Table of Content

15 January 2025, Volume 0 Issue 1

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Features

A Study of the Strategies and Pathways for Advancing High-Quality Growth in the Bio-Pharmaceutical Industry: From the Perspective of New Structural Economics

Lin Yi-fu, Wang Yong, Zhu Lan

2025, 0(1):  3-16. 

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The bio-pharmaceutical industry is a critical component in expanding, optimizing, and strengthening the bio-economy and cultivating the new quality productive capacity. The bio-pharmaceutical industry can be segmented into generic drugs and innovative drugs, with significant structural differences across the bio-pharmaceutical industries of different entities. This paper conducts a case study by comparing the vertical and horizontal development of the bio-pharmaceutical industries in China, India, and Japan within the framework of New Structural Economics. The findings reveal that, vertically, with the transformation of the development stages and factor endowment structures, the bio-pharmaceutical industries in China, India, and Japan have undergone a structural shift from generic drugs to innovative drugs. The industrial policies have undergone a series of dynamic adjustments, from protecting the local market to opening up to the outside world, from technology introduction to independent innovation, and from basic medical security to comprehensive coverage. Horizontally, India, in the middle and low-income stage, relies on its factor cost advantage to concentrate on developing generic drugs, while China, in the middle and high-income stage, gradually transitions from generic drugs to innovative drugs. Japan, in the high-income stage, focuses on the development of innovative drugs. In summary, development stages and factor endowments have a significant impact on the structural evolution of the bio-pharmaceutical sector in a country, and the industrial structure can further decide the optimum government development strategies and industrial policies. Therefore, in promoting the high-quality development of the bio-pharmaceutical industry, China should not only consider its current status as an upper-middle-income country and balance the development of generic and innovative drugs, but also increase the proportion of government health expenditure and improve the medical insurance and social welfare systems.

30 Years of Tax-Sharing Reform: The Gradual Improvement of China’s Modern Fiscal and Tax System

Ma Hai-tao

2025, 0(1):  17-27. 

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The modern fiscal and tax system with Chinese characteristics is composed of the modern budget system, the modern tax system, the modern intergovernmental fiscal relations, the modern financial macro-control mechanism and other subsystems, which plays a key role in leading and guaranteeing the development in the process of Chinese path to modernization. After 30 years of reform of the tax sharing system, China’s modern fiscal and tax system has been established and continuously improved, and it is shouldering the mission of serving the socialist market economy system with Chinese characteristics and the construction of Chinese path to modernization. However, there are still five problems and challenges in the current fiscal and taxation system, including the unclear boundary in the relationship between government and market, the need to strengthen the resource coordination and performance management capabilities of the current budget system, the challenges posed by the digital economy to the modern tax systems, the need to improve the relationship between the central and the local finances, and the challenges posed by the narrowing of traditional policy space to the macroeconomic regulation mechanism of finance. The Third Plenum of the 20th Central Committee of the Communist Party of China explicitly proposed to“deepen the reform of the fiscal and taxation system”. Therefore, to further improve the modern fiscal and taxation system with Chinese characteristics, in the future, China should start from clarifying the boundary between the government and the market, strengthening the budget planning ability and improving the budget performance management efficiency, deepening the reform of the tax system, deepening the reform of the division of powers and expenditure responsibilities, giving full play to the coordination role of fiscal policy and monetary policy, so as to use the modern fiscal and taxation system to serve the construction of Chinese path to modernization and“escort”the high-quality development.

Theoretical Economics

The Historical Position of China’s Common Prosperity and Its Policy Implications

Sun Hao, Ding Yi

2025, 0(1):  28-41. 

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To promote common prosperity, it is necessary to fully estimate its long-term, arduous and complex nature. To gradually promote common prosperity in stages, it is necessary to accurately understand the historical position and the advance path of common prosperity construction from the two dimensions: historical evolution and international reference. China’s common prosperity construction is still at the primary stage. The income level in the prosperity dimension is rapidly approaching the threshold standard of high-income countries, and there is huge room for income growth; while the income gap in the sharing dimension is hovering at a high level, and there is a huge challenge to narrow the income gap. With reference to the experiences of the developed countries, China’s common prosperity construction can substantially reach the pre-set goal in the prosperity dimension, i.e., the per capita GDP will reach the level of moderately developed countries by 2035, and the common prosperity of the entire population will be substantially realized by the middle of the 21^st century, but there are uncertainties in the sharing dimension. Therefore, the governments at all levels should follow the principles of doing everything within one’s capacity and adhering to the gradual and orderly progress, identify the historical orientation in the construction of common prosperity, predict the future construction process, set reasonable milestones, and promote common prosperity in phases through high-quality development.

Public Economics & Administration

Economic and Welfare Impact of Digital Service Tax: An Analysis Based on GTAP Model

Li Jian-jun, Gao Yuan

2025, 0(1):  42-55. 

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Digital Service Tax (DST), as an important initiative to address the taxation challenges of the digital economy, has received a lot of attention in recent years. Therefore, this paper utilizes the Global Trade Analysis (GTAP) model and the GTAP 11 database to assess the economic and welfare impacts of the digital services tax on various countries and regions under different tax schemes. The findings show that there are significant differences in the economic impacts of digital services tax on various countries and regions, the higher the tax rate and the wider the scope of the tax, the greater the negative impacts on the economy and social welfare. The levy of digital services tax has a relatively small impact on China; when a lower rate is set, it can promote economic development and improve social welfare. The levy scheme of a global flat rate can promote the economic development of most countries and regions, and improve their terms of trade and social welfare, but different tax rate settings and taxing scope have different impacts on these countries and regions. The impact of taxation on the output of the digital sector in different countries and regions varies among different taxation schemes. In the long run, under dynamic settings, the negative impact of digital service tax on the economy will gradually shrink, while the negative impact on social welfare will gradually expand. Currently, China should develop targeted and flexible digital service tax policies based on its actual situation, actively participate in the formulation of international tax rules and strive for the discourse power of digital service tax. Developing the digital economy is a long-term trend, the government should increase its support for innovation and development in the digital economy.

Modern Finance

Could Internal Capital Market Improve Corporate Resilience?

Hu Hai-feng, Tian Yi-di, Wang Ai-ping, Ma Ben

2025, 0(1):  56-69. 

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In recent years, the domestic and international political, economic, and social environments exhibit significant volatility, uncertainty, complexity, and ambiguity. How to improve the corporate resilience and promote the steady and healthy development of the economy has become a crucial issue. Taking A-share listed companies in China from 2008 to 2022 as samples, this paper analyzes the impact of the internal capital market on corporate resilience. The results show that the existence and operation of the internal capital market can help to improve the resilience of companies. The mechanism test reveals that internal capital markets can enhance corporate resilience by easing cash flow pressure, boosting total factor productivity, and improving operational efficiency. The heterogeneity analysis shows that the internal capital market has a more significant effect on firm resilience when economic policy uncertainty is higher. Compared with state-owned enterprises, the internal capital market plays a greater role in improving the resilience of non-state-owned enterprises. The positive effect of internal capital market is more pronounced in the samples with lower group diversification. Therefore, market-oriented mergers and acquisitions should be encouraged, and the internal capital of business groups should be actively revitalized. The internal management and operation of business groups should be standardized, and efforts should be made to establish a fair and orderly external capital market, making sure the internal and external capital markets provide robust support for enterprises jointly.

Who Dominates“Value Interaction”in Capital Market? Empirical Evidences from Online Interaction Platforms

Chen Song-sheng, Zhang Xi-ren, Li Rui

2025, 0(1):  70-82. 

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The authenticity of information is crucial for the effective functioning of capital markets. Given the variation in the informational content of online investor interactive platforms, this study takes A-share listed companies from 2015 to 2022 as samples and focuses on the more closely watched“value interaction”Q&A. The empirical research reveals that“value interaction”is more likely to stem from opportunistic behaviors by corporate management manipulating information disclosure, rather than professional inquiries by external supervisors. This conclusion is verified from the perspectives of earnings management substitution, regulatory administrative penalties, and future economic consequences. The opportunistic behavior of corporate information manipulation is weaker when there is a higher sensitivity of executive compensation, or when the corporate management has a financial background or overseas experience. Further research reveals that the“value interaction”generated by corporate manipulation of information disclosure can easily permeate into the capital market, resulting in a positive market response, which is difficult to be strictly regulated. The study confirms that online interactive platforms have not fully played their governance role, and the“value interaction”information is not entirely authentic. Therefore, regulatory authorities need to strengthen the scrutiny of the authenticity of corporate responses and enhance the regulation of the qualifications of questioners on networking platforms. Investors need to improve their professional levels and information discernment abilities to fully leverage the supervisory and governance functions of interactive platforms.

Business Administration

Environmental Information Disclosure and Site Selection of Polluting Enterprises

Xu Jing-lin, Yang Xin-yao, Tan Wei-jie, Xiang Wei-min

2025, 0(1):  83-96. 

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The site selection strategy of polluting enterprises under environmental regulations has always been an important issue of concern to all sectors of society. Taking China’s environmental information disclosure policy as a quasi natural experiment, and based on the data from 270 newly added polluting enterprises at prefecture level cities from 2003 to 2013, this paper empirically examines the impact of environmental information disclosure policy on the site selection of polluting enterprises with the difference in differences method. The research results indicate that the policy of environmental information disclosure has suppressed the entry of polluting enterprises. The heterogeneity analysis results show that the inhibitory effect of environmental information disclosure policies on the entry of polluting enterprises is more significant in state-owned, private, and other polluting enterprises, as well as in the eastern region. The dual verification of the macro and micro data shows that the policy of environmental information disclosure mainly affects the site selection of polluting enterprises by leveraging the driving effect of green transformation and the pollution shelter effect. On the one hand, the policies reduce the public’s tolerance for polluting enterprises by raising public environmental awareness; on the other hand, the policies have increased the production costs of enterprises while reducing their pollution emissions, prompting the polluting enterprises to move to environmental regulatory low-lying land. Therefore, it is recommended that the government, the general public, and enterprises work together to continuously improve the environmental governance and regulatory system with Chinese characteristics, closely monitor the trends of polluting enterprises, and use reasonable environmental protection requirements and standardized business practices as market access principles to promote the high-quality economic development.

How Can Local Private Enterprises Continue to Break Through? A Case Study of Kingdee

Li Min, Zhou Jie

2025, 0(1):  97-110. 

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Local private enterprises are a key force supporting China’s significant historical achievements in the economy and society. Taking Kingdee as a case study, this paper conducts an analysis from the perspectives of dominant logic and complementary asset research. The findings show that, firstly, dominant logic is the strategic paradigm of the enterprise in stages, and it is manifested as the user value acquisition dominant logic, the ecological chain value creation dominant logic, and the ecological network value sharing dominant logic in its local market breakthrough stage, the high-end market breakthrough stage, and the international market breakthrough stage, respectively. Secondly, there is mutual influence between the dominant logic of enterprises and the complementary assets. The evolution of dominant logic is driven by the prism mechanism of complementary assets, and the dominant logic at different stages influences the enterprise’s phased complementary resource allocation strategy, prompting it to present the content configurations of linkage, transformation, and expansion in the three breakthrough stages. Thirdly, under the synergistic effect of dominant logic and complementary assets, enterprises can rely on the buffering and pipeline mechanism of complementary assets to dynamically develop their technological innovation and commercialization capabilities, thereby helping local private enterprises to continue to break through in the specific situations in China. Therefore, we should attach great importance to the adaptive adjustment and functional utilization of complementary asset content, and vigorously promote the transformation towards ecological organizations, so as to achieve prosperous development in the ecosystem.

Industry & Trade

Digital Consumption and New-Quality Productivity Development: Evidences from National Information Consumption Pilot Policies

Liu Mao-tao, Fang Xu-bing, Ying Wang-jiang

2025, 0(1):  111-125. 

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Driven by globalization and the information technology revolution, digital consumption has become a key driver of economic growth and social development. Promoting the development of new quality productivity through digital consumption transformation has important theoretical significance and practical value for expanding domestic demand and deepening supply-side structural reform. This paper takes the national information consumption pilot policy as a quasi-natural experiment of digital consumption, and constructs an overlapping difference-in-difference model to conduct the study. The findings show that digital consumption has a positive impact on the development of new quality productivity in enterprises, and its mechanism mainly includes promoting the gathering of digital talents, stimulating entrepreneurial spirit, increasing government digital subsidies, and promoting digital transformation of enterprises. The heterogeneity test reveals that the promotion effect of the national information consumption pilot policy on the new quality productivity of enterprises is more significant in the regions with high levels of digital infrastructure, in the high-tech manufacturing industries, and in the sample enterprises with high levels of data element utilization. Therefore, the government needs to persist with and refine the national information consumption pilot policy, creating a favorable institutional environment for promoting the development of new productive forces in enterprises. Additionally, it should systematically plan and categorize measures, optimize policy layout, and achieve precise positioning of the information consumption pilot policy. Enterprises should closely monitor pilot policies, seize policy opportunities, and formulate development strategies accordingly.

Subsidy Portfolio, Venture Capital Engagement and Substantive Innovation: An Analysis Based on Industrial Robot Parts Manufacturers

Liu Jiang-hui, Lu Hai-yan

2025, 0(1):  126-140. 

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The subsidy policies for China’s robotics industry are characterized by a large number and high density of introductions, yet they have fallen into an innovation predicament of“quantitative leaps but qualitative stumbles,”with key technologies being strangled at the neck. This phenomenon has triggered thinking about whether subsidies can promote enterprises to carry out substantive innovation. Based on this, taking the core parts of industrial robots manufacturers of 2010-2022 A-share listed companies as research samples, this paper explores the different effects of subsidies on the substantive innovation of enterprises from the logic chain of“which performs better: single subsidy or combined subsidies — whether subsidized enterprises have venture capital support?”The findings show that the direct subsidy has crowding-in effect on substantive innovation, while tax reduction and government procurement have“inverted U-shaped”and“U-shaped”nonlinear effects on substantive innovation, respectively, and the direct subsidy has stronger effect. The combination of subsidy tools has a better promoting effect on substantive innovation of enterprises than a single subsidy tool, but due to the existence of policy crowding effects, the two combination methods of post incentive, “tax incentives+government procurement”, have no significant promoting effect on substantive innovation and is inferior to a single subsidy tool. The complementary effects generated by venture capital participation and single subsidy tools will improve the substantive innovation situation of enterprises, but due to the existence of substitution effects, enterprises that receive combination subsidies do not perform as well as pure subsidy policies in terms of substantive innovation under venture capital participation.

Modern Accounting

Enhancing Environmental Rule of Law and Stock Price Crash Risk: A Quasi Natural Experiment Based on the Establishment of Environmental Courts

Yu Lian-chao, Dong Jin-ting, Bi Qian

2025, 0(1):  141-153. 

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The construction of the environmental rule of law is a crucial initiative for advancing ecological civilization through the application of green justice principles. This study employs the establishment of environmental courts as a quasi-natural experiment to investigate the impact of strengthening environmental rule of law on stock price crash risk with the data from A-share listed companies in Shanghai and Shenzhen stock exchanges from 2007 to 2022. The findings indicate that the establishment of environmental courts can mitigate the risk of stock price crashes. The mechanism analysis reveals that the establishment of environmental courts can not only strengthen the supervision of judicial institutions, media and the public on the corporate environment, accelerating the release of negative information on the corporate environment, but also enhance the supervision of shareholders on the corporate environment, reducing the hidden environmental negative information of enterprises. Therefore, the establishment of environmental courts can reduce the risk of stock price collapse. Further analysis indicates that when environmental legislation is better, environmental law enforcement is looser, market information environment is poorer, and corporate governance level is lower, the establishment of environmental courts has a more significant effect on reducing the risk of stock price collapse. The expansion analysis reveals that the establishment of environmental courts can reduce stock price synchronicity and improve stock pricing efficiency. To this end, it is necessary to vigorously build environmental courts and handle their relationship with environmental legislation, environmental law enforcement, market information environment, and corporate governance level.

The Impact of Pilot Projects for Industry-Finance Cooperation on the Dynamic Adjustment of Enterprise Capital Structure

Huang Hong-bin, Li Yuan-yuan, Zhang Yue-yang

2025, 0(1):  154-164. 

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Industry-finance cooperation is an effective way to promote the aggregation of financial resources to physical enterprises. Taking A-share listed companies in China from 2013 to 2023 as research samples, this paper regards the establishment of national industrial and financial cooperation pilot cities (districts) as a quasi natural experiment. From the dual perspectives of strengthening precise supply-demand matching and improving corporate governance efficiency, It examines the impact of industrial and financial cooperation pilot policies on the dynamic adjustment of corporate capital structure and it’s mechanism. The results indicate that the pilot policy of industry-finance cooperation has the effects of“resource support”and“collaborative governance”, and therefore can accelerate the capital structure adjustment of enterprises. The heterogeneity tests have found that in the companies with lower management shareholding ratios, the companies in the growth and maturity stages, and the companies in the regions with lower levels of financial development, the pilot policies for industry-finance cooperation are more effective in accelerating their capital structure adjustments. To this end, it is required to continue to deepen the financial supply side reform, promote the deepening and implementation of industrial-financial cooperation policies, and promote the high-quality development of enterprises.