Dynamics Of China Research Articles

Resurrection through Adaptation: The Dynamics of China's “Comcapitalism” Model

China's development model has been discussed extensively by scholars over the past decade. However, they largely failed to capture the essence of the model — the uniqueness of the fusion between China's communist political legacies and capitalist economic practices that has produced a formidable force for economic development. Such a fusion created a de facto new type of political economy that deserves its own place in political science and a new term — comcapitalism — that describes it more accurately. This research attempts to reconceptualize China's development model through demystifying its evolution, moulding and improvement over the reform era (especially during the Hu-Wen administration) from a new approach — that of mutual concessions and accommodations leading to the formation of a social contract with Chinese characteristics. The article concludes that so long as the Chinese Communist Party (CCP) is able to reduce corruption effectively and continues to accommodate the needs of the rapidly chang...

Exchange rate determination and dynamics in China: A market microstructure analysis

This paper provides a market-microstructure analysis of exchange rate dynamics in the Chinese foreign exchange market using a vector autoregressive (VAR) modeling framework. An index of order flow is constructed in the Chinese context to reflect excess demand pressure in the foreign exchange market. The VAR model is then estimated to examine whether, and to what extent, order flow influences the long-term level and short-term fluctuations of the Chinese exchange rate. Focusing on the relationship between cumulative order flow and the exchange rate of the Chinese renminbi (RMB) against the US dollar, we find that order flow as a measure of excess demand pressure explains a significant part of the fluctuations in the RMB–dollar exchange rate. Specifically, the results show that there is a long-term cointegrating relationship among the order flow, macro factors and the exchange rate. Overall, these findings are important in understanding the role of order flow in exchange rate determination and bear important implications for practitioners and market regulators.

Assessing the incentives in regional city‐to‐city cooperation: A case study of Jiangyin–Jingjiang Industrial Park of Jiangsu Province in the Yangtze River Delta region1 区域城市间合作诱因：以长江三角洲地区江苏江阴‐靖江工业园区为例

AbstractWith the rise of cities as geographical units, intercity cooperation has been increasing worldwide. Benefits of regional city‐to‐city (C2C) cooperation can be seen in the political added value and added value of urban competitiveness. This paper focuses on the Jiangyin–Jingjiang Industrial Park in the Yangtze River Delta region as a case study to explore these benefits in regional C2C cooperation in China's local context. It is found that political added value is more effective and efficient in accelerating strategy formulation and partner selection within regional C2C cooperation. The added value of urban competitiveness is more crucial in regional C2C partnership maintenance serving as an internal driving force for sustainable C2C cooperation. In addition, intervention from the provincial government tends to consolidate the impact of urban competitiveness in regional C2C cooperation. The empirical study also sheds light on the dynamics of China's economic decentralisation, political centralisation and the market logic interwoven with state authority.摘要随着城市作为地理单元的崛起，城市间的合作正在全球范围内不断涌现。通过引入城市竞争力的视角，本文将区域城市间合作（Regional City‐to‐city cooperation）所带来的收益划分为政治附加值和城市竞争力附加值，并以长江三角洲地区江苏江阴‐靖江工业园区为案例着重审视和探讨了中国本土语境下区域城市间合作的激励机制。本研究发现对于推动区域城市间合作战略的形成和伙伴城市的选择，政治附加值更加有效；而对于区域城市间合作关系的维系，城市竞争力附加值则更为关键。因此，城市竞争力附加值是可持续的城市间合作的内在推动力。本文的实证研究折射出转型期中国的经济分权与政治集中，以及市场逻辑与国家权利逻辑的相互交织。

Truths and half truths: China's socio-economic reforms (1978-2010)

Truths and Half Truths is aimed at economic and social science academics and students who are interested in the dynamics of China's institutional development and societal transformation. Covering the complexity of the social, economic, and governance reforms behind the economic miracles achieved by China since its reform in 1978, and particularly in the past twenty years, this book provides much needed insight and critical thinking on major aspects of China's reform. Topics include employment, environment, anti-poverty; urbanization and rural development; education, corruption, political regime and media. Readers will be able to re-evaluate the costs and benefits of China's modernization from a point-of-view of sustainability. © 2011 Woodhead Publishing Limited. All rights reserved.

The spatiotemporal characteristics of spring phenophase changes of Fraxinus chinensis in China from 1952 to 2007

We selected widely distributed and well observed plant species Fraxinus chinensis to study the formation mechanism of geographical distribution of the plant phenophase changes and revealed their spatiotemporal dynamics in China. Based on the first leaf date (FLD) data at 12 sites derived from Chinese Phenological Observation Network (CPON) and related meteorological data, we developed and validated the process-based model of FLD for Fraxinus chinensis. After reconstructing data series of FLD for Fraxinus chinensis over the study area from 1952 to 2007, we analyzed different spatiotemporal patterns of phenophase changes of this species. The results suggested that the process-based model was able to simulate the FLD accurately for Fraxinus chinensis on large spatial and temporal scales, because of the consideration of different budding rate responded to the air temperatures during the dormancy and the quiescence in accordance with the physiological mechanism of plants. The geographical distribution of the spring phenology in temperate regions was determined by the spatial pattern of daily average air temperature. The changes of FLD for Fraxinus chinensis revealed significant phenological advances in most areas. However, it showed delayed trends in a few sites. The overall average change trend was −1.1 days/decade. This result was consistent with the advanced trend in other regions of the North Hemisphere. The changes of FLD showed a noticeable regional variation with clearer advance in the north than in the south. The FLD in northern China showed an average advance as high as −2.0 days/decade (P<0.01). And the advance in northeastern and northwestern China was respectively −1.5 and −1.4 days/decade (P<0.01). Furthermore, eastern and central regions showed a minor trend, which was −1.0 days/decade (P<0.05). The smallest and non-significant advance appeared in southwestern and southern China.

Spatially explicit simulation of soil organic carbon dynamics in China's paddy soils

article i nfo Paddy soils support important croplands in many parts of the world, especially in Asia, so an accurate estima- tion of the magnitude and dynamics of paddy soil organic carbon (SOC) stocks is critical to support adoption of appropriate soil conservation measures and development of strategies for greenhouse gas mitigation. To reduce uncertainties from upscaling spatial processes of the DeNitrification-DeComposition (DNDC) model for improving the definition of China's paddy soils SOC stocks (0-30 cm) and their changes from 1980 to 2008, a soil polygon-based modeling method was developed by integrating DNDC with the latest 1:1,000,000 soil database, derived from 1490 paddy soil profiles collected during the Second National Soil Survey of China. The simulations demonstrated that Chinese paddy soils (0-30 cm), which cover 45.0 M ha, storaged 2.51 Pg in 1980 and 2.65 Pg in 2008 with an average sequestration rate of 5.0 Tg C year �1 . Approximately 83.3% of the paddy soils sequestrated C, while 16.1% lost C and only 0.6% were balanced over the past 28 years. There were, however, large regional differences in sequestration out- comes. Increases in paddy soil SOC stocks were found predominantly in South, Eastern and Southwest China, where topsoil SOC increased by 59.6, 56.4 and 28.3 Tg, respectively. SOC stock in Northwest and North China increased only 0.6 and 0.3 Tg, respectively, while that in Northeast China lost 0.5 Tg. Enhancement in the soil databases with higher resolution inputs should improve the C sequestration estimates of any area of interest. © 2011 Elsevier B.V. All rights reserved.

From 3G to 4G: technology evolution and path dynamics in China's mobile telecommunication sector

This paper adopts a standard-related lens on technology trajectory to analyse the mobile telecommunication technology choices beyond the third generation (3G) in one of the largest emerging countries. The attempt is made to model and map the technological evolution based on different standard platforms and through competing technologies under the globalised background. The interplay between different stakeholders behind different technological standards in China is examined. Whether and to what extent technological developments have respectively shaped the paths is also explored. We identify the key technological, commercial and institutional dynamics driving such technology evolution, and argue that large emerging countries can pursue their own policy agenda while dealing with the diverse interests of various stakeholders home and abroad. We also indicate that there remain some high uncertainties in terms of future technology trajectories under the emerging contexts.

Spatial Distribution and Temporal Dynamics of Soil Carbon Removal Caused by Water Erosion in China

Using water erosion data from three national soil erosion remote-sensing surveys (the first: 1985-1986; the second: 1995-1996; the third: 2000-2001) and carbon density data from the second national soil survey (1979-1992), we computed soil carbon removal caused by water erosion, and analyzed its spatial distribution and temporal dynamics in China. Results revealed that the total removal of soil carbon caused by water erosion was about 74.61 Tg C y -1 , of which 51.49 Tg C y -1 was organic carbon, and 23.12 Tg C y -1 was inorganic carbon. The main erosion level of the whole is moderate erosion. Among the seven erosion regions, the Southwest Karst Region had the most significant removal of soil organic carbon, which was 26.48% of the total and mainly due to its moderate erosion. In contrast, about 67.62% of the soil inorganic carbon removal occurred in the Loess Plateau Region, which mainly due to its highly intense and intense erosion. As a whole, the removals of soil carbon caused by water erosion represented a decreasing trend among the three national soil erosion remote-sensing surveys. Between the first and the second survey, soil carbon removal decreased by 11.66 Tg C y -1 , of which 81.93% was organic carbon.

Effects of cultural ethnicity, firm size, and firm age on senior executives’ trust in their overseas business partners: Evidence from China

We investigate trust relationships between senior business executives and their overseas partners. Drawing on the similarity-attraction paradigm, social categorization theory, and the distinction between cognition- and affect-based trust, we argue that executives trust their overseas partners differently, depending on the partners’ cultural ethnicity. In a field survey of 108 Chinese senior executives, we found that these executives have higher affect-based trust in overseas partners of the same cultural ethnicity as themselves; cognition-based trust is associated with affect-based trust differently when overseas partners are of the same or different cultural ethnicity. We also examine the role of relative firm size and age in shaping intra- and intercultural trust. Relative firm size has a stronger negative effect on executives’ cognition-based trust if their partners are of a different cultural ethnicity. Although firm age does not have a negative effect on executives’ affectbased trust as hypothesized, we found firm age to be positively associated with affect-based trust for partners of the same cultural ethnicity. We discuss theoretical and practical implications of this pattern of inter- and intra-cultural trust on international business and networking (guanxi) dynamics in China. Journal of International Business Studies (2011) 42, 1150–1173. doi:10.1057/jibs.2011.35

Getting the China Story Right: Insights from National Economic Censuses

Two Hong Kong-based geographers critically interrogate competing interpretations of the nature and dynamics of China's ongoing economic transformation. Based on the data gathered from China's first and second national economic censuses, they examine the pattern and process of ownership transformation in the Chinese economy, focusing on employment, capital assets, and output as well as productivity and industrial innovation. Emphasis is placed on the following critical issues: (1) after three decades of opening, China's national economy continues to be dominated by domestic enterprises (with foreign and overseas Chinese-invested enterprises limited to only a few industrial sectors and highly specific locales); (2) the bulk of capital assets and key large-scale industrial sectors remain in state ownership; and (3) spontaneous, bottom-up privatization of the labor market has occurred without a corresponding privatization of the capital market. In examining these and other issues, the authors argue that the evolving, complex "China story" can be better understood only after abandoning reliance on preconceived theoretical models derived primarily from Western experience. They support their case by first challenging the conventional neoliberal view of privatization as an independent force or predetermined condition, arguing instead that it is conditioned by prevailing social and political influences. Likewise, they posit that rapid expansion of private and individual businesses at the grassroots level has owed more to relaxed state control than to active state involvement envisioned by the thesis of state corporatism. Journal of Economic Literature, Classification Numbers: E22, E23, E24, O11, P20. 8 figures, 6 tables, 87 references.

Mix of Fiscal and Monetary Policy Rules and Inflation Dynamics in China

AbstractThe present paper examines the role of the mix of fiscal and monetary policy rules in determining inflation dynamics using fiscal and monetary policy reaction functions and Markov‐switching vector autoregression methods based on quarterly data in the period 1992–2007. Our results show that fiscal and monetary policies in China can be adequately described using some simple rules, and that significant regime shifts took place around 1998. Fiscal policy tended to be active and countercyclical in the pre‐1998 period, then switched to be passive and more countercyclical, whereas monetary policy was characterized as passive and procyclical in the pre‐1998 period, and switched to be active and countercyclical afterwards. The mix of fiscal and monetary policy rules can explain inflation dynamics better than the monetary policy rule alone. Therefore, price stability requires not only appropriate monetary policy but also appropriate fiscal policy.

Understanding the New Rural Co-operative Movement: towards rebuilding civil society in China

Along with the emergence of the ‘three rural issues’ and rural crisis, a new co-operative movement has been witnessed in rural China, which is different from the former revolutionary communalist co-operative movement. This social movement can help to understand and rebuild civil society in China, which has, more often than not, been criticized as not genuine, civil nor society-based. Following the debate's background of the juxtaposition of a fast economic reform together with slow social and political reforms in China, the paper addresses a crucial question on the impact of economic development on civil society dynamics in China. By identifying the causal mechanisms of the new co-operative development and the conditions needed for them to develop, the paper presents some implications of the co-operative model in today's society. These causal mechanisms are set within the context of one historical process evolving with a path dependency. Using this theoretical framework, it further presents the empirical observations. Through the findings it is concluded that the new co-operative movement in rural China can be considered as a mild liberalization within civil society's sphere. While questioning a popularly used perspective examining the voluntary/non-profit nature of civil society organizations and excluding the economic aspect within civil society studies in China, the paper suggests an alternative approach representing an inclusive third sector with diverse organizations that combine both economic and social aims.

The effect of monetary policy on real estate price growth in China

Using quarterly data from 1998:Q1 to 2009:Q4 and monthly data from July 2005 to February 2010, this paper examines the impact of key monetary policy variables, including long-term benchmark bank loan rate, money supply growth, and mortgage credit policy indicator, on the real estate price growth dynamics in China. Empirical results consistently demonstrate that expansionary monetary policy tends to accelerate the subsequent home price growth, while restrictive monetary policy tends to decelerate the subsequent home price growth. These results suggest that Chinese monetary policy actions are the key driving forces behind the change of real estate price growth in China. We also show that hot money flow does not have a significant impact on the change of home price growth after controlling for the money supply growth. Finally, a bullish stock market tends to accelerate subsequent home price growth.

Two Competing Asian Giants

The dynamism of China and India since their respective economic reforms began has been subject to much discussion and analysis. Though the current global financial crisis has dealt a sharp blow to Asian growth, China and India remain the fastest growing economies in Asia. The two Asian giants display some similarities in terms of being the most populous countries in the world and in terms of rapid growth (if at a slower pace) despite recession. But there are also several dissimilarities between the two. Their political systems, economic policies and areas of comparative advantage are different. If China is outperforming India in many areas, India is doing better in certain other key areas. This paper attempts a comparative analysis of the performance of the two economies.

Recent changes in pan-evaporation dynamics in China

[1] Pan‐evaporation (Epan) as the indicator of atmospheric evaporative demand has decreased worldwide with climate change in the last decades, which is called “Pan Evaporation Paradox”. This study investigates the recent changes in Epan dynamics in China using the observed Epan records for the period 1960–2007. The records show that Epan decreased in China from 1960 to 1991 by �5.4 mm yr �2 . The attribution results show that the significant decreases (P 0.1). The results show that increasing air temperature dominated the change in Epan, which offset the effect of wind speed and led to the increase in Epan. Citation: Liu, X., Y. Luo, D. Zhang, M. Zhang, and C. Liu (2011), Recent changes in pan‐evaporation dynamics in China, Geophys. Res. Lett., 38, L13404, doi:10.1029/2011GL047929.

A 35-GHz polarimetrie Doppler radar and its application for observing clouds associated with Typhoon Nuri

Millimeter-wavelength radar has proved to be an effective instrument for cloud observation and research. In this study, 8-mm-wavelength cloud radar (MMCR) with Doppler and polarization capabilities was used to investigate cloud dynamics in China for the first time. Its design, system specifications, calibration, and application in measuring clouds associated with typhoon are discussed in this article. The cloud radar measurements of radar reflectivity (Z), Doppler velocity (Vr), velocity spectrum width (Sw) and the depolarization ratio (LDR) at vertical incidence were used to analyze the microphysical and dynamic processes of the cloud system and precipitation associated with Typhoon Nuri, which occurred in southern China in August 2008. The results show the reflectivity observed using MMCR to be consistent with the echo height and the melting-layer location data obtained by the nearby China S-band new-generation weather radar (SA), but the Ka-band MMCR provided more detailed structural information about clouds and weak precipitation data than did the SA radar. The variation of radar reflectivity and LDR in vertical structure reveals the transformation of particle phase from ice to water. The vertical velocity and velocity spectrum width of MMCR observations indicate an updraft and strong turbulence in the stratiform cloud layer. MMCR provides a valuable new technology for meteorological research in China.

Productivity Growth and Ownership Change in China: 1998-2007

This paper studies the industry productivity dynamics in China’s manufacturing sector from 1998 to 2007, and in particular, explores to what extent the privatization of state-owned enterprises (SOEs) contributes to the aggregate productivity growth. Our results show that, though non-SOEs on average are more productive than SOEs, the average productivity growth among SOEs is greater than the privately-owned firms. Industry concentration, taxation, and credit market all account for this difference in growth between SOEs and non-SOEs. In addition, industry productivity growth is mainly attributed to the growth of non-SOEs, entry of non-SOE firms, and the exit of SOEs. However, non-SOE firms that are transformed directly from SOEs make a small but negative contribution to industry productivity growth.

Expectation, excess liquidity and inflation dynamics in China

By introducing the shocks from individual activities into the Hybrid New Keynesian Phillips curve (HNKPC), we investigate the inflation dynamics and the effect of excess liquidity in China. According to the estimation result, some soundly conclusions can be drawn. Firstly, the empirical results indicate that the HNKPC is consistent with the nature of inflation dynamics in China, which posits the inflation dynamics as the combination of backward looking adaptive expectations and forward looking rational expectations. Moreover, defining excess liquidity by M2, the elasticity of inflation defined by CPI to excess liquidity is approximately unit, which reveals that the quasi-money is the main force behind inflation. The nature of inflation expectation and the effect of excess liquidity all provide the evidences that tight monetary policy is effective to curbing inflation in China.

Sources of energy productivity growth and its distribution dynamics in China

The purposes of this paper are to determine the sources of energy productivity growth at the provincial level in China and to examine the relative contributions of the sources and their impacts on regional inequality. Energy productivity change is first decomposed into five components attributable to changes in capital–energy ratio, labor–energy ratio, output structure, and technical efficiency change and technological change. Then a nonparametric analysis is implemented to statistically test the relative contributions of the components and their roles in the distribution dynamics of energy productivity. It is found that (1) changes in capital–energy ratio, output structure, and technological change contribute to energy productivity growth in China, (2) increase in capital–energy ratio caused by capital accumulation is the primary driving force for energy productivity growth, and (3) capital accumulation contributes to energy productivity convergence between Chinese provinces over the time period of 1990–2005.

Ecosystem carbon stocks and their changes in China’s grasslands

The knowledge of carbon (C) stock and its dynamics is crucial for understanding the role of grassland ecosystems in China's terrestrial C cycle. To date, a comprehensive assessment on C balance in China's grasslands is still lacking. By reviewing published literature, this study aims to evaluate ecosystem C stocks (both vegetation biomass and soil organic C) and their changes in China's grasslands. Our results are summarized as follows: (1) biomass C density (C stock per area) of China's grasslands differed greatly among previous studies, ranging from 215.8 to 348.1 g C m(-2) with an average of 300.2 g C m(-2). Likewise, soil C density also varied greatly between 8.5 and 15.1 kg C m(-2). In total, ecosystem C stock in China's grasslands was estimated at 29.1 Pg C. (2) Both the magnitude and direction of ecosystem C changes in China's grasslands differed greatly among previous studies. According to recent reports, neither biomass nor soil C stock in China's grasslands showed a significant change during the past 20 years, indicating that grassland ecosystems are C neutral. (3) Spatial patterns and temporal dynamics of grassland biomass were closely correlated with precipitation, while changes in soil C stocks exhibited close associations with soil moisture and soil texture. Human activities, such as livestock grazing and fencing could also affect ecosystem C dynamics in China's grasslands.