Table of Content

15 September 2025, Volume 0 Issue 9

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Theoretical Economics

Consumer Data, Producer Data and Economic Growth: A Discussion on the Integration of Digital Economy and Real Economy

Zhang Wen-kang, Lin Xiang-sen

2025, 0(9):  3-15. 

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Building upon the foundation of the traditional“Internet of People,”technological innovations such as the Internet of Things (IoT) have expanded the sources of data beyond consumers to include a broader range of entities throughout the entire lifecycle of products in the real economy. Consumer data encapsulates rich information on preferences, demand tendency, and behavioral patterns. Through in-depth mining and analysis of such data, firms can accurately identify shifting market demands, thereby optimizing resource allocation, adjusting production structures accordingly, and achieving more efficient combinations of production factors -- all of which contribute to enhanced productivity. In contrast, producer data carries critical parameters during the production process, encompassing dimensions such as manufacturing techniques, quality standards, and cost control. By analyzing and leveraging this data, firms can identify potential avenues for product enhancement, drive iterative innovation, and continuously improve product performance and quality. The effective and coordinated use of both consumer and producer data can significantly accelerate economic growth. The magnitude of this growth is contingent upon the degree of synergy between the two types of data. Governments should play an active guiding role by encouraging enterprises to accumulate and utilize producer data, and by promoting the coordinated development and application of both consumer and producer data. Breaking down data barriers and facilitating the efficient flow and integration of data as a production factor within economic activities can substantially enhance the rate of economic growth and improve overall social welfare, thereby fostering high-quality and sustainable economic development.

Digital Infrastructure Development and Urban Shrinkage

Tang Kai, Liu Xiao-kang, Wang Hai-jie

2025, 0(9):  16-29. 

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Urban shrinkage has become a real problem that needs to be solved urgently in the process of urbanization in China, and the construction of digital infrastructure provides new opportunities to alleviate urban contraction and promote coordinated urban development. Based on the 2007-2022 urban panel data, this study uses the year-end resident population to identify urban contraction, and considers the “Broadband China”pilot policy as a quasi-natural experiment to conduct an empirical test with the difference-in-differences method. The results show that digital infrastructure development can significantly mitigate urban contraction. The path analyses reveals that the quality of the urban environment as well as entrepreneurial activity are important channels for digital infrastructure development to mitigate urban contraction. Further analysis reveals that the mitigating effect of promoting digital infrastructure on urban contraction is asymmetric, with the mitigating effect mainly found in the central and western regions, the peripheral cities, the cities with lower standard of education, and the non-resource-based cities. These findings show that the underdeveloped areas should focus on consolidating the foundation of digital infrastructure construction, bridging the economic development gap, guiding digital infrastructure construction to promote urban development at a higher level, and thus alleviate urban shrinkage.

Public Economics & Administration

Measurement of Local Fiscal Resilience, Regional Differences and Convergence Characteristics in China

Guo Qing-Hua, Zhang Ping

2025, 0(9):  30-44. 

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Enhancing local fiscal resilience is not only an important part of building a modernized fiscal system, but also the key and foundation for realizing high-quality economic development. Based on the provincial panel data from 2015 to 2023 in China, this study measures the resilience level, spatial and temporal pattern evolution, and convergence characteristics of local finance. The results show that the resilience level of local finance in various provinces has remained relatively stable, and the resilience level of local finance in the eastern region is higher than that in the central and western regions. From a multidimensional perspective, in the resilience of local finance the national fiscal resilience is the highest, fiscal growth capacity is moderate, the fiscal recovery capacity basically keeps stable, and the fiscal adaptability is the lowest. The Gini coefficient is relatively lower across the country and in different regions, with the largest regional gap between the eastern and western regions. From the perspective of convergence characteristics, there are obvious convergence features in the resilience level of local finance across the country and in different regions. Therefore, in order to improve the resilience level of local finance, China should establish the concept of fiscal resilience governance and build a more stable fiscal system, enhance the growth capacity of local finance and strengthen its sustainable development under normal circumstances, implement differentiated fiscal and taxation policies to narrow the differences in local fiscal resilience between regions.

Practice of Participatory Budgeting with the Whole-Process of People’s Democracy: Logical Starting Point, Conforming Pathway and Practical Approach

Sun Yu-dong, Wang Qiang, Xi Yu

2025, 0(9):  45-56. 

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The whole process of people’s democracy adheres to the development concept of putting the people at the center, which is a major innovation in China’s democratic practice in the new era. The participatory budgeting, as an important component of modern budgeting system, is an important practice field for people’s democracy throughout the entire process. Under the concept of people’s democracy throughout the entire process, reconstructing the participatory budgeting is not only an important part of promoting the modernization of the national governance system and governance capacity, but also a dynamic process of constantly adapting to the characteristics of the new era and responding to the needs of reality. The Third Plenary Session of the 20th CPC Central Committee stressed that developing people’s democracy throughout the process is the essential requirement of Chinese path to modernization, and proposed to improve the people’s democratic system throughout the process. The whole process of people’s democracy and the participatory budgeting have a high degree of compatibility in terms of ideological concepts, development goals, reform ideas, and supervision systems. However, promoting participatory budgeting from the aspects of people’s right to budget information, participation, expression, and supervision still faces some challenges. Therefore, it is necessary to establish a full process people’s democratic operation system that integrates responsive democracy, participatory democracy, consultative democracy, and supervisory democracy. By enhancing the transparency of budget information, establishing the concept of putting people first, providing diversified platform carriers, and establishing a systematic correction mechanism, the full process of people’s democracy can be integrated into participatory budgeting. This will achieve the reconstruction of participatory budgeting in terms of budget informed democracy, budget participatory democracy, budget expression democracy, and budget supervision democracy, and promote the improvement of a Chinese style modern budget system that conforms to the full process people’s democracy.

Modern Finance

The Employment Creation Effect of Bank Fintech: From the Perspective of Corporate Employment

Peng Yu-liu, Luo Zi-xuan, Hong Pan, Lai Shao-jie

2025, 0(9):  57-69. 

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Stabilizing employment is a core issue in current economic and social development, and bank fintech, is a key initiative for advancing digital financial services to the real economy. Identifying the employment creation effect of bank finteck in empowering the real economy carries significant practicae implications for promoting high quality economic development. Using the data from Chinese commercial banks and A-share listed companies between 2010 and 2023, this study investigates the impact of bank fintech on corporate employment. The findings show that bank fintech has significantly promoted the expansion of corporate employment. Bank fintech fosters corporate employment growth primarily through three channels: expanded credit scale, optimized credit structure, and reduced credit costs. Moreover, the positive effect of bank fintech on corporate employment is more pronounced among the enterprises located in regions with lower industrial robot installation density and in the manufacturing industry. Further analysis reveals that the development of bank fintech has reshaped the corporate employment structure by reducing the demand for financial personnel while increasing the demand for production employees. Therefore, greater emphasis should be placed on advancing bank fintech to optimize the credit allocation, facilitate the expansion and structural upgrading of employment, so as to ultimately promote high-quality economic development.

The Asymmetric Effects of Investor Sentiment on Investor Response Biases: A Theoretical Model and Simulation Analysis

Li Xue-feng, Lv Jia-li, Xu Rong

2025, 0(9):  70-83. 

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The classical BSV cognitive model narrows down the scope of investor underreaction and overreaction and ignores the influence of emotional factors on the degree of cognition. Therefore, this paper introduces the two-way emotion factor on the basis of the BSV model to construct the Sentiment BSV (SBSV). The results of the test reveal that the BSV model is only a special assumption of investors’ neutral emotions, and the bidirectional emotions of individual investors can lead to asymmetric reactions of investors to the positive and negative shocks to company earnings. Further study reveals that the stronger the degree of asymmetry of the emotion factor itself, the more extreme the investor sentiment, and the shorter the time for underreaction to turn into overreaction, which provides an explanation for the reality of the long-run reversal phenomenon. Moreover, it is found that in the short-run, pessimistic investors have lower investment returns than optimistic investors, while in the long-run, this is exactly the opposite. Therefore, the government should cultivate more resilient capital markets, implement efficient mechanisms to monitor or guide market sentiment, and align policy communication and formulation with targeted sentiment management. Moreover, investor education programs should be tailored to address the asymmetric impacts of sentiment on decision-making.

Business Administration

Painting the Future with AI: Artificial Intelligence and High-Quality Enterprise ESG Performance

Li Yan-xi, Hu Yun-ge, Wang Duo, Meng De-lin

2025, 0(9):  84-97. 

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The booming development of artificial intelligence has opened up new opportunities for enterprises to improve their ESG performance and achieve sustainable development goals. However, the existing researches pay insufficient attention to the internal coordination degree of ESG, which to some extent restricts the effectiveness of artificial intelligence in promoting sustainable development of enterprises. Taking A-share listed companies from 2009 to 2022 as research samples, this paper constructs a coordinated development model based on the system theory to comprehensively evaluate the high-quality ESG performance of enterprises from the two dimensions of“quantity expansion”and “quality improvement”. Then it empirically tests the impact and mechanism of AI application on the high-quality ESG performance of enterprises. The study reveals that the application of AI technology will significantly improve the high-quality ESG performance of enterprises, and this conclusion maintains its robustness following a range of tests, including altering the measurement approaches of indicators, controlling the fixed effects, and addressing the endogenous issues. The mechanism test shows that alleviating financing constraints and improving the quality of internal control are two major paths through which AI exerts its influence. The heterogeneity analysis shows that in enterprises with more academic executives, in high-tech industries and located in the regions with strong environmental regulations, the promoting effect of AI on the high-quality ESG performance of enterprises is more significant. Therefore, policymakers should strengthen the publicity of enterprise ESG coordination and development, formulate targeted policies, guide enterprises to apply AI technology reasonably, so as to help enterprises achieve sustainable development.

Media Coverage and Corporate Total Factor Productivity: Empirical Evidences from the Three Dimensions of Supervisory, Information and Pressure

Zhang Yue, Fan Cong-lai, Gao Jie-chao

2025, 0(9):  98-111. 

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Improving total factor productivity is the key to promoting high-quality economic development. Taking public opinion guidance and governance as the starting point, this paper constructs a three-dimensional analysis framework of“supervision-information-pressure”to explore the impact of media reports on enterprises’ total factor productivity. The results show that, first, media coverage has significantly promoted the total factor productivity of enterprises in general. Second, media coverage positively impacts total factor productivity through external supervision, governance, and information intermediation. However, it also transmits market pressure through negative emotions, which inhibits total factor productivity. Third, these positive effects are more significant in areas with weak external supervision and a poor rule of law environment. Fourth, compared with paper media, online media is more effective in promoting total factor productivity. Fifth, media coverage has a long-term effect on total factor productivity, lasting about three years and significantly increasing enterprises’ attention to digital and intelligent development, thus promoting the development of new quality productivity. Accordingly, the government should strive to create an environment conducive to media supervision and information dissemination; while enterprises need to build a complete public opinion management system, actively respond to market pressure, and ensure the steady development of themselves.

Industry & Trade

Has the Construction of Digital Infrastructure Improved the Resilience of Industrial Chain and Supply Chain?

Zhao Chun-ming, Yang Hong-ju

2025, 0(9):  112-125. 

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Enhancing the resilience of industrial and supply chains is a key element in achieving high-quality economic development. The construction of a Digital China serves as a crucial engine for advancing Chinese-style modernization in the digital era. As the backbone of the digital economy, the role of digital infrastructure in empowering the resilience of industrial and supply chains warrants in-depth investigation. Based on the data from Chinese A-share listed companies from 2007 to 2021, this paper applies a difference-in-differences (DID) model to examine the impact of digital infrastructure development on enhancing the resilience of industrial and supply chains, as well as the underlying mechanisms. The findings reveal that digital infrastructure can significantly improve the resilience of industrial and supply chains. The mechanism analysis indicates that digital infrastructure promotes the resilience through the expansion effect of supply chain networks, the innovation effect of firms, and the compression effect of spatial distance. The heterogeneity extended analysis shows spatial non-uniformity in the resilience enhancement effect of digital infrastructure, with a more pronounced effect in the eastern region. Furthermore, digital infrastructure development has a stronger resilience-enhancing effect on the small firms, the firms with low R&D intensity, the firms with low degrees of digital transformation, and the firms in labor-intensive industries. The construction of digital infrastructure has significantly reduced the concentration of industrial and supply chains.

Digital Input, Local Market Size and Total Factor Productivity Growth

Zhou Hong-wei, Pang Su-qin, Liu Shu-guang, Ren Kang-ning

2025, 0(9):  126-139. 

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Digital transformation is a new engine for economic growth. Based on the data from 45 countries and 17 manufacturing industries from 1995 to 2018, this study theoretically analyzes and empirically tests the impact of digital investment on total factor productivity, and further examines the moderating effect of local market size and market competition environment, as well as the industry correlation effect of digital investment. The findings show that digital investment can significantly promote the growth of total factor productivity. Digital investment has a significant promoting effect on total factor productivity growth in both developed and developing countries. Digital investment has a significant promoting effect on the total factor productivity growth of labor-intensive, capital intensive, and technology intensive industries, and this effect is strongest in labor-intensive industries and weakest in technology intensive industries. Both foreign digital investment and domestic digital investment can promote the growth of total factor productivity, but the promoting effect of the former is weaker than that of the latter. Digital investment mainly promotes the growth of total factor productivity by improving technological efficiency. The promoting effect of digital investment on total factor productivity growth is positively moderated by the size of the local market, and this moderating effect is stronger in labor-intensive industries and when using domestic digital investment. The expansion analysis shows that digital investment has significant industry correlation effects and can enhance total factor productivity by promoting the collaborative integration between industries. The imperfect market competition environment will suppress the productivity effect of digital investment, while the weakening of the local market size will reduce the inhibitory effect of the imperfect market competition environment on the promotion of total factor productivity growth by digital investment. Further discussion indicates that the promoting effect of digital investment on total factor productivity growth and the positive moderating effect of local market size also hold true in the Chinese samples. Based on the above conclusion, we should fully utilize the advantages of China’s super large market, continuously deepen market-oriented reforms, and continue to promote the digital development of industries, thereby providing strong support for promoting the transformation and upgrading of the manufacturing industry and high-quality economic development.

Modern Accounting

Can Nonlocal Large Shareholders Promote Capital Flows across Regions? Empirical Evidences from Corporate Inter-Regional M&As

Huang Wan, Chen Xiao-yun, Chen Kun

2025, 0(9):  140-153. 

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The main purpose of building a unified national market is to promote the smooth flow of factors on a larger scale. Cross regional mergers and acquisitions are a form of capital flow across regions. Based on the merger and acquisition data of Chinese A-share listed companies from 2011 to 2023, this study examines whether non controlling major shareholders from outside the company’s registered location can help companies break through barriers to cross-border mergers and acquisitions. The findings show that major shareholders in different regions can significantly increase the probability of a company implementing mergers and acquisitions in the location of the major shareholder. Moreover, when the major shareholders in other regions are state-owned, have a long operating period, and the appoint directors or their executives to work part-time in other local enterprises, this promoting effect is more pronounced. The mechanism testing shows that the reason why major shareholders in different regions promote cross-border mergers and acquisitions is that they have local market information advantages and social network resources. The expansion analysis reveals that promoting cross regional mergers and acquisitions by major shareholders can enhance the long-term value of the enterprise. To this end, enterprises need to leverage the information advantages and social network resources of the major shareholders in different regions to build long-term competitive advantages.

Can Government Auditing Narrow Regional Disparities in Environmental Supervision?

Ma Ru-hui, Cao Yu-shan

2025, 0(9):  154-164. 

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The long-standing regional disparities in environmental supervision have hindered the cultivation and development of a unified national ecological environment market. As a re-supervision mechanism for supervisors, national auditing plays a positive role in serving the construction of ecological civilization. Using the data from prefecture level cities from 2011 to 2022, this study empirically examines the impact of national auditing on environmental regulatory differences between regions. The findings reveal that national audits can narrow environmental regulatory differences between regions. The mechanism analysis shows that national auditing can suppress local protectionism behavior of local governments and promote collaborative cooperation in environmental regulation between regions. Therefore, national auditing can“narrow up”the differences in environmental regulation between regions. The heterogeneity analysis reveals that in cities with high levels of digital economy development and efficient government environmental governance, national auditing is more effective in narrowing environmental regulatory differences between regions. To this end, it is necessary to strengthen the power of national audit re-supervision, leverage the regional coordination and linkage effect of national audit, and help cultivate and develop a unified national ecological environment market.