China's Economy Research Articles

China's Financial Liberalization: Specific Aspects and Effects6

The article is devoted to studying financial liberalization in China. The study is identified the main stages of financial liberalization and its adjustments depending on internal and external circumstances. A new international financial crisis is growing and has already begun to affect China's economy. A comparative analysis of China and the G20 developing countries was carried out in terms of financial openness and financial integration into the global financial system, cryptocurrencies regulations and digital national currency, features of economic policy and the state of the external financial sector. China's liberalization policy began with the removal of restrictions on foreign direct investment and the current account. The priorities of the financial liberalization policy is changed by reason of the economy grows and develops: from domestic economic development to the financial expansion of other countries in order to gain access to new markets and technologies. But most restrictions on the movement capital remain in China. The use of cryptocurrencies as an opportunity to circumvent currency restrictions is legally prohibited, and instead an attempt is being made to impose a national digital currency on society. The degree of government participation in the economy plays an important financial liberalization. Comparing other developing countries, China has a much higher degree of government involvement in the economy. This allows to maintain macroeconomic stability within the country even during international financial and economic crises. It is concluded that a gradual and partial financial liberalization with the maintaining domestic macroeconomic stability will provide the best results.

Practical path for developing “new quality productive forces” driven by the digital economy in China

Developing “New Quality Productive Forces” (NQPFs) has been accepted as a new theory to accelerate the high-quality development in China. In current, China’s high-quality development mainly relies on the traction of the digital economy. In view of this, developing NQPFs in China’s digital economy sector requires locate and remove some obstacles, such as the insufficient utilization of data, inadequate algorithm regulation, the mismatched supply and demand of regional computing power and the immature market environment. As a solution, it is necessary to allocating data property rights in a market-oriented way, establishing a user-centered algorithm governance system, accelerating the establishment of the national integrated computing network, and maintaining fair competition to optimize the market environment.

The widening gender wage gap in the gig economy in China: the impact of digitalisation

The gig economy, fundamentally relying on the digital economy, is often celebrated for its potential to expand employment opportunities and close gender wage gaps. However, research on its gender impacts in China, the largest developing country with a rapidly expanding gig sector, is notably lacking. Employing discrimination theory, the findings challenge the prevailing optimistic view on the role of the gig economy. Utilising the China Labour Dynamics Survey data from 2014, 2016, and 2018, and applying the Bourguignon, Fournier, and Gurgand model to correct selection bias, this study reveals that, digitalisation has exacerbated gender wage gaps, with the wage growth of female gig workers significantly lagging behind their male counterparts, especially among married and older cohorts. Adopting the Neumark decomposition, the analysis confirms that discrimination largely accounts for this gap. This study uses Generalised Propensity Score Matching as robustness test and concludes with policy recommendations.

Multimodal market information fusion for stock price trend prediction in the pharmaceutical sector

With the evolution of China's market economy, the securities market is increasingly anchoring a pivotal role in the nation's economic landscape. Consequently, stock trend forecasting has garnered heightened attention among scholars and practitioners. This research pioneers the use of multimodal information to predict stock market fluctuations. Based on our experimental results, LSTM + Transformer performs better in handling multimodal data for stock movement prediction tasks regarding accuracy, F1-score, precision, and recall. Additionally, we employed the Granger causality test and Impulse response test to investigate the causal relationships between sentiment and stock trends, as well as the interplay between COVID-related indicators and stock trajectories. We identified discernible causal links between sentiments, COVID indicators, and stock trends for select pharmaceutical stocks. Our findings can provide valuable guidance for investors and market regulators, especially within the pharmaceutical industry. Understanding investor sentiment and the impact of the pandemic on severity can assist in effective stock commentary management and improve investment strategies.

Study on the influence of digital inclusive finance on the development of provincial fishery economy and regional economic convergence in China

In recent years, the rapid development of digital inclusive finance in China has affected many aspects of social development, especially economic development, which has a good driving force. At the same time, the development of the fishery economy has been challenged by many aspects, and digital inclusive finance may inject new development momentum into the development of the fishery economy. Using the digital financial inclusion index and relevant data on the fishery economic development of 31 provinces, autonomous regions, and municipalities in China from 2013 to 2020, this paper empirically analyzes the impact of digital financial inclusion on provincial fishery economic development through the dual fixed effect panel data econometric model of controlled region and time. The main conclusions are as follows: The benchmark regression results show that digital inclusive finance can positively promote the development of the fishery economy at the significance level of 1%, and the digital development degree of digital inclusive finance also has a significant role in promoting the development of the fishery economy. After the endogeneity test of the system GMM model and a series of robustness tests, the model results are still significant. The results of the moderating effect model show that technological innovation plays a positive moderating role in the impact of digital inclusive finance on the development of the fishery economy, while the upgrading of the industrial structure plays an inhibitory role. Based on the results of the β convergence model, it can be found that there is no convergence in the level of fishery economic development among provinces. The development of digital inclusive finance will play a greater role in promoting areas with better fisheries and economic development, thus widening the development gap between regions. Finally, the paper discusses the effect of the conclusion and the improvement, which is of reference significance for the coordinated development of the fishery economy based on finance between regions.

Influence of financial inclusion and industrial robots on the efficiency of China's OFDI: A heterogeneous spatial stochastic frontier analysis

Enhancing the efficacy of China's outward foreign direct investment (COFDI) constitutes a significant avenue for realizing the sustainable development of China's economy. This study analyzes panel data from 63 countries from 2010 to 2021 to create a heterogeneous spatial stochastic frontier model to examine how financial inclusion and industrial robotics in host nations affect COFDI efficiency. The findings are as follows. To begin with, COFDI manifests positive spatial spillover effects across countries. Moreover, from a spatial perspective, financial inclusion diminishes COFDI efficiency, whereas the interaction between financial inclusion and industrial robots increases its efficiency. Industrial robots, thus, counteract the diminishing impact of financial inclusion on COFDI efficiency. Additionally, concerning the heterogeneity of location choice and investment motivation in COFDI, the interaction between financial inclusion and industrial robots in developed economies augments COFDI efficiency as opposed to emerging market economies. Conversely, technology-seeking investment mitigates the adverse effects of financial inclusion on the efficacy of COFDI when juxtaposed with resource-seeking investment. This study provides theoretical insights and practical recommendations for improving the efficiency and guiding the destination selection of COFDI.

The Impact of Export Tax Rebates on Industrial Upgrading: A Literature Review

As China's economy gradually shifts towards a stage of high-quality development, issues such as insufficient demand and overcapacity are becoming increasingly prominent. The development model of extensive economy is no longer sustainable, and the economic operation is facing huge risks and challenges. The adjustment and upgrading of industrial structure has become an inevitable choice. In this context, the export tax rebate policy, as one of the important means to promote foreign trade and industrial upgrading, not only has significant practical value for in-depth exploration and analysis, but also has profound significance for guiding future policy formulation and practice. This article aims to systematically integrate and extract existing research results, deepen the understanding of the mechanism and impact of China's export tax rebate policy in promoting industrial upgrading, and provide some research clues for further research by domestic and foreign scholars.

The Impact of Fed Rate Hikes on The Chinese Economy

The United States is the world's largest economy and a major financial center. As the central bank of the United States, the Federal Reserve's monetary policy decisions not only have a significant impact on the country's economic and trade development, but also lead to changes in global capital flows, exchange rate fluctuations, and international trade conditions. Since March 2022, persistent high inflation and overheating of the economy have led the Federal Reserve to raise interest rates dozens of times. As of September 2023, the Federal Reserve's interest rate has increased from 0 to 5.5%. The total rate hike by the Federal Reserve has reached 550 basis points. As the US dollar is the world's reserve currency, China's economy inevitably experiences varying degrees of impact. Therefore, studying the impact of the Federal Reserve's rate hikes on the Chinese economy will help our country formulate better response measures and reduce its adverse effects on our economy.

The generative logic and value implications of Xi Jinping’s "Theory of the Two Hands": An analysis of Xi Jinping’s key exposition on the relationship between government and market

The generation of Xi Jinping’s "Theory of the Two Hands" is logically inevitable. This theory embodies the theoretical continuity and advancement of Marxist classicists and their successors' understanding of the relationship among planning, market, and fundamental social systems. It represents a historical necessity that builds on the Chinese Communist Party’s experience in advancing China’s economic reform, as well as an urgent practical need to refine the socialist market economy in the new era. Xi Jinping’s "Theory of the Two Hands" addresses three dimensions—content and essence of the issue, delineation of roles and functions, and methods and objectives of resolution—thus exploring the government-market relationship across six distinct layers. This approach scientifically answers questions concerning the nature of the problem, the roles and functions involved, the methods of handling it, and the goals it seeks to achieve. Not only does it expand new horizons in contemporary Marxist political economy, but it also deepens the understanding of the laws underlying socialist construction with Chinese characteristics, advancing the socialist market economy of China to a new stage of high-quality development.

Institutional ownership drives a new strategy for green total factor productivity development of Chinese listed companies: Effects, mechanisms, and implications

The low-carbon transformation of China's economy is urgent, and the innovation of core technologies related to it cannot be without financial support. Given the limited availability of green funding, it is imperative to seek the help of social funding more widely. Among them, the impact of institutional ownership (IO) on the green total factor productivity (GTFP) at micro level cannot be ignored. This study employs a panel fixed-effects model to examine the influence of IO on the GTFP of 4582 Chinese A-share listed companies and explore potential pathways. The research findings indicate that: (1) IO can improve the GTFP of investee companies. (2) this impact may occur through the influence of IO on the invested company's financing constraints, R&D expenditures, green innovation, environmental performance, ultimately driving its GTFP. (3) different types of institutional investors exhibit varying performance in promoting the GTFP of the invested company. Particularly, pressure-sensitive institutional investors with strong business relevance to the invested companies demonstrate impressive results. (4) IO exhibits a more significant promoting effect on the GTFP of listed companies in specific samples. This study provides a new strategy for promoting green economic growth in China, and summarizes some targeted policy implications.

Carbon governance or trade gaming: China's approach to addressing the EU's carbon border adjustment mechanism

The EU's Carbon Border Adjustment Mechanism (CBAM) poses a significant challenge for developing countries, especially China, a key player in the global market and a major carbon emitter. We use the GTAP-E model to evaluate CBAM's impact on China's economy and carbon reduction efforts, and propose two response strategies: carbon governance approaches and international trade gaming. Our findings show that CBAM may lead to a slight decrease of 0.003% in China's GDP and a 0.004% reduction in carbon emissions. It also generates ripple effects across the supply chain, notably affecting energy-intensive upstream industries. We find that the combination of carbon pricing and trade agreements is more effective than trade protection measures in minimizing economic losses from CBAM. This is achieved through mechanisms such as sharing carbon reduction costs and promoting decarbonization on both the supply and demand sides. Furthermore, improving carbon governance can enhance the green competitiveness of Chinese products. Going forward, China should maintain trade agreements with developing countries and enhance its carbon pricing mechanism to better align with global climate governance. Our study offers valuable policy insights for developing countries as they navigate the challenges posed by CBAM.

Spatio-Temporal Evolution and Interactive Relationship Between Digital Economy and Green Development in China

A digital economy parallel with green development holds profound significance for achieving sustainability. The primary objective of this study was to explore the synergistic interaction effects between the digital economy and green development in China and forecast their future development. This study analyzed the spatio-temporal characteristics of provincial digital economy and green development in China by integrating a combined assignment method, an unconditional spatial kernel density estimation method, and a standard deviation ellipse model. The interplay between the digital economy and green development was examined using a panel vector autoregression model. Additionally, digital economy and green development levels were forecasted using univariate time series and radial basis function kernel ε-support vector regression models. The results indicate that both the digital economy and green development levels in China exhibited an upward trend from 2013 to 2021, with the digital economy increasing at a faster rate. However, both domains demonstrated regional disparities in their development processes. The mutual interaction between the digital economy and green development intensified as the lag period increased. The digital economy contributed 21% to green development, whereas green development contributed 18% to the digital economy. The initial effect of the digital economy on green development was negative, however, this impact gradually diminished over time. Additionally, the influence of green development on the digital economy was shown to follow a consistent trend of transitioning from negative to positive across the eastern, central, and western regions. Therefore, it can be seen that the digital economy exerts a sustainable impact on green development, albeit with a one-phase lag. This research provides a scientific basis for the deep integration of the digital economy and green development, thereby fostering sustainable socioeconomic growth.

Prospects of China's Entertainment Consumption Economy Based on Entertainment APP Data Analysis

China's entertainment apps have blossomed in many aspects, covering videos, movies, games, music, animation, live broadcasts, etc. Data collected from major entertainment apps might be helpful to outline the preferences and personalities of Chinese entertainment consumption groups, and thus to make a prospect for China's entertainment consumption economy. Based on the analyzed data, it can be seen that while some professional entertainment apps are developing towards the "small and beautiful" vertical track, comprehensive platform apps are undergoing an ambitious expansion of power. It is clear that the multi-dimensional social interaction of active Chinese entertainment people has highlighted people's spiritual needs, and the development of the industry will undoubtedly show the integration of entertainment and technology, entertainment and food/sports, and entertainment and tourism. The entire industrial chain should be layout based on multi-dimensional needs, and the precise output should be supplemented by scientific and technological means.

The Expansion of Monetary Policy Collateral Promotes Green Innovation of Heavily Polluting Enterprises

Since the reform and opening up, China's economy has developed rapidly, and behind the high growth is the problem of inefficient energy consumption and environmental pollution. China's economy has entered a stage of high-quality development, focusing on innovation-driven and green development, and the Fifth Plenary Session of the 19th Central Committee proposed to promote green development and develop green credit. In this paper, we use a difference-in- difference model to verify the impact of green credit assets on the green innovation of heavily polluting A-share listed enterprises in accordance with the quasi-natural experiment of the inclusion of green credit assets in the MLF qualified collateral framework in June 2018. Results: (1) The expansion policy improved the level of green technology innovation of heavily polluting enterprises; (2) R&D investment intensity plays a strong intermediary role and can promote the green transformation of enterprises; (3) The nature of property rights affects the micro effect of the policy, and the expansion policy has a greater impact on the state-owned heavy polluting enterprises.

Correlation and Impact of SSEC and SZI Empirical evidence based on VAR model

Today, the world economy is experiencing globalization and diversification, and China's economy is also developing rapidly, also the development speed of the capital market has been significantly improved. Among them, the impact of the development of the securities industry on China's capital market cannot be ignored. As the two major stock exchanges in China, the Shanghai Stock Exchange and the Shenzhen Stock Exchange are not to be underestimated in the securities market. Therefore, the Shanghai Securities Composite Index (SSEC) and the Shenzhen Securities Component Index (SZI) represent the direction of China's stock market to a certain extent. Therefore, this paper will start from the perspective of SSEC and SZI, select the data for a total of 10 years from 2009-2018, and try to construct the VAR model, and finally draw the impulse response function graphs of both of them. The basic conclusions of the study are the SSEC has a relatively large impact on the capital market, while the SZI has a relatively small impact on the capital market. Therefore, the inspiration for investors is that the SSEC is more informative and useful when making investments.

The driving factors, configuration paths and effects of employment polarization under the development of digital economy.

Taking the development of China's digital economy as a background, the article provides an in-depth analysis and summarises the influencing factors of labour force employment polarisation. The study employs provincial panel data from 2010 to 2020, applies fuzzy set qualitative comparative analysis methods, and constructs a fixed-effects model in order to explore the drivers, paths and their effects of employment polarisation. The results of the study show that economic, social and educational environments together have a significant impact on employment polarisation through interactions and synergistic effects; it also identifies four main paths of labour force employment polarisation, which are numerical-social-environment-driven, numerical-educational-environment-driven, numerical-economic-environment-driven, and types driven by other factors; this study also finds that compared to the summed impact of single elements, these grouping pathways have a more significant impact on employment polarisation. These findings not only provide a key perspective for understanding how the digital economy shapes employment polarisation, but also provide an empirical basis and insights for policies based on the findings.

Impact of policy uncertainty on stock market volatility in the China’s low-carbon economy

High speculation and volatility in China's stock market make enhancing volatility estimation and prediction in green and low-carbon sectors essential to meet the financing demands of the carbon-neutral industry and ensure sustainable development. In this study, we first introduce the CBOE Volatility Index (VIX) into the DAGM model to construct an improved model, DAGM-VIX, to explore the impact of China's Economic Policy Uncertainty (CEPU) and Climate Policy Uncertainty (CPU) on the stock market volatility of China's low-carbon economy. In addition, economic policy uncertainty is further decomposed into related uncertainties such as fiscal policy, monetary policy, trade policy, and exchange rate and capital account policy to explore in depth the heterogeneity of their impacts on stock market volatility of low-carbon economy. The results show that CEPU and CPU have a significant impact on the long-term volatility of China's green and low-carbon industries, and there are differences in the impact of uncertainty on stock market volatility in different policy areas. Compared with original DAGM and GM models, the DAGM-VIX model is superior in its predictive ability, and the DAGM-VIX-CEPU model, in particular, performs particularly well in predicting the volatility of green and low-carbon transition industries.

The spatio-temporal characteristics and dynamic evolution of coupling and coordinated development of innovation factor allocation and green economy in China

IntroductionMeasuring the coupling coordination degree between the innovation factor allocation system and the green economy development system, and deeply exploring the changing trends in the coupling coordination between innovation factors allocation, including their subsystems, and green economy development, are essential prerequisites for achieving a high degree of coupling coordination between the two systems.MethodsThis paper, based on panel data from 30 provincial regions in China from 2013 to 2022, measures the coupling coordination degree between innovation factor allocation and green economy development, including their subsystems, and explores the spatial differentiation characteristics of this coupling coordination across the provinces in China and its three major regions. First, an evaluation index system for the innovation factor allocation system and the green economy development system is constructed from both input and output perspectives. The entropy weighted TOPSIS method and the coupling coordination degree model are then employed to explore the temporal characteristics of the coupling coordination between innovation factor allocation and green economy development. Second, Dagum's Gini coefficient is used to reveal the directional distribution of coupling coordination and the sources of spatial disparities. Third, kernel density estimation and spatial Markov chain methods are applied to uncover the dynamic evolution of this coupling coordination.Results and discussionThe study finds that the overall coupling coordination degree between innovation factor allocation and green economy development in China is relatively low, but it exhibits a continuous upward trend. From the perspective of regional disparities, the coupling level between innovation factor allocation and green economy development across Chinese provinces shows an imbalanced spatial distribution, characterized by higher levels in the east and lower levels in the west, with spatial disparities tending to widen. Inter-regional differences are the primary source of these spatial disparities, followed by intra-regional differences. While internal disparities within Eastern China are narrowing, they are expanding within the Central and Western China. The development processes in these regions are often influenced by neighboring spatial spillover effects. Finally, recommendations are proposed to enhance the coupling coordination degree between innovation factor allocation and green economy development in China.

Study on Organizational Model of Apron Operation in Airport

With the rapid development of China's economy, China has achieved a breakthrough in air transport, traffic and transport capacity of large airports has increased significantly, many large airports present a trend of large-volume, high-density transport. Based on the analysis of ramp capacity and ramp efficiency after the handover, the proper use of independent ramp control can improve the operational efficiency of the airport, increase the normal rate of flight clearance, and reduce the workload of the air traffic control tower, to improve the safety of aircraft on the Apron. By learning the advanced experience of foreign countries, the organization mode of large-scale Airport Apron operation is calculated, and the airport apron operation capacity and efficiency are analyzed. The resulting data is weighted by Analytic hierarchy process. Finally, the feasibility of the result is verified by the case of Chengdu Shuangliu International Airport.

Current Situation, Existing Problems and Prospect of the Study of Social Stratification in Contemporary China

Introduction. Under the backdrop of market economy and social transformation in China, the class structure of society has undergone profound changes, and the traditional class division is no longer relevant. However, there are still some unresolved problems in the study of social strata in China. The lack of diversity and comparability of research methods limits the depth and scope of research. Relatively few studies have been conducted on some emerging classes. Research on the relationship between social class and other social issues is insufficient, such as the relationship between class and education, class and income distribution, etc., are still limited. Methodology and sources. At present, a social classification model has been proposed to study social stratification in China, taking into account the characteristics of China's national conditions. A large number of empirical studies have revealed the evolution and characteristics of China's social class structure. The mechanism of social class formation and the factors influencing them have been studied, which has provided theoretical support for social development. Modern stratification models of Chinese authors have been used for the analysis in comparison with traditional models. Results and discussion. The study of social stratification in China inherited the theoretical framework and empirical research methods of Western social scientists, and there are also attempts to develop its own model of social stratification in combination with the actual situation in China. The structure of social stratification in China is characterized by the need to take into account the state redistribution system and the market economy model. However, there is a consensus that government officials are at the top of the social hierarchy, and the class of peasants and unemployed are at the bottom of society; mental workers (white collars) are higher than manual workers (blue collars). The results of studies on the impact of human capital on social stratification show that gender and educational level have universal significance in society; household registration system and housing type are special independent variables that affect social stratification in China more than in other countries, etc. However, there is a lack of relevant empirical studies that could provide specific quantitative data showing how independent variables affect social stratification in China. Many new social and professional groups have emerged in Chinese society. In recent years, some Chinese scholars have studied such specific social and professional groups, the most widespread and in demand in the labor market in China, taking into account the digitalization processes. Conclusion. It is necessary to further explore the methods and models of social stratification suitable for China's national conditions so as to cover the characteristics of social class diversity. It is necessary to strengthen the research on the relationship between social class and other social issues so as to provide more effective policy recommendations for social development. It is also necessary to strengthen the research on emerging classes, pay attention to their social status, mobility and responsibilities, and provide more effective support and guidance for their development.