Table of Content

15 December 2012, Volume 0 Issue 12

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Exploration of the Target Mode for China’s Reform

JIAN Xin-hua

2012, 0(12):  1601. 

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The exploration of the target mode for China’s reform has gone through a winding path: from the initial stage without clear target by blindly learning from Yugoslavia and Hungary, to the 1980s when someone proposed to set Japan and Germany as a model, then to the 1990s when the American mode was advocated. It is after the occurrence of the three great happenings, i.e. the fall of the former Soviet Union, the serious economic crisis in the USA and the growth miracle of China, that Chinese people come to realize that the target mode-the new system to be established for China’s reform-should be the combination of the socialism market economy and the socialism democracy ruled by law.

On the Rationality of Urban Housing Prices

CHEN Hong-yan WANG Qiu-shi

2012, 0(12):  1602. 

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By analyzing the indicators and models commonly used to reasonably determine the housing prices, this study finds out that the standard to judge the rationality of housing prices has three angles: the residents’ disposable income, the income on investment, and the economic fundamentals. It is more reasonable to take the economic fundamentals as the criterion to determine standard housing price. This study tries to set up an individual fixed effects regression model after H-P filtering to conduct an empirical analysis of the rationality of housing prices from the two dimensions of time (1998-2010) and space (35 provincial capital cities and municipalities directly under the central government). The main conclusions are as follows: there is a stable co-integration relationship between housing prices and urban economic fundamentals; most urban housing prices are reasonable, which indicates that the continually rising housing prices in China has in fact been sustained by the rapid development of the economy and the growing urban population; China’s higher urban housing prices are mainly found in the two periods of time: from 1998 to 1999 and from 2009 to 2010, the former occurring mainly in the central and western cities, and the later occurring mainly in the eastern coastal cities, the time and space nodes of higher or lower prices are closely related to the macroeconomic policies.

On the Profit and Measurements of China’s Economic Transition: 1978-2010

CHEN Dan-dan

2012, 0(12):  1603. 

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By devising the measuring index system for economic transition profit (ETP) and employing the AHP statistical method, this paper measures the general index of ETP from 1978 to 2010 and analyzes the trends and characters of fluctuations of ETP in different historical periods. The results of the study indicate that though the institutional transformation has made tremendous gains since the economic restructuring, the structural transformation still needs to be deepened. The transformation of the development mode and globalization in transition is the key to the future greater achievements of China’s economy. With the economic transition continuing to advance to the later stage, to strengthen the positive role of state and give the government full play in effective control of the direction and process of economic transformation can guarantee the orderly and efficient development of the economic transition. To adjust the key points according to the actual trace of transformation can benefit further deepening of the reform on the basis of rationality, promoting the maintenance and growth of ETP in the long run.

Has Lewis Turning Point in China’s Labor Transfer Arrived? From the Perspective of Changes of the Urban-Rural Gap

LI Bin

2012, 0(12):  1604. 

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By constructing the index system and taking 1978-2010 as the sample period, this paper employs the principal component analysis method to measure the level of China’s urban-rural gap and conducts an analysis of the trend of changes of the gap. The study results show that since 2005, the urban-rural gap has indeed been gradually narrowing, but the reason lies in the fact that the preferential agricultural policies of the central government have greatly improved the economic conditions in the rural areas. Compared with the trend of the reference variables, there is no evidence that the “Lewis turning point” has arrived.

A Two-Dimensional Analysis of the Influencing Factors of County Government’s Administrative Costs

LUO Wen-jian

2012, 0(12):  1605. 

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The county government has a strong budgetary authority; its administrative costs have been running at a higher level, even showing a sharp upward trend. The main influencing factors on the higher county government’s administrative costs are reflected in the two aspects of the administrative agency and the system: the factors of the administrative agency including weak cost awareness and regardless of costs, oversize government, insufficient administrative capacity and behavioral preferences of the officials under incorrect performance-orientation; the institutional factors including the budget system, the supervision system and the evaluation system. In order to control the county government’s administrative costs, we should not only perfect the administrative agency, i.e. to improve the officials’ cost awareness and efficiency concept, strictly control the government size, enhance the officials’ administrative capacity, and correct the officials’ behavior preferences on one hand, but also pay attention to the institutional construction, i.e. to improve the budget system, perfect the supervision system, and carry forward the evaluation of government performance on the other hand.

An Empirical Study of the Relationship between Financial Expenditure, Social Material Capital Formation and Economic Growth

WANG Zhu-wang

2012, 0(12):  1606. 

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This paper aims at identifying the relationship between financial expenditure, social material capital formation and economic growth based on the macro economic data of China’s 28 provinces from 1994 to 2010. The results indicate that financial material capital expenditures exert a negative effect on economic growth. Meanwhile the spillover effects of material capital bring in an indirect positive effect; while the effects caused by the financial non-material capital expenditures are just on the contrary. In general, the increasing financial material capital expenditures are going against China’s economic growth, while the non-material is positive. Thus, starting from the viewpoint of promoting sustainable economic growth, the government should pay attention to the allocation and efficiency of financial material capital expenditures, and increase the amount and proportion of financial non-material capital expenditures appropriately.

How to Improve the Effectiveness of Loan Loss Provision Supervision: Based on a Comparative Analysis of International Banking Experience

BA Shu-song

2012, 0(12):  1607. 

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There exist three big differences between the loan loss provision systems in the banking industry of different countries: differences on loan classification, the property of the secondary capital of the general provision being in dispute, and different progress of implementation of Basel Agreement III. In view of the lacking of coordination revealed in the existing loan loss provision systems and its relationship with capital and banking profitability, the following measures must be taken to improve the efficiency of loan loss provision supervision: firstly, to improve the comparability of the supervision index so as to provide the banking industry with a fairer competitive environment; secondly, to set up a dynamic counting and drawing mechanism for loan loss provision; thirdly, to prepare a unified scheme for counting and drawing of the general provision; fourthly, to unify the capital property of loan loss provision; and fifthly, to improve the supervision index and its effectiveness.

An Empirical Analysis of Convergent Effects of China’s Financial Development on the Regional Economic Growth: 1978-2010

MA Ying

2012, 0(12):  1608. 

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With the panel data of provincial large samples from 1978 to 2010, this paper employs the lag-adjusted panel data model to test the influences of the different regional financial developments at China’s provincial level on the differences of regional economic growth. The results show that in the long run, China’s regional financial development and regional economic growth both tend to converge. In the meanwhile, once the difference of the regional financial development has been reduced by 1%, the difference of the regional economic growth will reduce by about 0.214%. On one hand, this has verified that since China has implemented reform and opening-up policy, each province has made remarkable progresses both in the financial development and the economic growth. On the other hand, it also shows that China’s economic growth has been supported by financial development. However, as for specific provinces, this support has brought forth some different effects among the regions.

A Comparative Case Study of Organizational Socialization Strategy for Both State-Owned and Private Enterprises

HU Dong-mei

2012, 0(12):  1609. 

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Based on interviews and questionnaire survey of the employees from SE Company and PE Company, this article obtains the result that the total satisfaction of the employees in the state-owned enterprises is higher than that in the private enterprises; the effects of the institutionalized tactics adopted by state-owned enterprises are much better, the employees have strong sense of belonging. While the institutionalized tactics are carried out with insufficient power in private enterprises, and individualized tactics are seriously in want. With the aggravation of the market competition, the state-owned enterprises have to do their best to develop individualized tactics, and private enterprises should try hard to develop their institutional tactics and give full play to their advantageous individualized strategy. In order to win greater development, all the enterprises have to adopt a variety of different organizational socialization strategies.

A Review of the Researches on Relationship Governance

LI Min,

2012, 0(12):  1610. 

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Relationship governance can exert an important influence on organizational management. This article reviews the researches on the connotation, affecting factors and its utility of relationship governance. It believes that in view of the cultural differences between China and foreign countries, the understanding of relationship governance has something in common, while there are also some differences. The same point is that all regard relationship governance as a governance mode formed by embedding informal relationship into organizational management; while the differences lie in the different understanding of the connotation, utility and mode of relationship governance. On the basis of reviewing the literatures, this study puts forward some issues of relationship governance to be further discussed by localized researches.

Comment and Analysis on the Bargaining Power of Commodity Price in International Trade between Importing and Exporting Countries: with the Case of China and ASEAN

WANG Zhong-zhao

2012, 0(12):  1611. 

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Commodity price is an internal factor affecting the development of international trade, while the bargaining power is an external manifestation of the commodity comprehensive competitiveness. By constructing a trade commodity contract-price model based on two-tier heterogenic random frontier, this paper aims to explore the essence of the bargaining power of the internationally traded commodity price at the nation level. The results indicate that the bargaining power of the internationally traded commodity price has some asymmetry, due to the greater strength of the exporting countries than importing countries in commodity price negotiation, which benefits them to gain more profits from their stronger bargaining power. It is found that the bargaining power has two main characteristics: one is that the commodity bargaining surplus gained by exporting countries is increasing year by year, while that of the importing countries is on the contrary; the other is that as for those ASEAN small nations with relatively backward economy, their bargaining power has not much differences in their import and export goods. Countries with better developed economy can have stronger bargaining power for their exports and gain more benefits. Only a few countries could have access to higher surplus from part of goods bargaining, most of them can only obtain lower surplus from the bargaining part. The effects of tariffs on goods bargain is quite obvious, on average, about 0.503% decline of the price level of internationally traded commodity contracts between China and the ASEAN is brought about by the falling tariffs.

From Ohlin to Krugman: What Location Means to Trade? A Comparison between the Interregional Trade Theory and the New Economic Geography

WANG Lan

2012, 0(12):  1612. 

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The impact of location on trade is an age-old problem, however, as a cross field between regional economics and international economics, it has been excluded from the mainstream economics. Both as Nobel Prize winner of economics, Ohlin and krugman focus their attention on the cross field of location and trade, creating respectively the interregional trade theory and new economic geography, from which the significant influence of location on trade can be seen. Through comparison and clarification of the inheritance and development relations between the two big theoretic systems, and on the basis of analysis of the mutual influencing mechanism between location and trade, this paper reveals that the essence of trade is a location problem, an equilibrium result of spatial distribution of the supply and demand.

Institutional Environment, Institutional Changes and State Auditing System Reform

XU Li

2012, 0(12):  1613. 

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The neo-institutional economics always emphasizes the decisive influence of the system on contract structure and focuses the effects of institutional environment on the system’s operating efficiency. Its organizational theory has provided theoretical basis for the existence of an interactive relation between the state audit organization and the audit environment. As one of the superstructures, the state audit organizational system should fit in the audit environment; the audit system as the core of the audit organization system should be dynamically reformed. According to the general law of institutional evolution during the course of institutional substitution, transformation and transaction, we should choose the system mode of audit system innovation, auditing system marginal improvement, and resource allocation mechanism transformation at the right time.

Discretionary Accrual Model: Development, Application, and Breakthrough

JIANG Ji-lu

2012, 0(12):  1614. 

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The purpose of the design of the discretionary accrual models is to reduce the estimation efforts of the non-discretionary part of the accrual to the minimum. This paper reviews the design of the key variables of the model evolution and the selection of the model type, as well as the market application effects of different models. It is found that the capability of the model to separate the accrual has not been improved along with its development; while the practice of the specific accrual that the non-discretionary part is estimated on the basis of the non-accounting factors has less errors than the total accrual that the non-discretionary part is estimated on the basis of the accounting factors. Furthermore study finds that by checking the changes of the model fitting effects after excluding the specific accrual from the aggregate accrual, the manipulation of the excluded specific annual can be verified. Therefore, the exclusive method can be chosen as the breakthrough to lower the estimation error and improve the explanation power of the model.