Table of Content

15 December 2020, Volume 0 Issue 12

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Theoretical Economics

The Impact of the Economic Development Strategies of the Bay Area on the Regional Economic Growth: An Empirical Study Based on the Guangdong-Hong Kong-Macao Greater Bay Area

XIE Jing, ZOU Yang, NING Qi-qi

2020, 0(12):  3-13. 

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The economy of the Bay Area, as a pattern at advanced stage of regional economic development, has become a crucial engine leading the global economy at the new era. Based on the data of the city agglomeration at the Pearl River Delta Region from 2010 to 2018, the findings of this empirical study prove that the economic strategies of the Bay Area have significant driving impact on the regional economic growth, which is mainly achieved by increasing the fixed asset investments, promoting the economic opening-up and other channels. The empirical results also indicate that the economic strategies of the Bay Area fail to notably promote the high-grade level of the industrial structure and the level of trade at the region. This means that, while further promoting the economic development strategies of the Bay Area, the government must actively guide the transformation and upgrading of the industrial structure and make great effort to breed the emerging consumer market, so as to promote the economic growth through industrial cooperation and the expansion of domestic demand.

Identification of Premature Deindustrialization and Its Economic Impact

LI Guo-min

2020, 0(12):  14-25. 

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Deindustrialization has always been regarded as the natural result of industrial transformation in developed countries; however, many developing countries have entered the stage of deindustrialization prematurely before completing the task of industrialization, which may bring significant negative impact to the economic development. Based on the theoretical assumption that there is a non-linear relationship between the per capita income and the proportion of the manufacturing industry and the cross-border panel data, this paper conducts an empirical study. The findings show that 14 developing countries in the sample countries have the sign of deindustrialization at the stage of lower level of per capita income. Compared with the normal deindustrialization of the developed economies, premature deindustrialization will lead to an even lower peak level of the proportion of the manufacturing industry, and an even lower corresponding per capita income. Premature deindustrialization will lead to insufficient industrial development, weaken the motive force of long-term economic growth, thus hinder the transition of the economy to medium and high income economy, and even fall into the trap of low-level growth.

Public Economics & Administration

Fiscal Pressure, Land Finance and Land Supply Strategy of Prefecture Level Governments

HUANG Si-ming, WANG Qiao

2020, 0(12):  26-38. 

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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; (4)adjusting and optimizing the expenditure structure of local governments, and improving the efficiency of the use of fiscal funds.

Countermeasures from the Perspective of Public Private Partnership

ZHANG Ping, WANG Nan

2020, 0(12):  39-49. 

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The Public Private Partnership is conducive to alleviating the financing difficulties of infrastructure constructions by local government; but if PPP projects are mismanaged or grow excessively, implicit debt risk of local governments may be formed. The implicit debt of local governments in PPP mode includes direct implicit debt and indirect implicit debt. Based on the analysis of the institutional risk points in the whole life cycle of PPP projects, a spatial measurement research on the basis of the dual structure theory of spatial structure and institutional structure can explain the influence of the institutional structure variables more significantly. The findings of the spatial econometric studies indicate that the total amount of PPP projects has the most significant positive effect on the implicit debt risks of local governments, and the proportion of the executed PPP projects in the total projects has the most significant negative effect on the implicit debt risks of local governments. Between most provinces and their neighboring provinces there are four different spatial aggregation effects, i.e., high-high, low-low, high-low and low-high. Therefore, in order to prevent the implicit debt risks of local governments induced by PPP, it is necessary to strengthen the monitoring of high-risk provinces and strictly prevent the spillover of the implicit debt risks, strengthen the discrimination of various PPP projects at various regions in an orderly way and establish a monitoring platform for the implicit debt risks of local governments, and increase inter-provincial cooperation to deal with the implicit debt risks.

Modem Finance

Spatial Distribution Measurement of the Implicit Debt Risks of China's Local Governments and the Space Choice of Venture Capital: Industry First or Capital First

WANG Liang, LI Zi-lian, JIN Zhen-zhong

2020, 0(12):  50-62. 

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Based on the micro data of venture capital from 2010 to 2017, it is found that the venture capital of various industries in China presents a significant spatial imbalance, among which the service industry is more obvious than the manufacturing industry. Taking the provinces as the spatial units to study the above phenomena, this paper focuses on the discussion of the influencing effect of the two key elements of industry and capital on the space selection preference of venture capital, and measures the effect degree of different factors. The findings show that both industrial agglomeration and venture capital agglomeration have enhanced the possibility of the relevant industries in the region to obtain venture capital, and the promotion effect of capital agglomeration at the venture capital center is more significant. The results of further research by industry show that the spatial choice of venture capital in manufacturing industry has a stronger preference to industry than to capital, while the spatial choice of venture capital in service industry has a stronger preference to capital than to industry. Among the service industry, the life service, production service and public service are more attracted by capital than by industry, while the venture capital in the science and technology service is relatively less affected by the two elements. Therefore, during the process of encouraging innovation and entrepreneurship, it is necessary not only to promote the development of industrial agglomeration, but also pay more attention to the cultivation of venture capital and other financial factors.

Identification of Default Risks of Online Loan Borrowers:From the Perspective of Language Features in Loan Description

WANG San-xing, YUE Lei-lei, WEN Yan-bing, XIONG Ge

2020, 0(12):  63-74. 

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From the perspective of language features in loan description, this paper makes use of the loan data of online loan platform Company A in China from 2010 to 2018 to study how to effectively identify the default risks of online loan borrowers. The results show that such features as the degree of difficulty in reading the loan description language, the degree of positive language emotion and the length of the loan description language are positively correlated with the default risks of online loan borrowers, while the specific degree of the loan description language is negatively correlated with the default risks of online loan borrowers. The more difficult to read the loan description language is, the more positive the language emotion is, the longer the language length is, and the less specific the language is, the higher the default risks will be. According to the relationship between the characteristics of the loan description language and the default risks of the online loan borrowers, the online loan platforms can effectively identify and reduce the default risks of the online loan borrowers by optimizing the risk-assessment system, improving the risk-control model, and enriching the risk-control strategies.

Busines Administrtion

A Study of the Influencing Mechanism of HRM Strength on Employees' Creativity: Based on the Dual Intermediary Tests of Ability and Willingness

ZHAO Ruo-nan, JIA Jian-feng, YAN Jia-qi

2020, 0(12):  75-85. 

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The importance of innovation to modern enterprises is self-evident. The employees’ creativity is the source of corporate innovation. Starting from the idea of laying strength on both of the content and the process and by integrating the two perspectives of social interaction and psychological factors, this paper makes use of 234 pieces of multiple time-point matching data to discuss the dual intermediary transfer mechanism between the strength of human resources management and the employees’ creativity. The results show that firstly, the strength of human resources management has a positive impact on the employee-oriented socialization strategies and the affective commitments; secondly, the employee-oriented socialization strategies and the affective commitments are playing a dual intermediary role between the strength of human resources management and the creativity; and thirdly, there is no significant difference between the intermediary role of the employee-oriented socialization strategies and the affective commitments.

Can Industrial Competition Curb Tactic Textual Information Disclosure? Empirical Evidences from the Tone of the Annual Reports of Listed Companies

CHEN Liang-yin

2020, 0(12):  86-98. 

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Few studies have focused on the factors affecting the tone of annual reports of listed companies. Based on the data of listed companies from 2007 to 2017, the findings of this empirical study show that if the degree of industrial competition is higher, the tone of the annual reports of listed companies will be less positive. Further analysis shows that if an enterprise has stronger industrial competitive position and higher degree of diversification, the negative impact of industrial competition on the tone of its annual report will be weaker. If the institutional shareholders and the management hold more shares, the negative impact of industrial competition on the tone of its annual report will be stronger. The results of the tests based on the mediating effects suggests that industry competition can reduce the degree of ramification of earnings forecast by the analyst and in turn improve the information environment of the company through restricting the management of the positive tone. The above results indicate that macro industrial factors will affect the textual information disclosure in the listed companies.

Industry & Trade

Trade Facilitation and Export Adjustment of China's Multi-Product Enterprises

TU Yuan-fen

2020, 0(12):  99-111. 

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Trade facilitation has greatly reduced trade costs, in turn it will certainly affect the export behaviors of the multi-product enterprises. This paper establishes a theoretical model of the impact of trade facilitation on the export behaviors of multi-product companies and conducts an empirical study with the data of 2009-2015 at the Chinese enterprise level. The findings indicate that the improvement of trade facilitation in the destination country will lead to a decrease in the category of export products and an increase in the skewness of the distribution of export products, which will cause the multi-product firms to export more core products with comparative advantages. The results of the expanded analysis show that faced with the improvement of the level of trade facilitation in the export market, the export adjustment of the multi-product enterprises exhibits significant heterogeneity. The processing trade and the enterprises with a short history or smaller scale will largely reduce the category of their export products and focus more on exporting core products. According to this, multi-product firms should carefully choose their export product mix for different export markets.

The Employment Scale Effect of Servitization Transformation in Manufacturing Industry

DU Chuan-zhong, JIN Wen-han

2020, 0(12):  112-124. 

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The transition of the manufacturing industry from production-orientation to service-orientation has an important impact on the employment of the manufacturing industry. Based on the analysis of the influencing mechanism of the servitization of the manufacturing industry on the employment of the manufacturing industry, this paper conducts an empirical test by making use of the input-output table and the industrial panel data of China. The results show that the increase in the input of service factor in the manufacturing industry has a significant promoting effect on the expansion of the employment scale of both the overall and the high-skilled labor force of the manufacturing industry. The impact of the servitization in the manufacturing industry on the employment scale of the manufacturing industry shows a certain heterogeneity in the two aspects of the level of manufacturing technology and the input of productive service factors. The results of further study show that the level of manufacturing technology has a threshold effect on the impact of the servitization of manufacturing industry on the overall employment of the manufacturing industry. Along with the continuous improvement of the level of manufacturing technology, the increase in the input of productive service factor will significantly enhance the promotion of the overall employment scale of the manufacturing industry.

Modem Accounting

A Study of the Influence of Strategic Differences on Stock Mispricing

WANG Jun-ling, LI Hai-yan

2020, 0(12):  125-136. 

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The mispricing of stocks is a widely existed problem in the global capital markets. By making use of the data of A-share listed companies in Shanghai and Shenzhen stock markets from 2003 to 2017, this paper empirically studies the impact of the degree of strategic differences on stock mispricing and its influencing mechanism. The findings show that the greater the degree of strategic differences, the higher the degree of stock mispricing will be. The degree of strategic deviance is more likely to lead to positive stock mispricing. The internal quality control can significantly inhibit the positive effect of strategic deviance on stock mispricing. The results of further research show that information asymmetry plays a part of intermediary role in the process of strategic deviance influencing stock mispricing. The impact of the degree of strategic differences on stock mispricing will decrease with the passing of time.

Industrial Competition, Strategic Differences and Corporate Financialization

SUN Jie, YIN Fang-yuan

2020, 0(12):  137-148. 

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The degree of strategic differences will increase the agency problems of enterprises, then will the increase of agency problems induce the management to increase financial asset investment and thus make the enterprise become over financialized? Taking the A-share listed companies in Shanghai and Shenzhen stock markets from 2007 to 2017 as samples, this paper empirically tests the relationship between strategic differentiation and corporate financialization. The findings show that the greater the degree of corporate strategic differences, the higher the degree of financialization will be. The industrial competition can alleviate the positive relationship between corporate strategic differences and their financialization. The results of further research on the mechanism of action indicate that it is by increasing agency costs that the degree of strategic difference increases the financialization of enterprises.