Abstract：The paper investigates the mechanism underlying the new phenomena in the recent process of China‘s economic growth, which includes that economic growth in the coastal area is slowing down；interprovincial dispersion is narrowing down；inland-biased structural reform is implementing.Theoretically, the paper builds a simple model of the interest conflict between the rich region and the central who starts to undertake the poorbiased structural reform.The key feature is that the rich region may strategically slow down its growth target and actually narrow the gap between the rich and poor region.Empirically, using a new panel data on annual growth target from the provincial government reports in the period of 2001—2012 and 5-year-aveagre growth target from the provincial 5-year planning in the period of 1996—2015, the paper finds that the growth target was the dominant engine of the trend of interprovincial dispersion, and that the growth targets of the developed provinces were lowered after implementation of the inland-biased structural reform.These findings are robust and consistent with predictions of the model and the new phenomena.
Key Words：Economic Growth;Growth Target；Structural Reform

Abstract：The amount of Chinese local government debt has surged dramatically since the global financial crisis in 2008.In this paper, we develop an industrial investor-local government model to investigate the reason why it is difficult to prevent local officials from running into debt in the view of debt’s double investment-inducing effect.Our model implies that local government debt, as a critical indicator of government‘s ability of raising money, not only increases local industrial output directly but also attracts investment effectively by two channels, that is, by increasing investment of infrastructure and by lowering price of industrial land, which together foster local industrial growth.Our empirical findings confirm the double investment-attracting effect of local government debt based on China’s prefectural-level panel data from 2003 to 2007However, cities with different endowments might face different risks while pushing industrial growth by raising debt: (1) cities with less endowments have comparative disadvantage in the competition for investment and their land leasing revenue in the near future might not be large enough to cover the historical debt；(2) cities with better endowments, on the other hand, might suffer surging housing price due to their over-supply of industrial land and the ensuing shortage of residential land.
Key Words：Local Government Debt；Infrastructure Investment；Competition for Investment

Abstract：Using a sample of local state-owned listed company from 2004 to 2010, this paper examines difference among government controls of the state-owned enterprises under the political achievement demands.Meanwhile, it reveals the government decentralization is an important way to improve the efficiency of state-owned enterprises.This study finds that: (1) political achievement demands are important factors affecting government control of state-owned enterprises, such as the economic growth rate, the fiscal surplus.And the different political achievement demand of government level has different influence on state-owned enterprises.(2) With the decline of government level (Province-City-County), the damage of government control to company value will decrease.Based on different political achievement demands, the low-level government will be better shareholders of state-owned enterprises and brings smaller damage to company value than the high-level government does.
Key Words：State-owned Enterprises；Political Achievement Demands；Government Control Right；Corporate Value

Abstract：Corporate risks are subject to the operating strategy and daily management made by the management, who are influenced by the social and cultural values.Therefore, national culture values can affect corporate risk-taking.This paper studies whether the risk taking of joint venture in China, is influenced by their domestic cultural values.The sample data consist of 4944 joint ventures from 35 foreign countries.Using standard deviation of ROA as the measure of risk-taking, we find that harmony and uncertainty avoidance are significantly negatively associated with joint venture risks and individualism is significantly positively associated with joint venture risks.We also find that culture difference negatively affects the risk-taking.Further tests indicate that the foreign ownership strengths the relationship between culture values and risk taking.Our paper provides new evidence that culture values affect corporate behavior.
Key Words：Joint Venture Risk-taking；Domestic Culture；Culture Difference

Abstract：Based on the Chinese Houshold Income Project (CHIP) and China Industrial Firm Database，this paper examines both theoretically and empirically the impact of regional export enterprises productivity on human capital accumulation under the background of dual labor market.The results show that，the improvement of regional export productivity generally has a positive effect on China urban and rural worker‘s human capital investment，leads to an increase in the education investment of worker‘s children，and promotes China’s human capital accumulation in the long term.In the meantime，the improvement of regional export productivity leads to a larger increase in formal education investment and a less increase in job training of China rural worker than urban individual worker.Concerning their children’s education investment，the improvement of regional export enterprises productivity leads a greater increase in the extra-curricular tutorial class investment than public school education investment.This conclusion suggests that exporting goods of higher productivity is important in promoting human capital accumulation and long-term economic growth.
Key Words：Export Enterprises Productivity；Human Capital；Dual Labor Market

Abstract：Based on the micro-survey data of China，this paper uses instrumental variable to analyse the relationship between city size and happiness.We found that happiness and population size of City area present a U-shaped relationship，the lowest point of the U-shaped curve is about 300 million people.On personal and collective rationality，new immigrants from different provinces should take the behavioral pattern that all profit，or altruistic but not hurt themselves，or selfish but not hurt others，to enhance total happiness of residents in the city，while the city size expansion.New immigrants from own province or similar provinces could go to big cities in these provinces.But Chinese immigrants exhibit impersonal irrational phenomenon in geospatial now.So government needs to adopt appropriate measures to guide labors immigration rationally gradually，to form a better urban system，then improve personal happiness and the total happiness of residents.
Key Words：City Size；Happiness；Spatial Choice of Migration

Abstract：The strong and increasing co-movement in the foreign exchange reserves volatility of BRICS is verified with the static and dynamic Pearson & Spearman Correlation Coefficient Method.SPSS factor analysis and cluster analysis prove that the co-movements mainly result from the combined effects of the international impact and the nature of large emerging countries, but the effects of the two factors are of different levels.These two factors are embodied with the cointegration analysis, and the results show that BRICS‘GDPR, CPI, M2R, TRARATE representing the nature of large emerging countries and DEER, DJI denoting the international impact have stable correlation with the growth rate of foreign exchange reserves.The results of this paper imply the strategic significance of strengthening the cooperation among BRICS on foreign exchange reserves, and provide rationale for implementing differential domestic adjustment policy of foreign reserves in the BRICS.
Key Words：BRICS；Foreign Exchange Reserves；Co-movement；SPSS Factor Analysis

Abstract：In an open economic model with capital-flow disturbances, we study the “two targets two instruments”(TT) monetary policy framework, which has inflation and exchange rate as final targets and interest rate and sterilization intervention as instruments, focusing on the comparison of the TT framework and the inflation-targeting (IT) framework.Extended to a quantitative framework, the model is simulated to reveal: the TT framework performs better than the IT framework when capital-flow disturbances arrive；the TT framework prevails when demand disturbances or supply disturbances arrive with frictions in capital flows.Estimations of reaction functions of monetary policy instruments conclude：the practices of China’s monetary policy are consistent with some of features of the TT framework, such as, the significant reactions of sterilization intervention towards inflation, output gap and foreign exchange reserve deviation, and the reactions of deposit rate towards foreign interest rate.
Key Words：Real Exchange Rate; Sterilization Intervention; Monetary Policy; Capital Flows

Abstract：The phenomenon that goods manifest a similar pattern in capital intensity and price volatility can be defined as financalization of goods in China.This paper introduces capital switching into the Multiplier-Accelerator model to explain the price-driving mechanism of goods at different levels of financialization.The paper combines factor analysis with VAR model and finds that the price changes of goods at different levels of financialization exhibit different effects on consumer price inflation.The prices of goods at high and medium financialization levels impose longer transmission impact on and have bilateral and unilateral causal relationships with consumer price inflation, respectively, while the prices of goods at low financial level have no causal relationship with consumer price inflation.
Key Words：Financialization；Capital Switching；Inflation； Macroeconomy

Abstract：This paper employs the unique large-scale residential mortgage database originated from April 2004 through May 2009 by one Chinese major mortgage lender to empirically investigate the determinants of various mortgage delinquencies and their geographic differentials.We find that price to balance ratio (PTB) rather than debt to income (DTI) significantly impacts mortgage delinquency risk.Hence, the mortgagors normally default due to negative equity rather than their unaffordability.Second, housing price is solely negatively associated with one-mouth delinquency and loan balance is positively associated with all mortgage delinquency and default risks, whereas borrower‘s income and monthly payment are not statistically significant.Thus, Chinese commercial banks should improve default risk management in large mortgage loans.Third, the growth rate of housing price is negatively associated with all mortgage delinquency and default risks, while the growth rate of borrower‘s income is merely negatively correlated with one-mouth delinquency risk.Therefore, the mortgage delinquency and default risks decrease with the increases of housing price and borrower’s income.Fourth, mortgage delinquency risk varies across cities.Relative to Shanghai, Beijing and angzhou show lower mortgage default risks, while Guangzhou, Shenzhen and Hangzhou have lower two-months mortgage delinquency risks.In addition, Tsingtao exhibits lower one-month mortgage delinquency risk, whereas Tianjin, Jinan, Haikou, Foshan and Zhuhai have higher mortgage delinquency risks.For this reason, the mortgage geographic diversification helps to reduce mortgage delinquency and default risks.Fifth, mortgages in second-hand houses show higher delinquency and default propensities than that of mortgages in first-hand houses.Hence, Chinese commercial banks should improve delinquency and default risk management in their second-hand house loans.
Key Words：Delinquency Risk；Default Risk；Option Factors；Non-option Factors

Abstract：By using a two-period model with both adverse selection and moral hazard, we give an explanation for ‘the crisis of trust’ in China’s food industry.We show that the asymmetry of information on the industry level is the cause of the crisis, in stead of that on firm‘s level.In the former case, the profit-chasing firm would imitate his rotten competitor’s low quality, even if he would keep high quality in the latter case.To handle the crisis, we need to expand the supervision coverage, improve the detection technology, and increase the punishment.
Key Words：Crisis of Trust；Supervision Coverage；Governing System of Food Safety