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15 February 2020, Volume 0 Issue 2 Previous Issue    Next Issue

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Internet, Population Scale and China's Economic Growth: From the City Perspective LI Jie-wei, WU Si-xu 2020, 0(2): 3-18.  Abstract ( )   PDF (292KB) ( )   Based on China's city-level data from 2001 to 2016, this paper incorporates the population scale into the analytical framework of Internet and economic growth to re-estimate the influence of Internet on China's economic growth. The findings show that, firstly, internet can improve the economic growth rate of Chinese cities on average, but the results are not robust, because the impact of Internet on cities with less population scale is not significant or is negative. Secondly, the larger the population scale of a city is, the greater the impact of Internet on economic growth will be. Thirdly, the network effect of Internet could explain this strengthening effect. The results of the threshold regression shows that there are two threshold values, 7.72% and 14.32% respectively, and only if the penetration rate exceeds 7.72%, can Internet improve the urban economic growth rate significantly. The result of the threshold regression shows that even in the Midwest of China with lower penetration rate, the promotion effect of Internet on the economic growth of big cities is still greater than that of small cities in the East area with higher average penetration rates. Therefore, the investment in the infrastructure of internet should be made on the city level or the level of city clusters, so as to take both efficiency and regional balanced development into account. References | Related Articles | Metrics

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The New Era Significance of Industrial Policy Debate: Considerations of Theory and Practice YANG Kuo, GUO Ke-sha 2020, 0(2): 19-31.  Abstract ( )   PDF (245KB) ( )   At present, the debate on industrial policy is mainly among three schools: the Neo-Structuralism, the Neo-Liberalism and the Evolutionary Development Economics, focusing on the rationality and effectiveness of industrial policy in the field of industrial structure. The theoretical logic and policy propositions of different schools have different stage applicability: the Neo-Structuralism is mainly applicable to the early stage of rapid economic catch-up, the Evolutionary Development Economics is mainly applicable to the late stage of rapid economic catch-up, and the Neo-Liberalism is mainly applicable to the stage of economic transcendence. During the process of the transition from the“early stage of rapid catch-up”to the“late stage of rapid catch-up”and then to the“stage of economic transcendence”, the industrial policy attribute of late developing economy should be trans-formed from“selective”to“more positive”and then to“functional”. The practice of international industrial policy also shows a general trend of evolution from“selectivity”to“functionality”. At the beginning of the new era, China's economy is still at the“late stage of rapid catch-up”, so it should not blindly accelerate the transformation process of industrial policy attributes. The transformation strength suitable to the current stage is to change the attribute of industrial policy from“selective”to“more positive”. References | Related Articles | Metrics

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The Impact of the Implementation of the New Budget Law on the Transparency of Local Finance: An Analysis Based on China's Provincial Panel Data SHANGGUAN Ze-ming, NIU Fu-rong 2020, 0(2): 32-42.  Abstract ( )   PDF (224KB) ( )   Financial transparency is an important symbol of the modernization of national governance system and governance capacity. How does the new Budget Law, which has been implemented since 2015 as a top-down system reform, affect the transparency of local finance is a major issue worthy of study. By making use of the panel data of 31 provinces in China from 2012 to 2017, this paper studies the impact of the implementation of the new Budget Law on local fiscal transparency. The findings show that the implementation of the new Budget Law has effectively improved the local fiscal transparency. Compared with coastal provinces, the implementation of the new Budget Law in inland provinces can improve local fiscal transparency more significantly. During the process of improving the local fiscal transparency, the implementation of the new Budget Law from the top to the bottom and the social and public demand from the bottom to the top have not produced any synergistic effect. Therefore, the new Regulations for the Implementation of the Budget Law should be revised and promulgated as soon as possible, the legal system for the disclosure of fiscal information should be improved, and the government should continue to strengthen the active disclosure of financial information and improve the mechanism of public participation in the disclosure of financial information continuously in accordance with the requirements of the modernization of the national governance system and governance capacity. References | Related Articles | Metrics

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An Analysis of the Influence of Inclusive Finance on Household Financial Assets Selection and Its Mechanism ZHANG Xiao-mei, DONG Wen-kui, HAN Ke-fei 2020, 0(2): 43-56.  Abstract ( )   PDF (248KB) ( )   Based on the data of China Household Finance Survey (CHFS), this paper studies the influence of inclusive finance on the selection of household financial assets. The findings show that the inclusive finance can increase the probability of household participation in stock markets and risk financial markets, and can also increase the proportion of household allocation of stock assets and risk financial assets. Through a mechanism analysis, it is further shown that the inclusive finance can affect the financial attainment of households, and thus further affect the household financial asset selection. In addition, when the samples are subdivided into rural households and urban households, higher-income households and lower-income households for research, it is found that the inclusive finance has a greater marginal impact on the rural households and lower-income households. Therefore, to raise the level of inclusive finance can promote households to allocate financial assets more rationally, and the effect of this policy is more significant in rural households and lower-income households. References | Related Articles | Metrics

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Research on the Impact of Household Debt Changes on Labor Mobility in Provincial Regions of China RAN Zhen-mei, ZHONG Jian 2020, 0(2): 57-68.  Abstract ( )   PDF (261KB) ( )   From the perspective of micro-household debt, taking the 31 provinces (municipalities and regions) of China as the research objects, this paper explores the impact of household debt on labor mobility. The results show that household debt has a significant negative impact on labor mobility, and with the improvement of the quantile level, there is a significant inverted U-shaped relationship between them. At the same time, there are obvious regional differences in the impact of household debt on labor mobility: the restrictive effect of household debt on labor mobility in eastern and central regions is much higher than that in western regions; compared with the labor inflow regions, the impact of household debt on labor mobility is greater and more significant in the labor outflow regions. In addition, such factors as urbanization rate, industrial structure, infrastructure level and opening-up degree have positive effect on labor mobility, while fiscal decentralization has negative effect on labor mobility. Therefore, while reducing the costs and risks of labor mobility, to improve the financial supervision system and to provide different credit policies to households at different regions will be conductive to guiding the rational labor mobility between the regions. References | Related Articles | Metrics

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Economic Policy Uncertainty and Firms Export Products Quality: An Empirical Analysis Based on the Micro-Data of Chinese Industrial Firms XIE Shen-xiang, FENG Yu-jing 2020, 0(2): 69-80.  Abstract ( )   PDF (238KB) ( )   It is of great significance to evaluate the economic effects of economic policy uncertainty in order to fully understand the role of economic policy. By employing a cross-border data model, this paper examines the impact of economic policy uncertainty on export product quality of firms. The finding show that the increase of domestic economic policy uncertainty would increase the variable costs of corporate production and decrease the fixed asset investment of the enterprises, which goes against the corporate efforts to improve the quality of their export products. If the economic policy uncertainty in export destination countries increases, the export enterprises would overcome the adverse effects resulted from the increased fixed costs of export due to the increased economic policy uncertainty in destination countries through the improvement of the export product quality. In addition, the influence of economic policy uncertainty on export products quality of firms also reveals a certain degree of heterogeneity. References | Related Articles | Metrics

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Has Imported Product Variety Raised Corporate Cost-Plus? XU Tong-sheng, FANG Yu-xia 2020, 0(2): 81-93.  Abstract ( )   PDF (225KB) ( )   By employing the difference-in-difference method and the instrumental variable method, this paper matches China Industry Business Performance Database with the customs statistical database from 2000 to 2007 to study the impact of imported product variety on corporate cost-plus. The results indicate that, in general, there is U-shaped relationship between the imported product variety and corporate cost-plus, that is to say, with the increase of imported product variety, the corporate cost-plus would fall down. When the imported product variety reaches a certain threshold value, the corporate cost-plus will go up. Viewing from the sub-samples, the impact of the imported product variety on the corporate cost-plus has obvious heterogeneity, which depends on the type of corporate import trade, corporate technical level, the types of imported products and the location of the enterprises. The mechanism test shows that competitive effects and technology spillover effects are the channels through which the imported product variety affects the corporate cost-plus. Therefore, in order to increase corporate cost-plus, enterprises should continuously increase the imported product variety, and the government should adopt different import development strategies against the different technical levels, different regions, different trade types, and different types of products. References | Related Articles | Metrics

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Enquiry Letter Supervision and Corporate Real Earnings Management Strategy ZHANG Yan 2020, 0(2): 94-106.  Abstract ( )   PDF (231KB) ( )   By making use of the enquiry letters disclosed by stock exchanges from 2015 to 2018, this paper investigates the impact of enquiry letter system on the real earnings management behaviors of the listed companies. The existing literatures point out that the enquiry letters in the financial reports can restrict the accrued earnings management of the listed companies, while this study finds out that the listed companies receiving enquiry letters in financial reports can turn to implement real earnings management. Further study finds out that the behavior of implementing real earnings management by the companies receiving the letters would be more significant in the enterprises with severe agency problems; however, it is restricted in the state-owned firms and the firms with higher reputation auditors or with longer listed years. The above study shows that there is still a certain blind spot of supervision in the enquiry letter system in China's securities markets. The conclusion of this paper can provide the theoretical basis and policy reference for regulators to improve their regulatory measures. References | Related Articles | Metrics

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The SH-SZ-HK Stock Connect Mechanism and Business Innovation: Empirical Evidence Based on Multi-Phase DID QI Di 2020, 0(2): 107-121.  Abstract ( )   PDF (264KB) ( )   Whether the“Shanghai-Shenzhen-Hong Kong (SH-SZ-HK) Stock Connect”mechanism has promoted the innovation and development of the real economy is an important issue in the process of China's capital market opening. Based on the DID model and taking the implementation of the stock connect as a natural experimental event, this paper investigates the impact of the capital market opening policy represented by the SH-SZ-HK Stock Connect on the innovation activities of enterprises. The findings show that the target firms after the implementation of the SH-SZ-HK Stock Connect have significantly increased the innovation input and the patent output quantity, which have improved their innovation performance. Further tests show that the effect of the SH-SZ-HK Stock Connect on the improvement of enterprise innovation efficiency is more obvious in the enterprises with lower proportion of institutional shareholding, lower degree of information transparency, narrower vision of the management, and more serious agency problems, which indicates that enterprise innovation can be promoted through such means as strengthening the governance effect of the foreign investors, improving the business information disclosure, relieving the agency problems in the innovation decisions, and so on. This conclusion expands the research of the results and the mechanism of the SH-SZ-HK Stock Connect event on the business innovation, tests the impact of this mechanism on the real economy, and provides theoretical reference for China to further promote and improve the opening of its capital markets. References | Related Articles | Metrics

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Uncertainty and CEO Reversal Manipulation of Remuneration TAN Jin-song, QIN Shuai, CAO Hui-juan, KONG Xiang-ting 2020, 0(2): 122-135.  Abstract ( )   PDF (240KB) ( )   In reality, a CEO can manipulate compensation and obtain excess payment with the power. Then will a CEO exercise reversal manipulation and lower the excess compensation actively? Taking China's A-share listed companies during the period of 2010-2016 as samples, this paper explores the existence of CEO reversal manipulation of remuneration and the causes for reversal manipulation of remuneration. The findings show that a CEO would lower the excess compensation actively when the uncertainty of the firm is relatively higher, but this phenomenon only exists in the private firms. It is found through further study that the pressure on reputation formed by investor concern is the major possible reason why CEOs lower the excess compensation actively. This phenomenon is more significant in the leading enterprises in the industry; and the same is true if the CEO is older or better educated. References | Related Articles | Metrics