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15 January 2021, Volume 0 Issue 1 Previous Issue    Next Issue

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The Impacts of Supply-Side Structural Reform on China's Economy: From the Perspective of General Equilibrium CHEN Sumei, LI Peng 2021, 0(1): 3-17.  Abstract ( )   PDF (258KB) ( )   How would the sustained deepening of supply-side structural reform affect China's future economic development? This is one of the critical and practical issues China has to face and deal with in the new era. The quantitative evaluation with the help of a dynamic computable general equilibrium model shows that while reducing the production tax rate of non-high-energy-consuming industries, increasing the labor participation rate and pursuing innovation-driven development, China's real GDP would be increased by 0.5%~2.6% on the basis of the baseline scenario in 2030. The residential income, the total import and export will be somewhat increased, and the overall price level will be lowered. The outputs of all sectors would be increased, among which, the output of the coal mining industry would have the largest increase. Compared with the other single reform schemes, the increase of labor participation rate would bring about more dividends. If the priorities of the supply-side structural reform programs are distinguished, the innovation-driven development would have more significant impacts on the coal mining industry, the high energy-consuming industry, the manufacturing industry, the transportation industry and warehousing industry, while reducing the production tax rate of the non-high-energy-consuming industries would be more beneficial for agriculture, the light industry and the public utilities units. The above conclusions show that it is necessary to comprehensively deepen the supply-side structural reform by reducing the taxes and fees, increasing the labor participation rate and pushing the innovations. In addition, the reform focus should be adjusted according to the situations of different industries, and attention should be paid to the transformation and upgrading of the coal mining industry. References | Related Articles | Metrics

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Retirement Shock and Urban Household Consumption: An Empirical Study Based on the Breakpoint Regression Design ZHENG Chao, WANG Xinjun 2021, 0(1): 18-31.  Abstract ( )   PDF (284KB) ( )   Based on the data of China Health and Pension Tracking Survey and the breakpoint regression design, this paper conducts a study of the impact of retirement shock on household consumption in China. The results show that retirement can significantly reduce household non-durable goods consumption by 31.2%. After removing work-related consumption, home food consumption and expenditures on leisure, culture, education and entertainment, the other non-durable goods consumption has not decreased significantly. The retirement shock leads to a significant change on the household consumption structure. It makes a significant increase in health care spending, and a significant increase in the proportion of non-basic consumption, which helps to optimize the consumption structure. The results of further research indicate that retirement shock has significant heterogeneous effects on households with different levels of consumption and different consumption structures. The impact of retirement shock on the families at the left end of the distribution of health care consumption and the families at the right end of the distribution of non-basic consumption is even more significant. Therefore, it is recommended to formulate a more robust social security system, promote the upgrading of the consumption structure of the elderly, and meet the multi-level material and cultural consumption needs of the elderly. References | Related Articles | Metrics

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Financial Decentralization, SOEs and Industrial Upgrading: An Empirical Explanation for Regional Differences of Financial Decentralization HONG Zheng, XIAO Rui, ZHANG Lin 2021, 0(1): 32-46.  Abstract ( )   PDF (312KB) ( )   Based on the ownership structures of the financial institutions, this paper constructs the two-level indexes that can accurately reflect financial decentralization at the provincial level, i.e., the decentralization of the central government to the local governments (Financial Decentralization I), and the decentralization of local governments to the market (Financial Decentralization II), thus the problem of lacking accurate measure index for financial decentralization is recovered. Through multi-dimensional comparison of indicators and analysis, it is found that as Financial Decentralization I increases year-by-year, Financial Decentralization II will have significant regional differences: the highest is in the eastern region, while the central and western regions are relatively lower. Although the financial privatization is gradually deepening, a mass of local financial resources is still controlled in the hands of local governments. The local state-owned enterprises (SOEs) are the main intermediary in the control of financial resources by the local governments. The findings of the mediating effect test indicate that the local governments promote industrial upgrading through SOEs and thereby affect the financial decentralization, which is the major channel leading to the regional differences of financial decentralization, especially in the regions with relatively backward economies. The local governments should give full play to the advantages of local SOEs, appropriately guide industrial upgrading, and optimize the allocation of financial resources, so as to achieve rapid economic growth and financial stability. References | Related Articles | Metrics

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Transformation of Monetary Policy Regulation in the Process of Interest Rate Liberalization LI Cheng, WANG Dongyang 2021, 0(1): 47-60.  Abstract ( )   PDF (265KB) ( )   Based on the systematic combing of the monetary policy regulation transformation in the process of interest rate liberalization, this paper takes the process of China's interest rate deregulation as a natural experiment and makes use of the micro-data of 1044 listed companies in the period of 2005-2018 to conduct a phased empirical test. The findings show that the monetary policy regulation presented obvious characteristics of benchmark interest rate regulation before the deregulation of the loan interest rate, while after the deregulation of the loan interest rate, it presents the transformation characteristics of paralleled benchmark interest rate regulation and market interest rate regulation, and after the deregulation of deposit interest rate it presents the transformation characteristics of paralleled monetary quantitative regulation and market interest rate regulation. Taking China's special economic and financial environment into consideration, the transformation of monetary policy regulation in the process of interest rate liberalization should be carried out along the two-way reform ideas of quantitative adjustment regulation and price adjustment perfection. The quantity-based monetary policy should pay full attention to the adjustment from the traditional demand management tool to the structural adjustment too,the price-based monetary policy should focus on improving the quotation of LPR and cultivating the formation and transmission mechanism of market interest rate, so as to maintain financial stability and stable economic growth. References | Related Articles | Metrics

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Fiscal Pressure, Land Finance and Land Supply Strategy of Prefecture Level Governments HUANG Siming, WANG Qiao 2021, 0(1): 61-75.  Abstract ( )   PDF (263KB) ( )   In the context of COVID-19 raging around the world and the severe situation of the international economy, the prefecture level municipal governments in China are faced with the unprecedented financial pressure. According to the theory of fiscal decentralization, this paper puts the changes of tax revenue distribution, land fiscal action and land supply strategy of prefecture level municipal governments into the analytical framework and conducts a regression analysis. The results show that faced with the financial pressure, the prefecture level municipal governments have a significant dependence on land fiscal revenue, and the western region is more dependent on land than the eastern and central regions. As for the path selection of land supply strategy, the prefecture level municipal governments are more inclined to adopt the financing mode of raising the average price of land supply. Therefore, it is necessary to conduct the reform in the following four aspects: (1) optimize the financial relationship among provincial, municipal and county governments, and implementing a differentiated tax sharing system. (2) improving the constraint and incentive mechanisms of local government officials, and reforming and adjusting the land management methods. (3) increasing the special transfer payment of finance by the central government, and integrating the similar special transfer payment funds scattered in the department management. ⑷ adjusting and optimizing the expenditure structure of local governments, and improving the efficiency of the use of fiscal funds. References | Related Articles | Metrics

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Corporate Export, Competitive Effect and Independent Technological Innovation WU Zhaoyang, CHEN Ya 2021, 0(1): 76-91.  Abstract ( )   PDF (276KB) ( )   By combining the patent application database of Chinese enterprises and the database of Chinese industrial enterprises from year 2000 to 2011, this paper takes the invention patents, utility model patents and design patents at the enterprise level as the agency indicators of independent technological innovation, and it employs the propensity-score matching and difference-in-difference methods to study whether the export of enterprises leads to innovation, then it also measures the different impacts of this effect on the quantity and quality of independent technological innovation. The results show that, as a whole, exports can lead to the improvement of the quantity of independent technological innovation and the decrease of the quality; structurally, the quality of design patents of high-tech enterprises, foreign-funded enterprises, state-owned enterprises and private enterprises is improved due to their exports, while the quality of patents of other kinds in other cases is reduced due to their exports, at the same time, the quantity of patents is improved by their exports. The results of further mechanism test show that the impact of export on independent technological innovation is realized through competition effect. The aggravation of export market competition and the imperfection of patent support policy lead to the increase of patent quantity and the decrease of quality. Therefore, we should not only encourage exports, take advantage of the positive side of competition, force the enterprises to carry out innovation, and increase the quantity of innovation, but also improve China's patent examination and approval system and the supporting policies to alleviate the negative effects of competition and improve the quality of innovation. References | Related Articles | Metrics

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Foreign Upstream Monopoly, Trade Policy and Local Firm's Markup Ratio LIU Dexue, ZHONG Xiangyue 2021, 0(1): 92-105.  Abstract ( )   PDF (252KB) ( )   To investigate the economic effects of foreign upstream monopoly is of great significance for an overall understanding of the pros and cons of enterprises embedding in global value chains. Based on the longitudinal relationship of enterprises, this paper expounds and verifies the impact of foreign upstream monopoly on enterprises' markup ratio and its action mechanism, then it further reveals the effects of trade policies in addressing the problems of foreign upstream monopoly. The results suggest that foreign upstream monopoly and firm's markup ratio present an“inverted U-shaped”nonlinear relationship, that is, foreign upstream monopoly has the“first promoting then inhibiting”effect on the firm's markup ratio. Foreign upstream monopoly directly affects the corporate markup ratio through the“production cost”effect. Innovation plays an intermediary role between the foreign upstream monopoly and the corporate markup ratio, that is, through affecting enterprises' innovative behavior, the foreign upstream monopoly exerts an indirect effect on their cost plus. Trade policies of different natures have obvious heterogeneous adjustment effects on the markup ratio of the foreign upstream monopoly. Tariff measures have a weakening effect on foreign upstream monopoly effects, while non-tariffs measures have a strengthening effect. References | Related Articles | Metrics

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The Influence of New Product Trial on Consumers' Impulse Purchases: Based on the Dual Mediator Model of Psychological Ownership and Psychological Feeling of Guilt LIU Jianxin, FAN Xiucheng 2021, 0(1): 106-120.  Abstract ( )   PDF (297KB) ( )   With constant emergence of new products and increasing intensification of retail competition, the way of promoting new product sales by trial has been widely applied. Unfortunately, not much effective attention and researches have been drawn to the impact mechanism and promotion effect of new product trail, especially the study of the impacts on consumers' impulse purchases is seriously insufficient. The findings of this study show that when consumers try the new products, on the one hand, the trial will urge the consumers to purchase on impulse through psychological ownership of the tried new products on the basis of familiarity, on the other hand, a psychological feeling of guilt may be produced on the basis of reciprocity, which may also result in the impulse purchases. The findings of two experiments show that new product trial will facilitate consumers' impulse purchases on new products, and the exploratory new product trial can drive the consumers to buy the new products on impulse more easily than the confirmatory new product trial. The impact of new product trial on consumers' impulse purchases is subjected to the joint intermediation of psychological ownership and psychological feeling of guilt. The joint intermediation of self-construal on psychological ownership and psychological feeling of guilt will produce a moderating effect. These conclusions are conductive not only to the improvement of the theory of new product trial, but also to the promotion of development of the related management practices References | Related Articles | Metrics

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The Governance Effect of Controlling Shareholders' Leverage Increased Holdings: From the Perspective of Corporate Real Earnings Management XIONG Lingyun 2021, 0(1): 121-135.  Abstract ( )   PDF (273KB) ( )   Based on the data of A-share non-financial enterprises from 2015 to 2018 and from the perspective of real earnings management, this paper examines the governance effect of controlling shareholders' using leverage to increase their shareholdings. The results show that the controlling shareholders' leverage increased shareholdings will significantly reduce the company's real earnings management, and the ratio, amount and number of shares of controlling shareholders' leverage increased holdings will significantly reduce the company's real earnings management, indicating that the controlling shareholders' leverage increased holdings has obvious inhibiting effects on the company's real earnings management, thereby improving the quality of the earnings of the listed companies. In addition, the controlling shareholders' leverage increased shareholding behavior reduces the company's real earnings management mainly by restraining the company's sales control and production control. At the same time, in non-state-owned enterprises and companies with better internal governance environment and better external institutional environment, the controlling shareholders' leverage increased shareholdings has a stronger inhibitory effect on the company's real earnings management. The research conclusions provide empirical evidences for the protection of the rights and interests of the investors and the stabilization of the capital markets. References | Related Articles | Metrics

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Does M&A Goodwill Affect Audit Fees JIANG Yaoming, YANG Lijuan 2021, 0(1): 136-147.  Abstract ( )   PDF (212KB) ( )   At the present capital market, mergers and acquisitions are constantly emerging, the potential devaluation risks due to over estimation of M&A goodwill have not only brought about tremendous shakes in the capital market, but also affected the audit risks of auditors and the auditing fee on M&A enterprises. By making use of the data of Chinese A-share listed firms from 2007 to 2017, this paper investigates the influence of goodwill on auditing fees. It is found that there is a significant positive correlation between the M&A goodwill and auditing fees of the listed companies, in which the action mechanism is that M&A goodwill has increased information asymmetry and agency costs of the listed companies, and in turn increased auditing fees. The results of further study indicate that the fine internal control and external institutional environment can ease the positive correlation between M&A goodwill and auditing fees. References | Related Articles | Metrics