Table of Content

15 April 2012, Volume 0 Issue 04

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A Study of the Paradox of Simultaneous Expansion of Labor Force Shift and Wage Gap: from the Perspective of Market Segmentation

LI Xiao-ning

2012, 0(04):  1498. 

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From the angle of market segmentation, this paper conducts an in-depth analysis of the paradox of the simultaneous expansion of labor force flowing and wage gap, as well as the “migration riddle”during the process of China’s marketization. It is believed that the regional division and the urban-rural division of the labor markets would inevitably lead to the wage income disparity between the workers; moreover, even if there is labor force shift, it could not restrain the wage disparity. This kind of labor market division caused by system preferences has played an important role in enlarging the wage income disparity of the workers. Therefore, it is essential to construct a nationally-unified and freely competitive labor market. So that this paper offers some related policy suggestions.

Neo-Liberalist Government Concept and International Financial Crisis

NIE Sheng-ping

2012, 0(04):  1499. 

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The neo-liberalist government concept is always noted for its view of “small government, big society”. But this kind of negative and conservative political and economical viewpoint has not been able to adapt to the requirements of the risky society, which is one of reasons for the outbreak of international financial crisis. Only an active government can deal with the risky society and resist financial crisis. During the process of vigorous government activities, however, attention should always be paid to the appearance of the so-called “leviathan”.

On the Logic of Government’s Fiscal Action and Its Impact on Economic Development

LEI Yan-hong

2012, 0(04):  1500. 

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In recent years, the financial operations of the central and local governments are mainly for the purpose of capital accumulation to stimulate rapid economic growth. The specific actions are that the local governments rely heavily on the income from land finance and use it as investment funds to stimulate economic growth; meanwhile, the central and local governments attach great importance to boosting economic growth through government investment. However, the government’s financial operations have led China’s economy into the plight of uncertain future growth and unfair development environment. In response, the government should complete step by step the construction of the tax-sharing and classified financial system below the provincial level in the public financial framework, regulate the usage of land transfer payment, and establish a public service-oriented performance evaluation system of the leaders.

An Empirical Study of China’s Inter-Provincial Tax Competition

WU Jun-pei

2012, 0(04):  1501. 

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Based on the fiscal income and local tax income data of China’s 29 provincial governments from 2006 to 2010, this paper conducts an empirical study of tax competition among the provincial governments by applying the model of tax competition. The results show that there exist two types of tax competition among the governments: absolute competition and relative competition. In terms of competitive ability, the former has a positive relation with the degree of marketization; and the latter has a positive relation with the efficiency of local scale economy. At present, China has a fierce inter-provincial tax competition, which is the inevitable outcome of the existing fiscal system. Therefore, in order to solve the vicious tax competition among the governments, we have no choice but to perfect the tax-sharing fiscal system, establish a reasonable local tax system, and regulate the debts of the local governments.

Did the U.S. Loose Monetary Policy Create the High World Inflation? An Analysis Based on Inflation Difference of Different Economic Entities after the Subprime Mortgage Crisis

XU Xin-xin

2012, 0(04):  1502. 

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To avoid the influences of the subprime mortgage crisis, the U.S. has begun to cut interest rates by a large margin since the end of 2007. It also has adopted the quantitative easing monetary policy to increase the liquidity since 2009. Meanwhile, since 2008, most countries around the world, especially the emerging markets and the developing economic entities, have experienced severe inflations. The existing literatures have ascribed it to the U.S. QE policy, but in fact this is not the case. Although the QE policy of the U.S. has indeed raised the inflation rate since 2008, it cannot explain the fact that the inflation rate of the emerging market and the developing economies is generally higher than that in the developed ones. Therefore, the U.S. easing monetary policy has only exacerbated the existing inflation, and the root cause of the high inflation still lies in the higher money supply of those countries.

Does Investor Protection Have Stock Liquidity Effect?Evidence from China’s High Frequency Trading Data

CHEN Hui

2012, 0(04):  1503. 

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The equity division reform has further promoted the resource allocation function of the stock market, but there will be more cases of inroads on the interests of the small and medium shareholders by the controlling shareholders through insider trading. In the past researches, people only paid much attention to the restraining function of the investor protection on the interest transmitting behavior of related party transaction, but little attention is paid to the governance effect of the investor protection on the interest transmitting behavior of insider trading. In fact, to strengthen investor protection can improve the information environment and reduce the insider trading behavior. This can enhance the stock liquidity and reduce the information asymmetry. This conclusion has great significance in guiding China’s security market after the share-splitting reform.

On Information Disclosure in Collective Negotiations

REN Xiao-ping

2012, 0(04):  1504. 

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Information disclosure is of critical importance in enhancing the quality of collective negotiations. As for the information in individual cases, there is no information disclosure mechanism at the technical level in China’s labor-capital relationship, which further deteriorate the weak position of the workers in the collective bargaining who are already short of the right to collective action; the labor conflicts, including the “sporadic”, may appear more disordered. The research results show that, considering the reality of the labor-capital relationship adjustment, industrial relation stability, labor relation harmony, and social harmony, it is necessary to strengthen the information disclosure obligations of the employers in the collective negotiations, so as to minimize workers’ misunderstandings and misconceptions caused by asymmetric information in negotiations. When restraining labor conflicts, both employers and employees can have a fair play under the conditions allowed by the market rules, so as to create favorable conditions for the labor-capital autonomy.

A Study of Knowledge Spillover and Enterprise’s Location Choice of Industrial Clusters

GUO Jia-yi

2012, 0(04):  1505. 

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With the transformation and upgrade of industrial clusters and the introduction of more high-tech industries, knowledge spillover and other soft factors are gradually replacing the traditional causes such as natural resources, geographical advantages and so on to become the key factors affecting the enterprises to join in the clusters. Enterprise’s behavior of seeking the location of knowledge spillover, in nature, is to obtain the key resources to maintain its competitiveness at lower cost. However, while knowledge spillover in the clusters can help enterprises reduce the cost and risks of innovation, it will also increase the risk of knowledge loss and cause the enterprises to be short of stipulation in their self-dependent innovations. Therefore, enterprises with different characteristics will have different location choices. The decision of enterprises in choosing the location for industrial clusters actually depends on enterprise’s judging and weighing of the positive and the negative effects brought by knowledge spillover in the clusters.

Market Scale, Home Market Effect and Evolution of Spatial Economic Structure: China’s Regional Coordinated Development on Different Spatial Scales

CHEN Jian-sheng

2012, 0(04):  1506. 

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By using a new economic geography model of multi-region to study the impact of market scale on spatial economic structure, we find that the home market effect plays a key role in it. At different development periods, under external shocks such as transportation costs and so on, industry shares will change due to the distribution of market scale. The spatial economic structure will gradually evolve into such forms as single core or dual-core structure, especially “central collapse” will be found in the process. Such results can be used to analyze the practical problems, including the “central collapse” in the east, central and west regions of China, the structure of city clusters, etc.. With the rapid development of transportation infrastructures, China will form a variety of development patterns on different spatial scales owing to home market effect. The regional convergence can be reached through reducing the economic distance and promoting agglomerative economies, which will help achieve regional coordinated development.

Reflection and Discussion on China’s Rare Earth Industrial Policy

WU Zhi-jun

2012, 0(04):  1507. 

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The close attention of the government and its series of rare-earth regulation policies have promoted the benign adjustment and rapid development of China’s rare earth industry, but at the same time, it also triggered some new problems. This paper conducts an analysis of the current status of China’s rare earth industrial policies and the initial achievements, gives a reflection on the new problems and the existing potential risks of the current policies, and makes an exploration of the solution to these problems and the perfection direction of future policies in terms of the development trend of the rare earth industry.

On the Interest Conflict of Ecological Compensation for Mineral Resources in Western China

SUN Hong-xia

2012, 0(04):  1508. 

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Western China is rich in mineral resources. However, because there exist multiple interest demands between all the compensation entities (the central government, mineral enterprises, the local governments of the West and the East) in the eco-compensation system, the existing eco-compensation mechanism has thus lost its operation platform, leading to serious waste of resources and deterioration of environment. Therefore, during the construction of the eco-compensation mechanism for the Western part, the central government has to strengthen its support and intervention in its environmental protection policies and perfect the coordinated reforms on resource taxes from the institutional design. Meanwhile, the eco-compensation fund for the Western part should be established, so as to broaden the fund raising channels by actively mobilizing all the parties concerned.

Tax Cost, Non-Tax Cost and Choice of Organizational Form: A Research Framework Based on Economic Model

GAI Di

2012, 0(04):  1509. 

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The choice of organizational form based on considerations of taxes is also called the tax planning of optimal organization form, i.e. to choose certain kind of organizational form to seek the most effective tax planning decision. Tax costs and non-tax costs are the major factors affecting the effective choice. If non-tax costs are not considered, the economic model of preference choice of organizational forms is mainly affected by such variables as the enterprise income tax rate, the personal income tax rate on equity transfer or business earnings, and so on. Other important factors in the non-tax costs affecting the economic model include the switching costs, costs of losing non-tax advantages, costs of coordination and communication, and so on.

The Objective and Object of Government Auditing from the Perspective of State Governance

XIE Sheng-wen

2012, 0(04):  1510. 

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At present, the main viewpoints about the objective of government auditing include public accountability, restraint and supervision on power, management and control on public fund, and auditing information. Meanwhile the formulations of the object of government auditing are even rich and colorful. If government auditing is taken into the consideration within the state governance system, the ultimate objective of government auditing can be viewed as the safeguard　for the fundamental interests of both the state and/or the public; and the object of government auditing can be treated abstractively as power, those who exercise power and how to exercise power. This kind of understanding can interpret the nature of government auditing from the perspective of state governance and power theory; it may improve the authority of government auditing and give full play to government auditing as an instrument of state governance.