The Journal of World Economy
Vol.29 No.9
Semptember 2006
Abstracts
Growth Theory
3 Chen Kunting, Gong Liutang Industrial Revolution and Capitalism Spirit: Two-Sector Growth Model
This paper constructs a two-sector model to simulate real economy and study the mechanism of economic growth, explain some historical puzzles about industrial revolution. It is found that the inherent power to form the industrial revolution is the spirit of capitalism. The economy will stay at the Malthus trap without the spirit of capitalism, while the economy will always break the old equilibrium to another and keep on going ahead with the help of spirit of capitalism. The systems, trades, smoke-engine’s invention, endogenous technology progress, or endogenous human capital accumulation, are no more than conditions or tools for it.
12Fu Xiaoxia, Wu Lixue The Role of Total Factor Productivity in China’s Regional Disparities
Based on the discussion on the methods to account the total factor productivity, this paper decomposes China’s regional disparities to factors accumulation and the TFP by Solow’s residual accounting. The main result of this paper is that the capital can explain most part of the regional income disparities of China from 1978 to 2004, which means that Peng (2005) and Li(2006) maybe overestimated the role of TFP for using the improper method of TFP accounting and much smaller elasticity of capital. But this analysis also shows that the contribution of the TFP grows up quickly after 1990 as that of the factors goes down, which indicates TFP will determine China’s economic growth and regional disparities in the future.
International Trade and Investment
23Ji Mianzhou An Empirical Study on the Long-run Impact of Trade Policy
33Wang Huaimin Rights Monopolized or Divided: The Pattern of Productions Control of Processing Enterprise in China
With the Feenstra-Hanson’s framework, this paper develops a new game model on the patterns of production control of processing enterprise in China. This paper finds that degree of imperfect contract, degree of capital specificity and bargaining power are the main factors influencing the patterns of production control. This paper also finds that industrial characteristic and productivity affect the patterns. This paper explains theoretically the large difference of the patterns between the coastal and inland area, and of the patterns among different industries.
42Chen Jiyong, Liu Wei Does the U.S. FDI in China Lead to Trade Deficit in the U.S.?
This article makes empirical study on the influence of foreign direct investment on trade deficit between the USA and China through Co-integration and vector error correction model. Counter sales and trade transferred, which is produced by export on reproduced production by foreign affiliation, are the reasons of trade deficit between the USA and China. We think that reforming trade statistics methodology, encouraging East Asian Free Trade Area, improving the direction of foreign direct investment and enlarging the national demand are the efficient ways in reducing trade deficit between the USA and China.
International Finance
49Xu Qiyuan, Liu Lizhen The Estimation of RMB’s Stock in Hong Kong
Institutional Economics
58Zhang Jing, Liu Xiaohui Government Intervention, Relationship Loans and Intervention Trap
By building a three-stage dynamic game with complete information, the paper proves that government intervention in a financially depressed economy affects relationship loans undertaken by commercial banks through two channels, namely, competition effect and complementary effect caused by artificially market segmentation, which ultimately leads to the shrink of the relationship and financing difficulties of small and medium sized enterprises. The ultimate consequence of the above effects will raise the revenue of government intervention, which, in turn, will strengthen the government intervention again and consequently intervention trap emerges in the financially depressed economy.
67Wei Fengchun Objectives, Leader and Fiscal Constrain: An Analysis of the Governmental Institution Supply in AgricultureIntegration
The article studies the relation between the government institution supply and the performance in agricultural integration. We especially discuss the impact to the government’s aim and preference attributed to the budget constraint, the sentiment index and political life cycle of leaders. The government manages a unilateral decided contract with the peasant in the process of agricultural integration. It would decide directly the performance of integration if the leader regards the agricultural integration as the political or economic subject. This article gives a basic frame work of government institution supply in agricultural integration, and then draws the conclusion as the performance of agricultural integration is high on the condition that local government possesses fiscal surplus and the leader whose sentiment index is high enough remains in office secularly.
Real Estate Economics
76Xu Chengming, Wang Anxing Risk Transfer Mechanism and the Control of Real Estate Price Bubble
Survey
85Li Ping The Path and Pattern of International Technology Transfer