across different markets and sub-samples. However, their relative magnitudes differ between markets and varies through time. Journal: China Economic Journal Pages: 140-153 Issue: 2 Volume: 9 Year: 2016 Month: 5 X-DOI: 10.1080/17538963.2016.1163813 File-URL: http://hdl.handle.net/10.1080/17538963.2016.1163813 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:9:y:2016:i:2:p:140-153 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1164493_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Guangyu Mao Author-X-Name-First: Guangyu Author-X-Name-Last: Mao Title: Do regional house prices converge or diverge in China? Abstract: This paper aims to test whether the regional house prices are convergent or divergent in China using a monthly panel data set of China’s 70 large and medium-sized cities from July 2005 to December 2010. This issue is closely related to understanding the efficiency of the country-level housing policies made by China’s central government. The test results suggest that the regional house prices in China are generally divergent, and thereby the country-level policies may be inefficient since they do not explicitly take the strong heterogeneity of China’s regional housing markets into consideration. As a consequence, it may be better for China’s central government to further decentralize and devolve its governance toward the housing market to the local governments. Journal: China Economic Journal Pages: 154-166 Issue: 2 Volume: 9 Year: 2016 Month: 5 X-DOI: 10.1080/17538963.2016.1164493 File-URL: http://hdl.handle.net/10.1080/17538963.2016.1164493 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:9:y:2016:i:2:p:154-166 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1165541_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xiuping Hua Author-X-Name-First: Xiuping Author-X-Name-Last: Hua Author-Name: Yali Wang Author-X-Name-First: Yali Author-X-Name-Last: Wang Author-Name: Miao Wang Author-X-Name-First: Miao Author-X-Name-Last: Wang Title: The innovation and performance impacts of venture capital investment on China’s small- and medium-sized enterprises Abstract: This study examines the impacts of venture capital (VC) on performance and innovation of China’s small- and medium-sized enterprises (SME). Using unbalanced panel data of 2699 VC-backed and non-VC backed firms in China’s pilot over-the-counter equities market, namely the National Equity Exchange and Quotation (NEEQ) market, during 2005–2014, we find that venture capital financing not only spurs innovation in the Chinese market, but also exhibits significantly positive impact on financial performance. Empirical evidence reveals that syndication of venture capital investment as well as the reputation of venture capitalists helps to create value for VC-backed firms. However, no evidence is found that foreign VC-backed firms perform better than domestic VC-backed ones. The results are robust to a variety of specifications. Our findings imply that the VC financing is an effective channel to promote the development of SMEs at China’s multi-layer capital market and syndicated VC investments and venture capitalists with high reputation shall be encouraged to play a bigger role in nurturing innovation and entrepreneurship in the future. Journal: China Economic Journal Pages: 167-185 Issue: 2 Volume: 9 Year: 2016 Month: 5 X-DOI: 10.1080/17538963.2016.1165541 File-URL: http://hdl.handle.net/10.1080/17538963.2016.1165541 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:9:y:2016:i:2:p:167-185 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1168203_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yixiao Zhou Author-X-Name-First: Yixiao Author-X-Name-Last: Zhou Author-Name: Ligang Song Author-X-Name-First: Ligang Author-X-Name-Last: Song Title: Income inequality in China: causes and policy responses Abstract: The phenomenal economic growth in China has been accompanied by a rapid increase in income inequality. This paper reviews the historical trends and patterns of income inequality in China, discusses the potential causes underlying rising income inequality, and applies the functional distribution of income approach in understanding China’s income inequality. This analytical approach highlights how rising return to capital relative to wage incomes can be an important source for increasing income inequality in China. The paper provides the evidence which shows that the rapid economic growth in China has been relying on a model that pays high returns to various kinds of capital including financial capital and real estate, while the ownership of capital is very unequal. This finding prompts us to rethink about the causes of China’s income inequality and to formulate appropriate policies based on the new way of understanding this pressing issue of income distribution in China. Journal: China Economic Journal Pages: 186-208 Issue: 2 Volume: 9 Year: 2016 Month: 5 X-DOI: 10.1080/17538963.2016.1168203 File-URL: http://hdl.handle.net/10.1080/17538963.2016.1168203 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:9:y:2016:i:2:p:186-208 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1172783_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Wei Tian Author-X-Name-First: Wei Author-X-Name-Last: Tian Author-Name: Miaojie Yu Author-X-Name-First: Miaojie Author-X-Name-Last: Yu Author-Name: Fan Zhang Author-X-Name-First: Fan Author-X-Name-Last: Zhang Title: The exceptional performance of Chinese outward direct investment firms Abstract: This paper finds that Chinese manufacturing firms that engage in outward foreign direct investment (ODI) have better economic performance than non-ODI manufacturing firms. Overall, ODI firms are more productive and have higher profitability than non-ODI firms. The sector analysis shows that the exceptional performance is significant for labor-intensive industries. Finally, the ODI activity can raise the productivity of other firms in an industry. The larger the ODI within an industry, the higher the productivity of all firms in that industry. The paper suggests that domestic firms set up their firm’s global strategy and reallocate the firm’s resources according to the changing investment environment, taking advantages of profit opportunities outside of domestic markets and invest abroad to get new markets and new technology. Journal: China Economic Journal Pages: 209-219 Issue: 2 Volume: 9 Year: 2016 Month: 5 X-DOI: 10.1080/17538963.2016.1172783 File-URL: http://hdl.handle.net/10.1080/17538963.2016.1172783 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:9:y:2016:i:2:p:209-219 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1215058_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yan Shen Author-X-Name-First: Yan Author-X-Name-Last: Shen Author-Name: Yiping Huang Author-X-Name-First: Yiping Author-X-Name-Last: Huang Title: Introduction to the special issue: Internet finance in China Journal: China Economic Journal Pages: 221-224 Issue: 3 Volume: 9 Year: 2016 Month: 9 X-DOI: 10.1080/17538963.2016.1215058 File-URL: http://hdl.handle.net/10.1080/17538963.2016.1215058 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:9:y:2016:i:3:p:221-224 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1215057_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Long Chen Author-X-Name-First: Long Author-X-Name-Last: Chen Title: From Fintech to Finlife: the case of Fintech Development in China Abstract: The purpose of technology is not to make finance better, but to make finance serve real life better. Fintech has grown much faster in China than in the United States. In China, this success has come not from an initial technology advantage, but from integration between finance and real-life needs. This experience has important implications for understanding financial innovations, and for the development of inclusive finance. Journal: China Economic Journal Pages: 225-239 Issue: 3 Volume: 9 Year: 2016 Month: 9 X-DOI: 10.1080/17538963.2016.1215057 File-URL: http://hdl.handle.net/10.1080/17538963.2016.1215057 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:9:y:2016:i:3:p:225-239 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1210366_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ping Xie Author-X-Name-First: Ping Author-X-Name-Last: Xie Author-Name: Chuanwei Zou Author-X-Name-First: Chuanwei Author-X-Name-Last: Zou Author-Name: Haier Liu Author-X-Name-First: Haier Author-X-Name-Last: Liu Title: The fundamentals of internet finance and its policy implications in China Abstract: Internet finance is a spectral concept. It covers all forms of financial transactions and organizations, which range from traditional financial intermediaries and markets, such as commercial banks, securities firms, insurance companies, and stock exchanges, to the scenario under Walrasian equilibrium (where neither financial intermediaries nor markets exist) caused by the impacts of internet technologies. This article discusses the theoretical pillars, core features, and policy implications of internet finance. Journal: China Economic Journal Pages: 240-252 Issue: 3 Volume: 9 Year: 2016 Month: 9 X-DOI: 10.1080/17538963.2016.1210366 File-URL: http://hdl.handle.net/10.1080/17538963.2016.1210366 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:9:y:2016:i:3:p:240-252 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1211383_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Feng Guo Author-X-Name-First: Feng Author-X-Name-Last: Guo Author-Name: Sherry Tao Kong Author-X-Name-First: Sherry Tao Author-X-Name-Last: Kong Author-Name: Jingyi Wang Author-X-Name-First: Jingyi Author-X-Name-Last: Wang Title: General patterns and regional disparity of internet finance development in China: Evidence from the Peking University Internet Finance Development Index Abstract: Internet finance has experienced rapid growth in recent years in China, and it is expected to play an increasingly important role in the economy. This paper is one of the first attempts to examine the current state of development of Internet finance in China. The paper first introduces the methodology of the Peking University Internet Finance Index, which provides a monthly evaluation and analysis of the general trends and patterns of the Chinese Internet finance industry. The findings show that although the growth of the industry as a whole has been robust, the levels of development and rates of growth exhibit substantial variation across business categories. The paper then investigates the underlying determinants of the regional disparity in the development of Internet finance. The preliminary results suggest that the traditional financial sector, infrastructure, and local economic development are important for Internet finance development. The study suggests that the growth of Internet finance fundamentally relies on the development of the real economy and is associated with that of the traditional financial sector. Journal: China Economic Journal Pages: 253-271 Issue: 3 Volume: 9 Year: 2016 Month: 9 X-DOI: 10.1080/17538963.2016.1211383 File-URL: http://hdl.handle.net/10.1080/17538963.2016.1211383 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:9:y:2016:i:3:p:253-271 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1214381_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jingyi Wang Author-X-Name-First: Jingyi Author-X-Name-Last: Wang Author-Name: Yan Shen Author-X-Name-First: Yan Author-X-Name-Last: Shen Author-Name: Yiping Huang Author-X-Name-First: Yiping Author-X-Name-Last: Huang Title: Evaluating the regulatory scheme for internet finance in China: the case of peer-to-peer lending Abstract: This article assesses the potential risks associated with Internet finance in China, and discusses the implications for the regulatory framework, through a case study of peer-to-peer lending platforms. The analysis uses publicly available platform-level data up to December 2015 to identify the risk factors associated with different platforms. The analysis employs the Kaplan-Meier method to estimate survival probability, and uses duration analysis to identify how each risk factor contributes to the survival probability and life expectancy of each platform. The findings show that platforms with recent establishment dates, missing key information, a narrow range of interest rates, extreme interest rates, undiversified projects, and guarantees for principal and interest tend to have lower survival probability and shorter life expectancy. Based on these findings, the article assesses the appropriateness of the regulatory framework the authorities have recently proposed: whether the platforms should be treated as an information intermediary instead of a credit intermediary, whether the main regulation responsibilities should be assigned to local governments or industry associations, and whether new entrants should be required to have a minimum of registered capital. The article also makes some recommendations on information disclosure and risk management requirements for the peer-to-peer lending industry. Journal: China Economic Journal Pages: 272-287 Issue: 3 Volume: 9 Year: 2016 Month: 9 X-DOI: 10.1080/17538963.2016.1214381 File-URL: http://hdl.handle.net/10.1080/17538963.2016.1214381 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:9:y:2016:i:3:p:272-287 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1209868_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Zhuo Huang Author-X-Name-First: Zhuo Author-X-Name-Last: Huang Author-Name: Yang Lei Author-X-Name-First: Yang Author-X-Name-Last: Lei Author-Name: Shihan Shen Author-X-Name-First: Shihan Author-X-Name-Last: Shen Title: China’s personal credit reporting system in the internet finance era: challenges and opportunities Abstract: The credit reporting system plays an important role in a credit economy, alleviating information asymmetry and reducing transaction costs. This article reviews the historical developments and describes the current structure of China’s government-oriented personal credit reporting system. The article summarizes the rapid development of Internet finance since 2013, and analyzes the challenges and opportunities for the next generation of China’s personal credit reporting system. Journal: China Economic Journal Pages: 288-303 Issue: 3 Volume: 9 Year: 2016 Month: 9 X-DOI: 10.1080/17538963.2016.1209868 File-URL: http://hdl.handle.net/10.1080/17538963.2016.1209868 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:9:y:2016:i:3:p:288-303 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1211384_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yan Shen Author-X-Name-First: Yan Author-X-Name-Last: Shen Author-Name: Minggao Shen Author-X-Name-First: Minggao Author-X-Name-Last: Shen Author-Name: Qin Chen Author-X-Name-First: Qin Author-X-Name-Last: Chen Title: Measurement of the new economy in China: big data approach Abstract: China has entered a “new normal” stage, where the returns to capital are continuing to decrease and low-skilled labor intensive industries are growing at a much slower speed. Whether the country can enjoy sustainable growth critically depends on the growth of the new economy sector. However, there is little information about the structure and growth trend of this sector. This article constructs for the first time the New Economy Index to provide a framework for measuring the new economy sector in China. The article defines the scope of the sector and uses a big data approach to identify the new economy sector and enterprises belonging to it. The New Economy Index is used to describe the growth pattern of the new economy sector. The findings show that the sector accounts for about 30 percent of the whole economy, and the New Economy Index is negatively correlated to several traditional economic indices, such as the Purchasing Manager Index of the manufacturing industry. Journal: China Economic Journal Pages: 304-316 Issue: 3 Volume: 9 Year: 2016 Month: 9 X-DOI: 10.1080/17538963.2016.1211384 File-URL: http://hdl.handle.net/10.1080/17538963.2016.1211384 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:9:y:2016:i:3:p:304-316 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_1238532_J.xml processed with: repec_from_tfjats.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: The Editors Title: Editorial Board Journal: China Economic Journal Pages: ebi-ebi Issue: 3 Volume: 9 Year: 2016 Month: 9 X-DOI: 10.1080/17538963.2016.1238532 File-URL: http://hdl.handle.net/10.1080/17538963.2016.1238532 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:9:y:2016:i:3:p:ebi-ebi Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2244278_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Min Wang Author-X-Name-First: Min Author-X-Name-Last: Wang Title: Long-term forecast and policy discussion on China’s carbon emissions Abstract: By decomposing the changes of carbon emissions into effects of economic growth, industrial structural change, technological change and energy structure change, the paper firstly discusses the contribution of each effect to China’s carbon emission changes between 2020 and 2030, and forecasts China’s total carbon emissions in 2030. In particular, the paper strengthens that a decrease in population and a significant slowdown in urbanization will significantly reduce the construction demand, the main driver for high growth of carbon emissions in China, and provide a relatively favorable economic environment for China to achieve carbon peaking by 2030. The paper then discusses on how to achieve the ”dual carbon” goals with the lowest possible economic cost by relying on market and price mechanisms. Journal: China Economic Journal Pages: 104-120 Issue: 2 Volume: 16 Year: 2023 Month: 05 X-DOI: 10.1080/17538963.2023.2244278 File-URL: http://hdl.handle.net/10.1080/17538963.2023.2244278 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:16:y:2023:i:2:p:104-120 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2244281_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xing Chen Author-X-Name-First: Xing Author-X-Name-Last: Chen Author-Name: Xuan Wang Author-X-Name-First: Xuan Author-X-Name-Last: Wang Author-Name: Tianyang Xi Author-X-Name-First: Tianyang Author-X-Name-Last: Xi Author-Name: Jintao Xu Author-X-Name-First: Jintao Author-X-Name-Last: Xu Title: Estimating the CO2 marginal abatement cost and implications for climate policies in China’s industrial sector: A firm-level analysis Abstract: This paper presents an in-depth analysis of the Marginal Abatement Cost Curve (MACC) for CO2 of China’s industrial sector. Leveraging comprehensive firm-level panel data spanning the period 2011–2015, we employ a parameterized directional output distance function to estimate the shadow price of CO2. By doing so, we derive the marginal abatement cost for individual firms across different years, which provides crucial insights into two fundamental aspects: first, the variation in shadow prices as indicators of the economic efficiency of existing climate policies; and second, the carbon price levels necessary to achieve CO2 mitigation targets in the future. Furthermore, we conduct scenario simulations to assess the potential industrial output loss resulting from forthcoming carbon policies, such as the European Union’s Carbon Border Adjustment Mechanism (CBAM). Our findings underscore the necessity for a considerably higher tax rate to stimulate pollution reduction in order to meet the desired emission targets. Journal: China Economic Journal Pages: 217-239 Issue: 2 Volume: 16 Year: 2023 Month: 05 X-DOI: 10.1080/17538963.2023.2244281 File-URL: http://hdl.handle.net/10.1080/17538963.2023.2244281 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:16:y:2023:i:2:p:217-239 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2253630_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jintao Xu Author-X-Name-First: Jintao Author-X-Name-Last: Xu Title: Introduction by the guest editor Journal: China Economic Journal Pages: 101-103 Issue: 2 Volume: 16 Year: 2023 Month: 05 X-DOI: 10.1080/17538963.2023.2253630 File-URL: http://hdl.handle.net/10.1080/17538963.2023.2253630 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:16:y:2023:i:2:p:101-103 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2244277_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Yuanyuan Yi Author-X-Name-First: Yuanyuan Author-X-Name-Last: Yi Author-Name: Jintao Xu Author-X-Name-First: Jintao Author-X-Name-Last: Xu Title: The potential of China’s ecosystems in meeting the carbon neutrality goal: evidence from the forest sector Abstract: Forest carbon sequestration has great potential for climate change mitigation. We show the cost-effectiveness of using forests as Nature-based Solutions pathways that offset carbon dioxide (CO2). Afforestation and reforestation expand forest cover, sustainable forest management increases forest productivity, and substituting carbon-intensive materials with wood products avoids the CO2 emitted in the production processes of these materials. In terms of these activities, we estimate that China’s total forest carbon sequestration potential will reach 2.4 billion tons of CO2 in 2050. Scenario analysis shows that the carbon sequestered by the forests in 2050 helps China meet its goal of carbon neutrality or net zero emissions. Journal: China Economic Journal Pages: 185-202 Issue: 2 Volume: 16 Year: 2023 Month: 05 X-DOI: 10.1080/17538963.2023.2244277 File-URL: http://hdl.handle.net/10.1080/17538963.2023.2244277 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:16:y:2023:i:2:p:185-202 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2244279_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Jianwei Xing Author-X-Name-First: Jianwei Author-X-Name-Last: Xing Author-Name: Xiyuan Liu Author-X-Name-First: Xiyuan Author-X-Name-Last: Liu Author-Name: Yushuai Zhang Author-X-Name-First: Yushuai Author-X-Name-Last: Zhang Title: Development of the electric vehicle industry in China Abstract: The electrification of the transportation sector is a pivotal strategy to curb carbon emissions from traditional fossil fuel-powered vehicles. China, the world’s largest electric vehicle (EV) market, leads this transformative shift. This paper aims to unravel the past decade’s development story of the EV industry in China. We first provide a comprehensive overview of the EV development trend in China, including analysis of market structures, regional development variations, technology advancements, and the development of the essential infrastructure. We then summarize the different forms of subsidy programs, both monetary and non-monetary, designed to promote EV at both central and local levels, and evaluate the effectiveness of these programs and their contribution to reducing carbon emissions. We conclude by highlighting key aspects that could enhance the efficiency of subsidy programs and further propel the development of the EV industry. Journal: China Economic Journal Pages: 139-184 Issue: 2 Volume: 16 Year: 2023 Month: 05 X-DOI: 10.1080/17538963.2023.2244279 File-URL: http://hdl.handle.net/10.1080/17538963.2023.2244279 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:16:y:2023:i:2:p:139-184 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2245515_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Feng Song Author-X-Name-First: Feng Author-X-Name-Last: Song Author-Name: Ao Sun Author-X-Name-First: Ao Author-X-Name-Last: Sun Title: Carbon neutrality and renewable energy development in China Abstract: Building a new type of power system with wind and solar as the dominant body of sources is expected to play the key role for China to achieve carbon neutrality. Transiting from the fossil fuel dominating power system to a renewable dominating system requires both the technology progress and the institutional changes. The total direct investment cost of China’s power system decarbonization is estimated to be about 67.6 trillion yuan, which consists of new wind and solar power capacity, energy storage facilities, and transmission lines. The electricity storage technology is the key factor to affect the transitional costs. Meanwhile, institutional changes are needed to adapt to the high penetration of wind and solar to cope with the new challenges the renewable brings, namely the flexibility, adequacy and affordability. China’s market-oriented reform should move to the direction of establishing a real unified national market system to achieve the integration of high percentage of renewables. Journal: China Economic Journal Pages: 121-138 Issue: 2 Volume: 16 Year: 2023 Month: 05 X-DOI: 10.1080/17538963.2023.2245515 File-URL: http://hdl.handle.net/10.1080/17538963.2023.2245515 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:16:y:2023:i:2:p:121-138 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2246714_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Xianling Long Author-X-Name-First: Xianling Author-X-Name-Last: Long Author-Name: Lawrence H. Goulder Author-X-Name-First: Lawrence H. Author-X-Name-Last: Goulder Title: Carbon emission trading systems: a review of systems across the globe and a close look at China’s national approach Journal: China Economic Journal Pages: 203-216 Issue: 2 Volume: 16 Year: 2023 Month: 05 X-DOI: 10.1080/17538963.2023.2246714 File-URL: http://hdl.handle.net/10.1080/17538963.2023.2246714 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:16:y:2023:i:2:p:203-216 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2254144_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Ke Shen Author-X-Name-First: Ke Author-X-Name-Last: Shen Author-Name: Zhenyi Huang Author-X-Name-First: Zhenyi Author-X-Name-Last: Huang Title: Impacts of population aging on the quantity and quality of pharmaceutical innovation: evidence from OECD countries Abstract: Against the backdrop of rapid population aging, we examine the impacts of population aging on pharmaceutical innovation based on the panel data of OECD countries between 1997 and 2018. We show that population aging effectively boosts the quantity and quality of pharmaceutical innovation before the share of older adults approaches 14%, the threshold for the aged society. Once the country enters the aged society, however, population aging is no longer associated with the quantity of pharmaceutical patents, and even significantly depresses the quality of patenting. Moreover, the type of welfare state regimes plays a notable moderating role. High welfare states could effectively amplify the positive effects of aging or attenuate the negative impacts of aging on pharmaceutical innovation. Our results suggest that the dividend of aging in pharmaceutical industry does exist in the early stage of aging, and the government needs to plan ahead to ameliorate the deterioration of innovation in aged and super-aged societies. Journal: China Economic Journal Pages: 335-353 Issue: 3 Volume: 16 Year: 2023 Month: 09 X-DOI: 10.1080/17538963.2023.2254144 File-URL: http://hdl.handle.net/10.1080/17538963.2023.2254144 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:16:y:2023:i:3:p:335-353 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2254138_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Shiguang Li Author-X-Name-First: Shiguang Author-X-Name-Last: Li Author-Name: Zheng Yang Author-X-Name-First: Zheng Author-X-Name-Last: Yang Author-Name: Yixiang Tian Author-X-Name-First: Yixiang Author-X-Name-Last: Tian Title: Digital transformation and corporate performance: evidence from China Abstract: This study measures the enterprise digitalization index and investigates the relationship between digital transformation and corporate performance. The rapid development of digital technologies has transformed enterprise in significant ways. The main challenge in examining the impact of digital transformation is the lack of firm-level data. We use the method of text analysis to construct an enterprise digitalization index based on annual reports of listed companies in China during 2012–2018. We find that Enterprise digital transformation improves corporate performance. This holds in particular for non-state-owned firms and companies from service industries. Moreover, digital transformation enhances corporate performance by improving employee efficiency. The findings offer important policy implications for promoting digital economy in China. Journal: China Economic Journal Pages: 312-334 Issue: 3 Volume: 16 Year: 2023 Month: 09 X-DOI: 10.1080/17538963.2023.2254138 File-URL: http://hdl.handle.net/10.1080/17538963.2023.2254138 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:16:y:2023:i:3:p:312-334 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2244280_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: He Xiaobei Author-X-Name-First: He Author-X-Name-Last: Xiaobei Title: Macroeconomic implications of China’s dual carbon goals Abstract: The ‘dual carbon’ goals are set to reshape China’s industrial landscape and impact the economy as a whole. This paper briefly discusses the channels through which climate polices may affect the economic growth, and then provides a quantitative analysis of the economic impacts of China’s climate polices using a global dynamic CGE model. The simulation results of different policy scenarios suggest that climate policies will have negative impacts on China’s investment and export by raising the costs of prodcution, but the aggregate impact on China’s output will generally be mild. Nonetheless, other countries’ climate policies may have meaningful spillover effects on China’s economy through the trade channels and China should lead or participate in the international coordination on climate policies to be better placed to achieve the ‘dual carbon’ goals. Journal: China Economic Journal Pages: 302-311 Issue: 3 Volume: 16 Year: 2023 Month: 09 X-DOI: 10.1080/17538963.2023.2244280 File-URL: http://hdl.handle.net/10.1080/17538963.2023.2244280 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:16:y:2023:i:3:p:302-311 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2250638_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Wen-Wen Zhang Author-X-Name-First: Wen-Wen Author-X-Name-Last: Zhang Author-Name: Basil Sharp Author-X-Name-First: Basil Author-X-Name-Last: Sharp Author-Name: Bin Zhao Author-X-Name-First: Bin Author-X-Name-Last: Zhao Author-Name: Yu Gu Author-X-Name-First: Yu Author-X-Name-Last: Gu Author-Name: Nan-Xi Fang Author-X-Name-First: Nan-Xi Author-X-Name-Last: Fang Author-Name: Yue-Ran Hu Author-X-Name-First: Yue-Ran Author-X-Name-Last: Hu Author-Name: Yang Ma Author-X-Name-First: Yang Author-X-Name-Last: Ma Author-Name: Xin-Chen Shi Author-X-Name-First: Xin-Chen Author-X-Name-Last: Shi Author-Name: Li-Jun Liu Author-X-Name-First: Li-Jun Author-X-Name-Last: Liu Author-Name: Sheng-Yue Li Author-X-Name-First: Sheng-Yue Author-X-Name-Last: Li Author-Name: Shu-Xiao Wang Author-X-Name-First: Shu-Xiao Author-X-Name-Last: Wang Author-Name: Ya-Zhou Liu Author-X-Name-First: Ya-Zhou Author-X-Name-Last: Liu Title: Coordinated economic, energy and environment development across China from 2001 to 2020 Abstract: With the development of China’s economy, the contradiction between energy, economy and ecological environment is becoming more and more prominent. However, the spatial and temporal evolution of the contradiction system of energy, economy and environment all over China is rarely focused on. This study assesses the provincial coordinated degree of the economy-energy-environment system over the period of 2001–2020 and analyzes their spatial and temporal evolution using principal component analysis (PCA), a coordination degree model, non-parametric Kernel Density Estimation (KDE), and spatial correlation analysis approaches. Results show that provincial coordination degrees from 2001 to 2020 vary between ‘barely balanced’ and ‘superiorly balanced’ with an overall improvement. However, the gap between high and low regional coordination has widen, while middle-level provinces gradually increase and are distributed more evenly. Limited spatial correlation of provincial coordination exists and the clustering level slightly increases over 2001–2020. Additionally, some less-developed regions, which are still staying at the ‘intermediately balanced’ state in 2020, call for attention. Journal: China Economic Journal Pages: 241-255 Issue: 3 Volume: 16 Year: 2023 Month: 09 X-DOI: 10.1080/17538963.2023.2250638 File-URL: http://hdl.handle.net/10.1080/17538963.2023.2250638 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:16:y:2023:i:3:p:241-255 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2244276_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Dongfa Feng Author-X-Name-First: Dongfa Author-X-Name-Last: Feng Author-Name: Yan Shen Author-X-Name-First: Yan Author-X-Name-Last: Shen Author-Name: Xuanli Xie Author-X-Name-First: Xuanli Author-X-Name-Last: Xie Author-Name: Yiping Huang Author-X-Name-First: Yiping Author-X-Name-Last: Huang Title: Digital economy and carbon emission reduction: evidence from China Abstract: China confronts a challenging dilemma between environmental protection and economic development as it endeavors to achieve dual carbon goals. To discern a feasible developmental path, this paper designs a comprehensive index of the digital economy encompassing four dimensions: input, production, output, and consumption, conducts an empirical analysis to explore the relationship between the digital economy and carbon emissions by using a two-way fixed effect model with China’s provincial data from 2013 to 2019, and suggests that the digital economy can significantly reduce carbon emissions and carbon intensity. Public low carbon awareness and green innovation are mechanisms that mediate the association between the digital economy and carbon emissions. The carbon reduction effect varies across dimensions of the digital economy, regions, and sources of carbon emissions. These empirical findings provide valuable insights and policy implications to effectively achieve China’s dual carbon goals. Journal: China Economic Journal Pages: 272-301 Issue: 3 Volume: 16 Year: 2023 Month: 09 X-DOI: 10.1080/17538963.2023.2244276 File-URL: http://hdl.handle.net/10.1080/17538963.2023.2244276 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:16:y:2023:i:3:p:272-301 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2230403_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20230119T200553 git hash: 724830af20 Author-Name: Daqian Shi Author-X-Name-First: Daqian Author-X-Name-Last: Shi Author-Name: Kai Hu Author-X-Name-First: Kai Author-X-Name-Last: Hu Title: The heterogeneous effect of administrative level of cities on energy efficiency: a panel study of China Abstract: Although the nexus between urbanization and energy efficiency has been evidenced at the macro level, we have less knowledge about the effects of administrative level of cities on energy efficiency. Understanding this impact mechanism is necessary to achieve goals of energy conservation and sustainable development. We estimate the relationship between the administrative level of cities and energy efficiency in China by adopting the province-level fixed-effect models from a panel dataset. The empirical findings present that energy efficiency of capital cities is 0.46 (95% Confidence Interval: −0.713, −0.206) lower than that of general cities. Moreover, these effects of administrative level are more substantial in underdeveloped cities. These findings suggest that more political sources and autonomy in the higher-level cities might lead to low energy efficiency. Journal: China Economic Journal Pages: 256-271 Issue: 3 Volume: 16 Year: 2023 Month: 09 X-DOI: 10.1080/17538963.2023.2230403 File-URL: http://hdl.handle.net/10.1080/17538963.2023.2230403 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:16:y:2023:i:3:p:256-271 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2300863_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Ye Lyu Author-X-Name-First: Ye Author-X-Name-Last: Lyu Author-Name: Lin Yang Author-X-Name-First: Lin Author-X-Name-Last: Yang Title: Environmental monitoring and enforcement in China: an economic perspective review Abstract: Over the past two decades, China has actively engaged in pollution prevention and control efforts amidst growing environmental challenges. This review aims to provide an overview of China’s historical milestones, current status, and evolving trends in environmental monitoring and enforcement, and findings in the recent literature. Despite persistent issues in enforcement and compliance, China has been making significant strides in tackling environmental challenges by adapting its institutions, designing effective policies, and leveraging technological advancements. Overall, this review underscores the importance of continued efforts to address environmental challenges in China and provides implications for developing countries in environmental monitoring and enforcement practices. The review also explores the emerging opportunities in policy and research in this domain. Journal: China Economic Journal Pages: 3-25 Issue: 1 Volume: 17 Year: 2024 Month: 01 X-DOI: 10.1080/17538963.2023.2300863 File-URL: http://hdl.handle.net/10.1080/17538963.2023.2300863 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:17:y:2024:i:1:p:3-25 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2300867_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Yu Luo Author-X-Name-First: Yu Author-X-Name-Last: Luo Author-Name: Ming-ang Zhang Author-X-Name-First: Ming-ang Author-X-Name-Last: Zhang Author-Name: Sihan Zhang Author-X-Name-First: Sihan Author-X-Name-Last: Zhang Title: The environmental benefit of tax enforcement: evidence from China Abstract: This study explores how tax enforcement contributes to the improvement of air quality. We leverage the implementation of the Golden Tax Project III in China as a quasi-natural experiment and employ a difference-in-differences framework to establish causality. The findings indicate that the average SO2 concentration in pilot cities decreased by 2.8%, and the average PM2.5 concentration decreased by 3.2%. Further analysis reveals that curbing the expansion of tax-evading firms and ensuring the government’s provision of environmental public goods are mechanisms through which stricter tax enforcement reduces air pollution. These effects are more prominent in cities characterized by a higher proportion of heavy-polluting industries, greater fiscal pressure, and a stronger preference for environmental governance. Journal: China Economic Journal Pages: 78-96 Issue: 1 Volume: 17 Year: 2024 Month: 01 X-DOI: 10.1080/17538963.2023.2300867 File-URL: http://hdl.handle.net/10.1080/17538963.2023.2300867 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:17:y:2024:i:1:p:78-96 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2300865_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Huyang Chang Author-X-Name-First: Huyang Author-X-Name-Last: Chang Author-Name: Yixuan Li Author-X-Name-First: Yixuan Author-X-Name-Last: Li Author-Name: Mengdi Liu Author-X-Name-First: Mengdi Author-X-Name-Last: Liu Title: The role of government social media in enhancing environmental governance Abstract: In light of the advancements in information and communication technologies and growing concerns over environmental issues, environmental protection agencies are increasingly turning to official social media platforms to promote environmental governance, especially in rapidly developing nations. The adoption of government social media has improved the effectiveness of environmental governance in various aspects, while also presenting some challenges. This paper summarizes findings from recent literature on the role of government social media in enhancing environmental governance. It also highlights prospective research topics on the use of social media in e-government within environmental protection departments, including investigating efficient government-citizen communication strategies using social media tools, comprehensively addressing aspects of e-government from both supply and demand perspectives, and understanding the underlying factors that contribute to the varying operating patterns of different government social media. Journal: China Economic Journal Pages: 40-55 Issue: 1 Volume: 17 Year: 2024 Month: 01 X-DOI: 10.1080/17538963.2023.2300865 File-URL: http://hdl.handle.net/10.1080/17538963.2023.2300865 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:17:y:2024:i:1:p:40-55 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2300864_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Yuanning Liang Author-X-Name-First: Yuanning Author-X-Name-Last: Liang Author-Name: Shilong Zhuang Author-X-Name-First: Shilong Author-X-Name-Last: Zhuang Title: Biodiversity in China: challenges, efforts and prospects Abstract: Species extinctions and ecological degradation are accelerating to an unprecedented degree in human history, emphasizing the imperative need to understand the drivers of ecological degradation for designing effective conservation policies. This paper aims to provide an overview of China’s biodiversity landscape over the past three decades since the United Nations Convention on Biological Diversity in 1992. We begin by reviewing several key challenges to biodiversity conservation, including habitat change, air pollution, and climate change. Next, we summarize China’s multifaceted approaches to ecosystem preservation, encompassing laws, regulations, policies, and noteworthy conservation events. Furthermore, the paper explores avenues for future research, shedding light on potential stressors and solutions in the realm of biodiversity conservation. Journal: China Economic Journal Pages: 26-39 Issue: 1 Volume: 17 Year: 2024 Month: 01 X-DOI: 10.1080/17538963.2023.2300864 File-URL: http://hdl.handle.net/10.1080/17538963.2023.2300864 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:17:y:2024:i:1:p:26-39 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2300859_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Jianwei Xing Author-X-Name-First: Jianwei Author-X-Name-Last: Xing Title: Sustainable development in China: environmental governance and climate action Journal: China Economic Journal Pages: 1-2 Issue: 1 Volume: 17 Year: 2024 Month: 01 X-DOI: 10.1080/17538963.2023.2300859 File-URL: http://hdl.handle.net/10.1080/17538963.2023.2300859 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:17:y:2024:i:1:p:1-2 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2300868_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Lyuxiu Li Author-X-Name-First: Lyuxiu Author-X-Name-Last: Li Author-Name: Chao Ma Author-X-Name-First: Chao Author-X-Name-Last: Ma Author-Name: Wei Xu Author-X-Name-First: Wei Author-X-Name-Last: Xu Author-Name: Xin Zhang Author-X-Name-First: Xin Author-X-Name-Last: Zhang Title: The impact of ozone pollution on stroke hospitalization Abstract: This study is one of the first to examine the causal impact of ozone pollution on stroke hospitalization in a developing country, using individual-level inpatient medical records from a major Chinese city. Employing an instrumental variable (IV) approach with thermal inversion to address potential endogeneity in air pollution, our findings reveal ozone pollution has statistically significant effect on total health expenses across all exposure intervals, spanning from 1 day to 14 days. The impact of exposure to ozone pollution for less than 7 days on total expenses can be primarily attributed to changes in daily expenses, while the impact of exposure for more than 7 days is associated with an increase in the length of hospital stay. This effect, largely driven by out-of-pocket spending on medication and examination costs, is more salient for females and ischemic stroke patients. Journal: China Economic Journal Pages: 97-115 Issue: 1 Volume: 17 Year: 2024 Month: 01 X-DOI: 10.1080/17538963.2023.2300868 File-URL: http://hdl.handle.net/10.1080/17538963.2023.2300868 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:17:y:2024:i:1:p:97-115 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2300869_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Yajie Han Author-X-Name-First: Yajie Author-X-Name-Last: Han Author-Name: Hongjia Zhu Author-X-Name-First: Hongjia Author-X-Name-Last: Zhu Title: Extreme Weather and Complaints: Evidence from Chinese Netizens Abstract: This paper investigates the relationship between extreme temperature and online complaints to local government officials. We show that the number of complaints significantly increases by 11.1% on extremely hot days relative to the benchmark temperature. Such effect is most pronounced on the day of extreme weather conditions and muted immediately after the extreme weather day. Among all the complaint areas, we find that 28.6% of the increase in complaints on hot days is related to public service, 42.8% to urban construction, 21.4% to noise, and 7.2% to safety. Moreover, we reveal that the primary motivators of increased complaints on hot days are not likely to be psychological factors; instead, the complaints are more likely to be associated with inadequate provision of public facilities to cope with extreme weather and inadequate management of other environmental disamenities caused by extreme temperature. Journal: China Economic Journal Pages: 116-136 Issue: 1 Volume: 17 Year: 2024 Month: 01 X-DOI: 10.1080/17538963.2023.2300869 File-URL: http://hdl.handle.net/10.1080/17538963.2023.2300869 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:17:y:2024:i:1:p:116-136 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2300866_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20231214T103247 git hash: d7a2cb0857 Author-Name: Chuanwang Sun Author-X-Name-First: Chuanwang Author-X-Name-Last: Sun Author-Name: Xuguang Zuo Author-X-Name-First: Xuguang Author-X-Name-Last: Zuo Title: Does regional carbon market construction promote urban carbon emission efficiency?—taking Fujian carbon emissions trading system as an example Abstract: Carbon market construction is a crucial tool in meeting sustainable development goals (SDGs). Based on data from prefecture-level cities in Fujian Province, China, between 2011 and 2020, the SBM model is employed to determine the carbon emission efficiency for each city. Additionally, the event analysis method is deployed to evaluate the influence of the carbon market construction on carbon emission efficiency in Fujian Province, and project carbon emission efficiencies for different scenarios. The findings reveal that: (1) The construction of the carbon market has led to an improvement in carbon emission efficiency in Fujian Province, the duration of this effect needs to be strengthened. (2) No significant difference has been observed in carbon emission efficiency between coastal and inland cities due to the carbon market construction. It is feasible to investigate the formation of a carbon market with distinct local features, ultimately achieving SDGs. Journal: China Economic Journal Pages: 56-77 Issue: 1 Volume: 17 Year: 2024 Month: 01 X-DOI: 10.1080/17538963.2023.2300866 File-URL: http://hdl.handle.net/10.1080/17538963.2023.2300866 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:17:y:2024:i:1:p:56-77 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2334108_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Sufrizul Husseini Author-X-Name-First: Sufrizul Author-X-Name-Last: Husseini Author-Name: Ahmed M Khalid Author-X-Name-First: Ahmed M Author-X-Name-Last: Khalid Author-Name: Gamini Premaratne Author-X-Name-First: Gamini Author-X-Name-Last: Premaratne Title: Assessing infrastructure and trade connectivity through network analysis evidence from BRI countries Abstract: The Belt and Road Initiative (BRI) is the world’s largest infrastructure investment that aims to improve economic integration and connectivity throughout Asia, Europe, and Africa. This paper investigates the influence of infrastructure development on trade connectivity in BRI countries. This paper employs network analysis to visualize and quantify the trade connectivity among BRI countries in 2013 and 2020 using the World Integrated Trade Solution (WITS) data. The study then empirically examines the impact of infrastructure development on trade connectivity from 1990 to 2020 for 76 BRI countries using a dynamic estimator. The dynamic model demonstrates how infrastructure investment can bolster trade connectivity. The results of the network analysis indicate that trade connectivity has significantly improved within BRI countries, in Asia and Europe while it lags behind in African and Central Asian regions.We suggest that that China should channel additional resources toward enhancing the connectivity of African and Central Asian nations. Journal: China Economic Journal Pages: 259-284 Issue: 2 Volume: 17 Year: 2024 Month: 05 X-DOI: 10.1080/17538963.2024.2334108 File-URL: http://hdl.handle.net/10.1080/17538963.2024.2334108 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:17:y:2024:i:2:p:259-284 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2344270_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Minghao Zhao Author-X-Name-First: Minghao Author-X-Name-Last: Zhao Title: The belt & road initiative and U.S.-China competition over the global South Abstract: The Belt and Road initiative aims to facilitate cooperation in the areas of infrastructure, trade and finance between China and relevant countries. It also seeks to boost soft connectivity in terms of rules, standards and people-to-people exchange. The majority of the BRI participating countries are developing ones in Asia, Africa, the Middle East and Latin America, also known as the global South. China’s efforts to advance the BRI have raised suspicion of the United States. By strengthening its ties with the global South, the United States seeks to divide and conquer between China and other developing countries, and to promote the alienation of the global South from China to realize the goal of outcompeting China. The BRI is a double-edged sword that could complicate its relations with the developing countries. China needs to recognize many difficulties faced by the global South and its pragmatic orientation of non-Western but not anti-Western, and strive to improve effectiveness and efficiency of the BRI. Journal: China Economic Journal Pages: 166-181 Issue: 2 Volume: 17 Year: 2024 Month: 05 X-DOI: 10.1080/17538963.2024.2344270 File-URL: http://hdl.handle.net/10.1080/17538963.2024.2344270 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:17:y:2024:i:2:p:166-181 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2335055_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Chen Yongjun Author-X-Name-First: Chen Author-X-Name-Last: Yongjun Author-Name: Yu Wenwen Author-X-Name-First: Yu Author-X-Name-Last: Wenwen Author-Name: Chen Yiguo Author-X-Name-First: Chen Author-X-Name-Last: Yiguo Title: The institutional improvement effects of China’s foreign infrastructure investment and its mechanisms: implications for the construction of the belt and road initiative Abstract: Reducing the high incidence of corruption in the field of infrastructure investment is a significant research topic. China is committed to advancing the Belt and Road Initiative (BRI) as a path of integrity. This paper aims to analyze the effects and mechanisms of institutional improvement induced by China’s foreign infrastructure investments. The study employs project data and survey questionnaire data from project locations. We find that China’s foreign infrastructure investments can endogenously drive the improvement of property rights systems in the surrounding areas of the projects, with the institutional improvement effects mainly occurring during the project initiation and completion phases, and these effects are long-lasting. Heterogeneity analysis shows that commercialized projects are the core driving force behind the improvement of property rights systems through China’s foreign infrastructure investments. Based on this, the paper proposes two suggestions for promoting the construction of the BRI as a path of integrity. Journal: China Economic Journal Pages: 234-258 Issue: 2 Volume: 17 Year: 2024 Month: 05 X-DOI: 10.1080/17538963.2024.2335055 File-URL: http://hdl.handle.net/10.1080/17538963.2024.2335055 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:17:y:2024:i:2:p:234-258 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2335073_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Zhijun Gao Author-X-Name-First: Zhijun Author-X-Name-Last: Gao Author-Name: Yi Feng Author-X-Name-First: Yi Author-X-Name-Last: Feng Author-Name: Wanjun Jiang Author-X-Name-First: Wanjun Author-X-Name-Last: Jiang Title: How would legal systems affect US and Chinese foreign direct investment in Africa? An exploration of the roles of origins, customary law, and legal integration Abstract: As the first and second largest economies, the United States and China are among leading investors in Africa. Given their differences in economic systems and political institutions, a natural inquiry would be what drives both countries’ continuous investment in this continent. Previous scholars focused on macroeconomic, resources, and political factors. From our perspective, the legal system is deep-rooted and align with the lasing-interest character of FDI, which might unlock a promising space to understand the determinants of FDI in Africa. We proposed that legal systems would impact FDI through property protection, dispute settlement, and cross-border transactions cost reduction, which would take effect through general legal origins, customary law, and legal integration, respectively. Based on our sample containing 43 countries between 2007-19, we find that African’ legal heritage tends to play important roles in affecting U.S. and Chinese investors’ economic engagement with the continent. Journal: China Economic Journal Pages: 208-233 Issue: 2 Volume: 17 Year: 2024 Month: 05 X-DOI: 10.1080/17538963.2024.2335073 File-URL: http://hdl.handle.net/10.1080/17538963.2024.2335073 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:17:y:2024:i:2:p:208-233 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2339016_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Shuanglin Lin Author-X-Name-First: Shuanglin Author-X-Name-Last: Lin Title: Belt and Road countries’ external debt and China’s new strategies Abstract: Since the Belt and Road (B&R) initiative was put forward in 2013, China has signed cooperation documents with more than 150 countries and more than 30 international organizations. The Chinese government and banks have lent a large amount to B&R countries for infrastructure development, and China’s foreign contracted projects and trade with these countries have increased significantly. However, many B&R countries face severe debt repayment problems, and China has actively engaged in debt relief. To avoid debt crises, China needs to adopt new B&R development strategies, including putting B&R development firmly on commercial principles, reducing government loans to B&R countries and restructuring debt, expanding trade with B&R countries, increasing imports from debtor countries, and encouraging private enterprises’ direct investment in these countries. Journal: China Economic Journal Pages: 140-165 Issue: 2 Volume: 17 Year: 2024 Month: 05 X-DOI: 10.1080/17538963.2024.2339016 File-URL: http://hdl.handle.net/10.1080/17538963.2024.2339016 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:17:y:2024:i:2:p:140-165 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2345532_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Jinlan Ni Author-X-Name-First: Jinlan Author-X-Name-Last: Ni Title: A decade of the belt and road initiative and its global impact Journal: China Economic Journal Pages: 137-139 Issue: 2 Volume: 17 Year: 2024 Month: 05 X-DOI: 10.1080/17538963.2024.2345532 File-URL: http://hdl.handle.net/10.1080/17538963.2024.2345532 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:17:y:2024:i:2:p:137-139 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2345537_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Hang Yu Author-X-Name-First: Hang Author-X-Name-Last: Yu Author-Name: Jiaqi Zhao Author-X-Name-First: Jiaqi Author-X-Name-Last: Zhao Title: Financial sector development and industrialization: lessons and prospects for Ethiopia Abstract: A functional and efficient financial sector is essential for the industrial advancement of a nation. In the context of Ethiopia’s rapidly growing economy, this study examines the limitations imposed by its underdeveloped financial sector on the country’s economic advancement and explores viable policy interventions. Characterized by state-owned bank dominance, a scarcity of non-bank financial institutions, and deficient infrastructure, Ethiopia’s financial system perpetuates widespread financial exclusion. This exclusion hinders industrial transformation, stifles local business growth, and narrows financing avenues for foreign entities. Insights from China’s shift toward market-oriented financial reforms and Kenya’s fintech innovations suggest a path for Ethiopia involving clear, gradual reforms. Strategic steps could include diversifying financial institutions, improving financial infrastructure, advancing mobile payment solutions, and adopting more versatile financing methods to address the financial challenges of industrialization. Journal: China Economic Journal Pages: 300-321 Issue: 2 Volume: 17 Year: 2024 Month: 05 X-DOI: 10.1080/17538963.2024.2345537 File-URL: http://hdl.handle.net/10.1080/17538963.2024.2345537 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:17:y:2024:i:2:p:300-321 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2277976_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: Shu-Kam Lee Author-X-Name-First: Shu-Kam Author-X-Name-Last: Lee Author-Name: Lubanski Lam Author-X-Name-First: Lubanski Author-X-Name-Last: Lam Author-Name: Kai-Yin Woo Author-X-Name-First: Kai-Yin Author-X-Name-Last: Woo Title: Tests of goods market integration between China and European countries: a nonlinear nonparametric approach Abstract: The validity of purchasing power parity (PPP) between two economies implies goods markets of the two are well integrated. This is a pre-condition for further economic convergence. This study examines validity of the PPP between China and European countries. Since the functional form of the cointegrating relationship may not be exact or linear, we adopt the nonparametric rank tests for analysis, without prior specification of the functional form. We also address the rank problems that occur in multivariate rank tests. The results indicate strong support for nonlinear PPP relationships between China and European countries, especially during the second subsample period. This indicates China’s rising economic power, particularly in the most recent decade. Although there have been disputes between China and Europe, these results suggest favorable prospects for closer economic cooperation between the two sides and the need for formulation of common policies to pursue an integrated market in the future. Journal: China Economic Journal Pages: 285-299 Issue: 2 Volume: 17 Year: 2024 Month: 05 X-DOI: 10.1080/17538963.2023.2277976 File-URL: http://hdl.handle.net/10.1080/17538963.2023.2277976 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:17:y:2024:i:2:p:285-299 Template-Type: ReDIF-Article 1.0 # input file: RCEJ_A_2339017_J.xml processed with: repec_from_jats12.xsl darts-xml-transformations-20240209T083504 git hash: db97ba8e3a Author-Name: LI Yuan Author-X-Name-First: LI Author-X-Name-Last: Yuan Title: Enhancing connectivity of rules under the Belt and Road Initiative Abstract: As the co-construction of the Belt and Road Initiative (BRI) enters a new decade, promoting ‘soft connectivity’ of rules has become a crucial component of building the initiative with high quality. This paper first reviews the accomplishments of ‘soft connectivity’ of rules under the BRI. Then, the paper examines and envisions the future enhancement of ‘soft connectivity’ of rules under the BRI, offering basic ideas and paths for advancement. In terms of basic development thinking, it is essential to implement four overall plans: overall planning for the government and enterprises, for multilateral and bilateral relations, for developed and developing countries, and for external and internal relations. Journal: China Economic Journal Pages: 182-207 Issue: 2 Volume: 17 Year: 2024 Month: 05 X-DOI: 10.1080/17538963.2024.2339017 File-URL: http://hdl.handle.net/10.1080/17538963.2024.2339017 File-Format: text/html File-Restriction: Access to full text is restricted to subscribers. Handle: RePEc:taf:rcejxx:v:17:y:2024:i:2:p:182-207