Template-Type: ReDIF-Article 1.0 Author-Name: ZHANG Yuesheng Author-Workplace-Name: School of Economics and Management, Tianjin Chengjian University, Tianjin 300384, China Author-Name: TAN Yuxuan Author-Workplace-Name: School of Economics and Management, Tianjin Chengjian University, Tianjin 300384, China Title: Understanding the Main Line, Characteristics and Practice Path of Historical Initiative: Under the Guidelines of the 20th National Congress of the CPC Abstract: Theoretically based on historical materialism, the historical initiative of the Communist Party of China (CPC) is a precious character of creating new prospects amid changing circumstances consciously and proactively to acquire benefits for Chinese people. Integrated into its centenary history and showing highlights in different historical periods, the CPC's historical initiative features dialectical unity between problem orientation and mission pursuit, upholding fundamental principles and breaking new ground, regularity and consciousness, as well as the leadership of the CPC and the pioneering spirit of the people. To accomplish the Second Centenary Goal and advance national rejuvenation, the CPC will follow the path of socialism with Chinese characteristics under the guidance of Marxism, stay committed to achieving national rejuvenation, unite and rely on the people, and stimulate the spirit of innovation and creation, thereby pooling more proactive spiritual strengths to make greater contributions in the new era. Keywords: the Communist Party of China (CPC), historical initiative, spiritual main line, dialectical characteristics, practice path Journal: Frontiers of Economics in China-Selected Publications from Chinese Universities Pages: 1-20 Volume: 18 Issue: 1 Year: 2023 Month: March File-URL: https://journal.hep.com.cn/fec/EN/10.3868/s060-017-023-0001-2 File-Format: Application/pdf Handle: RePEc:fec:journl:v:18:y:2023:i:1:p:1-20 Template-Type: ReDIF-Article 1.0 Author-Name: ZHANG Hui Author-Workplace-Name: College of Marxism, China Agricultural University, Beijing 100083, China Title: Century-Long History and Basic Experience of the CPC in Leading China's Rural Development Abstract: Over the past century, the Communist Party of China (CPC) has led hundreds of millions of farmers through five stages (rural revolution, rural construction, rural reform, rural transformation and rural revitalization) to forge a road of rural development with Chinese characteristics. In the course of constant exploration and innovation, the CPC has always adhered to its original aspiration and founding mission of seeking happiness for the farmers, taken liberating and developing the productive forces as the central principle, regarded coordinating urban and rural development as the action guideline, and set “achieving common prosperity” as the target direction, and accumulated valuable historical experiences in three aspects: Firstly, the CPC has emphasized the vital role and pioneering spirit of farmers, effectively mobilizing and organizing the broad participation of rural masses. Secondly, it has committed to the collective ownership of rural land and managed the relationship between farmers and land. Lastly, the CPC has remained focused on the interests of farmers, continuously advancing reform and innovation in accordance with the changing times. Keywords: the Communist Party of China (CPC), rural development, practical history, inherent logic, basic experience Journal: Frontiers of Economics in China-Selected Publications from Chinese Universities Pages: 21-40 Volume: 18 Issue: 1 Year: 2023 Month: March File-URL: https://journal.hep.com.cn/fec/EN/10.3868/s060-017-023-0002-9 File-Format: Application/pdf Handle: RePEc:fec:journl:v:18:y:2023:i:1:p:21-40 Template-Type: ReDIF-Article 1.0 Author-Name: ZHANG Qi Author-Workplace-Name: School of Economics and Resource Management, Beijing Normal University, Beijing 100875, China Author-Name: ZHUANG Jiakun Author-Workplace-Name: School of Economics and Resource Management, Beijing Normal University, Beijing 100875, China Author-Name: LI Shunqiang Author-Workplace-Name: School of Economics and Resource Management, Beijing Normal University, Beijing 100875, China Author-Name: KONG Mei Author-Workplace-Name: China Institute of Education and Social Development, Beijing Normal University, Beijing 100875, China Title: Scientific Connotation, Intrinsic Relationship, and Strategic Key Points for Rural Revitalization under the Goal of Common Prosperity Abstract: This paper analyzes rural revitalization under the goal of common prosperity. Firstly, on the basis of making clear what common prosperity is in the new era along with its connotation, the connotation of rural revitalization under the goal of common prosperity is systematically delved into six dimensions: subject, motivation, content, path, process, and goal. Secondly, the intrinsic relationship between common prosperity and rural revitalization is examined from the perspectives of rural revitalization, common prosperity, and development. Thirdly, grounded on theoretical analysis, this paper outlines strategic key points for rural revitalization under the goal of common prosperity upon applying designing principles to practice. Keywords: common prosperity, rural revitalization, issues concerning agriculture, rural areas and farmers, high-quality development Journal: Frontiers of Economics in China-Selected Publications from Chinese Universities Pages: 41-58 Volume: 18 Issue: 1 Year: 2023 Month: March File-URL: https://journal.hep.com.cn/fec/EN/10.3868/s060-017-023-0003-6 File-Format: Application/pdf Handle: RePEc:fec:journl:v:18:y:2023:i:1:p:41-58 Template-Type: ReDIF-Article 1.0 Author-Name: HUANG Chengwei Author-Workplace-Name: China Center for Poverty Alleviation and Development, National Rural Revitalization Administration, Beijing 100026, China Title: Theoretical Logic and Advancing Path of Demonstration Creation for Rural Vitalization Abstract: Demonstration creation for rural vitalization is an important part of the rural vitalization strategy of the central leadership. This paper offers a systematic exposition of the theoretical logic of demonstration creation in objective necessity, methodology value, key path of reform and in novation, multiple functions. An analysis is conducted of the advancing path of demonstration creation from building consensus, clarifying goals and requirements, and coordinated advance. Further, it depicts a roadmap for the creation of model villages, covering characteristic industry development, rural ecological livability, rural civilization, increase in rural income, village-level social undertakings and effective governance led by the building on the Communist Party of China. On this basis, it offers policy suggestions on responsibility implementation, basic adherence, process management and monitoring evaluation to promote demonstration creation in a vigorous, orderly and effective manner. Hopefully, it is of guiding significance for the “100-county, 1000-town and 10,000-village” demonstration creation for rural revitalization across the country. Keywords: rural revitalization, demonstration creation, theoretical logic, advancing path Journal: Frontiers of Economics in China-Selected Publications from Chinese Universities Pages: 59-74 Volume: 18 Issue: 1 Year: 2023 Month: March File-URL: https://journal.hep.com.cn/fec/EN/10.3868/s060-017-023-0004-3 File-Format: Application/pdf Handle: RePEc:fec:journl:v:18:y:2023:i:1:p:59-74 Template-Type: ReDIF-Article 1.0 Author-Name: LEI Ming Author-Workplace-Name: Guanghua School of Management, Peking University, Beijing 100871, China; Institute on Rural Vitalization, Peking University, Beijing 100871, China Author-Name: YU Shasha Author-Workplace-Name: Guanghua School of Management, Peking University, Beijing 100871, China Author-Name: LU Ming Author-Workplace-Name: Institute on Rural Vitalization, Peking University, Beijing 100871, China Title: Analysis on the Theoretical Basis of Rural Revitalization Strategy Abstract: The rural revitalization strategy represents a quantum leap in both the theory and practice of rural development in China, and serves as a crucial solution to address the array of challenges facing rural areas. Multi-dimensionally, the rural revitalization strategy sets out the general requirements of “building rural areas with thriving businesses, pleasant living environments, good social civility, effective governance, and prosperity,” which echo the measures of new urbanization: efficient, green, humanistic, well-governed, and inclusive. Specifically, “building rural areas with prosperity” aligns with the development requirement of urban-rural dual structure theory; “building rural areas with thriving businesses” meets the development requirement of the industrial division of labor and integration theory; “building rural areas with pleasant living environments and good social civility” follows the development requirement of sustainable development theory; and “building rural areas with effective governance” tallies with the development requirement of rural governance theory. Urbanization theory, urban-rural dual structure theory, the industrial division of labor and integration theory, sustainable development theory, and rural governance theory serve as crucial theoretical references for the rural revitalization strategy, helping make clear its conceptual underpinnings. Keywords: rural revitalization, urbanization, urban-rural dual structure, the industrial division of labor and integration, sustainable development, rural governance Journal: Frontiers of Economics in China-Selected Publications from Chinese Universities Pages: 75-95 Volume: 18 Issue: 1 Year: 2023 Month: March File-URL: https://journal.hep.com.cn/fec/EN/10.3868/s060-017-023-0005-0 File-Format: Application/pdf Handle: RePEc:fec:journl:v:18:y:2023:i:1:p:75-95 Template-Type: ReDIF-Article 1.0 Author-Name: GAO Qiang Author-Workplace-Name: Research Center for Rural Policy, Nanjing Forestry University, Nanjing 210037, China; Research Center for Rural Governance, Renmin University of China, Beijing 100872, China Author-Name: ZENG Hengyuan Author-Workplace-Name: College of Economics and Management, Nanjing Forestry University, Nanjing 210037, China (Corresponding author, hengyuan@njfu.edu.cn) Title: The Effective Linkage of Consolidating and Expanding the Achievements in Poverty Alleviation with Rural Revitalization: Progress, Problems and Suggestions Abstract: To promote rural revitalization on the basis of consolidating and expanding the achievements in poverty alleviation after fulfillment of the objectives and tasks of poverty alleviation, it requires not only a smooth transformation of the working system, but a the transfer and continuity of micro policies. As the local practice shows, since the focus of the “tri-agriculture” work has shifted, the local governments have carefully implemented the decisions and deployments of the Central Committee of the Communist Party of China (CPC). In terms of the leadership system, system design, institutional teams, assessment mechanism and financial support, they have registered positive progress in the effective linkage of consolidating and expanding the achievements in poverty alleviation with rural revitalization. Meanwhile, they have been confronted in practice with the problems and difficulties of inadequate cognition of the effective linkage of the two strategies, incompatibilities of the responsibilities and capabilities of the departments at all levels, insufficient consideration of regional discrepancies, weak program guidance and assessmenting and openness to optimization of the poverty-alleviating assets management and utilization. It is advised to further deepen the cognition of linkage promotion, clarify the leadership system and assignment of responsibilities, differentiate the tempo and direction of linkage, strengthen the planning leadership and assessment application, and optimize the poverty-alleviating assets management and utilization mechanism to implement the effective linkage of the two strategies. Keywords: poverty alleviation, rural revitalization, strategic linkage Journal: Frontiers of Economics in China-Selected Publications from Chinese Universities Pages: 96-117 Volume: 18 Issue: 1 Year: 2023 Month: March File-URL: https://journal.hep.com.cn/fec/EN/10.3868/s060-017-023-0006-7 File-Format: Application/pdf Handle: RePEc:fec:journl:v:18:y:2023:i:1:p:96-117 Template-Type: ReDIF-Article 1.0 Author-Name: HE Leihua Author-Workplace-Name: School of Economics & Management, Northwest University, Xi'an 710127, China Author-Name: WANG Feng Author-Workplace-Name: School of Economics & Management, Northwest University, Xi'an 710127, China Author-Name: WANG Changming Author-Workplace-Name: School of Economics & Management, Northwest University, Xi'an 710127, China Title: How Does Digital Economy Drive China's Rural Revitalization? Abstract: Digital economy, a new driving force for China's economic development, creates a good opportunity for rural revitalization. This paper begins with a theoretical analysis of the impact of the digital economy on rural revitalization. Based on panel data from 30 provinces and cities in China from 2011 to 2018, as well as measurement-based digital economy development Index and rural revitalization index, the empirical test is conducted of the driving effect, mechanism and heterogeneity of digital economy on rural revitalization. Results show that the digital economy has a significant driving effect on rural revitalization, a conclusion that still holds even after taking into account endogenous problems and conducting a series of robustness tests. Technological innovation and human capital constitute the important mechanism for the digital economy to drive rural revitalization. Furthermore, the digital economy has a spatial spillover effect on rural revitalization, that is, it can promote rural development in neighboring areas. As regards various dimensions of rural revitalization, the digital economy can significantly promote ecological livability, civilized rural style, effective governance and prosperity. But its impact on the industrial boom is yet to appear. The western region enjoys more digital economy dividends in rural revitalization are more significant than central and eastern regions. Rural revitalization requires the government to deepen the integration of the digital economy and agriculture and implement a differentiated digital economy development strategy. Keywords: digital economy, rural revitalization, technological innovation, human capital Journal: Frontiers of Economics in China-Selected Publications from Chinese Universities Pages: 118-144 Volume: 18 Issue: 1 Year: 2023 Month: March File-URL: https://journal.hep.com.cn/fec/EN/10.3868/s060-017-023-0007-4 File-Format: Application/pdf Handle: RePEc:fec:journl:v:18:y:2023:i:1:p:118-144 Template-Type: ReDIF-Article 1.0 Author-Name: WU Wenfeng Author-Workplace-Name: Antai College of Economics and Management, Shanghai Jiao Tong University, Shanghai 200030, China Author-Name: HU Yue Author-Workplace-Name: School of Business, East China University of Science and Technology, Shanghai 200237, China Title: The Governance of Local Government Debt from the Perspective of Fiscal and Financial Coordination: Evidence from Financial Markets Abstract: Theories based on fiscal guarantees cannot explain either the fact that the continuously decline in local fiscal resources has not significantly increased local government financing costs, or the fact that local government debt has been rising at a time of strict central government regulation. The theoretical and empirical analyses provided in this study show that it is the financial resources under local government control that provide the implicit guarantee for local government debt. Such financial resources lower local governments' financing costs but have the potential to lead to the contagion of financial risk through local government to the financial sector. Therefore, to look at the question solely in terms of either fiscal or financial sector guarantees will not be sufficient to resolve the problem of local government debt. The central government needs to coordinate fiscal and financial policies under a joint management framework in a way that rationally disperses and resolves the risks attached to local government debt and avoids the assumption of excessive risk by either sector. At the same time, close attention should be paid to local financial institutions' asset quality and their money market reputation to avoid the risk of contagion from local financial institutions to local public finance. Keywords: fiscal and financial coordination, local government debt risk, financial guarantee, fiscal guarantee Journal: Frontiers of Economics in China-Selected Publications from Chinese Universities Pages: 145-170 Volume: 18 Issue: 2 Year: 2023 Month: June File-URL: https://journal.hep.com.cn/fec/EN/10.3868/s060-017-023-0008-1 File-Format: Application/pdf Handle: RePEc:fec:journl:v:18:y:2023:i:2:p:145-170 Template-Type: ReDIF-Article 1.0 Author-Name: JIANG Hai Author-Workplace-Name: College of Economics, Jinan University, Guangzhou 510632, China Author-Name: ZHANG Xiaolin Author-Workplace-Name: School of Economics and Finance, South China University of Technology, Guangzhou 510006, China; Bank of Dongguan Co. Ltd., Dongguan 523000, China Author-Name: TANG Shenfeng Author-Workplace-Name: College of Economics, Jinan University, Guangzhou 510632, China Author-Name: CHEN Chuanglian Author-Workplace-Name: College of Economics, Jinan University, Guangzhou 510632, China Title: Monetary Policy, Liquidity and Bank Risk-Taking Abstract: The great impact of monetary policy on bank risk-taking, facilitated by a liquidity mechanism, significantly complicates the macro-prudential supervision process. Surprisingly, limited scholarly research has delved into this particular issue. Hence, in this paper, the liquidity variable is introduced into the dynamic linear model to depict the liquidity mechanism by which monetary policy affects bank risk-taking. Based on micro-data from 133 commercial banks in China, this paper empirically tests using systematic Gaussian mixture models estimation and a panel smooth transition regression model. The findings reveal that while monetary policy does not exhibit a significant risk-shifting effect. A marked liquidity transmission effect, however, is observed, whereby easy monetary policy noticeably exacerbates bank risk-taking. This impact becomes more pronounced as liquidity levels improve. The most significant negative impact of monetary policy on bank risk-taking occurs when bank liquidity reaches approximately 43%. Moreover, when banks maintain high levels of liquidity, the statutory deposit reserve ratio exerts a greater regulatory effect than other monetary policy tools. Contractionary monetary policy imposes noticeably weaker restraints than expansionary monetary policy, particularly in banks with higher liquidity levels. Moreover, the interplay between monetary policy and bank risk-taking is contingent upon not just the liquidity level of banks, but also their asset size and capital adequacy. Keywords: monetary policy, liquidity mechanism, bank risk-taking Journal: Frontiers of Economics in China-Selected Publications from Chinese Universities Pages: 171-197 Volume: 18 Issue: 2 Year: 2023 Month: June File-URL: https://journal.hep.com.cn/fec/EN/10.3868/s060-017-023-0009-8 File-Format: Application/pdf Handle: RePEc:fec:journl:v:18:y:2023:i:2:p:171-197 Template-Type: ReDIF-Article 1.0 Author-Name: FANG Yi Author-Workplace-Name: School of Finance, Central University of Finance and Economics, Beijing 100083, China Author-Name: JING Zhongbo Author-Workplace-Name: School of Management Science and Engineering, Central University of Finance and Economics, Beijing 100083, China Title: The Formation Mechanism of Systemic Financial Risk under External Shocks Abstract: By incorporating both the fire sales contagion mechanism and the bankruptcy contagion mechanism into a bank network model, this paper examines how risks are generated under dynamic shocks. In particular, this paper constructs systemic risk indicators suitable for analyzing multiple rounds of contagion under different shocks (time dimension) and from institutions and assets (spatial dimension). Indicators that measure the indirect relevance between institutions and between assets are also innovatively built. It is found that due to deleveraging or bankruptcy among a large number of banks, the systemic risk exhibits an upward trend marked by intermittent jumps under varying intensities of shocks. Risks are generated mainly through the fire sales contagion mechanism of deleveraging under small shocks, and through the bankruptcy contagion mechanism under large shocks. In terms of influencing factors, a stronger indirect relevance, a lower leverage skewness and a higher leverage level in the banking system lead to higher risks. In particular, the influence of leverage skewness on systemic risk is stronger than that of leverage level. Keywords: systemic financial risk, external shock, banking supervision, direct contagion, indirect contagion Journal: Frontiers of Economics in China-Selected Publications from Chinese Universities Pages: 198-243 Volume: 18 Issue: 2 Year: 2023 Month: June File-URL: https://journal.hep.com.cn/fec/EN/10.3868/s060-017-023-0010-2 File-Format: Application/pdf Handle: RePEc:fec:journl:v:18:y:2023:i:2:p:198-243 Template-Type: ReDIF-Article 1.0 Author-Name: ZHU Taihui Author-Workplace-Name: JD Economy and Development Institute, Beijing 100088, China Author-Name: ZHANG Yutong Author-Workplace-Name: JD Economy and Development Institute, Beijing 100088, China Title: Rural Revitalization Enabled by Digital Transformation of Small and Medium Sized Rural Banks and Double Chain Linkage Model Innovation Abstract: How small and medium-sized (SMS) rural banks, as the main banks offering rural financial services, serve all-round rural revitalization is a vital realistic and policy issue for the time being. Now, SMS rural banks are confronted with many shortcomings in serving rural revitalization due to dull financial service supply chain circulation and lack of coordination with the rural industry supply chain. The research based on survey data and typical cases shows that the key to solving these problems is to realize a double chain linkage of the financial service supply chain and the rural industry supply chain: The financial service supply chain and the rural industry supply chain should make use of their common infrastructure, share the digital technology capacity and data handling capacity and promote the linkage of customers, channels and scenarios in all links of the two supply chains in a bid to realize mutual promotion and improve the quality and efficiency of the two chains and hence fuel the all-round rural revitalization through industrial revitalization. Double chain linkage can be achieved through five major effective means: in terms of data, collaborating with digital rural governance and strengthening data collection and utilization; in terms of industry, collaborating with core entity enterprises and strengthening the supply chain financial service capacity; in terms of ecology, collaborating with internet technology companies and enhancing ecological, scenario and technological enabling; in terms of channels, collaborating with rural service and focusing on channel linkage, offline network, mobile services and village financial officers, etc.; and in terms of cooperation, constructing the common infrastructure of SMS rural banks and boosting the efficiency of digital enabling innovation. Keywords: rural finance, digital finance, rural revitalization, supply chain finance, financial technology (fintech), data enabling Journal: Frontiers of Economics in China-Selected Publications from Chinese Universities Pages: 244-267 Volume: 18 Issue: 2 Year: 2023 Month: June File-URL: https://journal.hep.com.cn/fec/EN/10.3868/s060-017-023-0011-9 File-Format: Application/pdf Handle: RePEc:fec:journl:v:18:y:2023:i:2:p:244-267 Template-Type: ReDIF-Article 1.0 Author-Name: SHI Jianxun Author-Workplace-Name: Institute of Finance and Economics, Tongji University, Shanghai 200092, China; National Institute of Innovation and Development, Tongji University, Shanghai 200092, China; School of Economics and Management, Tongji University, Shanghai 200092, China Author-Name: YANG Luliuting Author-Workplace-Name: School of Marxism, Tongji University, Shanghai 200092, China Title: The Evolution Course, Profound Connotation, and Advancing Path of Chinese Modernization Abstract: The Report to the 20th National Congress of the Communist Party of China (CPC) decides to “comprehensively promote the great rejuvenation of the Chinese nation through Chinese modernization” as a central task, listing nine essential requirements for Chinese modernization with the creation of a new form of human civilization as its goal. This paper analyzes the evolution of Chinese modernization led by the CPC and the pursuit of civilization, and reveals the inner connection and unity between Chinese modernization and the new form of human civilization. It is helpful to deeply understand the historical logic, realistic logic, and future logic of Chinese modernization, enabling better study and implementation of the spirit of the Report to the 20th National Congress of the CPC. Also, this paper boosts confidence in the path, theory, system, culture, and history of building a modern socialist country in an all-round way and promoting the great rejuvenation of the Chinese nation. Keywords: the 20th National Congress of the Communist Party of China (CPC), Chinese modernization, new form of human civilization, pursuit of civilization Journal: Frontiers of Economics in China-Selected Publications from Chinese Universities Pages: 268-287 Volume: 18 Issue: 2 Year: 2023 Month: June File-URL: https://journal.hep.com.cn/fec/EN/10.3868/s060-017-023-0012-6 File-Format: Application/pdf Handle: RePEc:fec:journl:v:18:y:2023:i:2:p:268-287 Template-Type: ReDIF-Article 1.0 Author-Name: FANG Fuqian Author-Workplace-Name: School of Economics, Renmin University of China, Beijing 100872, China Title: Coordinating Supply-Side Reform and Demand-Side Management Abstract: In essence, understanding the relationship between supply-side structural reform and demand-side management requires grasping the interplay between supply and demand. Supply and demand are interdependent and interactive, and their equilibrium determines the equilibrium values of micro and macroeconomic variables. Focusing solely on either supply or demand, regardless of the time length, is one-sided. To promote supply-side structural reform, China should depend on demand and take a measured approach to its expansion. In the absence of demand, the supply-side structural reform would lose its direction and purpose. Enhancing demand-side management involves delving deeper into supply-side structural reform because the scale and growth of demand, alongside changes in demand structure, are fundamentally influenced by institutional factors. Hence, further reforming the systems and mechanisms that hinder the optimization of demand structure and the growth of demand is precisely what supply-side structural reform should entail. Keywords: supply-side structural reform, demand-side management, interdependence, institutional reform, development Journal: Frontiers of Economics in China-Selected Publications from Chinese Universities Pages: 309-323 Volume: 18 Issue: 3 Year: 2023 Month: September File-URL: https://journal.hep.com.cn/fec/EN/10.3868/s060-017-023-0018-8 File-Format: Application/pdf Handle: RePEc:fec:journl:v:18:y:2023:i:3:p:309-323 Template-Type: ReDIF-Article 1.0 Author-Name: LIU Zhibiao Author-Workplace-Name: Business School, Nanjing University, Nanjing 210093, China Title: Demand-Side Reform: A New Mission to Promote the Dual Circulation Development Pattern Abstract: Beginning with increasing effective demand, the demand-side reform advocates for the strategy to expand domestic demand, rectifies distortions in the demand structure, and further aligns demand and supply by reforming the mechanisms for demand formation and regulation, matching supply and demand structures, and easing restrictions on demand. This will enhance economic growth potential and operational efficiency. The demand-side reform contributes to developing a super-large-scale market and optimize market functions to form a unified national market. It also helps address significant structural distortions within domestic circulation and move faster to form a new development pattern of dual circulation. As demand-side reform inevitably deals with the vested interests of stakeholders, it presents challenges on par with supply-side structural reform. Therefore, due attention must be given in terms of priority and weight by increasing operational and property household income, transforming government functions, rectifying any excessive market-oriented reforms in certain public service sectors, among others. Keywords: demand-side reform, dual circulation development pattern, unified market building, income distribution, market-oriented reform of factors Journal: Frontiers of Economics in China-Selected Publications from Chinese Universities Pages: 324-335 Volume: 18 Issue: 3 Year: 2023 Month: September File-URL: https://journal.hep.com.cn/fec/EN/10.3868/s060-017-023-0019-5 File-Format: Application/pdf Handle: RePEc:fec:journl:v:18:y:2023:i:3:p:324-335 Template-Type: ReDIF-Article 1.0 Author-Name: PAN Min Author-Workplace-Name: Center for Economic Development Research (CEDR), Wuhan University, Wuhan 430072, China; Economics and Management School, Wuhan University, Wuhan 430072, China Author-Name: ZHANG Xinping Author-Workplace-Name: Economics and Management School, Wuhan University, Wuhan 430072, China Title: Effects of Proactive Fiscal Policy in the Context of Supply-Side Structural Reform: On the Choice of Anchors for Monetary Policy Abstract: By constructing a New Keynesian dynamic stochastic general equilibrium (DSGE) model that embeds structural fiscal policy and contains two types of households, labor intermediaries, manufacturers, the central bank, and fiscal departments, and based on China's macroeconomic controls that combine proactive fiscal policy with prudent monetary policy in the context of supply-side structural reform, this paper compares and analyzes the macroeconomic effects of the various types of proactive fiscal policy instruments, and measures the impact of the choice of anchors for monetary policy on the long-term welfare loss caused by the various fiscal policy instruments. This study finds that the consumption-oriented fiscal expenditure increase and labor income tax reduction policies have the most significant macroeconomic stimulus effects in the short term, but attention should be paid to the disadvantage that they may lead to the rise of government debt risks; and in the long term, the role of production-oriented fiscal expenditure policies in guaranteeing the stable operations of China's economy should be brought into play. In addition, once the implementation of proactive fiscal policy lasts for too long, their long-term effects may be weakened, with negative macroeconomic impacts. In order to mitigate the resulting long-term economic fluctuations and welfare loss, prudent monetary policy should be fine-tuned with price stability as the anchor. Keywords: fiscal policy, monetary policy, choice of anchors, welfare loss Journal: Frontiers of Economics in China-Selected Publications from Chinese Universities Pages: 336-362 Volume: 18 Issue: 3 Year: 2023 Month: September File-URL: https://journal.hep.com.cn/fec/EN/10.3868/s060-017-023-0020-9 File-Format: Application/pdf Handle: RePEc:fec:journl:v:18:y:2023:i:3:p:336-362 Template-Type: ReDIF-Article 1.0 Author-Name: YANG Tian Author-Workplace-Name: School of Marxism, Chengdu University of Information Technology, Chengdu 610225, China Author-Name: ZHU Huaxiong Author-Workplace-Name: School of Economics, Zhongnan University of Economics and Law, Wuhan 430073, China Title: Demand-Side Reform under the New Development Pattern: Theoretical Connotations, Bottlenecks and Implementation Approaches Abstract: In recent years, the changes in the external environment and domestic development conditions have promoted the transformation of China's economy to one dominated by domestic circulation. In December 2020, the Communist Party of China Central Committee put forward the demand-side reform for the first time in order to prepare China for the new development stage of the 14th Five-Year Plan (2021-2025) and to promote the new strategic deployment of China's high-quality development. Based on the paths and direction of the current 14th Five-Year Plan (2021-2015) to build a new development pattern, this paper elaborates on the theoretical connotations of the demand-side reform, points out the bottlenecks such as the unreasonable demand structure in China, the mismatch between the industrial system and the high-level demand, the resulting demand spillovers, the poor demand channels, and puts forward the current approaches to the demand-side reform in China. Keywords: new development pattern, demand-side reform, supply-side, domestic demand expansion Journal: Frontiers of Economics in China-Selected Publications from Chinese Universities Pages: 363-390 Volume: 18 Issue: 3 Year: 2023 Month: September File-URL: https://journal.hep.com.cn/fec/EN/10.3868/s060-017-023-0021-6 File-Format: Application/pdf Handle: RePEc:fec:journl:v:18:y:2023:i:3:p:363-390 Template-Type: ReDIF-Article 1.0 Author-Name: ZHONG Ying Author-Workplace-Name: Department of Economic History, The Institute of Contemporary China Studies, Chinese Academy of Social Sciences, Beijing 100009, China Title: China's Solution and Experience in the Comprehensive Implementation of Supply-Side Structural Reform Abstract: Comprehensively implementing supply-side structural reform is a major adjustment of ideas and focus of China's economic development, made by the Communist Party of China (CPC) Central Committee on the basis of a comprehensive analysis of the world's long-term economic cycle and the new normal of China's economic development. As a major innovation to adapt to and lead the new normal of economic development, it has become a strategic deployment that concerns the overall long-term development of China's economy and society. Before the 19th CPC National Congress, the main tasks of supply-side structural reform were cutting overcapacity, destocking, deleveraging, reducing corporate costs and shoring up weak links. After the 19th CPC National Congress, while continuing to do the tasks, the CPC Central Committee stuck to the main direction of improving the quality of the supply system, enriching the connotation of deepening supply-side structural reform. Since 2016, China's supply-side structural reform has achieved remarkable results, and has been widely recognized and positively evaluated both internationally and domestically. The reform provides not only a solid foundation and valuable experience for China's subsequent reforms, but also a useful reference for developing countries. Keywords: supply-side reform, demand-side management, supply-side structural reform, China's solution, China's experience Journal: Frontiers of Economics in China-Selected Publications from Chinese Universities Pages: 391-424 Volume: 18 Issue: 3 Year: 2023 Month: September File-URL: https://journal.hep.com.cn/fec/EN/10.3868/s060-017-023-0022-3 File-Format: Application/pdf Handle: RePEc:fec:journl:v:18:y:2023:i:3:p:391-424 Template-Type: ReDIF-Article 1.0 Author-Name: SONG Pei Author-Workplace-Name: School of Economics, Nankai University, Tianjin 300071, China Author-Name: LI Lin Author-Workplace-Name: School of Economics, Nankai University, Tianjin 300071, China Author-Name: BAI Xuejie Author-Workplace-Name: College of Economic and Social Development, Nankai University, Tianjin 300071, China; Digital Economy Interdisciplinary Science Center, Nankai University, Tianjin 300071, China Title: Industry Interaction, Structure Transformation and High-Quality Economic Development in China Abstract: Industry interaction is becoming an important approach to promoting high-quality economic development. In this paper, the multi-sector general equilibrium model is developed to clarify the theoretical mechanism among industry interaction, structure transformation, and high-quality economic development; the empirical tests are carried out based on the provincial panel data from 2000 to 2017; and the empowerment paths for digital technologies are explored to drive high-quality economic development. The findings are as follows. (1) The industry interaction can promote high-quality economic development in China on the whole, but it shows a significant imbalance and a healthy two-way promotion mode have not been formed. (2) The impact of industry interaction on high-quality economic development is significantly heterogeneous at the sector and regional levels. (3) The current unhealthy industry interaction may widen the productivity gap between manufacturing and service sectors, and transform China’s economic into service-oriented structure, thus leading the economic development to a vicious circle of “low efficiency to low-end servitization and further to lower efficiency,” and hindering the sustainability of high-quality economic development. (4) Digital technologies can break the development dilemma and achieve high-quality economic development by alleviating structural contradictions, boosting healthy industry interaction, and narrowing the productivity gap among sectors. The conclusions provide empirical evidence for the government to promote the integration of advanced manufacturing and modern service sectors and achieve high-quality economic development. Keywords: industry interaction; industrial structure transformation; high-quality economic development; technological progress; digital economy Journal: Frontiers of Economics in China-Selected Publications from Chinese Universities Pages: 467-503 Volume: 18 Issue: 4 Year: 2023 Month: December File-URL: https://journal.hep.com.cn/fec/EN/10.3868/s060-017-023-0028-5 File-Format: Application/pdf Handle: RePEc:fec:journl:v:18:y:2023:i:4:p:467-503 Template-Type: ReDIF-Article 1.0 Author-Name: YANG Weizhong Author-Workplace-Name: Beijing Municipal Branch (Operations Office), The People’s Bank of China, Beijing 100045, China Author-Name: YU Jian Author-Workplace-Name: Beijing Municipal Branch (Operations Office), The People’s Bank of China, Beijing 100045, China Author-Name: LI Kang Author-Workplace-Name: Beijing Municipal Branch (Operations Office), The People’s Bank of China, Beijing 100045, China Title: Financial Resource Allocation, Technological Progress and High-Quality Economic Development Abstract: Along with the changes in China’s development stage and internal and external conditions, sci-tech innovation has become the core driving force for China’s high-quality economic development in the new era. From the perspective of finance-driven technological progress, this paper constructs an endogenous growth DSGE model to analyze the relationship between financial resource allocation, technological progress, and economic growth. This study proves the counter-cyclicality of technological innovation in China, and finds that the allocation of financial resources between enterprises’ productive investment and innovation investment can affect economic growth by changing the scale of factor inputs and technological progress rate, and that there is a see-saw relationship between these two effects, with the latter dominant. On that basis, this paper explains the dynamic transmission mechanism among finance, technology and economy. During the economic expansion period, enterprises expand their production scale, financial resources provide more support to productive investment, with less support to innovation investment, thus the technological progress rate goes down; and during the economic contraction period, enterprises reduce their production scale, financial resources cut support to productive investment and turn to innovation investment, so technological progress rate goes up. The implications of this study on policy are as follows: when faced with new contradictions and challenges in the current development stage, China should get a grip on the new development pattern, seize new opportunities, further deepen financial reforms, optimize the financial resource allocation mechanism, encourage innovation investment, and give full play to the role of equity markets in supporting corporate R&D and innovation. Meanwhile, coupling with prudent and moderate macro-control policies, China should provide a positive macro-environment for corporate innovation, stimulate corporate on innovation demand, promote technological progress, and boost high-quality economic development. Keywords: financial reform; sci-tech innovation; endogenous growth; DSGE model Journal: Frontiers of Economics in China-Selected Publications from Chinese Universities Pages: 504-530 Volume: 18 Issue: 4 Year: 2023 Month: December File-URL: https://journal.hep.com.cn/fec/EN/10.3868/s060-017-023-0029-2 File-Format: Application/pdf Handle: RePEc:fec:journl:v:18:y:2023:i:4:p:504-530 Template-Type: ReDIF-Article 1.0 Author-Name: ZHANG Peili Author-Workplace-Name: School of Economics, and Research Center of China’s Private Enterprises, Renmin University of China, Beijing 100872, China Title: Logic and Path of Combining Domestic Demand Expansion with Deepening of Supply-Side Structural Reform Abstract: The fifth plenary session of the 19th Central Committee of the Communist Party of China (CPC) puts forward the organic combination of the implementation of the domestic demand expansion strategy with the deepening of supply-side structural reform, and scientifically reveals the internal logic of this organic combination and the realization paths, which is of great significance to the implementation of the new development concept and the construction of a new development pattern. First, this paper provides a theoretical explanation for the organic combination of the domestic demand expansion strategy with the supply-side structural reform by analyzing why the traditional policies for expanding domestic demand are ineffective in the new development stage of China. Second, this paper elaborates the internal logic of this organic combination from two aspects. (1) The base point of the domestic demand expansion strategy must be placed under the main line of the supply-side structural reform. (2) The two should be interconnected and are mutually reinforcing, so as to form a higher level of dynamic equilibrium in which the demand leads the supply and the supply creates the demand. Third, this paper analyzes the huge space for the organic combination of the domestic demand expansion strategy with the supply-side structural reform from the perspective of releasing consumption potential and creating new demand, and on that basis proposes the realization paths of their organic combination. Keywords: domestic demand expansion strategy; supply-side structural reform; organic combination; internal logic; realization path Journal: Frontiers of Economics in China-Selected Publications from Chinese Universities Pages: 531-548 Volume: 18 Issue: 4 Year: 2023 Month: December File-URL: https://journal.hep.com.cn/fec/EN/10.3868/s060-017-023-0030-6 File-Format: Application/pdf Handle: RePEc:fec:journl:v:18:y:2023:i:4:p:531-548 Template-Type: ReDIF-Article 1.0 Author-Name: GONG Liutang Author-Workplace-Name: Key Laboratory of Quantitative Economics and Mathematical Finance, Ministry of Education; and Guanghua School of Management, Peking University, Beijing 100871, China; Beijing Technology and Business University, Beijing 100048, China Title: Moving Faster to Modernize the Industrial System by Deepening Supply-Side Structural Reform Abstract: Modernizing the industrial system is an integral and strategic priority within the broader scope of modernizing the economic system. It demands a focus on boosting China’s labor productivity and self-sufficiency rate of key technology products, with the aim to advance industrial upgrading and optimize the industrial structure. Hence, China must promote the strategy to expand domestic demand and accelerate the creation of a new development pattern from the supply side, coordinate economic development across regions, establish a national unified market, and create a more open industrial system. Specifically, China should increase funding in scientific research and experimental development, enhance the innovation capacity of core technologies in key fields, optimize the digital economy structure, strengthen the modern service industry, raise the labor productivity of the service industry, maximize the market’s decisive role and the government’s function in resource allocation, and build a talent system tailored to the modern industrial system. Keywords: industrial system; supply-side structural reform; new development pattern Journal: Frontiers of Economics in China-Selected Publications from Chinese Universities Pages: 549-562 Volume: 18 Issue: 4 Year: 2023 Month: December File-URL: https://journal.hep.com.cn/fec/EN/10.3868/s060-017-023-0031-3 File-Format: Application/pdf Handle: RePEc:fec:journl:v:18:y:2023:i:4:p:549-562 Template-Type: ReDIF-Article 1.0 Author-Name: CHEN Yanbin Author-Workplace-Name: School of Economics, Renmin University of China, Beijing 100872, China Title: The Connotation and Implementation of Demand-Side Management: From the Perspective of “Macro-Policy Trinity” Abstract: As an important strategic direction of China’s 14th Five-Year Plan, strengthening demand-side management aims to build an effective system to boost domestic demand, establish a complete demand system, and develop a robust domestic market, thereby promoting the realization of the growth goals by 2035 and the second centenary goal by the mid-21st century. Different from traditional aggregate demand management, demand-side management introduces a host of new attributes pertaining to its regulatory scope, regulatory goal, regulatory strategy, regulatory target, and regulatory instrument. Demand-side management does not seek to replace aggregate demand management; rather, both assume pivotal roles in macro-control and their coordination are of utmost importance. In real scenarios, demand-side management should synergize with supply-side structural reform, which is helpful to foster a new development pattern with domestic circulation as the mainstay and domestic and international circulations reinforcing each other. To effectively implement demand-side management, it is imperative not to replicate the approach used in aggregate demand management. Only by further innovating and improving the macro-control system with Chinese characteristics and coordinating the stability policy, growth policy and structural policy can the demand-side management be truly implemented under the new framework of “Macro-policy Trinity.” Keywords: demand-side management; macro-policy trinity; economic growth; dual circulation; supply-side structural reform Journal: Frontiers of Economics in China-Selected Publications from Chinese Universities Pages: 563-574 Volume: 18 Issue: 4 Year: 2023 Month: December File-URL: https://journal.hep.com.cn/fec/EN/10.3868/s060-017-023-0032-0 File-Format: Application/pdf Handle: RePEc:fec:journl:v:18:y:2023:i:4:p:563-574