Table of Content

15 January 2014, Volume 0 Issue 01

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Speeches of Experts at China’s Economists Forum 2013

2014, 0(01):  1648. 

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The State of Creativity in Contemporary China

Evan Osborne

2014, 0(01):  1649. 

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The process of China's economic development in several ways resembles that of other East Asian countries. Some of these countries such as Japan and South Korea are already among the most creative and innovative in the world. But other developing countries, despite over twenty years of economic growth, have failed to achieve this transformation. This article uses several kinds of data to measure China's current creativity level and its improvement over time. The results indicate that while Chinese creativity has improved, along several dimensions China still emphasizes relatively marginal sorts of creativity, and neglects more influential yet riskier kinds.

Sen’s Critique of Utilitarianism and Its Enlightenment on Chinese Dream

LUO Ying, WANG Yi-lin

2014, 0(01):  1650. 

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Since the reform and opening up, the concept of development based on utilitarianism has not only brought rapid economic growth, but also caused a lot of negative consequences. In the context of realizing the Chinese Dream, it is necessary to reflect the utilitarian concept of development and propose an alternative paradigm. In all possible alternative frameworks, Amartya Sen’s capability approach, which inherites Marx’s view of comprehensive development of human freedom, always adheres to a human-centered position to criticize utilitarianism, thus it can best meet the requirements for the realization of the Chinese dream. The inspiration of the capability approach lies in that: first, being helpful to change the current mode of economic development so as to embark on a sustainable path; second, emphasizing the spiritual initiative of human being, so as to advance and enrich our national spirit and the spirit of the times; third, advocating reaching consensus through dialogue and consultation, so as to unite the national people’s strength.

Research on the Design of International Cooperation System to Supply Global Public Goods: with A View on the Route Selection for China’s Participation

YANG Yi1,2, JIANG Jin-fa2

2014, 0(01):  1651. 

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Since 1990’s, GPGs has become one of the questions arousing general concern in the international political and economic relations. It has its unique characteristics different from the public goods domesticly supplyed in any country in organizational form, incentive mechanisms, implementation means and other aspects. The theory and policy proposal on GPGs mostly reflect the requirements of developing countries to seek an external environment favorable to their stable development, thus it is absolutely necessary to establish an efficient mechanism to supply GPGs for the countries of the world, especially for the developing countries to realize the national benefit and mutual development. The most efficient approach to resolve the problem of supplying GPGs is international cooperation, which raises critical requests on the design of an efficient and reasonable cooperative system. Following the principals of international cooperation system, China must choose an optimal route for supply of GPGs, which comforms to its own interests, by starting from the supply of the regional public goods and in accordance with its own economic development and financial capacity.

Fiscal Decentralization, Local Government Distorted Behavior and Adjustment of Urban-Rural Primary and Secondary School Layout

LI Xiang-yun, WEI Ping

2014, 0(01):  1652. 

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Due to lack of the “hand vote” and “vote with feet” mechanism in China’s fiscal decentralization, the local governments try to pursue their maximal political achievements by reducing per-student educational fiscal expenditure through scale economy resulted from school merges, which is the major reason for the local governments’ misinterpreted implementation of the centre government’s primary and secondary school layout adjustment policy. The empirical results based on the panel data modal across 31 provinces from 2001 to 2010 in China show that the higher degree of fiscal decentralization, the greater the local governments’ efforts in merging primary and secondary schools, the less the number of schools, the lower the per student educational expenditure in budget. In order to solve this problem, this paper puts forward such policy recommendations as planning school layout scientically, improving the performance assessment indicators, strengthening the constraints of rules and procedures, and so on.

Research on Asymmetric Effects of Correlation between China’s Stock Markets and Macro-Economy under Uncertain Policies

CHEN Shou-dong, YI Xiao-wei, LIU Yang

2014, 0(01):  1653. 

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Taking changes in China’s economic policies as a starting point, this paper studies the dynamic correlation between China’s stock markets and macro-economy with the data from January of 1995 to June of 2013 based on theoretical derivation. The results show that there indeed exists asymmetric correlation between China’s stock market and macro-economy. The correlation coefficient in downturn condition is greater than that in boom condition. China’s stock market has a more significant “barometer” function in economic downturn. Although uncertain policies can indeed affect asymmetric intensity of dynamic correlation between stock market and macro-economy, macroeconomic fluctuation has stronger impact on the asymmetric intensity of the dynamic correlation between the stock market and macro-economy.

Value Premium in International Stock Markets: An Interpretation Based on the World Long Term Risk Model

CHEN Guo-jin, HUANG Wei-bin

2014, 0(01):  1654. 

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Value stock portfolio can get higher return than growth stock, namely the value premium puzzle is a widespread phenomenon in the international stock markets. Based on the assumption of economic integration, this paper adopts the world CCAPM theories, such as the classical CCAPM, habit formation, cointegrated long-term risks and stationary long-term risks, to study the value premium in the major developed countries. The empirical results show that the cause for the appearance of value premium lies in the fact that the value style companies are more exposed to the cointegrated long-term risks and time-varying economic fluctuation risks. The cointegrated long-term risk theory can comprehensively take into consideration the short and long term risk exposure of stocks, thus it is better than other models. This can give some enlightenment to China’s stock markets, which have the same value premium and are under the increasingly open economic conditions.

A Study of the Role Evolution of Multinational R&D Institutions in China

XIAO Gang, Du De-bin

2014, 0(01):  1655. 

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When the U.S. financial crisis hitting heavily the global economy, the global operation and development of multinational companies are also deeply affected. However, the profits of multinational companies gained in the Chinese markets are not falling, instead, are increasing. The strategic position kept by their R&D institutions in China is rising, and the role evolution process is speeding up. In order to explore the evolution path and the driving mechanism of the role of multinational R&D institutions in China, this paper applies the enterprise resource-based theory and the multinational company technological innovation globalization and regional innovation network theory to analyze the role evolution course from the perspective of evolutionary economics, so as to systematically clarify the internal mechanism of role evolution of the multinational company R&D institutions in China, thus providing a theoretical reference for multinational companies to maintain a competitive advantage in the Chinese market.

Cooperative Surplus and the Nature of Enterprises: Based on the Methodology of Individual-Organization Unity of Opposites

ZENG Xiang-yan, XIANG Guo-cheng

2014, 0(01):  1656. 

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Coase’s “Enterprise contract theory” is right only on the philosophy level of social “atomization”, however, this social economic view in such virtual context cannot rationally reflect the real world. Therefore, the discussion of the nature of enterprise needs to return to the practical context of “human social development”. In the human social development, people are in the pursuit of the two basic welfares: survival and freedom. The pursuit of the two basic welfares often makes people fall in a “dilemma”: to improve survival welfare, people need to join the organization to get cooperation surplus, but the organization would reduce the freedom welfare of people to some degree at the same time. Based on the methodology of unity of opposites of “individual-organization”, this paper discusses the reasons of the emergence of organization and the function of contract, then it puts forward the basic viewpoint that the economic organization which creates the cooperative surplus is the nature of enterprise.

The Formation of China’s Photovoltaic Industry Dilemma: Path, Mechanism and Policy Reflection

WANG Wen-xiang1, SHI Yan-xin2

2014, 0(01):  1657. 

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The current plight of China’s photovoltaic industry is not due to the industry life cycle movement, but to the significant excessive production capacity in the stage in terms of the related demand. The substantial cause for the overcapacity lies in the improper interference with industrial investment from the local government land use and the system defects in financial and environmental protection industries, which results in a “tide phenomenon” in the investment of photovoltaic industry. Energy security and environmental protection should be the strategic value of the basic motivation to support the PV industry in China. The so-called “PV New Policy” which is based on the inherent logic of “market failure” lacks of solid theoretical basis, it is impossible to produce desirable results. This paper suggests that, firstly, specific, reasonable and workable implementation rules should be worked out immediately to stimulate the domestic market demand for photovoltaic products, so as to cultivate the domestic PV market; secondly, the deep-lying system defects formed by excessive production capacity should be reformed, so as to prevent and deal with from the source the problem of excessive production capacity frequently appearing in China’s industrial economic development; finally, the government’s economic regulation on the industry should be strictly limited to the fields in which natural monopoly and asymmetric information exist, so as to avoid generalization of regulation and borderless expansion of government regulation power.

An Analysis of Shanghai’s Long-Term Energy Consumption and Carbon Emission Based on LEAP Model

CHANG Zheng, PAN Ke-xi

2014, 0(01):  1658. 

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LEAP platform is an ideal tool to analyze the complex system of economy and energy environment. By constructing a LEAP-Shanghai model, this study designs three comprehensive scenarios, i.e. the baseline scenario, the emission reduction scenario, and the enhanced emission reduction scenario, as well as other eight sub-scenarios, including industrial structure optimization, terminal energy efficiency improvement, and so on. Then it simulates the energy consumption and carbon emissions trends in Shanghai and conducts an analysis of the contribution of each scenario. The results show that, according to the long-term stable economic growth, the growth trend of energy consumption and carbon emission in Shanghai can hardly be reversed in a middle or short term, but there may be a peak around 2040, earlier in the whole country. The key of long-term energy-saving and carbon emission reduction is to exercise a reasonable control over the growth rate of economic development. To achieve this target, various other means should also be relied on.

Reflection on Several Important Issues of Government Audit

SONG Chang1, TIAN Ying-ying1, ZHANG Yu-yao2

2014, 0(01):  1659. 

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The nature of state audit is economic supervision. People-oriented governance is the starting point and foothold of state audit through economic supervision to participate national governance at present. The development of audit theory decides the development level of audit practice and the future direction. The reconstructed state audit theory framework mainly includes the basic theory, the application theory and the education theory of state audit. In addition, this paper also explores the significance of practice innovation, implementation approach and specific path of state audit concerning economic responsibility audit and anti-corruption practices, on the basis of the nature of economic supervision and the essence of people-oriented governance.

Has International Accounting Standards Convergence in China Improved the Corporate Executive Sensitivity of Performance-Based Salary Empirical Data from China’s A-Share Market

LUO Jing-bo1, PANG Xian-jun2

2014, 0(01):  1660. 

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By making use of the data of China’s A-share listed companies during 2004-2009, this paper studies the influence of accounting standards international convergence on executive sensitivity of performance-based salary. The results show that the executive sensitivity of performance-based salary has been significantly increased along with the international convergence of accounting standards. Relative to the state-owned enterprises, the executives of private enterprises have higher sensitivity of performance-based salary, and the corporate executives in the eastern regions have significantly higher sensitivity than those in the western and central regions. The international convergence of accounting standards has also improved the executive sensitivity of performance-based salary in the corporations which have set up compensation committees and in the companies with higher proportion of the first largest shareholders to a certant degree.