Table of Content

15 April 2022, Volume 0 Issue 4

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Theoretical Economics

The Influence of Urban Population Aggregation on Residents' Sense of Happiness

ZHANG Cheng, YAO Yang-yang, ZHOU Han

2022, 0(4):  3-14. 

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Urban population agglomeration may affect residents' subjective well-being through scale effect and crowding effect. This research using the data of China Labor-Force Dynamic Survey (CLDS) and the city-level macro data shows that there is an inverted U-shaped relationship between urban population aggregation and residents' subjective well-being, with the inflection point at the curve being 0.6 thousand people per square kilometer. After grouping by differences in individual characteristics, it is found that rural residents and low-skilled laborers can benefit more from urban population gathering. In terms of the heterogeneity of urban characteristics, population aggregation can significantly improve the subjective well-being of the residents in the third-tier cities and economically underdeveloped areas. After replacing the regression model, the proxy variables of the explained variables and the measurement range, the conclusion is still consistent and robust. The analysis of the intermediate mechanism shows that urban population agglomeration has an impact on residents' subjective well-being through changes in personal income and work environment satisfaction, social trust level, commuting time and other paths.

The Impact of Productivity Growth on Employment: Crowding Out Effect or Spillover Effect?

WEI Xi-ye, GUO Dong-jie

2022, 0(4):  15-27. 

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Productivity growth can promote the changes of the nature of work, and further affect the quantity and structure of employment. This paper conducts an empirical study based on a three-dimensional panel data model and the data of 56 industries in 43 countries from 2000 to 2014. The results show that productivity growth may have a negative influence on the total employment, but it is relatively slight. The productivity growth has a crowding out effect on the employment of the same industry but a spillover effect on other industries. The findings of further study show that the impact of the improvement of productivity on the employment is not only restricted by human capital, but also presents multi-dimensional heterogeneity. The improvement of productivity in such industries as information technology, education and public services has a positive spillover effect, while the excessive prosperity of the financial industry and the real estate industry has a significant crowding out effect. The overall impact of the improvement of productivity on employment in developing countries is greater than that in developed countries. During the period of post financial crisis, both the crowding out effect in the industries with productivity growth and the cross-industry spillover effect are somewhat weakened. The improvement of productivity will not increase employment, the reason is that its negative direct effect has a strong counteracting effect on the positive spillover effect.

Public Economics & Administration

New“Budget Law”, Promotion Incentive and Quality of Budget Execution: From the Perspective of Budget Deviation and Budget Execution Progress

ZHAO He-yun, ZHOU Quan-lin

2022, 0(4):  28-38. 

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As the basic legal norm to regulate the government's behavior of revenue and expenditure, the new“Budget Law”is of vital importance to improve the quality of budget execution. By making use of the panel data of 30 provincial governments from 2011 to 2018 and constructing an intensity double difference model, this paper empirically evaluates the effect of the implementation of the new“Budget Law”on the quality of budget execution and the regulatory effect of the promotion incentive. The findings show that the implementation of the new“Budget Law”can significantly reduce the degree of budget deviation, balance the progress of budget execution, and comprehensively improve the quality of budget execution. The current official promotion incentive mechanism in China has inhibited the positive effect of the new“Budget Law”on the budget deviation and the progress of budget execution to a certain extent, that is, it has inhibited the positive effect of the new“Budget Law”on the quality of budget execution to a certain extent. The implementation of the new “Budget Law”has the most obvious effect on the improvement of the quality of budget execution in the western region, followed by the central region, but not significant in the eastern region. Therefore, it is necessary to further perfect the dynamic monitoring system of budget execution, revise the incentive mechanism for official promotion, pay attention to the regional differences of the quality of budget execution, so as to ensure the real implementation and effectiveness of the new “Budget Law” and practically improve the quality of budget execution.

Can Budget Supervision Legislation of Local People's Congress Restrain the Expansion of Local Government Expenditure? Evidences from Provincial Budgetary Examination and Supervision Regulation Legislation

YANG Jin, HUA Ru-ting, GONG Xiao-yun

2022, 0(4):  39-51. 

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How to strengthen the legalization of budget supervision of local People's Congress and restrain the expansion of local government expenditures is a key issue to prevent and resolve financial risks under the increasing contradiction between fiscal revenue and expenditure. Taking the provincial budgetary examination and supervision legislations at different regions from 1999 to 2017 as a quasi-natural experiment, this paper studies weather strengthening the budget supervision of the local People's Congress through legislation can effectively reduce local government expenditures and its functioning mechanism. The findings show that provincial budgetary supervision legislation can significantly reduce both local government budgetary expenditure and final account expenditure by around 8%. And this effect is further enhanced after the implementation of the new Budget Law since 2015. The inhibiting effect of provincial budgetary examination and supervision legislations on the scale of government expenditures is greater in areas with higher degree of fiscal decentralization or with stronger promotion incentives for officials. The results of the mechanism analysis show that the effect of the budget examination and supervision regulation legalization on the reducing of the local government's economic construction expenditure is most significant. Therefore, in order to give full play to the inhibiting effect of the budget examination and supervision regulation legalization by People's Congress on the scale of government expenditures, we should expand the power and scope of budget supervision of local People's Congresses, strengthen the supervision of key fiscal expenditures, and constantly promote the legalization of budget supervision of local People's Congresses.

Moderm Finance

Research on Happiness Effect and Its Mechanism of Digital Finance

LIU Hao-jie, ZHANG Guang-sheng

2022, 0(4):  52-64. 

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The quality of digital finance development has an important influence on the level of residents' sense of happiness. Based on the self-determination theory and using the data of China General Social Survey from 2010 to 2017, this paper empirically tests the influence and mechanism of digital finance on Chinese residents' subjective well-being. The findings show that the influence of digital finance on subjective well-being is u-shaped, that is, the early low level of digital finance has reduced residents' subjective well-being, but the high level of digital finance in the middle and later period can effectively improve the subjective well-being. This means that the development of digital finance has two sides: it may harm the interests of residents and reduce the level of subjective well-being, and it may also enhance the level of subjective well-being by improving the efficiency and fairness. Therefore, it is necessary to establish a complete digital finance development and supervision system. The results of the mechanism study show that digital finance can have an effect on the subjective well-being by affecting individual's economic position, mental condition and subjective social status. Therefore, under the conditions of improving the regulatory system, the construction of digital finance should be continuously strengthened, and the enterprises should be guided to establish a multi-category financial service system through financial and tax policies, so as to enhance the residents' subjective well-being.

Development of Digital Inclusive Finance and Business Startups of Migrant Population: Evidences from the China Migrants Dynamic Survey

LIN Yao-peng, LIN Liu-lin, GAO Qi, LIU Wei-tao

2022, 0(4):  65-75. 

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To realize high-quality employment and income growth for the floating population is an important step to promote new urbanization and common prosperity. By making use of the data of 2011-2017 China Migration Dynamic Survey (CMDS) and China Digital Inclusive Financial Index, this paper conducts a study based on the two-way fixed effect and the mediation effect model. The findings show that the development of digital inclusive finance will hinder the entrepreneurship of the floating population. This inhibitory effect is due to the fact that the development of digital inclusive finance has increased the“non-entrepreneurial”employment income of the floating population and narrowed the relative income gap between the“entrepreneurship”and“non-entrepreneurship”of the floating population. The results of further test show that urban cultural diversity may weaken the income effect of the development of digital inclusive finance, thereby strengthening its hindering effect on the entrepreneurial behavior of the floating population. This shows that in order to expand the economic pie, narrow the income distribution gap, and ultimately achieve common prosperity through inclusive development, it is necessary not only to optimize the supporting role of digital inclusive finance to the entrepreneurship of floating population, and to expand their“non-entrepreneurship”income-increasing channels, but also to promote urban internal integration to reduce the negative effects of cultural exclusion.

Business Administration

A Study of the Impact of Training on Line Managers' Human Resource Implementation Effectiveness

CHEN Yu-yao, ZHANG Zheng-tang

2022, 0(4):  76-87. 

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As line managers are gradually playing an important role in the HR implementation in enterprises, how to strengthen the HR implementation effectiveness of line managers with different values through training has become an important practical problem faced by enterprises. However, previous researches on HR implementation paid little attention to how the characteristics of line managers would affect the effect of training on HR implementation effectiveness. Based on social information processing theory, this paper explores the different effects of HR training on the HR implementation effectiveness of line managers with different HR values. Through the analysis of the multi-time points matching questionnaires of 213 managers, 213 HR professionals, and 1252 employees, it is found that the HR training can significantly stimulate the HR implementation behavior of the line managers, and this process is moderated by the line managers' HR values. There is a significant positive correlation between line managers' HR implementation behaviors and the HR implementation effectiveness perceived by employees. Furthermore, the interaction between HR training and line managers' HR values has a positive impact on employees' perception of HR implementation effectiveness through line managers' HR implementation behavior. That is, when line managers with low HR values receive HR training, their HR implementation behaviors are more likely to be improved, thus the HR implementation effectiveness perceived by employees will be strengthened. This study not only broadens the researches on the role of training but also provides a new perspective for the researches on the relationship between training and HR implementation effectiveness, which provides important practical enlightenment for enterprises to improve HR implementation effectiveness.

Frontline Regulation of Stock Exchanges and CFO Turnover: From the Perspective of Financial Report Inquiry Letters

TANG Xue-song, WANG Wan-ting, LI Wen

2022, 0(4):  88-99. 

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Taking the financial report inquiry letters of stock exchanges received by listed companies as research objects, this paper makes use of the samples of A-share listed companies in Shanghai and Shenzhen Stock Exchanges from 2015 to 2019 to study the impact of financial report inquiry letters of stock exchanges on CFO turnover. The findings show that the financial report inquiry letters have significantly increased the probability of CFO turnover. And the more the number of letters received concerning the previous year's annual report or the quarterly/semi-annual reports of the same year, the higher the probability of CFOs' leave. It is found through the heterogeneity analysis that in the context of poor quality of corporate information disclosure and good external institutional environment, the impact of financial report inquiry letters on CFO turnover will be more significant. Further analysis shows that the financial report inquiry letters mainly increase the turnover of CFOs with lower executive ability, and the risks of stock price crash is significantly reduced after these CFOs leaving office; meanwhile, when the executive ability of the successor CFO is stronger, the risks of stock price crash will also be significantly reduced. The above-mentioned results show that the financial report inquiry letters can play an informative and regulatory role, improve the quality of corporate information disclosure and promote the healthy development of the capital market through CFOs turnover.

Measurement of China's Export Green Trade Level and Analysis of the Influencing Factors under the Dual Circulation Pattern

CAO Jun-wen, SHEN Jing-yi

2022, 0(4):  100-110. 

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The method of measuring a country's (or a region's) trade level in terms of the total value of exports and imports results in different degrees of double counting and this method does not take into account the implicit environmental costs of trade. By constructing the index of the value added green trade in exports and adopting the latest world input-output data from 66 countries (or regions) from 2000 to 2018 published by OECD, this paper measures and analyzes the value added green trade in China's exports from a dual circulation perspective. The findings show that the value added green trade in China's exports rose from US$114.861 billion in 2000 to US \$ 2502. 49 billion in 2018. The rapid rise in the value added green trade in exports is not only due to the expansion of export trade scale, but also related to the reduction of trade environmental costs. The export structures of the low-carbon knowledge-intensive manufacturing industry and the high-carbon capital-intensive manufacturing industry are not conducive to the reduction of trade environmental costs. The stage characteristics of China's domestic and international circulation intensity present an evolution trend from“international big circulation”to“domestic and international dual circulation”. Both the domestic and international circulation intensities have a positive impact on the value added green trade of China's export, with the international circulation intensity having a greater impact. Therefore, it is necessary to take the domestic circulation as the main body and promote the international circulation with the domestic circulation, to improve the added value of export products and reduce the environmental costs of export products, so as to improve the level of China's export green trade.

Industry & Trade

Have the Industrial Relocation Demonstration Zones Improved the Level of Regional Innovation and Entrepreneurship?

HE Sheng-bing, ZHANG Qian

2022, 0(4):  111-123. 

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Orderly undertaking industrial relocation in the central and western regions is a significant measure to promote the coordinated regional development in China, as well as a vital way to smooth the domestic circulation and boost the high-quality economic development. Based on the quasi-natural experiment of National Industrial Relocation Demonstration Zones (NIRDZs) since 2010, this paper employs the marginal treatment effect (MTE) method to analyze the impact of NIRDZs on the innovation and entrepreneurship level in the central and western regions. The results of a full-sample estimation show that, on the average, the establishment of NIRDZs has promoted the improvement of regional entrepreneurship and innovation, and that the marginal treatment effect decreases with the increase of potential costs of setting up NIRDZs. The results of the regional estimation show that the establishment of NIRDZs has improved the level of entrepreneurship in the central and western regions, and that the marginal treatment effects on the level of entrepreneurship in different regions are heterogeneous. The establishment of NIRDZs has improved the innovation level in the central region, but no significant effect is found in the western region.

Book Review

Government Cost Accounting: International Reference and China's Development

WANG Wen-bing, SONG Hui, WANG Li-yan, GAN Sheng-dao

2022, 0(4):  124-136. 

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According to the deployment of the government accounting reform plan, the Ministry of Finance published The Basic Guidelines on Cost Accounting for Public Institutions on December 25, 2019, thus the reform of government cost accounting undertaken by the administrative institutions has officially started. Taking this as an opportunity, this paper comprehensively combs and uses for reference the theoretical researches and practical application results of government cost accounting both at home and abroad. On the basis of analyzing the core links of cost accounting such as cost accounting objects, cost items and range, cost collection and distribution of public institutions, this paper systematically puts forward specific countermeasures and suggestions for the administrative units to apply the activity based costing to resolve the difficulties in distributing unit costs, so as to provide useful reference for administrative institutions to implement the reform of government cost accounting. In addition, in order to establish the government accounting theory system with Chinese characteristics, it also proposes some policy suggestions, such as putting forward the guiding policies for government cost accounting, strengthening the cultivation of talents of government cost accounting, defining the accounting period of government cost accounting scientifically, and establish and perfect the legal system for government cost accounting.

Inequality rather than Want: Client Resource Gap among Audit Partners and Audit Quality

WANG Hao-yu

2022, 0(4):  137-148. 

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To strengthen the internal governance of accounting firms and improve the practice quality of accounting firms is of vital importance in strengthening the clean-up effect of the capital market environment and strengthening the role of the certified public accountants in supervising the listed companies. From the perspective of the internal governance of audit firms, this paper takes the partners of accounting firms and the listed companies audited by them from 2014 to 2019 as the samples to investigate the impact of client resource gap between the partners of accounting firms on audit quality. The results show that the audit independence of the partners would not be eroded by more or less of the numbers of the client resources of the partners of accounting firms, on the contrary, the audit quality will be improved. When the client resources among the partners are unequal, the audit quality will be harmed. Meanwhile, the fairness perception and the relative sense of unevenness would weaken the positive impact of the numbers of client resources of the partners on audit quality. The results of the extensibility analysis show that the big audit firms with perfect internal governance mechanism and the external supervision effect of analysts can relieve the negative impact of unequal client resources between the partners on audit quality, but the heavy pressure of business expansion on the big firms will also weaken the positive correlation between the numbers of client resources of the partners and the audit quality.