Table of Content

15 October 2021, Volume 0 Issue 10

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Theoretical Economics

Intelligent Transformation and High-Quality Development under the New Round of Technological Revolution

LI Peng

2021, 0(10):  3-15. 

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Intellectualization is a prominent feature of the new round of technological revolution and an important starting point to lead innovation and development. This paper constructs a dynamic multi-regional computable general equilibrium model for this study. The findings show that intelligent transformation can accelerate economic growth, promote the upgrading of industrial structure, and reduce carbon emissions. While accelerating the progress of green technology and improving energy efficiency can enhance the positive impact of intelligent transformation on economic growth and green development. However, at the same time, intelligent transformation will accelerate the structural adjustment of labor market in various regions, and the impact on labor demand in different industries in different regions is quite different. The labor demand in traditional industries will decrease significantly, while the labor demand in most high-end manufacturing industries will increase to varying degrees, which is more obvious in the central and western regions. The implication of the above mentioned conclusion is that the government should continue to promote the intelligent transformation steadily, make more efforts for high-quality development, at the mean time make dynamic adjustments according to the characteristics of different regions and industries, so as to avoid the negative impact of the rapid intelligent transformation on the employment of traditional industries.

Can Market Competition Decrease Intro-Industry Income Gap: From the Perspective of Heterogeneous Labors

TAN Shi-yu, WANG Zi-li, WU Wan-zong

2021, 0(10):  16-29. 

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The changes in market competition can have a significant impact on the income gap. Strengthening market competition is beneficial to decreasing intro-industrial income gap. The results of a theoretical analysis reveal that market competition can on one hand improve industrial demands and prices on low skills and increase the income of low-income labors, on other hand, it can also squeeze the monopoly profit rent shared by the high-income labors and decrease their skill prices and income, and finally, the intro-industrial income gap will be narrowed. The empirical analysis based on the data of listed companies and Chinese General Social Survey (CGSS) further verifies the above-mentioned mechanism. This finding shows that the building of the competitive market system and the fair income distribution system has solid theoretical foundation and that to keep strengthening market competition can further help to narrow the income gap and achieve common prosperity.

Public Economics & Administration

Vertical Fiscal Imbalance, Tax Efforts and Local Economic Growth

CHU De-yin, FEI Mao-sheng

2021, 0(10):  30-42. 

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The establishment of a fiscal relationship between the central government and the local governments with clear powers and responsibilities, financial coordination and regional balance is not only conducive to the regulation of the behavior of local governments, but also contributes to achieving long-term stable growth of the local economy. Based on the panel date of 30 provinces of China from 1998 to 2017, this paper investigates the mechanism and effect of vertical fiscal imbalance and tax efforts on local economic growth. The results show that the increase of VFI is harmful to the sustained growth of local economy, but VFI can indirectly promote economic growth through inhibiting local government's tax efforts. In addition, the promotion of the current tax efforts of local governments also shows an inhibitory effect on local economic growth. Therefore, it is necessary for the government to reasonably control the level of VFI, use appropriate imbalance to regulate local governments' behavior, and lay the institutional foundation for the long-term stable economic growth. The government should stabilize the local governments' revenue expectation, prevent the excessive tax efforts from inhibiting the production enthusiasm of the micro economic agents, pay attention to the differences in inter-regional development, and strive to avoid the development pattern similarity and resource waste caused by blindly pursuing the upgrading of industrial structure and deepening the degree of opening to the outside world.

The Goal of and Policy Recommendations for Deepening the Reform of China's Income Distribution System from the Perspective of Shared Development Concept

ZHANG Tian-jiao

2021, 0(10):  43-55. 

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The concept of shared development is an important content of Marxist distribution theory, which reflects the essential requirements of socialism with Chinese characteristics, and is the most direct manifestation of the fairness and justice of the income distribution system. After entering the new era, the problem of unfair resident income distribution between urban and rural areas and between regions is still prominent. The Fifth Plenary Session of the 19th Central Committee of the Party also clearly pointed out that, “There is a large gap between the urban and rural developments and between their income distributions”. According to the concept of shared development, no matter in terms of the main body and content of sharing, or in terms of the process and results of sharing, the current income distribution system in China has many problems that are incompatible with the concept of shared development. The concept of shared development has pointed out the goal and direction for deepening the reform of the income distribution system in China. In August, 2021, the tenth meeting of the Central Finance and Economics Committee clearly pointed out: “It is necessary to correctly handle the relationship between efficiency and fairness, and establish a basic system arrangement for the coordination of primary distribution, redistribution, and the third-time distribution”. For this, when implementing the concept of shared development and deepening the reform of the income distribution system in China, it is necessary to implement multiple policies to form an olive-type income structure group as soon as possible. It is necessary to adhere to the dominant position of public ownership and distribution according to work, and establish a long-term mechanism for shared development to narrow the income gap. It is necessary to make up for the shortcomings in people's livelihood and promote the balanced development of basic public service. It is necessary to innovate the government's adjustment mechanism for income redistribution and the third-time distribution to form an effective guarantee for the realization of shared development. In this way, we can narrow the income distribution gap between the members of society, promote social fairness and justice, and realize the Chinese dream of shared development and common prosperity for all the people.

Modern Finance

Critique and Reconstruction of the Concept of Monetary Essence from the Perspective of Marx's Duality Thought

LI Xiu-hui

2021, 0(10):  56-66. 

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There exist problems in the two concepts of monetary nature in western economics, which can hardly explain the monetary phenomenon and economic reality. Marx once criticized the both in his works. His duality analytical method provides an ideological weapon for objectively recognizing the two concepts of the nature of money and comprehensively understanding the multi-dimensional connotation of money. Marx's duality thought holds that money essentially has two properties: social attribute and natural attribute, which is a commodity that acts as a general equivalent. Based on the method of the unity of history and logic, Marx advocated the idea of rising from abstraction to concrete analysis. The historical evolution of the social form of money provides a historical basis for Marx's monetary analysis. Marx's duality method is also applicable to the analysis of monetary functions. The general equivalent can extend two basic functions: value scale and transaction media, both can be interpreted in duality. Based on the overlapping of monetary functions, the construction idea of monetary theory can be obtained.

The Financial Risk Effects of China's Imported Uncertainties: Classification, Calculation and Dynamic Characteristics

LIU Jin-quan, LIAO Wen-xin

2021, 0(10):  67-78. 

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The findings of the study via the TVP-VAR spillover index method show that the financial risk effect of China's imported uncertainties is significantly higher than that of volatility spill-in risks in domestic markets. Among the financial risk effects of the four types of imported uncertainties, the types of the major imported uncertainties that each market is faced are quite different; the spillover effect of imported macroeconomic uncertainty is the strongest, and the bond market has the largest exposure to imported uncertainties. The important critical events will significantly enhance the financial risk effects of the imported uncertainties. The financial risk effects of the imported macroeconomic uncertainty and the disease uncertainty triggered by COVID-19 in 2020 are significantly higher than those during the financial crisis in 2008, while the financial risk effects of the imported financial uncertainty and economic policy uncertainty caused by it are relatively weaker. The results of the impulse response function indicate that when preventing the imported uncertainties, the effect of interest rate regulation is better than that of monetary quantity regulation. The effectiveness of crisis response of the differential reserve ratio dynamic regulation mechanism is the best among the four economic policies, while the effectiveness of cross-border capital flow management is relatively weaker.

Business Administration

Participation in Poverty Governance and Corporate Risk Level

YUE Jia-bin, YE Ying-zi, SUN Yi-wen

2021, 0(10):  79-91. 

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Government and market are the essential entities in constructing the national governance system and achieving the modernization of governance capacity. To straighten out the relationship between the two can better play the role of governance, which has become a research topic attracting the scholars' attention. Taking the implementation of the targeted poverty alleviation policy as the research background, this paper conducts an empirical test of the impact of the listed companies' participation in the targeted poverty alleviation on their corporate risk levels. The findings show that the listed companies as market governance units participating in targeted poverty alleviation led by the government can significantly reduce their risk levels and that enhancing their corporate reputation is an important channel leading to the above-mentioned effects. The results of further study suggest that this role of risk restraining is more significant in the enterprises of state-owned, with less financing constraints or with poor internal quality control. The above results provide empirical evidences for the effectiveness of the cooperative governance mode that the government encourages companies to participate in, suggesting that in the implementation of targeted poverty alleviation, the interconnected governance between the successful government and the efficient market not only conforms to the self-interests of enterprises, but also improves the efficiency of resource allocation for poverty alleviation. Therefore, this study has important enlightenment for the listed companies to summarize their experience of participating in targeted poverty alleviation and for the social powers to participate in the rural revitalization and other national strategies.

The Influence of the Observed Managers' Uncivilized Behaviors on the Employees' Uncivilized Behaviors: Based on the Social Cognition Theory

ZHAN Xiao-jun, XIONG Tian-ren

2021, 0(10):  92-102. 

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Based on the social cognitive theory, this study explores the functioning mechanism and fringe conditions of managers' uncivilized behaviors clearly observed on the uncivilized behaviors of the bystanders at workplace. Through the analysis of 363 supervisor-employee paired data collected at three stages, it is found that there is a significant positive correlation between observed managers' uncivilized behaviors and bystanders' uncivilized behaviors at workplace, that moral disengagement plays a mediating role in the relationship, and that psychological privilege is playing a moderating role both in the direct effects of the observed managers' uncivilized behaviors and the moral disengagement and in the indirect effects of observed managers' uncivilized behaviors on bystanders' uncivilized behaviors at workplace through moral disengagement. This indicates that employees' psychological cognition is playing an important role during the course of managers' uncivilized behaviors affecting the bystanders.

Industry & Trade

Urban Digital Technology, Innovation Heterogeneity and Export Product Technical Complexity of “Hidden Champion” Enterprises

LIU Ze-yan, LIN Han-chuan, ZHANG Si-xue

2021, 0(10):  103-116. 

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On the basis of clarifying the mechanism of urban digital technology and different innovation types affecting the technical complexity of export products of the hidden champion enterprises, this paper makes use of the patent data of the hidden champion enterprises and the import and export matching data of the customs from 2011 to 2016 to conduct an empirical analysis of the different impacts of different types of innovation on the technical complexity of the hidden champion enterprises' export products. From the perspective of product innovation, it also explores the impact of urban digital technology on the technical complexity of the hidden champion enterprises' export products. The results show that both the urban digital technology and the product innovation have direct significant improving effects on the technical complexity of the hidden champion enterprises' export products, however, the effects have significant differences due to the corporate heterogeneity. At the initial stage of the transformation, product innovation squeezes the ivestment in digital transformation of enterprises, which slows down the positive promoting effect of urban digital technology on the technical complexity of the hidden champion enterprises' export products. The urban digital technology can significantly improve the technical complexity of the export products of hidden champion enterprises through the intermediary channel of product innovation,

Research on the Influencing Mechanism of Factor Price Distortion on the Domestic Value-Added Export of the Manufacturing Industry

JIANG Han-ming, YUAN Hong-lin, LUO Chun-xiang

2021, 0(10):  117-126. 

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As an important feature of microeconomic operation, the impact resulted from the process of the factor prices marketalization lagging behind the benefit allocation share of China's manufacturing industry embedded in global value chain from the product market is otherwise always neglected. On the basis of inducing and deducing the related theoretical logic, this paper measures the domestic value-added export at the level of enterprises through merging the Industrial Enterprise Database and the Customs Database from 2000 to 2012 and conducts an empirical test. In order to reduce the impact of endogenousness, it further chooses the number of years from taking office to retirement of the provincial Party secretaries of each province as the instrument variable of factor price distortion. The findings show that the factor price distortion calculated no matter by random frontier or by FanGang index method would significantly hinder the improvement of domestic value added export of China's manufacturing industry. The impact of the factor price distortion on the domestic value-added export is mainly through two channels, i.e., inhibiting the internal R&D investment of enterprises and preferring state-owned resource allocation among enterprises. In terms of the controlled variables, the indexes of the R&D input are significantly positive, while the indexes of most other controllable variables cannot pass the significance test.

Modern Accounting

Free Trade Zone and Corporate Cash Holding: Empirical Evidences from Chinese Listed Companies

ZHANG Rui, ZHANG Yue

2021, 0(10):  127-137. 

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Taking Chinese listed companies from 2007 to 2019 as samples, this paper uses PSM-DID method to empirically test the impact of the establishment of FTZ on corporate cash holdings. It is found that the establishment of FTZ can significantly reduce the present level of corporate cash holding. The influence of the FTZ establishment on corporate cash holding is more significant in the enterprises supported by the Belt and Road Initiative. The establishment of FTZ is more able to reduce the cash holdings of the enterprises in the manufacturing industry. The management shareholding can play more roles in reducing corporate cash holding from the establishment of FTZ. The results of the mechanism study show that the reason why FTZ establishment can reduce corporate cash holding lies in the fact that FTZ can reduce the transaction costs and relieve the financing constraints of the enterprises. Further analysis of the economic consequences reveals that the FTZ establishment can improve corporate value through reducing corporate cash holdings.

Foreign Currency Debt Financing and Audit Fees

YUAN Pan-pan, GUO Fei

2021, 0(10):  138-148. 

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In recent years, the scale of foreign currency debt financing of Chinese enterprises has been increasing, and some enterprises have generated foreign currency debt financing risks. Then, will this risk affect the enterprises' audit fees? Based on the information related to foreign currency debt financing disclosed by China's A-share listed companies from 2014 to 2019, this paper empirically tests the impact of corporate foreign currency debt financing on audit fees. The findings show that the larger the scale of foreign currency debt financing, the higher the audit fees will be. The corporate operating risks and auditor input are the intermediate channels through which foreign currency debt financing affects the audit fees. The results of further research show that the greater the volatility of the RMB exchange rate, the more significant the positive correlation between foreign currency debt financing and audit fees, but companies' overseas income will weaken the positive correlation between the two.