Transformation Of Chinese Economy Research Articles

Economic Transformation and Security Analysis of RMB Integration Based on CNN.

Due to the productivity shocks, there exist inherently systemic biases when using purchasing power parity as the equilibrium real exchange rate measure standard. In this paper, based on the characteristic of Chinese economic transformation, considering demographic and weakened Balassa–Samuelson effect, we reestimate the equilibrium level of the real exchange rate of RMB with the quarterly frequency data since 1994 and measure the misalignment of the RMB real exchange rate. The empirical results show that the improved convolutional neural network (CNN) model is a reasonable analytical framework for the RMB equilibrium real exchange rate, and in the sample period, the real exchange rate of RMB is robust, and demographic is an important variable affecting the RMB equilibrium exchange rate. The real exchange rate of RMB is closely related to China's economic development strategy.

Resource Endowment, Industrial Structure, and Green Development of the Yellow River Basin

The Yellow River Basin is an important energy base of China, and its green development is crucial to Chinese economic transformation. In this paper, we calculate the green total factor productivity (GTFP) to measure the green development level of the Yellow River Basin by using an Slack Based Model- Global Malmquist-Luenberger (SBM-GML) index model. On this basis, we use a Generalized Method of Moments (GMM) model to further analyze the impact of resource endowment and industrial structure on the green development of cities. The results show that resource endowment inhibits the green development of cities and that the resource curse is observed in the Yellow River Basin. The industrial structure advancement significantly promotes the green development of cities. The impact of industrial structure rationalization on green development varies significantly on the type of city. Specifically, it has an inhibiting effect on key environmental protection cities but a promoting effect on non-key environmental protection cities.

Enterprise Low-Carbon Behavior, Financial Performance and Economic Transformation——Data from Listed Companies in China

The low-carbon development of enterprises is an important breakthrough in Chinese economic transformation and the optimization and upgrading of the industrial structure. Based on a sample of Chinese listed companies involved in the low-carbon industry from 2010 to 2018, this paper empirically analyzes the correlation between the low carbon behavior, economic transformation and financial performance of listed companies. The results show that a company’s carbon intensity and financial performance are negatively related, and this relation is more significant when the financial performance is measured using the ROA (return on asset) of listed companies. The level of economic transformation in places where enterprises are located can significantly strengthen the positive relationship between enterprise low-carbon behavior and financial performance, including in central and western areas, where positive relationships are strengthened, and areas with heavy polluting industries, where positive relationships are weakened. Therefore, it is necessary to strengthen carbon emission supervision for non-heavy polluting industries and enterprises in the central and western regions.

State-Owned Enterprises in Chinese Economic Transformation: Institutional Functionality and Credibility in Alternative Perspectives

:The institutions of China’s state-owned enterprises have deviated fundamentally from the principle of individual(istic) property rights. The paradox is that the enterprises appear to have performed well in terms of productivity and profitability. This article examines the institutions in the light of alternative theoretical perspectives. The central message is two-fold. First, regarding functionality, the long-term oriented institutions could be conducive to productive efficiency but could also be detrimental to allocative efficiency. Second, regarding credibility, the actual performance hinges on the appropriate match between the institutions and the broader developmental conditions. The efficiency attributes are thus found to be context-specific. Further discussion on the notion of context-specificity reveals that relative efficiency is conjunctural rather than structural in the determination of the functionality and credibility. In the spirit of Original Evolutionary and Institutional Economics, it is submitted that the attributes of relative efficiency are themselves subject to the particular “social valuation” of China’s prevailing political-economic conditions.

Can Venture Capital Guidance Funds Play the Guiding Role? A Panel Data Analysis Based on the Perspective of Enterprise Financing

The innovation and development of the real economy is the key to the current Chinese economic transformation and upgrading, whose development entails the financial support. Venture capital guidance funds（GVCs）provide the main approach for the government to support the development of start-ups financially. However, due to the low liquidity and the information asymmetry, the reality is that the degree of capital participation in venture capital market is seriously insufficient. To expand the pool of capital and fully exploit venture capital funds（VCs）in the process of economic development and industrial promotion, the relevant departments have issued a series of policies and guidance since 2006, which support and encourage the local government to set up GVCs. According to the data compiled by the research institute of Touzhong company, China had set up 1311 GVCs by the end of June 2019, with the amount of approximately 1.97 trillion yuan. The central question that we analyze is whether such large-scale of financial investment has obtained the corresponding goal, namely, the expansion of the aggregate pool of private capital.This paper, considering the limitation of macro-perspective, examines the guiding effect of GVCs on the micro-level. More specifically, we summarize the micro-mechanism concerning the guiding effect of GVCs, and conclude that GVCs can amplify their guiding effect by influencing both the current and subsequent round financing of the invested enterprise. Consequently, we analyze whether GVCs can guide private VCs by investigating whose accumulative changes in the participation in the start-ups’ current and following rounds of financing after invested by GVCs. Besides, this paper further analyzes the differences between the state-owned and non-state-owned management agencies in the selection of investment projects, and empirically examines the heterogeneous impact of different ownership on GVCs’ guiding effect, which is of important practical significance.The results show that:（1）GVCs do play a guiding role not only in the particular financing round in which GVCs are involved, but also the follow-on rounds.（2）The guiding effect depends on the space of time between the enterprise’s follow-on financing rounds and the first time GVCs participate in.（3）The guiding effect of GVCs under the management of private institutions on private VCs is much more intensive compared with those managed by the state-owned institutions.The contributions of this paper are that:（1）The research verifies the guiding role of GVCs from the micro-perspective and the increasing trend of the guiding effect is found, which provides an empirical evidence for the “signaling” mechanism and makes it more distinct.（2）It investigates the heterogeneity of guiding effect concerning the ownership of GVCs, and provides a reference for improving the management of the government’s policy-oriented funds by analyzing the differences of the project selection between the management agencies of different ownership.（3）The panel data analysis method is used to weaken the influence of individual heterogeneity and further deal with the endogeneity problem, which improves the accuracy and robustness of the research results.

Is it purely instrumental?

PurposeThis study mainly aims to examine whether entrepreneurs’ utilization of political connections is purely egoistic. Addressing this issue could shed light on traditional debate which concerns whether political connections still have strategic value at advanced stage of institutional transition today in China. Here, at the background of Chinese economic transformation, the utilization of political connections is studied, and a double-role model of the pro-self-mechanism and the pro-social mechanism between political connections and performance in China is put forward.Design/methodology/approachThis study uses survey of questionnaires randomly from 363 entrepreneurs in Jiangsu, Anhui and Shandong Provinces of China and adopts the first stage and direct moderation model in examination.FindingsThe results show that there exists mediated mechanism of both pro-self and pro-social mechanism in the relationship between political connections and firm performance. The authors conclude that utilization of political connections is not only purely egoistic but also altruistic. So, both dark-side and bright-side mechanisms of political connections in China are of equal importance. In addition, the authors take into consideration of the contingency effects of institution, industry and firm-level factors of this moderation model. The pro-self and pro-social mechanisms have differences in terms of moderator-within and moderator-between comparisons of these three contingency effects. Among these comparisons, the pro-self-mediating mechanism is most sensitive to changes of institutional quality, whereas the pro-social mediating mechanism is most sensitive to the uncertainty of industry competition.Research limitations/implicationsThis evidence furthermore verifies that the process of institutional transition is nonlinear and political connections still have strategic value in advanced stage of institutional transition today.Originality/valueThis study combines the dual perspectives of “give” and “take.” The former implies the pro-social motivation, while the latter implies the pro-self-motivation. Based on the framework of “resource-conduct-performance,” this study explores how these two mechanisms mediate the relationship between political ties and firm performance. In addition, the authors adopt the framework of “Strategy Tripod,” which was proposed by Peng et al. (2009) and examine the difference between pro-self and pro-social motivation at different level of institution environment improvement, industry dynamics and firm absorptive capacity.

The Hukou Impact on the Chinese Wage Structure

Faster urbanization plays a key role in the Chinese economic transformation. However, at the Lewis turning point, the hukou institution constitutes a serious risk to the process, as it restricts the access of migrants to public services offered by cities. To attract further migration, firms started to accept a premium on top of the wage. Thus, the social discrimination introduced by the hukou system is partially compensated by the reactions of market participants, as migrant workers receive additional pay. Based on huge cross sections of private households, this paper provides insights into the size and the evolution of the wage premium. After controlling for standard wage determinants, such as sex, education, experience and ownership of firms, we find that the premium amounts to 7 percent of the hourly wage. Because of the premium, the share of non-wage labor costs is on the rise, especially for low-skilled migrants. To avoid further distortions and reduce inefficiencies, the hukou status should be unified. Migrants should obtain urban hukou as long as they live in cities. They should keep their land use rights when they are in the rural areas. Otherwise, the system could constitute a significant barrier for further urbanization. The removal of institutional bias could restore the link between wages and productivity and improve the allocation of labor.

The Hukou Impact on the Chinese Wage Structure

Faster urbanization plays a key role in the Chinese economic transformation. However, at the Lewis turning point, the hukou institution constitutes a serious risk to the process, as it restricts the access of migrants to public services offered by cities. To attract further migration, firms started to accept a premium on top of the wage. Thus, the social discrimination introduced by the hukou system is partially compensated by the reactions of market participants, as migrant workers receive additional pay. Based on huge cross sections of private households, this paper provides insights into the size and the evolution of the wage premium. After controlling for standard wage determinants, such as sex, education, experience and ownership of firms, we find that the premium amounts to 7 percent of the hourly wage. Because of the premium, the share of non-wage labor costs is on the rise, especially for low-skilled migrants. To avoid further distortions and reduce inefficiencies, the hukou status should be unified. Migrants should obtain urban hukou as long as they live in cities. They should keep their land use rights when they are in the rural areas. Otherwise, the system could constitute a significant barrier for further urbanization. The removal of institutional bias could restore the link between wages and productivity and improve the allocation of labor.

The Relationship between Economic Growth and Energy in China: Medium‐ and Long‐Term Challenges

This article is structured into five main parts. It begins with a brief description of the new relationship established between China and Latin America, which is an important source of natural resources for the Chinese economy. Then it describes the Chinese economic transformation in recent decades and its relation to energy consumption. Next, it discusses recent developments in the production and consumption of energy worldwide and the entry of China as a major player. In the fourth section, it analyzes the rise of China in the global energy market. Finally, it analyzes the relationship between economic growth and Chinese energy production and consumption in the medium and long term.

China at the crossroads

PurposeChina has become a most dominant player in the global economy with immense political repercussions, for instance in Africa. The extremely rapid Chinese economic transformation has been accomplished through strong globalisation with, for example, entrance into the WTO framework. Now it faces the challenges of accepting the other side of the globalisation coin, namely institutional transparency, ecological sustainability and foreign policy integration into the international community. The purpose of this paper is to explore this.Design/methodology/approachMacro approach using country indicators on economic growth, institutional transparency, rule of law and ecology pressure. It relates these index scores to the overall social transformation of the country.FindingsChina has performed well on economic globalisation but lags on political modernisation, i.e. institutional transparency as well as on ecological sustainability for a post‐modern society.Research limitations/implicationsChina must address the challenges of the post‐modern society with its call for transparency, sustainability and peaceful accommodation with neighbours.Social implicationsModernisation has two sides, not only economic growth. As China is set to become the world leader economically, it will embark upon the post‐modern society, with its demands for peace, rule of law and environmental protection.Originality/valueThe paper puts economic globalisation against political modernisation and ecological globalisation in a clear manner for China.