Table of Content

15 September 2014, Volume 0 Issue 09

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Analysis of Domestic Demand and Promoting Economic Growth：Theoretical and Empirical

Wang Junjie1,2

2014, 0(09):  1723. 

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In this paper, we prove the applicability of Kaldor’s demand-oriented growth theories in China with data in China from 1979-2013. That is to say，demand could promote long-term economic growth. The pulling effect is significant of demand for manufactured goods on economic growth in eastern and central regions, and this pulling effect is achieved mainly by increasing returns to scale in the manufacturing sector. Data show that the pulling effect of this period in 2001-2013 is much stronger than before. However, the data also show that the effect of increasing returns to scale in manufacturing is weakening, which could mean technological progress in a passive way of“learning by doing”will be difficult to sustain, and China must take a more proactive way of technological progress. Contribution of exports to economic growth is 1.12 percent in average, which is much higher than the estimate of traditional methods. However, the contribution rate of export is in a downward trend. This means that we need to compensate the adverse effects of the decline in external demand by increasing domestic demand, and promote economic growth through domestic demand. This could provide theoretical and empirical support for“economic development must be transferred to the track that relying on domestic demand and innovation”emphasized in third plenary session of the 18th CPC Central Committee.

Developers’ Behavior, Land Control and Dynamical Adjustment of Housing Supply

DING Jie, LI Zhong-fei

2014, 0(09):  1724. 

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Based on a partial adjustment model of housing stock, this paper estimates the response speed of the supply side to the demand impact in the housing market. The empirical analysis shows that, when faced with a positive demand impact in China’s housing market, the supply side cannot make quick response to increase the housing supply, which is one of the important reasons for the sustained high prices of China’s housing.The housing construction cycle itself cannot fully explain the slow response speed, the real reasons for the slow adjustment of the supply side are that the actions of land hoarding, prolonged development and so on taken by the developers based on the housing price expectation, as well as the strict land control of ther government. Hence, in the context of increasing demand for housing, the government should pay attention to the management of the supply side. On one hand, it should change the market expectation and crack down on land hoarding, so as to adjust the housing supply speed; on the other hand, it should release the land regulation gradually and give full play to the market in optimizing the allocation of land resources, so as to achieve the balance between supply and demand.

A Study of Budget Balance Mechanism Innovation to Prevent Debt Risks of Local Governments

LIAO Jia-qin, NING Yang

2014, 0(09):  1725. 

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At present, the debt scale of China’s local governments is tremendous, which is inconsistent with the rule of China’s annual budget balancing mechanism. To carry out the reform of the inter-temporal budget balancing mechanisms with the four key components of medium-term expenditure frameworks, fiscal policy report, budget stabilization fund and debt sustainability analysis is helpful to cure the “alcoholic’s behavior” of the local governments, governing the local debt risks from the source. In order to take the advantage of the inter-temporal budget balancing mechanisms to prevent the debt risks of the local governments, we should revise and perfect the budget law, strengthen the budget constraint on the behavior of local governments, establish a medium-term expenditure framework for the time span of 5-year term of office for China’s local Party and government leaders, achieve reasonable positioning of the autonomy in decision-making of local budget, and effectively improve the technology for fiscal revenue forecasts and expenditure estimates.

An Estimate of Income Tax Earning Capacity and Tax Efforts of China’s Enterprises: 2002-2011

YANG De-qian

2014, 0(09):  1726. 

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Based on the provincial data from 2002 to 2011, this paper employs the approach of representative tax system to estimate the tax efforts of China’s corporate income tax in 29 provinces. The findings show that: (1) tax efforts of enterprise income tax during 2002-2011 were increasing continuously, its contribution to the increase of enterprise income tax is 15.49 percent; (2) tax efforts varied greatly in China’s eastern, central and western regions during 2002-2011, the eastern region has the highest degree, followed by the western region, and the central region has the lowest degree. Therefore, it is suggested to improve the tax planning appropriately, namely, to determine the tax planning according to the tax revenue capacity and the degree of tax efforts of different regions.

On the Heterogeneity of Monetary Policy Impact on the Sub-Item Price Indices of CPI

XIAO Qiang

2014, 0(09):  1727. 

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This paper firstly applies the dynamic factor model to get the core rate of inflation and the macro common factors. Then, according respectively to the CPI, the core inflation rate and the sub-item price indices of CPI, it constructs a FAVAR model containing the monetary policy tool and the macro common factors. After that, it employs the impulse response function to study the dynamic characteristics of the impact of monetary policy tools on each variable. The empirical results are as follows: firstly, compared with VAR model, the FAVAR model has a better performance in analyzing the effects of monetary policy; secondly, compared with CPI, the monetary authorities should focus on the core inflation rate. In addition, every type of CPI indices has an impulse response function with its own special feature towards monetary supply. Therefore, in order to make the regulated-prices more effective and targeted, the monetary authorities should pay close attention to the heterogeneity characteristics of the impact of monetary policies on the sub-item price indices of CPI.

An Analysis of the Asymmetric Effects of American Monetary Policy Impact: From the Perspective of the Dichotomy between Real Economy and Virtual Economy

LIU Jun-min, WANG Xing

2014, 0(09):  1728. 

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The self-expansion mechanism of virtual economy and its special way of creating GDP have determined the asymmetric effect of monetary policy impact on the real economy and the virtual economy. This paper employs the SVAR model and the impulse response function to conduct an empirical test on the impact of American monetary policy, the result can confirm the existence of the asymmetry effect. The monetary policy is the direct variable determining the rise and fall of US virtual economy. Therefore, in the long run, instead of adjusting the economy only through monetary policy, the United States must take this asymmetry effect into account and adjust its economy through the structural policies, so as to restore the real economy and achieve the re-industrialization.

A Study of the Effects of Work-Family Climate on Work-Family Conflicts and Satisfaction: from the Perspective of Chinese Culture

LI Gui-qing, Margaret Reid

2014, 0(09):  1729. 

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Through an analysis of the survey data from Chinese knowledge employees, this study tries to examine the different outcomes of different work-family climates of the knowledge employees. The results indicate that both the family-sacrificed climate in the work and the work- sacrificed climate in the family have positive significant effects on work-family conflicts; while both the family-caring climate in the work and the work-caring climate in the family have positive significant effects on work satisfaction and family satisfaction. It is worth noting that the family-sacrificed climate in this sample has positive significant effects on work satisfaction. This reflects a special phenomenon in the work-family climate in the context of Chinese culture, thus, this paper tries to interprete the above results from the perspective of Chinese tranditional Confucian ethics and gender differences.

A Study of Offline Merchants’ Acceptance of Mobile O2O Commerce

LI Pu-cong, ZHONG Yuan-sheng

2014, 0(09):  1730. 

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Based on the task-technology fit model, the technology acceptance model and the innovation diffusion theory, this paper constructs an offline merchants-accepted mobile O2O (online to offline) commerce model to study the key factors influencing the acceptance of the mobile O2O commerce by the offline merchants. It takes the e-Hail taxi APP as an example to conduct an empirical analysis. The result shows that the task-technology fitness, the perceived usefulness, the trialability, the observability, the compatibility and the perceived risks all have significant impacts on offline merchants’ acceptance of mobile O2O commerce; while the perceived ease of use and the perceived costs have no direct impact on the offline merchants’ intention of adoption, but the perceived ease of use has indirect impact through the perceived usefulness. Finally, combined with the analysis of the empirical results, some suggestions are put forward for the application, development and promotion of mobile O2O.

Product Quality and Local Market Effects of Manufacturing Industry: Based on an Empirical Study from the Perspective of Demand Structure

ZHANG Ya-bin, LI Mi, FENG Di

2014, 0(09):  1731. 

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The study of the trade theory based on non-homothetic preferences shows that income distribution structure will affect the quality structure of one country’s import and export commodities through demand structure. This paper firstly tries to identify the quality type of each subdivided export product, then performs a test to see whether there exist local market effects in the bilateral trade of the quality-competitive products between China and its major trading partners based on the gravity equation containing the factors of demand structure. The results indicate that there exist differences in the local market effects of different types of quality products; at the same time, along with the demand scale, the demand structure varies at different places, presenting differentiated impact on the local market effects. Therefore, China should match up the current demand structure and excavate the endogenous power to transform China’s foreign trade from the two sides of supply and demand.

Enterprise Scale Heterogeneity and Export Mode Choice: Indirect, Mixed and Direct Export

MA Lin-mei

2014, 0(09):  1732. 

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Based on the trade theory of heterogeneous firms and employing the two methods of the linear regression model and the ordinal multi-classification logistic regression model, this paper makes use of the Chinese enterprise survey data in manufacturing industry published by the World Bank in 2013 to explore the relationship between the four firm sizes (minitype, small, medium and large) and the three export modes (indirect, mixed and direct). The results indicate that as the size becomes larger, the firm is less likely to choose indirect and mixed export modes and more likely to choose direct export mode. This suggests that due to higher entry costs with the direct export mode, different enterprise can make a rational choice among indirect, mixed and direct export modes according to its own size characteristics. Thus, when making export promotion policies, China should give sufficient consideration to the enterprise scale and the three export modes.

A Study of Civil Liability Allocation between the Partners and the Non-Partners of Special-General Partnership Accounting Firms

JIANG Yao-ming

2014, 0(09):  1733. 

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Based on the securities laws and regulations generally followed by each country, this paper carries out a study of the allocation problem of civil liabilities between the most important stakeholders inside of the special-general partnership accounting firms: practicing partner and supervising partner, project partner together with its signature CPAs and other project team members, project partners and consultants or experts, project partners and partner conference or the partnership affairs management committee or the partnership affairs oversight committee or the partners of each functional organization. The purpose is to establish a rational internal civil liability configuration mechanism with coordinated responsibilities, rights and benefits for accounting firms, so as to effectively curb the fraud motivation of the partners and improve the quality of audit reports fundamentally.

Fair Value Measurement, Differences between Accounting Standards and Tax Law and Conditional Conservatism

WANG Meng, XU Jing-chang

2014, 0(09):  1734. 

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The accounting conservatism has always been a hot spot among the researches both at home and abroad. Based on an empirical study, this paper chooses the new accounting standards and the A-share listed companies in Shanghai and Shenzhen Stock Exchanges from 2008 to 2012 after the implementation of the new tax law as the samples to explore the influence of the differences between accounting standards and tax laws on the accounting conservatism. Considering the present situation of extensive use of fair value measurement in the new accounting standards, it further studies whether the differences between accounting standards and tax law would further decrease the accounting conservatism in the companies adopting fair value measurement. The empirical results show that the differences between accounting standards and tax laws are significantly and negatively correlated with accounting conservatism, namely, the larger the differences are, the weaker the accounting conservatism is. When the fair value measurement is used, the differences between accounting standards and tax laws would further weaken the accounting conservatism, namely, the negative correlation between the two will become stronger.