The Journal of World Economy
Vol.29 No.10
October 2006
Abstracts
Chinese Economy
3 Wang Yongqin, Zhang Yan, Zhang Yuan, Chen Zhao, Lu Ming Chinese Economy at the Crossroads: An Analysis Based on Current Literature
This paper provides an in-depth analysis on China¡¯s transition and development path. So far, China¡¯s economic reform maintains the pre-reform rural-urban segmentation, economic decentralization and relational governance, albeit to a different extent. The associated political and social structure are conducive to capital accumulation, getting incentive right and contractual enforcement in the early stage of development, while they incur some costs such as increasingly widening income gaps, which have some negative effects on economic growth, poverty-reduction and social mobility, posing great challenges for sustainable and harmonious development. Hence, before the costs come to a threshold, China should make some corresponding gradual changes in political and social structure, leading to a unique China development model.
International Trade and Investment
21 Jiang Dianchun, Zhang Yu Industrial Characteristics and Technology Spillover of FDI: The Empirical Evidence of Chinese High-tech Industries
Generally speaking, the MNCs maybe an important way for the developing host countries to get advanced technologies. But it is still an open question that whether the MNCs will lead to technology promotion of the host countries. This paper analyzes how the MNCs affect China¡¯s technology progress. By panel data model we discuss the existence of the technology spillovers and the factors affecting these spillovers and the process to generate these spillovers. Based on the results, we give some policy suggestions.
Macroeconomics
30ª±Wang Hongli The Analysis of Government Expenditure on Private Consumption in China
39 Yang Ruyan, Cui Hailiang Signal Mechanism of Monetary Policy: Evidence from the Inter-bank Market
49 Cheng Dazhong, Wang Rui Preference for Services, Human Capital Accumulation, and the ¡°Service Paradox¡±
There are three theoretical strands in explaining the Service Paradox: ¡°demand side¡±, ¡°supply side¡±, and ¡°integration of demand and supply sides¡±. Pugno model is characterized by the integration of demand and supply sides. It proposes that services consumption does not simply enter the utility function, but also helps the accumulation of human capital, which is then used as an input in all sectors. The model in this paper is a generalization and extension of Pugno model. The paper also runs numerical simulations on China¡¯s services growth and its effects. The conclusion is that positively piloting services consumption and stabilizing the expectations about the future benefit of services consumption or services expenditure will definitely promote the healthy growth of service sectors, the formation and accumulation of human capital, and the long-run economic growth.
Public Finance
59 Gao He Fiscal Decentralization, Economic Structure and the Behavior of Local Government
69 Lu Bingyang, Fan Yong The Progress and Characters among Provinces of Tax Collection and Administration Efficiency after the Tax Revenue Sharing System
After 1994, China launched on the tax revenue sharing system. Since then, the growth rate of tax revenue has been getting much higher than that of GDP. Most researchers attribute this fact to the strengthening of tax collection and administration. This paper uses Data Envelopment Analysis and analyzes the differences and progresses on efficiencies of tax collection and administration among various regions and gets three conclusions. The first, the unbalance economic development among various regions and tax collection in economic center regions are important factors that cause difference in efficiency of tax collection and administration among various regions. The second, after 1994, most of provinces in China have obviously improved the efficiencies of tax collection and administration which attribute more to fiscal revenue rapid growth. The third, the reasons of tax efficiencies rapid growth can attribute to two reasons: one is that the pressure of fiscal expenditure that forces tax revenue to quickly growth to satisfy the public finance need; the other is that fiscal revenue distribution relation between central and local government have altered from sharing contracts and fix rent contracts to respective hold ownership contracts, which improve the tax collection incentive.
Cooperate Governance
78 Xu Liping, Xin Yu, Chen Gongmeng The Types of Controlling Shareholders and the Performance for China¡¯s Listed Companies
By tracing the identity of large shareholders, China¡¯s listed companies are grouped into those controlled by SAMBs, SOEs affiliated to the central government (SOECGs), SOEs affiliated to the local government (SOELGs), and private companies. Based on this classification, the study investigates the relative efficiency of state vs. private ownership and that of various state forms of ownership. The empirical results indicate that state institutions as shareholders of Chinese listed companies are associated with different operating efficiency according to the way the state ownership is exercised. SOEs controlled firms are better than those controlled by SAMBs. SOECGs are better shareholders than SOELGs. Private shareholders are just as good as the middle performer of state institutions. Therefore, in transitional economies with weak legal environment, private ownership in listed companies subjects to rather serious agency problems.
Capital Markets
90ª±Zhang Qunqun, Liu Chunjiang, Zhang Haoran A Survey of the Governance Structure of China¡¯s Exchanges