Chinese Economy Research Articles

The Impact of the Environmental Protection Tax Law on Earnings Management

The Environmental Protection Tax Law of China was officially implemented on January 1, 2018. The pollutant discharge fee system has since been replaced by a more mandatory and restrictive tax law. The environmental fee-to-tax reform is an essential portion of the development of the green tax system in China, and it is tasked with the vital aim of promoting the sustainable development of Chinese economy. This paper takes the implementation of the EPT Law as a quasi-natural experimental material and employs the difference-indifferences model and other empirical models to examine the differences in corporate earnings management before and after the policy shock for A-share listed Chinese companies from 2015-2021. The empirical results show that the implementation of the EPT Law effectively promotes Chinese firms to conduct income-decreasing earnings management and such an impact has a greater effect on SOEs, large-size firms and firms in developed regions. Moreover, according to the mediating effect analysis, this paper also identifies that the above promotion impact can be attributed to media attention. The above results show that Chinese government still needs to further optimize this tax law and focus on the coordination between different environmental policies to facilitate sustainable development. Therefore, this paper proposes policy recommendations from four perspectives: corporate governance, accounting standards, environmental laws and regulations, and government supervision.

Academic profile of Chinese economists: Productivity, pay, time use, gender differences, and impacts of COVID-19

Using two waves of surveys (2019 and 2021) among Chinese economists with support from the Chinese Economists Society (CES), we capture a current profile of Chinese academic economists on their demographics, education, academic rank, wage, time use, research interests, and productivity. Our data reveal many similarities among those employed in China and overseas, with statistically significant differences in pay and teaching load. More profound disparities lie in gender comparisons, with findings echoing the recent trend in the overall economics profession, including career advancement challenges for women and lower pay for female economists, among others. Finally, this paper investigates the impact of the COVID-19 pandemic on Chinese economists. Comparing their time allocation with that before the pandemic suggests male economists with children were able to spend slightly more time per workday on research and leisure during the pandemic. On the contrary, female economists with children reduced time for research to cope with the increased demand for childcare.

Does Ownership Affect Corporate Social Responsibility? Evidence from Chinese Companies' Response to Targeted Poverty Alleviation

With the Chinese economy's development and growing wealth disparity, enhancing corporate social responsibility (CSR) has become a crucial issue for the government. Existing research has mainly focused on the impact of factors such as firm size, CEO characteristics, and industry affiliation on CSR. However, this study explores the impact of ownership on the amount of corporate donations from a different perspective. Using Difference-in-Differences (DID) approach with data from A-share listed companies between 2010 and 2020, this study analyzes how ownership affects donation amounts. The results demonstrate that ownership structure significantly affects donation amounts. The findings indicate that private enterprises are more likely to increase their donation amounts after the implementation of targeted poverty alleviation policies, with a growth rate that is 13.03% higher compared to non-private enterprises. The study also identifies firm size, the years of company listing, growth, and asset-liability ratio as factors affecting donation amounts. Furthermore, through mechanism analysis, return on assets, bank loans, and financing constraints are identified as the main mechanisms through which ownership influences donation amounts. The research has important implications for understanding how corporations can enhance their CSR performance, and government agencies can develop relevant policies to promote CSR among enterprises.

Do natural resources utilization and economic development reduce greenhouse gas emissions through consuming renewable and Clean Technology? A case study of China towards sustainable development goals

China's economy has been slowing down over the past decade after decades of rapid expansion due to demographic challenges and a precipitous drop in productivity growth. Thus, rising economic imbalances constitute a significant drag on China's economy's potential for expansion. Thus, understanding the forces and reducing the imbalance between development and ecology is imperative. For this purpose, the present study is conducted to ascertain the role of Natural Resources (NTR), Economic development (ECD), Renewable Energy (REN), and Clean Technology (TEC) on Greenhouse gas emissions (GHG) through a cutting-edge timeseries estimation technique of a Quantile Autoregressive Distribution Lag (QARDL). The reported results revealed the positive relationships of NTR and ECD with GHG, whereas REN and TEC are found to reduce the level of GHG. Based on the findings and the declining trend in the growth of the Chinese economy, it is recommended to take sustainable initiatives to balance the imbalance between ecology and development sustainably.

How e-commerce support economic growth amid COVID-19: evidence from Chinese economy.

The study's motivation develops from the need to comprehend how e-commerce affects economic resilience and recovery amid the COVID-19 crisis, particularly in the Chinese economy, and to provide empirical evidence to help stakeholders and policymakers understand how to use e-commerce for economic growth. This study aims to investigate how e-commerce supported economic expansion during the COVID-19 pandemic, particularly emphasizing the Chinese economy. Because of the rapid changes in consumer perceptions brought on by the COVID-19 epidemic, this study gives a thorough methodology for assessing the success of e-commerce businesses. The application's twenty-five secondary standards include two sustainability elements, sustainable development, and carbon dioxide emissions. Three Indian e-commerce companies serve as a case study to illustrate the assessment methodology. To capture the uncertainty in the judicial process, the findings are achieved via multi-criteria judgment (MCDM) technique called fuzzy VIKOR. In addition, quantitative research is used to rate and compare e-commerce businesses in terms of how well it meets the needs of their customers. The results break down the most crucial criterion and sub-criteria for online retailers to meet to meet consumer aspirations and remain profitable and environmentally responsible in the long run.

On the dynamic effects of the cross‐section distribution of sectoral price changes in China

AbstractThis paper investigates the dynamic interactions of the cross‐section distribution of sectoral price changes and the output growth in the Chinese economy. We compare in depth the results of Granger causality tests, Impulse Response, and Forecast Error Variance Decompositions from Mixed Sampling Frequency Vector Autoregression (MFVAR) with those from common frequency vector autoregression (VAR). It shows that potential causalities for inflation, relative price variability, relative price skewness, and output growth can be successfully detected by the MFVAR. The cross‐section distribution of sectoral price changes stands to be a fundamental determinant of fluctuations in the aggregate economy, not only in the short run but also in the long run. Moreover, the empirical results are robust to the identification restrictions imposed as well as to alternative measures for model variables. Our findings are in line with the predictions of a standard sticky‐price model, and thus pricing frictions are important factors behind the short‐run nonneutrality of nominal shocks. We highlight the primacy of the information contained in the higher‐order moments of cross‐section distribution of sectoral price changes. We propose that policy authorities should make proper use of all of the valuable information available, particularly those embodied in the distribution of sectoral prices.

The Future of the Dollar in Light of the Rising Economic Capacity of Chinese Trade

Purpose: This research deals with the major changes in trade balances between large countries, especially between the United States and China, in light of the continuous increase in the capabilities of the Chinese economy. This was reflected in the exchange value of foreign currencies to reflect this shift in economic balances. The aim of this study is to examine the relations between the rise of the Chinese economy and its currency, the Yuan, and the possible decline in the international dealings of the dollar. Methodology: The analytical descriptive approach was adopted to analyze the relationship between the increasing capacity of the Chinese economy and the decline in financial transactions in the US dollar. The theoretical framework: This research will deal with shifts in the economic balance of power by presenting an analysis of the reality of both the United States and China and analyzing the dimensions of this shift on the overall international relations between different countries. Findings: The results of this research the fact that the volume of trade competition between the United States and China has increased, and despite the importance of sound economic policies that support international competitive advantage, the role of comparative advantage achieved by the abundance of factors of production is no less important than improving the country's commercial performance. Research practical and social implications: The research is of great importance by showing the size of the relationship between the future of the dollar in commercial dealings with it and the rise of the Chinese economy and the conditions it will impose among all countries dealing in dollars. Originality/value: The research has great that it analyzes changes in the contemporary international balance of power with the emergence of new international trade powers.

The Historical Transformation of China's National Perception

Drawing upon the theoretical frameworks of positioning theory and macrohistory, it can be posited that China's economic evolution can be comprehensively elucidated through the lens of innovation, which can be categorized into three distinct stages: stability, depression, and development. Three primary categories of innovations—silk, ceramics, and tea—rather than the Four Great Inventions—paper making, gunpowder, the compass, and printing—were the main drivers of the ancient Chinese economy's growth. The West originally came to identify the East and China with "mystery" and "wealth" through the commerce in silk and porcelain. China finished building the "Celestial Empire" on its own through new categories, new brands, and new positioning. The West originally came to identify the East and China with "mystery" and "wealth" through the trade of silk and porcelain. China finished building the "Celestial Empire" on its own through new categories, new brands, and new positioning. Due to the loss of innovation, China went through a period of economic stagnation, and the voice of the "Celestial Empire" was gradually supplanted by orientalism until being replaced entirely by Made in China. The national perception is being rebuilt in China after 2000 as a result of the nation-branding strategy's introduction and an increase in the number of Chinese companies expanding abroad. This article provides a research foundation for Chinese enterprises to contemplate when formulating their global positioning and international business tactics.

Testing the resource curse hypothesis: The dynamic roles of institutional quality, inflation and growth for Dragon

In the recent time period, we have observed a great deal of interest from different stakeholders to discuss regarding the credibility of the resource curse/blessing assumption for so many obvious reasons, including that economies and policy practitioners are eager to reap the benefits of natural resources to increase economic prosperity. On the same lines, this analysis confabulate the credibility of resource curse assumption in presence of two most prominent economic indicators, institutional quality and inflation, which are essentially interconnected with financial development in developing nations. Our present analysis is grounded upon a developing economy - China - and will serve as a stepping stone for the similar economies. The time period we have considered for empirical estimation is from 1990 to 2020. The empirical analysis, after estimations elucidates that in the far off time frame, natural resources are adversely interconnected with financial growth, i.e., resource course hypothesis is proved. However, quality of government is favorably associated with financial development and inflation is hampering the financial development. Thus, policymakers should adapt those polices which discourage the over utilization and exploitation of natural resources and also to encourage the political reliability and fiscal decentralization in the Chinese economy also bring a positive increase in financial development.

CEO experience, managerial overconfidence and investment efficiency: Evidence from a natural experiment in China

We examine how the early lives and career experiences of CEOs impact corporate investment efficiency in the Chinese economy. We identify two extraordinary events that are likely to underlie CEOs' formative experiences: the economic reforms that commenced in 1978 and CEOs' prior career experiences. We show that CEOs who experienced the economic reforms and opening-up in their early adult lives tend to be more confident and overinvest more than those who grew up during the planned economy era. Furthermore, CEOs whose entire careers have been in the business sector exhibit greater levels of confidence and overinvestment than those with long-term public administration experience prior to their service as corporate executives.

The Power of Culture: Does Diversity Affect the Breakthrough of the Hu Line in China?

Hu line is the dividing line of Chinese population density, geography, culture, and economy. The areas on both sides of the Hu line are in completely different stages of development, and have development modes. Based on the 3D research framework, and using the panel data of 335 cities in China from 2000 to 2013, our study examines the driving factors and the influence mechanism of productivity in the cities on both sides of the HU line. We find that economic growth in low-density areas depends more on increased density and division, while economic growth in high-density areas depends more on decreases in distance and segmentation. In addition, the mechanism test illustrates the heterogeneous growth mechanism on both sides of the HU line. The cultural diversity in low-density areas promotes economic growth by promoting diversified economy; while the cultural identity in high-density areas promotes specialized economy and thus promotes economic growth. Our study provides new empirical evidence for the informal institutional reasons behind the economic development, and also provides a useful reference for the economic development of the multi-ethnic areas in China.

Affective News, Affective Labor: Chinese Female “Little Editors” of WeChat Official Accounts in Australia

In Australia, WeChat Official Accounts is known as a hub for the production and distribution of affective news, or sensationalized content, among Chinese migrants. This article aims to address: Who/What is responsible for this form of content production on WeChat? Who are the people (re)producing news information for WeChat Official Accounts in Australia? How and why do they engage with such activities for Australia-based WeChat Official Accounts? And how do they shed light on our digital culture, economy, and platform labor? To address the questions, from 2019 to 2022, I conducted 27 semi-structured interviews with Chinese-Australian media professionals at both managerial and staff levels as well as conducted a longitudinal ethnographic observation with more than 200 Australia-based WeChat Official Accounts that translate news stories for the Chinese diaspora. The article argues that in Australia affective news on WeChat is the news story that conveys emotional resonance to Chinese migrant readers; it is predominantly produced by Chinese female little editors who work as affective labor. The employment of affective labor, that is, Chinese female international students or postgraduates, has led to the concentration of precarity, exploitation, and alienation among the groups of Chinese female little editors who are vulnerably exposed to the double exclusion coming from both neoliberalism in Australia’s dominant society and patriarchal normativity embedded in the Chinese migrant economy. The research findings shed light on the intensifying social inequality based on one’s race, ethnicity, gender, and social class that has been imposed and further normalized by digital technologies.

Studies on China's Economic Development since the Reform and Opening Up : A Literature Review

Since the promulgation of China's reform and opening-up sub-policy, China has created a socialist economic development path with Chinese characteristics in terms of economic development. During this period, China has experienced rapid economic growth, and deep-seated conflicts have come to the fore simultaneously. Therefore, China must transform its economic development to gain more growth opportunities. And in this paper, the author uses the literature review method to review the articles (international and domestic academic journals) related to China's economic development from 1949 to 2023, describe the current economic development in China, and analyze the opportunities and challenges that China faces in terms of economic development. The Chinese government focuses on innovation-driven development of science and technology, intending to achieve high-quality development of the Chinese economy rather than just rapid economic growth. Therefore, the author believes that the future direction of China's economic development will favor using government macroeconomic policy regulation to promote the digital economy's development vigorously. In addition, the government authorities will also pay more attention to sustainable development.

China’s Capital Formation in the Volatile Time

China’s capital formation is an important theme, which, however, so far received only limited attention of researchers. The purpose of this study is to explore the major characteristics of the uniquely high rate of capital formation, close to 45% of GDP, that for many years has supported growth and structural changes in China. Data show that the official plans to alter the GDP structure by shifting the focus from investment to domestic consumption have not materialized. The shifts in the structure of capital investments demonstrate the country’s modernization strategy and tactics, but they have not led to significant changes in the key macro proportions, so export remains crucial for economic growth and investments. Today, the country concentrates capital expenditures in machine industry and in the advanced branches of manufacturing. The real estate segment experiences financial difficulties, which may cause its GDP share to decline. Shifts in manufacturing investments reflect the focus of the Chinese authorities’ decision-making, as well as their reaction to market signals. Although some proportions and correlation coefficients between profits, revenues and investments by industry remained fairly stable for a long time, the turbulent years of 2020-2022 prompted both declines and revivals in industrial investments with a changed structure. This paper offers an analysis of large statistical material on the sectors of the Chinese economy including manufacturing, its dynamics and structure, thus creating a clearer picture of the Chinese industries’ investment behavior as a way to adapt to new trends or withstand various shocks. The work has its limitations since statistical evidence is available on a smaller set of indicators than that for many other market economies.

The Impact of the Belt and Road Initiative on China’s Economy

This article examines the impact of the Belt and Road Initiative (BRI) on the Chinese economy, particularly in certain provinces. After the 2008 global financial crisis, global economic growth slowed. President Xi Jinping introduced the BRI in 2013. The initiative’s purpose is to energize and strengthen China's economic progress and advance cooperation between countries connected by it. This article considers the BRI's consequences and impacts on Gross Regional Product (GRP) development in some of the Chinese provinces most influenced by it. The data shows diminished GRP development in coming years. However, expanded highways, railways, and different components linked with framework projects demonstrate that the BRI will cast an optimistic effect on GRP development in the region. Keywords: BRI, Economic growth, Chinese economy, Challenges, GRP.

Regulating environmental pollution through natural resources and technology innovation: Revisiting the environment Kuznet curve in China through quantile-based ARDL estimations

The dark side of the consumption of Natural Resources (NTR) is the carbon dioxide emissions (CO2) resulting from the extraction of NTR as well as the increasing level of consumption within the economy. Besides, the massive expansion and growth of the Chinese economy have also meant its CO2 is at an all-time high, thus making China one of the leading contributors to global warming. Hence the current study fills a knowledge vacuum by analyzing the relationships governing NTR and technological innovation (TIN) in countering the environmental damage due to CO2, by revisiting the EKC in the Chinese context through “Quantile Autoregressive Distributed Lag” (QARDL). The results validate the EKC where NTR consumption worsens the environment further; however, TIN is a potential solution in countering CO2. In accordance with the findings, it is recommended that government institutions need to ensure the preservation of NTR without conceding the economic benefits and prosperity.

The Theories of “Differential Optimums” and “Vertical Integration” and Their Implications for China

Chayanov, outside of his theoretical analysis of how peasant households are distinctive for being at once a production and a consumption unit and the multiple implications of that fact, has made two other major theoretical contributions, one making clear that peasant economies observe the logic of “differential optimums” rather than the simple logic of economies of scale and the other having to do with the need for co-operatives for “vertical integration” of small peasant economies in order to preserve for the peasants more of the value of their products in the BIG MARKET. The former can be readily observed in the “new agriculture revolution” of the Chinese economy in the past few decades; the latter can be readily seen in the striking modernization of the “East Asian” (i.e., Japan, South Korea, and the Taiwan area) economies since 1945. China’s annual “Number One Documents” about agriculture of the past two decades have shown how the country first mistakenly tried to imitate the simple scale-economy logic of the United States and then shifted since 2018 toward a new emphasis on the peasants as the principal agents of agricultural development and peasant villages as the basic unit for agricultural co-ops. Those have been the basis for new advances as well as for reinterpretations and modifications of Chayanov’s two major theoretical visions.

TALENT MOTIVATION AS A METHOD OF SOCIO-ECONOMIC DEVELOPMENT OF PERSONNEL MANAGEMENT

In connection with the continuous progressive development of the Chinese economy, enterprise personnel management has become an important part of social and economic development. Enterprise personnel management can promote stable talent development and job satisfaction, so it plays an important role in the sustainable development of the Chinese economy. To solve problems in the management of personnel development, it is suggested to improve and constantly innovate the management of human resources, including changing the concept of management, the motivational base, the compensatory mechanism of the impact of work results on the amount of the received reward. Based on this, this article analyzes the importance of innovations in the management of personnel development and outlines the innovative strategy of the enterprise's human resources management. The study also allows us to conclude that the construction of an effective work motivation system is directly dependent on the increase in the socio-economic level of development of the company's personnel.

Dynamic discrete choice models with incomplete data: Sharp identification

In many empirical studies, those states that are relevant for forward-looking economic agents to make decisions may not be included in the data to which researchers have access. This problem often arises in the context of declining/booming industries. In this paper, we develop the sharp identified sets of structural parameters and counterfactuals for dynamic discrete choice models when empirical data do not cover realizations of relevant future states. Applying the proposed method to the annual Toyo Keizai database, we study the behaviors of Japanese firms on foreign direct investments in China without observing the future states after Chinese economy slows down.

Political economy of socialism with Chinese characteristics: on the issue of intra- and interdisciplinary synthesis

Objective: to show the ontological potential of interdisciplinarity and paradigmatic pluralism in economic research by the example of the Chinese-specific socialism model and its description in Western socio-political discourse.Methods: qualitative methods (discourse analysis, comparative analysis, generalization).Results: the work shows the features of the discourse in modern economic theory regarding the problems of intra- and interdisciplinary synthesis. The economic mainstream, claiming the accuracy of its method of creating scientific knowledge, can and does become the basis of political knowledge and ideological judgments. Describing certain aspects of reality, the mainstream normalizes them, and sometimes elevates them to the rank of a rule. Based on the analysis of the Chinese model of economic reforms, the article shows that in Western socio-political and scientific discourses regarding this model, both at the stage of their beginning and now, there are erroneous ideas and expectations about the purpose, content and results of the reform process. The root cause of this false perception is, assumingly, the disciplinary isolation of economics, as economics is considered to be a universal extrapolitical and extra-cultural constant. To confirm this thesis, the main stages of the transformation of the ideology of building the Chinese economic model, its transition from an anti-market and anticapitalist position to a Chinese-specific socialism model are considered. It is shown that among the trajectories of China’s future development, Western economists and politicians saw only the two main ones: creeping liberalization and limiting the influence of the state in the Chinese economy, accompanied by democratization of the political sphere, on the one hand, and reaching the limits of economic growth possible for countries with authoritarian institutions, on the other. However, the collective action factor ignored by researchers has formed a stable growth economy, not accompanied by political liberalization.Scientific novelty: consists in comprehending the discourses about the Chinese economy as a result of the challenge posed by the Chinese reforms to mainstream political economy.Practical significance: the provisions and conclusions of the research can be further used to study the influence of economic theory on socio-political discourses and political decisions.