Template-Type: ReDIF-Article 1.0 Author-Name: Gong Liutang Author-Email: ltgong@gsm.pku.edu.cn Author-Workplace-Name: Guanghua School of Management, Peking University, Beijing, 100871, PRC Author-Name: Xie Danyang Author-Workplace-Name: Department of Economics, The Hong Kong University of Science and Technology, Hong Kong, China Title: Factor Mobility and Dispersion in Marginal Products: A Case on China Abstract: This paper examines the efficiency in resource allocation in China. We estimate production functions at the provincial level and use these functions to compute time series for marginal products of capital and labor. We found that dispersion in the marginal product of capital declined from 1970 to 1984 and then became stable afterward, whereas the dispersion in the marginal product of labor declined initially but the trend has been reversed since 1993. We argue that this reversal may indicate any of the following: (1) policy-driven labor migration adding to labor market inefficiency; (2) the presence of increasing returns in labor; and (3) both capital and labor having become mobile since 1993. Classification-JEL: O47, R11 Keywords: inefficiency, resource allocation, Chinese economy Journal: Frontiers of Economics in China Pages: 1-13 Volume: 1 Issue: 1 Year: 2006 Month: March File-URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-005-0006-x File-Format: Application/pdf Handle: RePEc:fec:journl:v:1:y:2006:i:1:p:1-13 Template-Type: ReDIF-Article 1.0 Author-Name: L¨¹ Wei Author-Email: Weilu008@dufe.edu.cn Author-Workplace-Name: Research Academy of Economic and Social Development, Dongbei University of Finance and Economics, PRC Author-Name: LIU Yusheng Author-Workplace-Name: Center for Reproductive Medicine, Anhui Medical University Affiliated Provincial Hospital, Hefei 230001, China Title: Issues on Settlement of Final Expenses and Performance Assessment in the Course of Transition: Evidence from China Abstract: This paper studies the process and the performance of transition with the following logic: transition is an objective process in accordance with the general principles of economic history; the objectivity is embodied in the expected economic and social effects of transition, the profound economic and social changes in the course of transition, and the different problems facing different transitional stages. Transition is, at the same time, a subjective process involving the participation of the government and the public; the subjectivity is embodied in the thinking on transition, path selection, policy design, and process control. It requires evaluation, correction, and anticipation on the dynamic process with analysis tools and methods that are normally used to validate the subjective thoughts in the objective world to verify whether effects of the subjective action follow and develop the objective principles. It is under such a logical framework that issues on the settlement of final expenses and the performance assessment of transition raised in this paper focus on the improvement in traditional analysis tools and methods and further apply such improvement to China s course of transition. The rudimental premise in this study is the combination of the process of transition, all-roundness of development, and phases of evolution. Classification-JEL: P30 Keywords: final expenses, performance assessment, course of transition, harmonious development Journal: Frontiers of Economics in China Pages: 14-38 Volume: 1 Issue: 1 Year: 2006 Month: March File-URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-005-0001-2 File-Format: Application/pdf Handle: RePEc:fec:journl:v:1:y:2006:i:1:p:14-38 Template-Type: ReDIF-Article 1.0 Author-Name: SUN Qunyan Author-Workplace-Name: Lingnan College, Sun Yat-Sen University, PRC Author-Name: LI Jie Author-Email: lijie@lingnan.net Author-Workplace-Name: Lingnan College, Sun Yat-Sen University, PRC Author-Name: ZHANG Anming Author-Workplace-Name: Commerce and Business Administration, University of British Columbia, Canada Title: SOE Reform under Oligopolistic Market Structure: The Optimal Choice of State Shares Abstract: This paper examines the effect of the change of state shares in a state-owned enterprise (SOE) on the efficiency of the whole society and the payoff of the government. This issue is addressed by setting up a mixed oligopolistic competition model and dividing the analysis into two cases: closed economy and open economy. The basic results are as follows: If the relative production efficiency of an SOE is too low, complete state ownership is not optimal, and privatization will be a necessary step; however, if the relative production efficiency of an SOE is not too low, complete privatization is not optimal both for the government and from the perspective of social welfare. The results can, to a certain extent, provide theoretical support to the government s idea on the SOE reform. Classification-JEL: P2, L3, L1 Keywords: state shares, transition economy, employment burden, mixed oligopoly, WTO entry and foreign competition Journal: Frontiers of Economics in China Pages: 39-47 Volume: 1 Issue: 1 Year: 2006 Month: March File-URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-005-0007-9 File-Format: Application/pdf Handle: RePEc:fec:journl:v:1:y:2006:i:1:p:39-47 Template-Type: ReDIF-Article 1.0 Author-Name: CHEN Zhao Author-Email: zhaochen@fudan.edu.cn Author-Workplace-Name: China Center for Economic Studies, Fudan University, Shanghai 200433, PRC Author-Name: LU Ming Author-Email: minglu73@263.net Author-Workplace-Name: Department of Economics, Employment and Social Security Research Center, and China Center for Economic Studies, Fudan University, PRC Author-Name: YAN Ji Author-Email: yanji714@yahoo.com.cn Author-Workplace-Name: Department of Economics, Washington University, 205 Eliot Hall, Campus Box 1208, St. Louis, MO 63130-4899, USA Title: Reform, Interaction of Policies, and Economic Growth: Evidence from China¡¯s Provincial Panel Data Abstract: Based on provincial panel data, we tested the effects of openness, denationalization, fiscal reform, and their interactions on Chinese regional economic growth. We found the following: (1) Openness, especially the growth of foreign-direct-investment/gross-domesticproduct ratio, has been important in enhancing China s growth since the mid-1980s, while this effect is not so significant in western China. (2) Fiscal reform is another significant factor for economic growth. If local governments deregulate, higher growth will be obtained. In particular, reducing extrabudget expenditure helps push economic growth, especially in western China. (3) The interaction of economic policies, such as openness, denationalization, and fiscal reform, also plays an essential role in local economic growth. Both for the whole nation and for the eastern area, denationalization does not affect growth independently but expands the effects of deregulation. (4) After controlling economic policies and their interactions, conditional convergence exists. (5) With other factors controlled, eastern China achieved higher growth, while the middle and western areas did not differ significantly in growth. (6)Western China, where policy variables have lower explanatory power for growth, has a growth pattern different from those of the eastern and middle areas. Classification-JEL: F43 Keywords: openness, denationalization, fiscal reform, growth, panel data Journal: Frontiers of Economics in China Pages: 48-68 Volume: 1 Issue: 1 Year: 2006 Month: March File-URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-005-0008-8 File-Format: Application/pdf Handle: RePEc:fec:journl:v:1:y:2006:i:1:p:48-68 Template-Type: ReDIF-Article 1.0 Author-Name: BAI Chong-En Author-Email: baichn@em.tsinghua.edu.cn Author-Workplace-Name: School of Economics and Management, Tsinghua University, Beijing 100084, PRC and Faculty of Business and Economics, The University of Hong Kong, Hong Kong, China Author-Name: LIU Qiao Author-Workplace-Name: Faculty of Business and Economics, The University of Hong Kong, Hong Kong, China Author-Name: LU Joe Author-Workplace-Name: Faculty of Business and Economics, The University of Hong Kong, Hong Kong, China Author-Name: SONG Frank M. Author-Workplace-Name: Faculty of Business and Economics, The University of Hong Kong, Hong Kong, China Author-Name: ZHANG Junxi Author-Workplace-Name: Faculty of Business and Economics, The University of Hong Kong, Hong Kong, China Title: An Empirical Study on Corporate Governance and Market Valuation in China Abstract: This paper empirically studies the relationship between the governance mechanisms and the market valuation of publicly listed firms in China. The authors construct measures for corporate governance mechanisms and measures of market valuation for all publicly listed firms on the two stock markets in China by using data from the firm s annual reports. They then investigate how the market-valuation variables are affected by the corporate governance variables while controlling for a number of factors commonly considered in market valuation analysis. A corporate governance index is also constructed to summarize the information contained in the corporate governance variables. The index is found to have statistically and economically significant effects on market valuation. The analysis indicates that investors pay a significant premium for well-governed firms in China, benefiting firms that improve their governance mechanisms. Classification-JEL: G34, G32 Keywords: corporate governance mechanisms, market valuation, corporate governance index, corporate governance premium Journal: Frontiers of Economics in China Pages: 83-111 Volume: 1 Issue: 1 Year: 2006 Month: March File-URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-005-0011-0 File-Format: Application/pdf Handle: RePEc:fec:journl:v:1:y:2006:i:1:p:83-111 Template-Type: ReDIF-Article 1.0 Author-Name: MA Junlu Author-Workplace-Name: Department of Finance, School of Economics, Nankai University, Tianjin 300071, PRC Author-Name: TIAN Gang Author-Email: gangtian.nankai@gmail.com Author-Workplace-Name: Department of Finance, School of Economics, Nankai University, Tianjin 300071, PRC Title: Risks, Financing Constraints, and High Savings Ratio in the Rural Economy of China: A Model Incorporating Precautionary Savings and Liquidity Constraints Abstract: This paper makes an in-depth investigation on the phenomenon of high savings rate in the rural economy of China between 1978 and 2003. On the basis of precautionary savings theory, we construct a model incorporating the risks, liquidity constrains, and aging population to explain the existence of high savings rate in the rural economy of China. We measure risks with Gini coefficient and marginal propensity to save. We find that these risk indices are positively associated with the higher savings rate and the higher degree of prudence of rural households. Our findings pose an urgency of the reform of rural financial system and the improvement in social security system in the rural economy of China. Classification-JEL: E21, D12, O18 Keywords: rural household savings, risks, precautionary savings, financing constraints Journal: Frontiers of Economics in China Pages: 112-125 Volume: 1 Issue: 1 Year: 2006 Month: March File-URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-005-0012-z File-Format: Application/pdf Handle: RePEc:fec:journl:v:1:y:2006:i:1:p:112-125 Template-Type: ReDIF-Article 1.0 Author-Name: FAN Yanhui Author-Email: fyhbnu@163.com Author-Workplace-Name: School of Economics and Business Administration, Beijing Normal University, Beijing 100875, PRC Author-Name: SONG Wang Author-Email: songwang80@126.com Author-Workplace-Name: China Center for Economic Research, Peking University, Beijing 100871, PRC Title: The Effect of Changes in Real Exchange Rates on Employment: Evidence from Manufacturing Industries in China, 1980¨C2002 Abstract: This paper analyzes the effect of changes in real exchange rate on manufacturing employment. Our theoretical model predicts the positive effect of depreciation of real exchange rate on employment through a firm s expectation on changes in real exchange rate and the interaction between real exchange rate and a firm s import and domestic input. Using China s manufacturing data during the 1980 2003 period, we find that depreciation of real exchange rate promotes employment growth in manufacturing industries, while change in real exchange rate is not a significant factor in promoting wage growth. We also find that an increase in export share offsets partially the effects of real exchange rate on employment and real wages. Classification-JEL: F16, F31 Keywords: real effective exchange rate, employment, real wage Journal: Frontiers of Economics in China Pages: 126-139 Volume: 1 Issue: 1 Year: 2006 Month: March File-URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-005-0013-y File-Format: Application/pdf Handle: RePEc:fec:journl:v:1:y:2006:i:1:p:126-139 Template-Type: ReDIF-Article 1.0 Author-Name: HUANG Shao¡äan Author-Workplace-Name: Center for Economic Research, Shandong University, Jinan 250100, PRC Author-Name: SUN Tao Author-Email: supersuntown@126.com Author-Workplace-Name: Center for Economic Research, Shandong University, Jinan 250100, PRC Title: Informal Institutions, Consumption Custom, and Assumption of OLG Model¡ªA Theoretical Analysis on Households¡¯ Consumption Decisions in the Oriental Culture and Belief Abstract: Orthodox consumption theories have not incorporated the overlapping-generations (OLG) model and wealth-stock model, whereas this article explains households  characters in consumption and savings in countries such as China and some other regions from the viewpoints of social convention, moral formation, ethics, and other informal institutions. The authors exploit and extend the OLG model, introduce the concepts of bequest, gift, and wealth preference to the economic agent s utility function, then apply optimal conditions to analyzing the characters and problems concerning consumption and savings behavior. Furthermore, they deliberate on the effects of this analysis on government macroeconomic policies and suggest some relevant theoretical thinking and solutions. Classification-JEL: D11, E11, E21 Keywords: social convention, consumption behavior, overlapping-generations model Journal: Frontiers of Economics in China Pages: 140-152 Volume: 1 Issue: 1 Year: 2006 Month: March File-URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-005-0014-x File-Format: Application/pdf Handle: RePEc:fec:journl:v:1:y:2006:i:1:p:140-152 Template-Type: ReDIF-Article 1.0 Author-Name: LI Zinai Author-Email: lizinai@mail.tsinghua.edu.cn Author-Workplace-Name: School of Economics and Management, Tsinghua University, Beijing, 100084, China Author-Name: ZHOU Jian Author-Workplace-Name: School of Economics, Shanghai University of Finance and Economics, Shanghai, 200433, China Title: Analysis on structural changes in the macroeconomic data series with the empirical evidence from China Abstract: Analysis on structural changes in macroeconomic data series has been the key issue for studying data quality. This paper studies the structural changes in China s 36 macroeconomic time series using joint estimation model, and we find out the characteristics and movement pattern for the outliers. Our results show that most outliers show up more or less in groups, indicating that there is a significant correlation between them. The isolated outliers are not the main characteristic of China s macroeconomic time series. Nearly all the original series contain the obvious skewness and kurtosis; hence, the hypothesis of normality is significantly rejected. Most original and outlier correction series show the non-autoregressive conditional heteroskedasticity (ARCH) characteristic, but the p value for ARCH2, ARCH4, and ARCH8 is very different. Classification-JEL: B230, B220, C220 Keywords: statistical data, structural change, outlier, macroeconomics Journal: Frontiers of Economics in China Pages: 155-170 Volume: 1 Issue: 2 Year: 2006 Month: June File-URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-006-0001-x File-Format: Application/pdf Handle: RePEc:fec:journl:v:1:y:2006:i:2:p:155-170 Template-Type: ReDIF-Article 1.0 Author-Name: WANG Jiangui Author-Email: wangjiangui99@yahoo.com.cn Author-Workplace-Name: School of Economics, Nankai University, Tianjin, 300074, China Author-Name: DING Shouhai Author-Workplace-Name: School of Economics, Renmin University of China, Beijing, 100872, China Title: A re-estimation of China¡¯s agricultural surplus labor ¡ª¡ª the demonstration and modification of three prevalent methods Abstract: The purpose of this article is to re-estimate China s agricultural surplus labor. Our estimation is based on three prevalent methods including classical, neoclassical and standard structure comparing methods. Different from other researchers, we pay attention to not only the total amount of surplus labor but also its distribution among different provinces and districts. By comparing the results from the different methods, we conclude that the classical method is the most creditable. In order to make them more reasonable, we modified the three methods. The results show that there are about 40 million agricultural surplus labor in China currently. Classification-JEL: C13 ,J21, J43,Q12 Keywords: surplus labor, amount, structure, estimation Journal: Frontiers of Economics in China Pages: 171-181 Volume: 1 Issue: 2 Year: 2006 Month: June File-URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-006-0002-9 File-Format: Application/pdf Handle: RePEc:fec:journl:v:1:y:2006:i:2:p:171-181 Template-Type: ReDIF-Article 1.0 Author-Name: YIN Heng Author-Workplace-Name: School of Economics, Beijing Normal University, Beijing, 100875, China Author-Name: GONG Liutang Author-Email: qwguo@263.net Author-Workplace-Name: Guanghua School of Management, Peking University, Beijing, 100871, China Author-Name: ZOU Heng-fu Author-Workplace-Name: Guanghua School of Management, Peking University, Beijing, 100871, China Title: Income inequality and economic growth¡ª¡ªthe Kuznets curve revisited Abstract: In a neoclassical growth framework with a typical political-economy mechanism, this paper reexamines the relationship between the income inequality and economic growth by introducing government spending into the production function and the utility function. It demonstrates that Kuznets  famous inverted-U shape relationship between inequality and economic growth will hold the growth rate will be first increasing with the income inequality before the growth rate decreases with inequality. Classification-JEL: D31, J13, E62 Keywords: income distribution, growth, political-economy mechanism Journal: Frontiers of Economics in China Pages: 196-206 Volume: 1 Issue: 2 Year: 2006 Month: June File-URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-006-0004-7 File-Format: Application/pdf Handle: RePEc:fec:journl:v:1:y:2006:i:2:p:196-206 Template-Type: ReDIF-Article 1.0 Author-Name: LI Tiandong Author-Email: 021015090@fudan.edu.cn Author-Workplace-Name: Institute for Financial Studies, Fudan University, Shanghai, 200433, China Author-Name: XUE Shaoqiang Author-Workplace-Name: The Economic School, Fudan University, Shanghai, 200433, China Author-Name: ZHU Qi Author-Workplace-Name: The State Administration of Foreign Exchange, Beijing, 100037, China Title: The directions of FDI and the self-intensifying expectations of the exchange rate and the effectiveness of sterilized intervention Abstract: In this paper, we develop the Renminbi s dynamic model to analyze the relationship between the flow directions of foreign direct investment (FDI) and the exchange rate s expectations on the basis of distinguishing the real interest rate from the desired interest rate. We find that the exchange rate expectation has a self-intensifying mechanism, which could have a reverse effect on the country s macroeconomic stabilization. We discuss the issue on how expectation impacts the macro economy and then analyze the conditions of successful intervention, which is helpful for policy management. Classification-JEL: F31, E61 Keywords: FDI, expectations, sterilized intervention Journal: Frontiers of Economics in China Pages: 207-219 Volume: 1 Issue: 2 Year: 2006 Month: June File-URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-006-0005-6 File-Format: Application/pdf Handle: RePEc:fec:journl:v:1:y:2006:i:2:p:207-219 Template-Type: ReDIF-Article 1.0 Author-Name: YAN Weilong Author-Email: yanweilong2001@yahoo.com.cn Author-Workplace-Name: Huaihai Institute of Technology, Lianyungang, Jiangsu Province, 222005, China Title: The relationship between urbanization and commodity circulation: a theoretical and positive research Abstract: Town  and commodity circulation are two closely interrelated concepts. A town is born through the exchange of commodities; it is formed by an increase in trade efficiency. The trade efficiency caused by the density of economy is the standard of rationalization of the town scale. The development of a town promotes the development from simple commodity circulation to developed commodity circulation, while the difference in the level of urbanization is an important reason for differences in the circulation level. Therefore, the strategy of being guided by circulation will be a basic way to push forward urbanization healthily in China. Classification-JEL: R38 Keywords: urbanization, commodity circulation, density of economy, circulation industry, policies for urbanization Journal: Frontiers of Economics in China Pages: 220-233 Volume: 1 Issue: 2 Year: 2006 Month: June File-URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-006-0006-5 File-Format: Application/pdf Handle: RePEc:fec:journl:v:1:y:2006:i:2:p:220-233 Template-Type: ReDIF-Article 1.0 Author-Name: ZHAO Liuyan Author-Workplace-Name: School of Economics, Peking University, Beijing, 100871, China Author-Name: WANG Yiming Author-Email: wymecon@126.com Author-Workplace-Name: School of Economics, Peking University, Beijing, 100871, China Title: Determinates of the decline in the income-velocity of money in China: a new perspective Abstract: The income velocity of money in China has been declining since the country's reform. By studying the money demand behavior in the agricultural and non-agricultural sectors, we found that the marginal propensity to money demand is much higher in the non-agricultural sector. This implies that as the share of the agricultural sector in national income declines, monetary expansion is expected to meet not only the needs of income growth, but also the rapid structural shifts in the sectoral composition of income. Hence, non-inflationary monetary expansion is possible as development proceeds. This provides a new perspective in understanding the decline in the income-velocity of money in China. Classification-JEL: E42 Keywords: income velocity of money, money demand, inflation expectations Journal: Frontiers of Economics in China Pages: 256-271 Volume: 1 Issue: 2 Year: 2006 Month: June File-URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-006-0008-3 File-Format: Application/pdf Handle: RePEc:fec:journl:v:1:y:2006:i:2:p:256-271 Template-Type: ReDIF-Article 1.0 Author-Name: ZOU Wei Author-Email: zouwei@whu.edu.cn Author-Workplace-Name: Department of Economics, School of Economics and Management, Wuhan University, Wuhan, 430072, China Author-Name: ZHUANG Ziyin Author-Workplace-Name: Department of Economics, School of Economics and Management, Wuhan University, Wuhan, 430072, China Title: The approach to transforming the traditional agricultural economy: a research on the multiple paths of poverty alleviation and transformation in rural China Abstract: Transforming a traditional agricultural economy into a modern economy is one of the main themes in economic development. Through theoretical and empirical analysis, this paper finds out that the key to transformation is to raise the economic value of people, to improve human capital investment and to match the stocks of physical and human capital. China s rural economy is on the edge of economic take-off, and different zones may pursue different paths for transformation. The source of rural poverty is not the scarcity of income or consumption, but the deficiency of education, social security, medical care and economic opportunity, which we define as capability poverty . Classification-JEL: O11, O18, R11 Keywords: economic growth, path for transformation, capability poverty Journal: Frontiers of Economics in China Pages: 272-295 Volume: 1 Issue: 2 Year: 2006 Month: June File-URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-006-0009-2 File-Format: Application/pdf Handle: RePEc:fec:journl:v:1:y:2006:i:2:p:272-295 Template-Type: ReDIF-Article 1.0 Author-Name: CHEN Xun Author-Email: chenxun@cqu.edu.cn Author-Workplace-Name: Economy, Industry and Business Management Institute of Chongqing University, Chongqing, 400044, China Author-Name: YU Jie Author-Email: samof_2005@yahoo.com.cn Author-Workplace-Name: Economy, Industry and Business Management Institute of Chongqing University, Chongqing, 400044, China Title: The influence analysis on public expenditure to the technique efficiency of China Abstract: In this paper, we use SFA to estimate the time-variant stochastic frontier model of 31 cities in China. The results tell us that raising the proportion of public expenditure in GDP can lower the technological efficiency, but raising some parts of public expenditure in GDP can promote the technological efficiency. Its realistic meaning is that it is excellent to turn the public expenditure structure to promote the technological efficiency. We computed the technological efficiency of 31 provinces/cities and the results show that the gap between the eastern region and western region is growing much. Finally, we decompose total factor productivity (TFP) and get the following result: from three regions, the biggest influence factor on technological efficiency is the scales economy. Technological progress and allocation efficiency have a smaller influence. From our results, we suggest that technological progress and allocation efficiency from public expenditure and income be raised to influence the TFP rate of change, and have a more efficient public expenditure. Classification-JEL: C33 Keywords: public expenditure, stochastic frontier, TFP, decomposition Journal: Frontiers of Economics in China Pages: 296-310 Volume: 1 Issue: 2 Year: 2006 Month: June File-URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-006-0010-9 File-Format: Application/pdf Handle: RePEc:fec:journl:v:1:y:2006:i:2:p:296-310 Template-Type: ReDIF-Article 1.0 Author-Name: LI Xiaoxi Author-Email: lxx62205058@263.net Author-Workplace-Name: Institute of Economic and Resources Management, Beijing Normal University, Beijing 100875, China Title: A report on the development of China¡¯s market economy 2005 Abstract: This paper dicusses on the issue of the development of China s market economy from six aspects. (1) Basic Content and Conclusions on the development of China s market economy. (2) Further progress in building market-oriented economy in China. (3) Assessment of the degree of market economy development in China. (4) New progress in 2004 in developing market economy in China. (5) A general analysis of twelve key questions concerning market economy. (6) Resolution of the non-market economy  issue: a win-win option. Classification-JEL: B22 D4 D23 E5 Q21 Keywords: China, market-oriented economy, win-win option, finance, trade Journal: Frontiers of Economics in China Pages: 311-371 Volume: 1 Issue: 3 Year: 2006 Month: September File-URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-006-0011-8 File-Format: Application/pdf Handle: RePEc:fec:journl:v:1:y:2006:i:3:p:311-371 Template-Type: ReDIF-Article 1.0 Author-Name: Ross GARNAUT Author-Email: Ross.Garnaut@anu.edu.au Author-Workplace-Name: College of Asia and the Pacific, Australian National University, Canberra ACT 0200, Australia Author-Name: SONG Ligang Author-Email: ligang.song@anu.edu.au Author-Workplace-Name: Asia Pacific School of Economics and Government, Australian National University, Canberra ACT 0200, Australia; School of Economics, Renmin University of China, Beijing 100872, China Title: Rapid industrialization and market for energy and minerals: China in the East Asian context Abstract: The mainland of China s rapid pace of industrialization and trade expansion have led many to ask whether its ever-increasing demand for resources can be met without disruption to economic stability and growth in the country and the world as a whole. The article examines the experience of growth in resource demand and the associated pressure on global markets from Japan, Taiwan Province of China and Korea during their periods of sustained, rapid economic growth for periods in the second half of the twentieth century. It seeks to draw lessons for the twenty-first century. The article points out that because of its size the mainland of China may cause the resources boom, associated with the later decades of its period of sustained rapid growth, to raise the prices of resource-intensive products by a large amount, not for a few years, but for several decades. This will have important implications for economic development and the distribution of incomes within and between all countries, and on power relations between states in the Asia-Pacific and throughout the global community. Classification-JEL: O53 Q31 Q41 Keywords: Northeast Asia, China, industrialization, demand for energy and minerals, resource intensity Journal: Frontiers of Economics in China Pages: 373-394 Volume: 1 Issue: 3 Year: 2006 Month: September File-URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-006-0012-7 File-Format: Application/pdf Handle: RePEc:fec:journl:v:1:y:2006:i:3:p:373-394 Template-Type: ReDIF-Article 1.0 Author-Name: ZANG Xuheng Author-Email: xhzang@sdu.edu.cn Author-Workplace-Name: School of Economics, Shandong University, Jinan 250100, China Author-Name: WANG Liping Author-Email: 007wangliping@163.com Author-Workplace-Name: School of Economics and City Management, Shandong Economic University, Jinan 250014, China Title: An analysis of the consumption risk and asset returns of Chinese residents Abstract: The research on the consumption-based asset pricing theory is limited to the developed capital markets. This paper seeks to extend the research to the Chinese developing capital market. It analyzes the dynamic relationship between the Chinese residents  consumption, stock market returns and interest rates with the CCAPM. According to the analyses of this paper, the IV regression results are mixed. However, the data can fit the model relatively well, and the empirical results fail to reject the model. Thus, the results show that a relationship between the Chinese residents  consumption growth rates and the asset returns does indeed exist, and that the consumption volatility risk could influence the asset returns. Classification-JEL: G12 Keywords: CCAPM, consumption, capital market, asset returns Journal: Frontiers of Economics in China Pages: 395-405 Volume: 1 Issue: 3 Year: 2006 Month: September File-URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-006-0013-6 File-Format: Application/pdf Handle: RePEc:fec:journl:v:1:y:2006:i:3:p:395-405 Template-Type: ReDIF-Article 1.0 Author-Name: SHENG Bin Author-Email: shengbin@nankai.edu.cn Author-Workplace-Name: The Institute of International Economics, Nankai University, Tianjin 300071, China Title: Political economy of China¡¯s trade policy: the evidence from industrial protection in 1990s Abstract: The theory of the political economy of trade policy, combining public choice and neoclassical trade theories, studies the level and pattern of trade intervention from the perspective of policy decision-making process, by stressing on income distribution instead of economic efficiency. The paper attempts to apply such an endogenous trade theory to an empirical study of China. On the basis of a formal revised model of political economy of trade protection, it tests theoretical hypotheses concerning the political and economic determinants of cross-sector trade protection in the Chinese industry at various periods. The results show that trade protection in China fits into China s national development strategy of fast catching-up with the developed world. Classification-JEL: G12, G21, H54 Keywords: political economy, China, trade policy, industrial protection Journal: Frontiers of Economics in China Pages: 406-432 Volume: 1 Issue: 3 Year: 2006 Month: September File-URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-006-0014-5 File-Format: Application/pdf Handle: RePEc:fec:journl:v:1:y:2006:i:3:p:406-432 Template-Type: ReDIF-Article 1.0 Author-Name: CAI Conglu Author-Email: anniestar517@hotmail.com Author-Workplace-Name: Department of Finance and Banking, Xiamen University, Xiamen 361005, China Title: Banking structure and financial stability: a comparison of Chinese and German banking systems Abstract: In the process of financial globalization and diversification, the issue of financial stability has become heated all over the world. This paper attempts to uncover the delicate relationship between banking structure and financial stability by comparing and analyzing the situation of the Chinese and German banking systems. This paper suggests that (i) the trade-off between competition and concentration in banking industry is a vital factor to maintain financial stability and (ii) concentration is not always a bad thing for financial stability, especially in banking systems with discontent bank performance. Classification-JEL: G21, N20 Keywords: banking structure, financial stability, Chinese banking system, German banking system Journal: Frontiers of Economics in China Pages: 433-448 Volume: 1 Issue: 3 Year: 2006 Month: September File-URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-006-0015-4 File-Format: Application/pdf Handle: RePEc:fec:journl:v:1:y:2006:i:3:p:433-448 Template-Type: ReDIF-Article 1.0 Author-Name: LU Feng Author-Email: fenglu@ccer.pku.edu.cn Author-Workplace-Name: China Center of Economic Research, Peking University, Beijing 100871, China Author-Name: PENG Kaixiang Author-Workplace-Name: School of Economics, Henan University, Kaifeng 475001, China Title: A research on China¡¯s long-term rice prices (1644¨C2000) Abstract: Drawing on the research achievements on rice prices made in the Qing Dynasty, the Republic of China, and New China, this paper arranges, estimates and observes the statistical data on rice prices in the country over the past three-and-a-half centuries. This paper includes the following four aspects: first of all, it assembles and reorganizes the original data of rice market prices marked in various forms of money in different historical periods since the Qing Dynasty; then it converts the original data of rice prices into the nominal rice price index by making use of the numerical exchange relations between different currencies developed in the past revolution and evolution of monetary systems; and then it converts the nominal rice price into real rice price data in conjunction with the arrangement and estimation results of the general price index; and finally, makes a brief observation of and comment on some features of long-term changes of real rice prices. Classification-JEL: N01, N56, G18 Keywords: rice prices, prices, monetary forms Journal: Frontiers of Economics in China Pages: 465-520 Volume: 1 Issue: 4 Year: 2006 Month: December File-URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-006-0017-2 File-Format: Application/pdf Handle: RePEc:fec:journl:v:1:y:2006:i:4:p:465-520 Template-Type: ReDIF-Article 1.0 Author-Name: CHEN Jiyong Author-Email: cjyhubei@163.com Author-Workplace-Name: School of Economics & Management, Wuhan University, Wuhan 430072, China Author-Name: LIU Wei Author-Workplace-Name: School of Economics & Management, Wuhan University, Wuhan 430072, China Author-Name: HU Yi Author-Workplace-Name: School of Economics & Management, Wuhan University, Wuhan 430072, China Title: Foreign trade, environmental protection and sustainable economic growth in China Abstract: Since the 1990s, China has exhibited growth in both foreign trade and the economy. Promoting environmental protection and sustainable economic growth are main concerns in the academic profession in the country. This paper makes an empirical analysis of trade and environmental pollution, and discusses the inherent relationship between foreign trade, environmental protection and sustainable economic growth. In addition, this paper makes several policy suggestions with a view to adjusting trade structure, enforcing environmental protection and promoting sustainable economic growth in China. Classification-JEL: F14 O1 Keywords: China, foreign trade, environmental protection, sustainable growth Journal: Frontiers of Economics in China Pages: 521-536 Volume: 1 Issue: 4 Year: 2006 Month: December File-URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-006-0018-1 File-Format: Application/pdf Handle: RePEc:fec:journl:v:1:y:2006:i:4:p:521-536 Template-Type: ReDIF-Article 1.0 Author-Name: LIANG Qi Author-Email: liangqi@nankai.edu.cn Author-Workplace-Name: Department of Finance, School of Economics, Nankai University, Tianjin 300071, China Author-Name: TENG Jianzhou Author-Workplace-Name: Graduate School of Economics, Hitotsubashi University, Kunitachi, Tokyo 186-8601, Japan Key Laboratory for Applied Statistics of MOE, Northeast Normal University, Changchun 130024, China Title: Unit roots and structural breakpoints in China¡¯s macroeconomic and financial time series Abstract: This paper applies unit-root tests to 10 Chinese macroeconomic and financial time series that allow for the possibility of up to two endogenous structural breaks. We found that 6 of the series, i.e., GDP, GDP per capita, employment, bank credit, deposit liabilities and investment, can be more accurately characterized as a segmented trend stationarity process around one or two structural breakpoints as opposed to a stochastic unit root process. Our findings have important implications for policy-makers to formulate long-term growth strategy and short-run stabilization policies, as well as causality analysis among the series. Classification-JEL: C22, O11, E30 Keywords: time series, unit-root tests, multiple breakpoints, segmented trend stationarity, causality Journal: Frontiers of Economics in China Pages: 537-559 Volume: 1 Issue: 4 Year: 2006 Month: December File-URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-006-0019-0 File-Format: Application/pdf Handle: RePEc:fec:journl:v:1:y:2006:i:4:p:537-559 Template-Type: ReDIF-Article 1.0 Author-Name: REN Ruo¡äen Author-Email: ruoen8324@vip.sina.com Author-Workplace-Name: School of Economics & Management, Beihang University, Beijing 100083, China Author-Name: ZHENG Haitao Author-Email: zhsea26@263.net Author-Workplace-Name: School of Economics & Management, Beihang University, Beijing 100083, China Title: China¡¯s manufacturing performance from a multilateral perspective: 1980-2004 Abstract: This paper examines international competitiveness of China's manufacturing industry during the period of 1980-2004 from a multilateral perspective in terms of purchasing power parities, relative price levels, labor productivity and unit labor costs. The various measures of PPPs in China s manufacturing industry are found to be approximately 3.7 RMB per international dollar in the base year 1997. Since the mid-1980s, the relative price of China s manufacturing products has been declined and is the lowest compared with the US, UK, Germany, Japan and South Korea. The unit labor cost is found to show a declining trend with some fluctuation. The labor productivity of China s manufacturing industry is relatively low and is found to converge with other countries since 1992. Classification-JEL: O470, O570, F140 Keywords: multilateral comparison, international competitiveness, manufacturing Journal: Frontiers of Economics in China Pages: 560-575 Volume: 1 Issue: 4 Year: 2006 Month: December File-URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-006-0020-7 File-Format: Application/pdf Handle: RePEc:fec:journl:v:1:y:2006:i:4:p:560-575 Template-Type: ReDIF-Article 1.0 Author-Name: ZHAO Hongjun Author-Email: hjzhao2002@163.com Author-Workplace-Name: School of Business, Shanghai Institute of Foreign Trade, Shanghai 200124, China Author-Name: YIN Bocheng Author-Email: yinbch@vip.sina.com Author-Workplace-Name: School of Economics, Fudan University, Shanghai 200433, China Title: On transaction efficiency and China¡¯s Urban-Rural disparity Abstract: It is recommended for economists to examine China's Urban-Rural disparity from the perspective of transaction efficiency, in that it can provide us with a systematic explanation to both the cases of different countries and development stages. China's Urban-Rural disparity is special and virtually a demonstration of its special transaction efficiency structure. Exploration of China's Urban-Rural disparity from such perspective indicates that, different from those in countries with a market economy, China's case involves many exogenous and contrived factors. Therefore, the solutions are to improve the whole transaction efficiency in the economy, which includes eliminating its regionally unfavorable policies and institutions, and enforcing more favorable and regionally balanced institutional reforms. Classification-JEL: B41, O12, R13 Keywords: China¡¯s Urban-Rural disparity, transaction efficiency, Urban-Rural dual structure Journal: Frontiers of Economics in China Pages: 597-614 Volume: 1 Issue: 4 Year: 2006 Month: December File-URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-006-0022-5 File-Format: Application/pdf Handle: RePEc:fec:journl:v:1:y:2006:i:4:p:597-614