Abstrat:Upon clarifying the concept of liquidity, the paper analyzes the implications of the global excess liquidity for China and the structural features of Chinas excess liquidity. It proposes to reduce the excess liquidity in China based on the market mechanism coupled with government induction. Currently the emphases should be placed on the reduction of current account surpluses and on the mitigation of the shortage of financial resources in the rural area of China.

Abstrat:With more than twenty years of scientific cultivation, Marx pioneered into a new field later to be regarded as economic growth theory. In the history of economic growth theory it was Marx who first theoretically established the initial economic growth model in which dynamic and long-run analyses more than static and short-run ones had been schemed. Fledman, a Marxist, formulated in mathematic terms the first model of economic growth based on Marxs economic growth theory. Nowdays it is still of significant importance for us to research on Marxs economic growth model and the succeeding models by Marxian economists. To promote and develop Marxian economic growth theory we should start from practice and make use of reasonable factors of all kinds of economic growth models in Western Economics.

Abstrat:Its the repeatedly observed phenomenon that the local officials play an active role in the process of economic development in China. The literature, however, has been in dark, because its not easy to separate the impact of local officials on economic growth from the fixed effect. We find the official transfer can serve as the natural experiment to solve the problem of the separation. So we construct the governor-province matched data set in which people can trace back at least two provinces the same governor served in, and then systematically explore the direct effect of governor on the provincial economic growth, which we call the effect of governor transfer. The governor does matter for provincial economic growth. Specifically, its about 1 percentage of economic growth that can directly and significantly attribute to the incumbent governors, which to our knowledge is the first attempt to understand the economic growth rigorously at the individual level.

Abstrat:Since 2002, Renminbi has shown a phenomenon that has been the coexistence of the external appreciation and the domestic inflation. This new monetary phenomenon, which we call, has been strengthened in the context that US dollar depreciates internationally and that domestic economy is overwhelmed with excessive liquidities. Certainly the monetary phenomenon is the reflection of the real economy: that continuing trade surplus, triggered robustly by the export-driven economy, is bringing a huge amount of exchange reserve which accelerates sequentially the expansion of domestic money supply. Furthermore, a refrained appreciation of RMB tends to deteriorate the domestic inflation, which is not simply a traditional concept of CPI but a broad inflation parameter including a variety of asset prices. Its sure that the new phenomenon is becoming a new challenge to the macroeconomic equilibrium as well as the decision maker of monetary policy.

Abstrat:The tremendous growth of service outsourcing witnessed over the last 2 decades or so has resulted in a new wave of economic globalization with important implications for the developing countries. This paper observes how the issue of international service outsourcing perceived in China since the early 1990s, examines the status quo with respect to Chinas participation of international service outsourcing and rooting causes for the relative backwardness of Chinas performance in this area. It also discusses the policy adjustments necessary for deepening Chinas involvement in the service globalization.

Abstrat:Employing a panel data set for 1999—2002, this paper examines the determinants of exports in Chinese electronics industry, with a particular focus on the role of foreign direct investment FDI. We find that FDI especially investments from Hong Kong, Macau and Taiwan and economies of scale are positively related to exports. We also find that the share of state capital is negatively associated with exports, whereas capital intensity, R&D and human capital are not important, indicating that most Chinese electronics enterprises are still positioned at the low-end of product value chain in the international division of labour. The paper makes two original contributions. The first is the distinction of contribution made by FDI from different country groups and the establishment of evidence that FDI from Hong Kong, Macao and Taiwan plays a greater role in promoting exports than FDI from western countries. The second is the finding that the level of labour cost moderates the relationship between FDI and exports. These findings carry important policy implications.

Abstrat:Under suppositions of sealed economy and the same demand structures between areas, we constitute the regional specialization coefficient, an index to measure regional specialization. It is a more generalized index as industrial structure variance coefficient, spatial distribution variance coefficient, absolute deviation and Krugmans index are all its special forms. When discussing regional specialization, we cannot ignore the relative area scale factor or the relative industry scale factor or we might draw mistaken judgment, not to say errors in logical reasoning. We find that the level of regional specialization in Chinas industry ascends much since mid-late 1980s. And we also find that if we neglect the relative area scale factor or the relative industry scale factor, we would overestimate regional specialization level in Chinas industry.

Abstrat:According to the estimation of human capital, there are indeed some methods. However, those methods cant be directly used to the study on Chinese cities. The main difficulty is that we have no sufficient data. In this paper we develop a new framework, which is feasible, to estimate the human capital in Chinese cities. Our estimation shows that human capital in different cities in China is different. There are some disparities of the human capital in Chinese cities. We also make some explanations about this result.

Abstrat:This paper estimates trends and patterns in absolute poverty in urban China from 1988 to 2002 using the Chinese Household Income Project CHIP surveys. Poverty incidence curves are plotted, showing that poverty has fallen markedly during the period regardless of the exact location of the poverty line. Income inequality rose from 1988 to 1995 but has been fairly constant thereafter. Models of determination of income and poverty reveal widening differentials by education, sex and party membership. Income from government anti-poverty programs has little impact on poverty, which has fallen almost entirely due to overall economic growth rather than redistribution.

Abstrat:Following Gilbert and Shapiro 1990, this paper employs the model of discounted social welfare to study the optimal patent life of software with two new variables: probability of successful innovation and innovation efficiency. We find that given the rate of return, the effect of given patent life would be different for the different industry with different investment risk and probability of successful innovation. When the innovation efficiency increases, the optimal patent life would first increase to its maximum, and then decrease. Therefore it is necessary to set industry-specific patent lives, implementing different patent protections according to the basic characteristics of the industry, especially the value of innovation efficiency. Finally, some issues related to policy application are tackled on at the end of the paper.

Abstrat:Using marketalization index and government effectiveness index, this paper investigates the role of corporate governance environments in determining the consideration/payment by untradable shareholders to tradable shareholders in share reform during 2005—2007. We find that, the better the corporate governance environments, the lower the consideration. We also find that there is a negative correlation between institutional ownership and consideration, and this negative correlation is obviously lower for listed companies located in good governance environment districts than in poor governance environment districts. In conclusion, better corporate governance environment leads to lower cost in share reform due to the existence of ‘governance premium. Better corporate governance environment can also reduce the agency problems arising from the conspiracy of untradable shareholders and institutional shareholders in share reform, therefore provide better protection to minor investors.

Abstrat:Ownership structure is a determinant of efficiency of corporate governance. This paper examines the efficiency of ownership structure through financial restatements in two dimensions of control right and ultimate shareholders. I find that, when a company is absolute controlled, its probability of restatements occurrence decreases. I also find that when a company is absolute controlled by non-state shareholders, its probability of restatements occurrence is lower than a company controlled by state shareholders. The result indicates that decentralized ownership and state ownership has less efficiency in monitoring managers, so the insiders have more opportunities to manipulate earnings. This study extends research in corporate governance, and provides evidence to supervisors and investors in decision-making.

Abstrat:This paper generalizes the Hong, Stein 1999 model to investigate the momentum and reversal in China Stock Market that is a policy market. The main results are: The reversal effect is more significant than the momentum effect in China Stock Market; there exist a ultra-short-term momentum and a short-term reversal besides the intermediate-term momentum and the long-term reversal; and the reversal effect in small-size firm stocks is more significant than the reversal effect in large-size firm stocks, the reversal effect in high-trading-volume firm stocks is more significant than the reversal effect in low-trading-volume firm stocks. At last, we find some empirical evidence to support this analysis in China Stock Market.