本期文章英文摘要

Toward the Interaction between Opening-Up Policy and Decentralization

SUN Jing-yu，HE Chun-yao

Abstract: Current studies show that the “China Miracle” with tremendous economic transition and growth success during past thirty years is due to the decentralization. This paper holds that the “race to the top” is not necessarily derived from decentralization itself and the “China Miracle” is the result of benign interaction between opening to the outside world and decentralization. However， opening to the outside world cannot radically eliminate the negative effects generated by decentralization， so adjusting decentralization policy and reconstructing the relationship between the central government and local governments are necessary measures to continue the “China Miracle”.

Key words: China Miracle; Opening-Up; Decentralization; Economic transition; Economic growth

Way of Made-in-China and the Foreign Economic Policy under the Threat of Stagflation

JIN Wei-ping

（Institute of Politics and Economics， Tsinghua University， Beijing 100084， China)

Abstract: China’s current macro-economy is facing many difficulties， such as the foreign trade policies， exchange rates and foreign exchange reserves. China’s status as a world plant is threatened to made-in-China problem. This paper holds the mainstream economics of trade theory does not fit the current interpretation of the problems in foreign trade. Through a fictional Sino-US trade model we see the possibility of China’s deteriorating terms of trade. This article holds that China must maintain independent monetary policy and raise nominal economic growth to keep healthy development in foreign trade and upgrade “made-in-China”.

Key words:Made-in-China; RMB exchange rate; Nominal economic growth rate

Mechanism of Income Distribution on Economic Growth

CHEN Chang-bing

（Institute of Economics， Chinese Academy of Social Sciences， Beijing 100732， China）

Abstract: With endogenous growth theory，this paper puts forward indirect mechanisms and direct mechanisms of income distribution on economic growth. Based on the growth pattern， we analyze the impact of income distribution on economic growth in different growth phases. In industrialization period， growth is mainly driven by physical capital， and the mechanism of income distribution on growth is expressed by the first direct and indirect mechanism. Whether income disparity helps growth is uncertain. In modern economic period， growth is mainly driven by human capital， and the mechanism of income distribution on growth is mostly the second direct and indirect mechanism. Income disparity is unfavorable for economic growth.

Key words:Economic growth; Income distribution; Physical capital; Human capital; Mechanism

Toward the Basic Logic of Public Service Equalization

WANG Wei

(School of Economics and Management， Wuhan University， Wuhan 430072， China)

Abstract: Public service equalization is a question raised with the development of civil society and market economy that reflects taxpayers’ rights. The conception of public service equalization and its implementation has profound political， economic and social logic. The socio-economic conditions in different countries differ; therefore different dimensions of the logic of public service equalization will be stressed in different countries， as well as the choice of public service equalization arrangements. It is important to clarify the basic logic of public service equalization as is an important goal of China.

Key words: Public service equalization; Taxpayers’rights; Basic logic

Inequality of China Regional Foreign Trade through 1978-2007

WEI Hao

(International Trade Department， Beijing Normal University， Beijing 100875， China)

Abstract:This paper empirically analyses the inequality of foreign trade among thirty provinces and three regions in China from 1978 to 2007. The results show that the inequality in absolute terms among provinces is still enlarging and that in relative terms is decreasing since 1992， that the inequality among eastern provinces is increasing since 1992， and that diminishing marginal utility effect exists for the positive role of foreign trade on China economy. Thus the central government should promote economic growth for the middle and west regions and speed up the transfer of industries from the East to the Middle and the West to bridge regional foreign trade gaps.

Key words:Region; Foreign trade; Inequality

Technology Spillovers of FDI and Imports in China—Based on a Comparison

between Major Western countries and the Four Asian Dragons

SHEN Chang-er

(School of Economics and Business Administration， Beijing Normal University， Beijing 100875， China)

Abstract: The growth in total factor productivity in a country (region) depends not only on domestic but also on foreign R D capital stock. This paper uses expansion CH model to study the technology spillovers in which R D capital stock as explained variables with 1993-2006 panel data. This is done considering the role of imports and FDI as diffusion channels for major Western countries (G8 members) and the four Asian Little Dragons to China. We conclude that the coefficient estimates for FDI are significantly positive， that the significant degree for western countries is slightly higher than that of the four Asian Little Dragons， and that the correlation of domestic R D capital stock with total factor productivity is significantly positive without the impact of major Western countries.

Key words:FDI; Imports; Technology spillovers; R D capital stock

Industrial Cluster and Knowledge Spillover in Simultaneous Framework

QIAO Bin1， LI Guo-ping2

(1. School of Economics and Management， Taiyuan University of

Science and Technology， Taiyuan 0300242， China;

2. School of Economics and Finance， Xi’an Jiaotong University， Xi’an 710061， China)

Abstract:Traditional studies on industrial cluster and knowledge spillover use the equation of single model，which will often produce endogenous deviation. This paper attempts to establish the model of simultaneous equations to study industrial cluster and knowledge spillovers. Empirical results show that the simultaneous model corrected endogenous deviation and that the relationship between industrial cluster and knowledge spillovers is inter-connected instead of a one-way pattern. Meanwhile， our model enhances the accuracy of the effect of knowledge spillovers on industrial cluster， with better results to theoretical expectations. With the existence of localization and urbanization economies， knowledge spillovers， labor pool， population and input variables are positively related with industrial cluster.

Key words:Industrial cluster; Knowledge spillover; Simultaneous model

Analysis on the Relationships among Natural Resources， Economic Growth and Innovation

ZHANG Jing-hua

(School of CCP， The State Administration of Taxation， Yangzhou 225007， China）

Abstract:Natural resources are one factor of economic growth， which may theoretically expand production frontier. However， the \"resource curse\" phenomenon shows strong currently. Regions with abundant resources usually have slower growth than those lacking resources．This paper investigates the connection between resource abundance and innovation， as a transmission mechanism that can elucidate part of the resource curse hypothesis. We develop a variation of the Ramsey-Cass-Koopmans model with endogenous growth to explain the phenomenon. For this model， we show that an increase in resource income frustrates economic growth in two ways: directly by reducing work effort and indirectly by inducing a smaller proportion of the labor force to engage in innovation.

Key words:Natural resource; Resource curse; Innovation; Economic growth

in the Context of Different Innovation Portfolios

LIU Xun-feng， SHEN Hao， LI Yuan

(School of Management， Xi’ an Jiaotong University， Xi’an 710049， China)

Abstract:This paper tests differences among competitive advantages， financial performance and strategic orientation in different innovation portfolios with empirical investigation. The results indicate that， comparing with other three innovation portfolios， the portfolios of high administrative innovation and high technological innovation will greatly facilitate firms’competitive advantages and strategic orientation， with no significant effect on financial performance.

Key words:Administrative innovation; Technological innovation; Competitive advantages;

Entrepreneurial orientation; Market orientation

An Assessment on the Credit Risk for China Commercial Bank System

Based on Macro-Stress Testing

LI Jiang， LIU Li-ping

(School of Economics and Finance， Xi’an Jiaotong University， Xi’an 710061， China)

Abstract:This paper focuses on the application of macro-testing in the assessment of banking credit risk. We establish a model specifically designed for China situations and define overdue loan ratio as credit risk indicator. The results show that macroeconomic variables especially NGDP and CPI have much stronger impact on banking loan system than other factors. Then we construct two extreme macro economic scenarios. Banking default probability increases sharply with the scenarios of sharp decline in NGDP and surge in CPI. The increase in loan default probability with CPI scenario is bigger than that with NGDP scenario.

Key words:Commercial banks; Credit risk; Macro stress-testing

The Dilemma of SME Financing: New Interpretation and Way-Out

HE De-xu， RAO Ming

(School of Finance， Hubei University of Economics， Wuhan 430205， China;

Cinda Securities Ltd. Co， Beijing 100045， China)

Abstract:The literature made different explanations on why SME financing is difficult from various perspectives. This paper makes a new interpretation from bank operation viewpoint. We hold that the fundamental reason for SME financing problems exists in the positioning of China commercial banks， i.e.， the transaction-based banking style. The way-out of the dilemma can be said to develop community banks with relationship based style.

Key words:SME financing; Banking styles; Community banks

The Different Effects of Chinese Monetary Policy between Rural and Urban

Areas—an Analysis based on VAR Model

LI Shan-shen， HE Lian-cheng

(International Business School， Shaanxi Normal University， Xi’an 710062， China)

Abstract: The economic development between China urban and rural areas is unbalanced. Considering the typical characteristics of the dual economic structure， we should attach importance to the different effects of Chinese monetary policy between urban and rural areas. This paper， with annual data through 1978-2004 and VAR model and impulse response function，empirically shows that the economic impact of monetary policy on urban and rural areas is significantly different while basically the same direction. The income and financial development gap between rural and urban areas explains this issue to some extent.

Key words:Monetary policy; Urban and rural gap; VAR Model

Total Factor Productivity Analysis on China Insurance Sector

HUANG Wei

(University of International Economics and Business， Beijing 100029， China)

Abstract: Based on nonparametric Malmqusit index method， this paper measures the total factor productivity of China’s insurance sector in the period of 1999-2006. However， the traditional Malmquist index models have various limitations， such as computing Malamquist index and decomposing factors based on the assumption of constant scale returns， using either input or output distance function proposed by Shephard. These limitations make the decision making units (DMUs) approach the production frontier by a radial direction， which result in imprecise measurement. Therefore this paper focuses on presenting modified Malmquist index model based on directional technology distance function. The findings indicate that the total factor productivity of China’s insurance sector is attributed to the growth effect and especially the catching-up effect. The results suggest that insurance companies should pay more attention to the growth effect， which is realized by improving the capability of technical innovation.

Key words: Insurance; Total factor productivity; Malmquist index

Insurance Development， Saving Structural Change and Economic Growth

LIU Qing-hui

(School of Economics， Fudan University， Shanghai 200433， China)

Abstract: This paper analyzes the mechanism of which property-life insurance promotes economic growth by constructing an Overlapping Endogenous Growth model. We find that insurance intermediary decreases agent’ s holding of liquidity assets and increases agent’ s investment in non-liquidity assets when it inter-temporally smooth shocks of productivity risk and disease risk confronting the agent. Where the agent’ s saving consists of liquidity and non-liquidity assets， the development of insurance causes a structural effect of saving， and the relative increase of non-liquidity assets caused by the structural effect of saving promotes the accumulation of capital and knowledge， further forms endogenous economic growth. The positive test based on China’ s data supports the mechanism.

Key words: Insurance development; Shock of productivity risk; Shock of disease risk; Structural

effect of saving; Endogenous growth

Research on the Structure and Causes of Top Management Equity Incentives

HE Fan1，2

(1.School of Economics， Sichuan University， Chengdu 610065， China; 2.Department of Economic and Trade，

Sichuan Continuing Education College， Chengdu 610041， China)

Abstract: This article empirically researches on the structure of incentive equity. We find that the listed companies will choose the structure of incentive equity which has smaller gap when they have a bigger size and a lower Herfendal’ s Index， and they need use more factors to make better equity incentive system.

Key words: Equity incentive; Structure of incentive equity; Cause analysis

Can Fair Value Measurement Improve the Value Relevance of Quarterly Accounting Earnings

——Evidence from Listed Companies in Banking， Insurance， Building Real Estate Sectors

WANG Jian-ling1， SONG Lin2，ZHANG Xue-liang1

(1. School of Management， Xi’ an Jiaotong University， Xi’an 710049， China;

2. School of Economics and Finance， Xi’an Jiaotong University， Xi’an 710061， China)

Abstract: The new Chinese Accounting Standards (CAS) has been in effect for China listed companies since January 1st 2007， with fair value measurement as its most significant characteristic which helps to improve the decision relevance of accounting information. This paper aims to test the value relevance of quarterly earnings adjusted before and after fair value change with data from listed companies in banking， insurance， and building and real estate sectors. The results show that fair value measurement helps to improve the value relevance of accounting earnings in banking and insurance， but the similar conclusion is not found in building and real estate industry. Meanwhile， the relationship between fair value adjustment and stock price is not significant in both sectors.

Key words: Fair value measurement; Accounting earning; Value relevance

Investigation on R＆D Input and the Regional Innovation Environment

and Innovation Capability: 1997-2006

YUE Hu1， 2， ZHANG Zong-yi1

(1. School of Economics and Business Administration， Chongqing University， Chongqing 400040， China;

2. School of Economics and Business Administration， Guangdong University of Technology， Guangzhou 510520， China)

Abstract: This paper empirically investigates the impact of R＆D Input and regional innovation environment on patent-measured efficiency of innovation output with provincial panel data in China through 1997-2006. The results show that innovation performance differs significantly among the 30 provinces or municipalities， due to differences in regional innovation environment and other factors as well as in input level and RD capability. The results further imply that regional environments have important effects on regional innovation capability. We finally propose policy recommendations on ways to enhance regional innovation capability and improve regional innovation environment.

Key words: Innovation capability; Regional innovation environment; R＆D Input; patent; Panel data

Impact of Compulsive-System-Evolution Based Independent Director on Corporate Liabilities

ZHANG Xiao1，2， KE Da-gang1

(1. School of Management， Xi’an Jiaotong University， Xi’an 710049， China;

2. Shanxi University of Finance and Economics， Taiyuan 030006， China)

Abstract: This paper empirically researches the relationship between independent director in internal mechanism and creditor in external mechanism in the context of compulsive system evolution and with samples from China listed companies.

Key words: Independent director; Liabilities; Corporate governance