Table of Content
1.
China
's economic growth and its real exchange rate
Rod Tyers,Jane Golley,Bu Yongxiang,Iain Bain
Page 123-146
2. The determinants of peasants' family income in
China
's west underdeveloped area: effects of working away from home village
Zongyi Zhang, Feng Wang, Dongmei Yu and QiLiu
Page 147-154
3. Rate of return on venture capital investment in
China
Ping Qian and Wei Zhang
Page 155-164
4. The return to education and its distribution in urban
China
:
evidence from quantile regression analysis
Chuliang Luo
Page 165-176
5. ndustry characteristics, spatial competition and industrial concentration – evidence from
China
Yeqiang Wang and Houkai Wei
Page 177-190
6. The determinants and trends of
China
's exportable structure
Xiaojuan Jiang
Page 191-202
7. Trade, product variety and welfare: a quantitative assessment for mainland
China
Michael Funke and Ralf Ruhwedel
Page 203-212
8. Understanding the recent performance of
China
's stock market
Zhixiong Zeng and Xiaoli Wan
Page 213-226
9. How does economic transition breed corruption?
Yong Guo
Page 227-236
10. Inflation pressure and price intervention: an ominous combination
Qiren Zhou
Page 237-244
Article Abstract
1.
China
's economic growth and its real exchange rate
Rod Tyers, Jane Golley, Bu Yongxiang,Iain Bain
Page 123-146
Abstract: The shocks that underlie
China
's comparatively rapid growth include gains in productivity, factor accumulation and policy reforms that increase allocative efficiency. The well-known Balassa-Samuelson hypothesis links productivity growth in tradable industries with real appreciations. Yet it relies heavily on the law of one price applying for tradable goods, against which there is now considerable evidence. In its absence, other growth shocks also affect the real exchange rate by influencing relative supply or demand for home product varieties. This paper investigates the pre-conditions for the Balassa-Samuelson hypothesis to predict a real appreciation in the Chinese case. It then quantifies the links between all growth shocks and the Chinese real exchange rate using a dynamic model of the global economy with open capital accounts and full demographic underpinnings to labor supply. The results suggest that financial capital inflows most affect the real exchange rate in the short term, while differential productivity is strong in the medium term. Contrary to expectation, in the long term demographic forces prove to be weak relative to changes in the skill composition of the labor force, which enhances services sector performance and depreciates the real exchange rate.
Keywords: exchange rate; economic growth; demographic change; Chinese economy
Link to the original text:
http://www.informaworld.com/smpp/content~db=all~content=a793959522
2. The determinants of peasants' family income in
China
's west underdeveloped area: effects of working away from home village
Zongyi Zhang, Feng Wang, Dongmei Yu,Qi Liu
Page 147-154
Abstract: There are more than one hundred million peasants working in non-agricultural industries away from their home villages in
China
. Using survey data of 2004 from
Chongqing, the authors intend to research on the poverty of
China
's west economically backward area through investigating the peasants' family income and the out-of-rural workers' income, and have found out that working away from home village is the main source of peasants' income growth in
China
's economically backward area. Working away from home village gives peasants a chance to get directly engaged in the process of industrialization and urbanization, reducing the east-west inequality and rural-urban income disparity.
Keywords: peasants; family income; working away from home village
Link to the original text:
http://www.informaworld.com/smpp/content~db=all~content=a793992464
3. Rate of return on venture capital investment in
China
Ping Qian and Wei Zhang
Page 155-164
Abstract: The rate of return on venture capital investment of venture capital (VC) firms in
China
has been attracting increasing attention. We use robust multinomial regression models to analyze 56 exit projects of venture capital investment from 1999 to
2003 in
China
. The results show that the returns of state-owned VC firms are lower than those of non state-owned VC firms. Furthermore, the returns of the VC firms located in
Shanghai
and Shenzhen are higher than those in other regions. The capital scale of VC firms is negatively correlated with the rate of return. In addition, some variables, such as business duration, investment scale, investment duration and exit vehicle, are probably unrelated to rate of return on venture capital investment in
China
.
Keywords: venture capital; local venture capital firm; exit; rate of return
Link to the original text:
http://www.informaworld.com/smpp/content~db=all~content=a793934921
4. The return to education and its distribution in urban
China
: evidence from quantile regression analysis
Chuliang Luo
Page 165-176
Abstract: Based on Chinese Households Income Projects in 2002, this paper discusses the relationship between the return to education and the quantiles of income distribution. The findings in this paper show that the return to education is lower for the higher quantiles, while the estimators also depend on the choice of control variables. The methodology of the quantile regression might be helpful in adjusting the ability bias in the estimation on return to education. The policy implications of the paper highlight the impact of the education expansion in boosting the income growth for those in lower quantiles.
Keywords: return to education; quantile regression; income distribution
Link to the original text:
http://www.informaworld.com/smpp/content~db=all~content=a793964175
5. Industry characteristics, spatial competition and industrial concentration – evidence from
China
Yeqiang Wang and Houkai Wei
Page 177-190
Abstract: We study the determinants of a geographic concentration of manufacturing industries in a spatial competition framework. Based on a panel data set of
China
during 1995-2003, we have the following findings. First, some traditional comparative advantages in production factors such as labor endowment are becoming the major factors that prevent the industrial concentration. Second, the major factors that promote geographic manufacturing concentration are technology spillover and industry linkage. Third, the effect of economy of scale on manufacturing concentration is significant, but the direction depends on how the concentration is measured.
Keywords: industry characteristics; spatial competition; geographic concentration Link to the original text:
http://www.informaworld.com/smpp/content~db=all~content=a793943963
6. The determinants and trends of
China
's exportable structure
Xiaojuan Jiang
Page 191-202
Abstract: The paper empirically investigates several key factors to determine changes in
China
's exportable structure. Based on this, it predicts the possible changes of
China
's export goods, especially of those with high value-added. It concludes that comparative advantage, market structure and the global integration penetration are the three most important factors to determine the exportable structure for each industry in
China
.
Keywords: international trade; exportable structure; globalization
Link to the original text:
http://www.informaworld.com/smpp/content~db=all~content=a793954970
7. Trade, product variety and welfare: a quantitative assessment for mainland
China
Michael Funke and Ralf Ruhwedel
Page 203-212
Abstract: We calculate a variety of welfare gains for Mainland
China
, following the approach of Romer (1994), who emphasized that proper modelling of the impact of trade restrictions on the number of available product varieties is crucial for quantifying the welfare impact of trade liberalization. The empirical work presented relies on direct measures of product variety calculated from highly disaggregated trade data. The emerging conclusion is that freer trade has indeed boosted welfare.
Keywords: trade liberalization; product variety; welfare;
China
Link to the original text:
http://www.informaworld.com/smpp/content~db=all~content=a793959826
8. Understanding the recent performance of
China
's stock market
Zhixiong Zeng and Xiaoli Wan
Page 213-226
Abstract: Employing time-series extrapolation and an out-of-sample forecast based on a bivariate VAR (vector auto-regression), we argue that the current boom of
China
's stock market represents a recovery that corrects the previous divergence of the stock market from the aggregate economic performance. Nevertheless, we caution that the speed of the recent rise in stock prices is alarming. If the current speed continues, then the stock market will soon become overheated in the sense that the level of stock prices will exceed the level justified by economic fundamentals.
Keywords: chinese stock market; extrapolation; VAR out-of-sample forecast; recovery; overheating
Link to the original text:
http://www.informaworld.com/smpp/content~db=all~content=a794005987
9. How does economic transition breed corruption?
Yong Guo
Page 227-236
Abstract: Based on the existing literature, this paper discusses the relationship between economic transition and corruption, and argues that economic transition is one of the main roots of the spread of corruption in transitional
China
. It divides economic transition into four parts, and examines various channels by which economic transition breeds corruption opportunities. By applying the case statistical analysis method to analyze 594 major corruption cases, it finds the most corruption-prone areas, and provides some empirical evidence on the existence of such channels.
Keywords: corruption; economic transition
Link to the original text:
http://www.informaworld.com/smpp/content~db=all~content=a793974119
10. Inflation pressure and price intervention: an ominous combination
Qiren Zhou
Page 237-244
Abstract: Of the debate regarding the new round of surging inflation in
China
, structural opinion interprets inflation as a problem of structural price growth, mainly brought about by a price hike for selected commodities as a result of exogenous shocks from different sectors. In line with the explanation, various measures aiming to control prices have been implemented recently. On the basis of basic economic principles and empirical evidence drawn from four cases, this essay argues that price intervention policies are counter-productive in bringing inflation down.
* This paper is a speech given at the Twelfth Quarterly Conference of CCER China Economic Observer,
China
Center for Economic Research, at
Peking
University
on 24 February 2008.
Keywords: inflation; price intervention; monetary policy
Link to the original text:
http://www.informaworld.com/smpp/content~db=all~content=a793991345
