Abstract：This paper empirically investigates the impact of public transfers on vulnerability. It makes use of two round panel household survey data. It adopts the vulnerability as expected poverty method for estimating vulnerability and uses the difference-in-difference approach with propensity score matching adjustment in order to test the effect of public transfers on vulnerability.The main results are that even though the cross section data show a positive pattern in lowering poverty over time for china, panel data show the large amount of vulnerability that Chinese people are subject to.The difference between poverty and vulnerability becomes smaller along with rising poverty line.Education, househould size,employment,work status and area have same effect on poverty and vulnerability simultaneously.Whatever the poverty line is, the impact of the public transfers has little impact on vulnerability of the transitory poor and the chronic poor.
Key Words：Public Transfers; Poverty; Vulnerability

Abstract：This paper investigates a unique financing and investment channel for urban development in Chinese cities, as well as the political economic mechanism behind this channel. Using the panel data of 35 Chinese cities during 2005 to 2011, we examine the interrelationship among land leasing, infrastructure investment and land prices. Our results show that, on one hand, the growth of land price can significantly increase the land revenue of the city, and those municipal governments who have rich land revenue are able to invest heavily on urban infrastructure; on the other hand, investment on urban infrastructure will increase land prices by improving economic productivity and quality of life, in turn land revenues in proceeding periods will be higher in those cities. Based on this selfreinforced mechanism, we further analyze local governments-decision-making behavior in land sales by establishing an intertemporal choice model. The results indicate that cities with higher capitalization rate of investment into land price and higher loan-to-value ratio in borrowing prefer to finance by loans more than lease land in the current period, under the objective function of maximizing land revenue in the whole life. Our empirical results support the theoretical findings.
Key Words：Local Governments; Land Price; Infrastructure Investment; Land Leasing

Abstract：To solve the problem of unbalanced regional economic development in China, the Chinese government has taken three regional revitalization strategies, i.e., the west development strategy, the revitalization of the Northeast, and the rise of central China. This paper uses the 1998—2007 China industrial survey database and difference-in-difference model to investigate how the tax policy, transportation infrastructure and other regional revitalization strategies affect industrial spatial structure. The results show that transport infrastructure and tax policies have significant effects on industrial spatial structure. If tax rate decreases by 10% or per Capital road increases by 10% in less developed areas, the ratio of local industrial output to all country industrial output increases about 0.8% and 0.5%, respectively. The effect of infrastructure improvement and tax policy is different to various industries. The tax policy affects a wider range of industries. Further analyses reveal that the eastern region still has better road infrastructure and lower tax rate, and industries are mainly concentrated in the eastern region, but move slowly to the central and western region after 2004. The rise of central China strategy helps the area to absorb industrial activities from the eastern coastal area, especially the labor-intensive industry. The west development strategy promotes the development of resource-intensive industries in that region, while the revitalization of the north-east strategy has insignificant effect thus far. In order to realize more sustainable and balanced development of regional economy, the government should provide more supports, like tax reduction and infrastructure improvement, to the less developed areas.
Key Words：Agglomeration; Industrial Spatial Distribution; Regional Revitalization Strategies

Abstract：Using spatial econometric models, the paper explores the issue of spatial tax competition among Chinese counties using county level panel data of corporate income and sales tax rates between 2000 and 2006. Our findings include: First, there exists significant and positive spatial tax competition with respect to income and sales tax rates for firms among Chinese counties; Second, the intensity of spatial tax competition with respect to income and sales tax rates for foreign firms among Chinese counties is greater than that for domestic firms; Third, the competition intensity among neighboring counties within the same prefecture is smaller than that among neighboring counties located in different prefectures; Fourth, the sensitivity of counties in inland provinces to tax rate changes in neighboring counties is larger than that of counties in coastal provinces, which suggests a greater emphasis on tax competition in the inland provinces. We also make corresponding policy recommendations.
Key Words：Tax Competition；Spatial Econometrics；Income Tax；Sales Tax

Abstract：We construct a RBC model with rare disaster to quantify the impact of the rare disaster on the macroeconomic fluctuation in China and evaluate the effectiveness of fiscal policy for the economic recovery after the disaster. We decompose the rare disaster into the TFP disaster, capital disaster and double disaster. We find that: (1) The RBC mode with disaster can explain output and capital volatility better than the RBC model without disaster, and the double disaster model is better than TFP disaster model and capital disaster model to explain the macroeconomic fluctuation; (2) The disaster has more destructive impact for China’s economy than the United States; (3) The moderate amount of government subsidies can significantly reduce the destructive effect on macro economy by the disaster, but it hasn‘t obvious effect to recover more quickly after the disaster.
Key Words：Rare Disaster Risk; Macroeconomic Fluctuation; RBC Model; Fiscal Policy

Abstract：This paper empirically investigates the impact of public transfers on vulnerability. It makes use of two round panel household survey data. It adopts the vulnerability as expected poverty method for estimating vulnerability and uses the difference-in-difference approach with propensity score matching adjustment in order to test the effect of public transfers on vulnerability.The main results are that even though the cross section data show a positive pattern in lowering poverty over time for china, panel data show the large amount of vulnerability that Chinese people are subject to.The difference between poverty and vulnerability becomes smaller along with rising poverty line.Education, househould size,employment,work status and area have same effect on poverty and vulnerability simultaneously.Whatever the poverty line is, the impact of the public transfers has little impact on vulnerability of the transitory poor and the chronic poor.
Key Words：Public Transfers; Poverty; Vulnerability

Abstract：As economists have long and broadly observed and studied, technology advancement has brought forth certain bias on the demand for skilled labor. Theories and empirical studies on this topic are well developed. In the twenty-first century, information technology (IT) has become the major technical driving force. In this paper, previous researches on IT‘s impact on labor demand are summarized, a hypothesis on the complementary relationship between IT change, corporate workplace organization and skilled labor demand is made, and the hypothesis is tested empirically by using World Bank’s firm level data of 2005 and 2012 in China. We find that IT adoption and workplace organization raise skilled labor ratio and lower unskilled labor ratio, in turn IT gives rise to income inequality. The conclusion holds even after we consider the endogenous IT change and heterogeneous firms. Finally, certain possible implication and future research direction are discussed.
Key Words: Skilled Labor Demand; Information Technology Advancement; Workplace Organization Innovation; Skill Biased Technical Change

Abstract：This paper examines the interactive effects of the separation of decision-making rights and decision-supervision rights and earnings management on investment efficiency. It shows that earnings management does not significantly affect investment efficiency in firms with larger degree of separation of decision-making rights and decision-supervision rights, and that the degree of separation of decision-making rights and decision-supervision rights does not significantly affect investment efficiency in lower level earnings management firms. Earnings management causes more inefficient investment to firms with smaller degree of separation of decision-making rights and decision-supervision rights. Smaller degree of separation of decision-making rights and decision-supervision rights reduces more investment efficiency to high degree earnings management firms than low level earnings management firms. Earnings management level is positively associated with inefficient investment in firms with larger degree of separation of decision-making rights and decision-supervision rights, and the degree of separation of decision-making rights and decision-supervision rights is negatively associated with inefficient investment in high degree earnings management firms. This paper extends the extant literature of relationship between earnings quality and investment efficiency, and deepens the research about the economic consequences of decision-making rights allocation.
Key Words：Decision Rights Allocation; Earnings Management; Investment Efficiency

Abstract：According to the theoretical basis of Eaton & Kortum (2002), we theoretically research the impact of the synergies between institutional factors and industrial characteristics on exports. It shows that when a country’s institutional quality passes the “Institutional Threshold”, the synergies between the country‘s institutional factors and industry characteristics favor the country‘s exports; When a exporting country has a relatively superior institutional quality compared to its trade partners, the synergies between the country’s institutional factors and industry characteristics can also improve the exports of this exporting country to its trade partners, and vice versa. Then we adopt the panel data of China’s exports to 148 countries in 20 industries with a time span of 20 years to respectively examine the synergies between financial development, educational development, intellectual property rights protection and legal system construction, with industrial characteristics to check their impact on the exports.
Key Words：Factor Endowments; Institutional Dividend; “Institutional Threshold”; New Export Comparative Advantage

Abstract：Utilizing a natural experiment, this paper investigates the effects on firm-TFP of the import competition intensified after access to WTO. Using a large microdata, we obtain three key results: (1) On average, import competition promotes the growth of TFP of domestic firms; (2) It hinders the growth of TFP of firms with low TFP, but pushes the growth of TFP of firms with high TFP. Thus, import competition has a different impact on heterogeneous firms; (3) For firms with low TFP, negative scale effects of import competition dominate over positive incentive effects, and import competition hinders their TFP growth. On the contrary, for firms with high TFP, positive incentive effects of dominate over negative scale effects, and import competition pushes their TFP growth.
Key Words：Import Liberalization；Competition；Incentive Effects；Scale Effects；TFP

Abstract：For a long time, the effects of trade on technological progress and economic growth have been aroused wide concern of the economist. To explain it, the power of the existing theory, however, is very weak, and the conclusions of many empirical studies are different and controversial. In this study, based on the new growth theory, knowledge will be abstracted from the trade activities, and a knowledge trade equation will be introduced to build a mathematical model. Then, the comparative static analysis methods will be used to analyze the influence of different trade policies on the model results. This fills the blank of the new growth theory, which has not modeled trade, and, to a certain extent, enhances the explanatory power of the theory on the above effects. Conclusions show that trade is the cause of the technological progress and economic growth but couldn‘t make the catching-up strategy of technology importer come true. In addition, the trade protection policies will block technology advance and reduce the economic welfare.
Key Words：Knowledge Commerce; Technological Progress; Economic Growth; Theoretical Model

Abstract：China aims to cut CO2 emissions per unit of GDP by 40% to 45% from 2005 level by 2020. It is quite a challenging commitment. Now that coal subsidies are deemed as the main cause of excessive consumption of coal and CO2emissions, we use Price-Gap Approach to estimate the size of China’s coal subsidies in the benchmark year. Then, we establish the Social Accounting Matrix extended with environmental restoration accounts based on 2007 China Input-Output table. Furthermore, an Computable General Equilibrium model is applied to stimulate the procedure of removing coal subsidies.We try to analyze the effect of CO2 emissions reduction from structural aspects: industrial structure and energy consumption structure. Results show that CO2 intensity in terms of GDP would be reduced by 1.78%.
Key Words：Coal Subsidies; CO2 Emissions; CGE

Abstract：Using prefectural panel data from China, this paper attempts to empirically test the impact of air pollution on public health. Resorting to 3SLS to handle the potential endogenous problem in sulfur dioxide emission, this paper finds significant negative effects of air pollution on public health: 1% increase in gas emission will lead to an increase in death from respiratory diseases and lung cancer per 10,000 by 0.055 and 0.005 respectively. As to absolute magnitude, every one million increase in sulfur dioxide emission will bring out an increase in death from respiratory diseases and lung cancer per 10,000 by 0.5 and 0.3 respectively. In sum, death and economic cost due to sulfur dioxide emission each year are 180 thousand and 300 billion RMB respectively.
Key Words：Air Emission; Public Health; Sulfur Dioxide; Environment

Abstract：Since the reform and opening up, China has experienced rapid economic growth, which could be called “wonders of the world”. In this process, a significant feature was that the economic development of coastal areas was much faster than inland areas. What factors have led to the rise of China’s coastal areas? By constructing two complementary indicators of marketization, we empirically investigate the importance of market development in the rise of China‘s coastal areas, under the control of capital, nature resources, infrastructure construction and preferential policies. The panel data of Chinas 28 provinces from 1985 to 2010 were used. Especially, to get a more credible result, we conducted a variety of robustness tests. Results showed us that market factors have played a crucial role in the rise in China‘s coastal areas.
Key Words：Rise of China’s Coastal Areas; Economic Growth; Marketization Index; Index of Market Integration