本期文章英文摘要

What Curbs the Wings of China Firms’ Innovativeness?

GAO Fan

Abstract：China firms’ innovativeness is generally characterized by “theoretical importance with practical lag”. This article points out that entrepreneurs serve as the terminal promoters whose decisions regarding innovativeness are based on their judgment of market and estimate of factor prices. Thus，China’s gradual reform results in the lag of factor market compared to consumer market，leading to poor estimate of factor prices such as land，capital and labor. This fact encourages firms to intensively employ tangible factors with less motivation and pressure to invest in innovation. The key to promote firms’ innovativeness is to continuously perfect factor market through “factor market improvement” and “factor price reform” in the future.

Key words：Innovativeness；Factor price；Gradual reform

An Analysis on China Provincial Economic Efficiency and its Influence

Factors：Empirical Evidence through 2000-2005FANG Xian-ming1，SUN Zhao-bing1，ZHAGN Liang²

(1. Business School，Nanjing University，Nanjing 210093，China；

2. Graduate School，Chinese Academy of Social Sciences，Beijing 100102，China)

Abstract：It is of importance for harmonious society construction and economic sustainable development to explore the causes of the increasing economic development gaps among provinces in China. We construct a model to measure provincial economic efficiency and based on which to develop a regression model to analyze influence factors of economic efficiency. Then we measure the X efficiency with data from 31 provinces through 2000-2005. The results show that significant differences of economic efficiency exist among different provinces. The economic development gaps result from the ability to commit resource endowment. Population quality and regional advantage have positive effect on efficiency，while the positive effect of finance reform and FDI on efficiency is not as significant as the theory suggests. Finally，we propose some policy recommendations based on empirical results.

Key words：Regional economics；Technology efficiency；Distribution efficiency；X efficiency

Construction and Empirical Test of Performance

Appraisal Index for Rural Public Good SupplyWANG Jun-xia1，WANG Jing²

(1. School of Economics and Finance，Xi’an Jiaotong University，Xi’an 710061，China；

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

Abstract：Literature shows that the public goods supply in China rural area has low performance. However，current studies regarding rural public goods supply are mostly from the viewpoint of value selection rather than quantitative appraisal. This paper researches the performance appraisal index of China rural public goods based on data from a province in West China. Empirical results show that the index can expound the policy rationale as well as government behavioral preference for public goods supply. The findings can provide references for future researches.

Key words：Public goods；Performance appraisal index；Empirical test；Public finance

Urban Land Prices Driven by Market Forces and Government

Actions：An Empirical Study of Chinese Cities

KE Shan-zi，HE Ming

(School of Economics and Trade，Human University，Changsha 410079，China)

Abstract：This paper presents an empirical model of urban land price based on the monocentric model and the characteristics of Chinese urban land market and apply this model to a cross-sectional study. The results indicate that urban population and income are important determinants for urban land prices. To a lesser extent，intra-city transport cost and rural land value help explain price variations. The empirical results also show that the government can directly and indirectly influence land price by controlling land supply and choosing different transaction methods，although a more powerful force driving land price is exuberant demand. Robust regression estimates confirm the results are reliable.

Key words：Urban economics；Monocentric city model；General equilibrium；Urban land price

Toward Investment Rationality，Households’ Financial Asset Selection

and Large Scale Savings TransferWang Wei

(School of Economics，Shanghai University of Finance and Economics，Shanghai 200433，China)

Abstract：This paper proposes a two-period portfolio selection model with a transaction cost to explain the phenomenon of rapid large scale bank savings transfer to stock market in the urban and a substantial number of non-risky assets holders in the rural. With a transaction cost we find the wealth level and the cost magnitude are important determinants for risky assets holding proportion. Urban and rural households’ income and wealth disparity，transaction cost asymmetry are the main barrier for rural households to hold risky assets. The large scale savings transfer is urban households’ rational choice to increase their income. The wealth effect of high risk premium dominates other factors in determining the level of risky assets holding.

Key words：Wealth effect；Financial asset selection；Transaction cost；Savings transfer

A Discussion on China’s Credit System：from Creditum to Social Contract

XU Wen-bin1，CHEN Wei²

(1. Department of Finance，Xiamen University，Xiamen 361005，China；

2. Department of Agricultural Economics，Michigan State University，U.S.A)

Abstract：This article dugs into the evolutional path of the concept of credit，and discusses such issues as the construction of China’s social credit system accordingly. Firstly，we take a brief retrospect on the initial connotation of the word ‘credit’，pointing out that it was just certain kind of financial contract in the Middle Ages. Secondly，the evolution of the concept from pure financial contract to general social contract is traced. The authors set the macroeconomic organizational evolution as a coordinate，in which the connation and the importance of credit are dotted and demonstrated. Finally，we explore the situations of China’s credit and come up with constructive ideas to rebuild its social credit system.

Key words：Credit；Contract；Social credit system

Toward the Validity of Supervision Boundary of Financial Holding Companies

LI Cheng，GUO Ming，ZHANG Wei

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

Abstract：With the development of financial holding companies，the effectiveness of existing financial regulatory system faces challenges. The paper analyzes the breakthroughs that financial holding companies have made in financial supervision boundary with the supply and demand theory of the neo institutional economics，and explains the impact of financial innovation and international regulatory standards on the boundary effectiveness of China’s financial regulatory system. We conclude and recommend that financial holding companies are the trend to develop modern finance，while the financial regulatory system should assist and secure their sound development；that the restructure of financial regulatory system should ensure that financial supervision boundary effectively covers the risks of financial holding companies；that we should strengthen coordination of financial supervision and improve the operating efficiency of financial supervision；that the arrangements and innovation of financial regulatory system should be conducive to enhancing the international competitiveness of China’s financial sector.

Key words：Boundary Validity；Financial holding companies；Supervision

University Enrollment Expansion

MA Ying，QIN Yong

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

Abstract：This paper analyzes the welfare of individuals，firms and society through a study on salary and employment difference since enrollment expansion for China higher education，and proposes policy recommendations to address wage and employment issues for college graduates. To elucidate the new situation，we model a two intersected labor markets：graduate and non-graduate labor markets. We conclude that the welfare of firms，individuals and the society is increasing while universities expand their enrollment. Certainly，we understand some graduates give up employment opportunities because firms provide a wage below the reservation point. Fortunately，the model also asserts two policies to enhance employment，i.e. to promote technology and to enlarge market size.

Key words：Graduates；Employment；Welfare；Technology progress；Market size

The Mathematics and Modeling of Labor Value Theory

XU Guang-wei

(Economic and Social Development Research Centre of Yangtze River Delta，

[JZ]Nanjing University，Nanjing 210093，China)

Abstract：The basic elements of Marxist labor value theory are analytical reasoning and mathematical modeling from the viewpoint of system methodology. Thus，the mathematics and modeling analysis in value theory should follow mathematics principles based on materialism. The value creation and value determination in labor value theory explains the internal logic of commodity production，while the general analysis on value may provide sound basis for economic theory frameworks. The mathematics of labor value theory should be generalized and applied to bridge theory and practice.

Key words：Labor value theory；Value creation；Value determination；Model

Toward Farmers’ Values and their Wellness

QIN Qi-wen

(Economics Department，Huaihua College，Huaihua 418008，Hunan Province，China)

Abstract：This article explores the influence of values on economic growth and development，explains five types of farmers’ outmoded values that lead their poverty. We find that this point is consistent with development economics regarding the influence of human thought on economic growth and development. Finally，we conclude that the outmoded values of the poor are the root of poverty and propose recommendation of “thought anti-poverty of the new era”.

Key words：Farmers’ ethics；Influence；Household Wellness；Thought anti-poverty

Toward the Retrogradation of Institution Heritage

ZHANG Er-sheng

(School of Economics and Management，Hainan University，Haikou 570228，China)

Abstract：The neo institutional economics neglects the important issue of institution heritage in the researches of institution vicissitude. Institution heritage is important to understand and measure the efficiency of institution vicissitude. With typical case analysis，this article find that institution heritage brings about inverse effect，i.e. social and cultural environments have significant negative effect so it partly counteract the positive effect of institution vicissitude. We further find that during China’s transfer to market economy，trust has been a serious problem. Thus we should take measures to decrease the negative effect as much as possible in the construction of new rural areas.

Key words：Institutional heritage；Institutional vicissitude；Market economy；Trust crisis；New rural construction

A Study on Stage Differences of FDI Determinants in China Based

on Estimation of Panel System GMMZHANG Tian-bao1，CHEN Liu-qing²

(1. Economics School，Nankai University，Tianjin 300071，China；

2. Tianjin Social Science Academy，Tianjin 300071，China)

Abstract：Existing empirical researches neglected the phase characteristics of FDI in China，leading to biased estimation owning to data heterogeneity. To avoid data heterogeneity and other econometric problems，the data is differentiated and system GMM is applied in this paper. The estimation results show that stage differences of FDI determinants in China exist. That is，the agglomeration effect of FDI and role of market size are enhanced，promotion role of openness begins to appear，the negative effect of wage and non-market barriers are weakened，the effect of preferential tax is changed from positive to negative，the positive effect of traffic infrastructure and the agglomeration effect of non-state-owned enterprises disappear. Finally，policy recommendations are proposed.

Key words：FDI；Determinants；Stage Differences；System GMM

An Empirical Study on FDI，F(xiàn)oreign Trade and Environment Pollution in China

WEN Huai-de1，LIU Yu-lin1，WEN Huai-yu²

(1.School of Trade and Public Administration，Chongqing University，Chongqing 400038，China；

2.Luzhou Vocation and Technology College，Luzhou 646005，China)

Abstract：The paper empirically studies the impact of foreign trade and FDI on China’s environment pollution with panel data through 2000-2005 from 30 provinces. We conclude that as foreign trade and FDI promoted China’s economic growth，imports has less effects on economic growth while exports and FDI intensify pollution；that imports prohibit pollution with a lesser degree；that human resources have significant dual roles to promote economic growth and to curb pollution. The policy recommendations are to adjust policies regarding exports and FDI and to promote education and human resource development.

Key words：Foreign trade，F(xiàn)DI；Economic growth；Human resource；Environment pollution

Toward Director Compensation，Board Independence，and Corporate Governance：

Empirical Evidence from China Listed CompaniesSONG Zeng-ji，XU Ye-qin，ZHANG Zong-yi

(School of Economics and Business，Chongqing University，Chongqing 400030，China)

Abstract：We empirically examine the relationships between director compensation，board-of-director independence，and corporate performance with the endogeneity of director compensation using a sample from China Shanghai and Shenzhen stock exchanges. We find that the long-tenure of CEO (who may chair the board)，higher proportion of inside directors and larger board may lead to monitoring impediments for China listed companies. The results imply that director compensation consists of reinforcement to corporate governance. Shareholders’ interests can be better protected with the independence of board of directors，and the compensation mechanism exacerbates agency problems in these firms without the independence of the board. Finally，we propose recommendations that the grant of director incentive compensation can overcome monitoring impediments and improve corporate governance.

Key words：Director compensation；Independence；Corporate governance

Relationship between Safety and Productivity Based on Probability Wave Theory

YU Ming，SUN Lin-yan

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

Abstract：Industrial accidents always occur though productivity level rises. This paper constructs crucial concepts and creates probability wave theory and productivity model to study the relationship between safety and productivity based on theoretical analysis. We start with explaining accident distribution and risk fluctuation of production system and prove that there is no correlation between accident number and productivity. It is challenging and valuable ，however，to carry on quantitative analysis of dynamic probability and productivity.

Key words：Probability；Wave theory；Safety；Productivity

Research on Effectiveness Model of Management Innovation

LEI Xing-hui，WANG Ze-ling

(School of Economics and Management，Tongji University，Shanghai 226001，China)

Abstract：Management innovation does not always lead to success，but why? This paper analyzes the reasons and gives the solution termed as effectiveness model of innovation. The model is a system which is comprised of principles，idea and culture innovation，innovation improvements，effects，effectiveness evaluation，and optimization or idea renovation. The management innovation process must be under organization’s control and every step should have feed back. The case of IBM proves the effectiveness of the model.

Key words：Model；Management innovation；Idea and culture；Evaluation

Toward Institutional Environment，Audit Quality and Debt Financing of Firms

JIANG Wei1，LEI Guang-yong²

(1. Accounting Department，Jinan University，Guangzhou 510632，China；

2. Business School，University of International Business and Economics，Beijing 100029，China)

Abstract：This paper examines the effect of audit quality on long-term debt financing of listed companies in China. The empirical results show that high quality audit can facilitate more long-term debt financing of listed companies；that the role of high quality audit on long-term debt financing is weakened for state-owned listed companies and in areas with high level of financing development. This research helps to understand the role of high quality audit in various institutional environments as well as expands the study on the role of high quality audit.

Key words：Audit quality；Institutional environment；Debt financing；Investor protection