Table of Content

15 July 2012, Volume 0 Issue 07

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Measurement and Analysis of China’s Internal and External Economic Imbalances: Based on the Construction of the Index System of Economic Imbalance Degrees

CHEN Zhi-yong

2012, 0(07):  1537. 

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On the basis of the logic of economic analysis and the connotation of the related indexes, this paper constructs an index system for the measurement of the economic imbalance degree of a country so as to measure China’s economic imbalance levels since 2000. The results show that China’s overall economic imbalances have been worsening recently. The total index of internal and external economic imbalances increased from 0.3856 in 2001 to 0.5509 in 2010. Of which, the index of external imbalances increased from 0.2916 in 2001 to 0.4879 in 2010, and the index of internal imbalance increased from 0.4796 in 2001 to 0.6138 in 2010. China has to promote the policy coordination with other countries and rationalize the income-distribution relationship to expand domestic demands, so as to create the conditions to solve the problem of the internal and external imbalances.

On the Establishment of Accounting System for Knowledge-Intensive Service Industries

LI Hai-dong

2012, 0(07):  1538. 

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The current national economic accounting system does not distinguish between the knowledge-intensive service industry and the traditional service industry; the setting-up of the variables and the accounting treatment also fails to show the important features of the knowledge-intensive service industry. Therefore, it is necessary to build an accounting system for the knowledge-intensive service industry, which is embedded in the national economic accounting system. Its compiling includes the three steps: decomposition of the existing flow and stock, addition of the expansion variables and the design of accounts. Such an accounting system has a certain degree of operability, focuses on the comparison between the traditional service industry and the knowledge-intensive service industry, and is helpful to provide more perspectives to the study of the knowledge-intensive service industry.

An Empirical Analysis of China’s Income-Distribution Effects of Turnover Tax

WAN Ying

2012, 0(07):  1539. 

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This paper conducts a comprehensive analysis of the distribution of China’s value-added tax, consumption tax and sales tax among urban residents with different income during 2002-2009 and their effects on the income distribution. From them three basic judgments can be drawn: first, the VAT shows a significant regressivity and the crux of the regressivity lies in the fact that the consumer demand for commodities suitable for low tax rates lacks of elasticity; second, the moderating effects of different consumer goods offset each other, the overall impact of consumption tax on the income distribution is not obvious, but has a trend of gradual development towards progressivity; third, the sales tax shows a stable progressivity. The total of the turnover tax shows a very slight regressive nature, the dominant factor deciding the income moderating effects of the turnover tax is the income elasticity of demand for consumer goods. By proper choices of the objects of taxation and exercise of differential tax rates, the specific turnover tax may play a role in narrowing the income and distribution gap.

On the Relationship between Beneficial Bodies and Its Distortion Correction in Health Care Delivery Mechanism: from a Perspective of Government Functions

TANG Yun-xia

2012, 0(07):  1540. 

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Many beneficial bodies are involved in the health care delivery mechanism, such as health care providers, doctors, pharmacy and patients. At present, different kinds of unreasonable cooperation and conflicts on benefits between these bodies are directly related with the absence and dislocation of the government functions in the health care delivery mechanism in China. In the process of deepening the health care reform, the Chinese government should perform its public functions correctly, which it should assume, such as strengthening health resource planning and allocation, increasing financial investment in public hospitals and optimizing the compensation mechanism, strengthening the supervision of the health care institutions and the pharmaceutical industry, strengthening the construction of the medical information disclosure system, encouraging fair competition in the medical health service market, and giving up inappropriate price controls.

The Correlation between Returns of Financial Assets: An Empirical Study Based on DCC Multivariate GARCH Model

ZHENG Zhen-long

2012, 0(07):  1541. 

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The correlation between the returns of financial assets has an important impact on the investors’ diversification and decision of assets allocation. Stocks and bonds are the two main financial assets that investors can choose to invest. This paper adopts the dynamic conditional correlation multivariate GARCH model to estimate the correlation between the returns of China’s stock markets and bond markets. The results show that the correlation between the returns of China’s stock and bond markets displays some dynamic and time varying characteristics, and the correlation is fluctuating heavily. Besides, through the analysis of the principal factors influencing the correlation between the returns of China’s stock markets and bond markets, this paper reveals that the inflation rate and the risks of stock markets have significant impact on the correlation between the returns of China’s stock markets and bond markets.

A Study of the Benchmark Interest Rate Options in China’s Financial Markets under the Dual-Track System: Based on an Analysis of the Directed Acyclic Graph

FANG Yi

2012, 0(07):  1542. 

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The choice of the benchmark interest rate is the focus of China’s market-oriented interest rate reform. Based on the four kinds of interest rates and combined with the technical method of the directed acyclic graph, this paper conducts an empirical study of the benchmark interest rate option in China’s financial markets, The result indicates that in the present context of the dual-track interest rate system the market-oriented interest rates can not play the role of the benchmark interest rate yet, while the controlled interest rates represented by the benchmark rate of deposits is served as the benchmark interest rate in China’s financial markets. As for the market-oriented interest rates, Shibor has a stronger property as the benchmark interest rate than the repo rate

A Study of the Stability of Emergency Logistics Network Based on Network Entropy

WU Liu-san

2012, 0(07):  1543. 

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Due to the massive emergences of natural disasters and public safety incidents, more and more attention has been paid to the stability of emergency logistics network. When the network is destroyed in an emergent incident, the demand and the arrival time (or the shortest path) of emergency supplies will be influenced. In order to determine the stability of the emergency logistics network, this paper, based on the summary of the predecessors’ work, brings up such two concepts as the network maximum flow entropy and the network shortest path entropy towards the directed network graph and the undirected network graph respectively. The greater the network entropy, the worse the stability of the emergency logistics network on this indicator, otherwise the stronger the stability will be. Then, according to the hundred-mark system idea, this paper puts forward the grade criterion on the stability of emergency logistics network based on the network entropy. Finally, it makes use of the simplified high-way network graph between cities of Jiangsu province as an example to illustrate the validity and practicability of the network maximum flow entropy and the network shortest path entropy.

On the Opportunities and Strategies of Outward Foreign Direct Investment by Private Enterprises in the Post-Crisis Era

YIN Yue-nan

2012, 0(07):  1544. 

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Confronted with the global recession of financial capital triggered by the financial crisis and European debt crisis, the developed countries are not only implementing the traditional trade protective measures but also add the recovery plan of the real economy besides, in an attempt to save their own economy. However, the real economy recovery plan is hampered by the severe shortage of industrial capital, which provides China’s private enterprises with a good opportunity to “go out”. The private enterprises should transfer the challenges of traditional exports into the driving force of outward FDI by taking advantage of the economic structure adjustment caused by the weak world economy, realize the strategic transform from export-oriented into export-and investment-oriented mode, and finally enter global markets successfully.

An Evaluation and Comparison of FDI Utilizing Qualities in High-Tech Industries

TANG Wei-bing

2012, 0(07):  1545. 

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This paper adopts the factor analysis method to evaluate and compare the FDI utilizing qualities in 16 high-tech industries. The results indicate that there is a bigger gap between FDI utilizing qualities in different industries, which has a stable tendency. Among the factors influencing the FDI utilizing qualities, the quantity contribution of FDI plays a decisive role. The contribution of FDI to such aspects as the industrial system, technology level and economic quality has a limited effect on the FDI utilizing quality. This tells us that the mode of FDI in high-tech industries is quantity-type rather than quality-type, and the overall quality is lower. However, different factor has different effect on the FDI utilizing quality of different industry. Among the industries with lower FDI utilizing qualities, the quantity contribution of FDI has more effect on the FDI utilizing quality; otherwise, the contributions of FDI to the other aspects have more effects on the quality. The immediate cause is that the industrial FDI utilizing level can decide the quality. The underlying reason is that the foreign enterprises strictly control the technology by importing the intermediate inputs with core technology, which restricts the improvements in technical level, input-output ratio and technologic spillover effects. Therefore, fine turning of the policy of FDI should be made. The policy of encouraging FDI into high-tech industries should include supplementary measures such as stipulating the degree of production localization for foreign-funded enterprises, so as to improve the technology level, expand the technology spillover effect, promote the structural optimizing and improve the economic quality.

Research on Capability of Pricing to Market of China’s Export Enterprises: Based on the Data from Typical Industrial Level

WANG Lin

2012, 0(07):  1546. 

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Since the reform of RMB exchange rate system in July 2005, China’s 12 main categories of exports have shown different capabilities of pricing to market. From the perspective of exchange rate transfer and processing trade, it can be seen that labor-intensive products without clear characteristics of processing trade display a weak capability of pricing to market, while capital-and technology-intensive products with obvious characteristics of processing trade exhibit relatively strong capability of pricing to market. Therefore, in the context of RMB appreciation being a tendency, China’s enterprises should not only consolidate existing international market share but also improve their capability of pricing to market through industrial upgrading and structural adjustment, so as to further enhance their competitiveness.

An Institutional Study of the Reform of China’s Initial Public Offering System：A Research Framework

LI Min-cai

2012, 0(07):  1547. 

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The underlying reasons for the problems of initial public offering (IPO) in China are the weaker administrative supervision and lower awareness of legal risks. The authorized system is not the main reason. Therefore, the key point of the reform of IPO system in China is not to change the authorized system into the registered system, but to improve the relevant institutional arrangement so as to effectively restrain the opportunistic behavior of the issuers or the listed companies and their intermediaries, and protect the interests of investors. The following aspects should be included: strengthening the administrative supervision on the issuers and their intermediaries; perfecting the legal system of civil compensation to raise the legal risks against the issuers and their intermediaries; improving the supporting arrangement for IPO system, such as promoting the transparency of examination and ratification, improving the delisting system, etc..

Can Board Independence Influence the Value Relevance of Fair Value Measurements?

DONG Nan-yan

2012, 0(07):  1548. 

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Based on the samples from China’s security markets of 1203 non-financial listed companies from 2007 to 2010 with fair value accounting information available, this paper examines whether the fair value measurement has value relevance and how the board independence influences the value relevance of the fair value measurement. The results indicate that the fair value measurement has more value relevance than the historic cost measurement, this can be seen more obvious from the items on the profit statement; the board independence has a significant positive effect on the value relevance of fair value measurements. This proves the effectiveness of board independence as a mechanism controlling the fair value information in the context of China’s security markets.

A Review of Mechanism Design Theories

FANG Yan

2012, 0(07):  1549. 

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The new understanding of the mechanism and the concept of incentive compatibility make the mechanism design framework established, the display principle greatly simplifies the analytical framework. The public goods economy is difficult to effectively balance the allocation efficiency, voluntary participation and incentive compatibility. The dominant strategy equilibrium mechanism provided by the public goods can lead to strict Pareto ineffective and authoritarian respectively in the quasi-linear environment and the general economic environment. In Bayesian environment, for both public goods economy and private goods economy, Pareto efficiency and voluntary participation are hardly compatible. Among them, the incompatibility of public goods still holds at the limit angle. The Nash implementation and its expansion try to make all the balanced results in the given mechanisms the optimum for the objectives of social choices. To relax the assumption about the information structure and reason, the latest developments of the theories are unfolded around the endogeny of the information structure, a stable mechanism, and the issues of computing mechanism design.