Market Reforms Research Articles

Research on cross-provincial power trading strategy considering the medium and long-term trading plan

To accommodate China’s electricity market reforms integrating medium and long-term (MLT) transactions and spot transactions, and to boost renewable energy consumption through the spot market, this paper proposes an optimized cross-provincial electricity trading strategy model based on a two-layer game framework. The proposed model incorporates an MLT green certificate contract decomposition method, enabling nested optimization of green certificate contracts and scheduling plans for cross-provincial power transactions. To encourage broader participation, a bilateral green certificate trading framework is established, which globally optimizes green certificate allocation to increase benefits for market participants. A Nash-Stackelberg game model is introduced to address complex game interactions among multiple participants under the green certificate mechanism and the limitation of assuming complete rationality. The game model combines supply and demand sides with an embedded demand-side evolutionary game. Additionally, an improved Aquila optimization algorithm (IAOA) is developed to accurately calculate electricity supply and demand. The algorithm integrates a Circle chaotic map, Sobol sequence, random walk strategy, and filtering technology to enhance optimization capabilities and manage complex constraints. The algorithm is then embedded with a distributed iterative approach to achieve equilibrium strategies. A real-world case study was conducted to validate the feasibility and effectiveness of the proposed model. The results demonstrate that the proposed approach effectively achieves equilibrium, optimizes trading strategies, and fosters win-win, coordinated development among participants in the cross-provincial electricity market.

The Impact Mechanism of Free Competition Among Financial Institutions on the Credit Accessibility of Farmers

Using data from rural fixed observation points in Zhejiang Province from 2003 to 2022, this study employs a difference-in-differences (DID) model to explore the impact of free competition among financial institutions on the credit accessibility of farmers and its underlying mechanisms. The results show that free competition among financial institutions significantly improves farmers' credit accessibility. The mechanism analysis indicates that such competition leads to an increase in the number of loan officers, promotes the marketization of certain financial functions, and enhances the dissemination of financial knowledge, thereby improving farmers' financial literacy and reducing financing constraints. Specifically, agricultural industrialization and digitalization both indirectly affect the relationship between free competition among financial institutions and farmers' credit accessibility. Based on these developments, financial institutions are able to provide more efficient and convenient financial services, contributing to the formation of a financial ecosystem. Further analysis reveals a noticeable "siphoning effect" of financial competition in Zhejiang Province, where it significantly promotes the growth of rural credit in the region while suppressing the growth of rural credit in neighboring areas. The study’s conclusions offer both empirical insights into rural financial market reform from the perspective of policy changes and practical reference from the perspective of regional spillovers for the development of rural finance.

Market-oriented reforms and wealth inequality in China

Over the last few decades, China’s growing wealth inequality has mirrored the contemporary global trend. We investigate the effects of China’s market-oriented reforms on wealth inequality using a dynamic general equilibrium model with an incomplete market and idiosyncratic risks. Focusing on the relaxation of private entry and the easing of financial constraints as two pivotal reforms, we show that our model-generated results closely match the actual wealth distribution from 1995 to 2018, with the reform of private enterprise entry accounting for most of the widening wealth disparity. We elucidate the underlying mechanisms of these two reforms using counterfactual simulations and discover that through the savings rate mechanism, the two reforms will collectively form an inverted U-shaped Kuznets curve in wealth inequality as reforms deepen in the future. By calculating the transition dynamics from 1995 to 2035, we confirm that the Kuznets turning point in China lies between 2020 and 2025.

Unexpected good news: the impacts of land decentralization reform on energy development in China

PurposeThe purpose of this paper is to investigate the impact of land approval decentralization on energy efficiency and then analyze the mechanisms that land decentralization improves energy efficiency.Design/methodology/approachThis paper has been based on the dynamic slack based measure (DSBM) method to measure energy efficiency using input-output data at the city level in China. In the empirical analysis, this paper employed difference in differences (DID), instrumental variable (IV), propensity score matching–difference in differences (PSM–DID) and triple differences (DDD) to examine the research hypotheses.FindingsFirstly, this paper finds unexpected good news and shows that decentralizing land approvals significantly improves regional energy efficiency. Secondly, this paper explores two mechanisms for this effect, one is the mitigation of land misallocation and the other one is the cleaner allocation of land resources across industries. Thirdly, this paper provides micro-evidence from Chinese listed firms and finds that the decentralization of land approvals similarly improve firms’ energy efficiency.Originality/valueExisting studies have mainly explored the environmental impacts of land marketization reforms, with limited attention to decentralization of land approval. As a result, the promotion effect of decentralization of land approval on energy efficiency is still unclear, and the mechanism need to be further refined. Based on empirical analysis, this paper not only helps to clarify the relationship between land decentralization reform and energy efficiency, but also explores the mechanisms of transmission.

The Contribution of Total Factor Productivity on Economic Growth in Selected Southeastern European Countries

This paper delves into the impact of capital accumulation, effective employment, and total factor productivity (TFP) on the economic growth of five Southeastern European countries: Albania, Croatia, North Macedonia, Serbia, and Slovenia. The examination is based on the Solow-Swan neoclassical growth model and the Cobb-Douglas production function, which dissects economic growth into capital, labour, and productivity inputs. The analysis pays particular attention to the growth dynamics of North Macedonia over the entire period (1998-2019) and two sub-periods (1998-2008 and 2009-2019). The article seeks to provide a comprehensive evaluation of the primary drivers of economic growth in Southeastern European countries, emphasising the evolving roles of capital, labour, and productivity over time. Through a detailed analysis of these determinants, the study offers insights into the necessary policy actions to ensure sustainable long-term growth, especially in transition economies. The empirical analysis utilises the growth accounting framework and employs regression analysis to estimate the output elasticities of capital and labour inputs. The data analysis covers the period of 1998-2019, specifically focusing on two sub-periods to investigate shifts in growth drivers over time. Each factor's contributions are presented in absolute terms (percentage points) and relative terms (percentages) to provide a comprehensive understanding of their roles. The findings indicate that capital accumulation has been the predominant growth driver in most countries, especially Albania, Croatia, and North Macedonia. However, in Serbia and Slovenia, total factor productivity (TFP) played a more significant role, contributing substantially to growth. In North Macedonia, TFP showed strong contributions during 1998-2008 but declined sharply in 2009-2019, leading to increasing reliance on capital and labour inputs for growth. This study is valuable in emphasising the shift in growth drivers over time and highlighting the importance for Southeastern European countries to concentrate on productivity enhancements, innovation, and labour market reforms to sustain long-term growth. These findings provide significant insights for policymakers seeking to improve economic performance in transition economies.

Container Management System in Batumi Port

Currently, the maritime economy of Georgia is developing quite rapidly. The special geopolitical position of our country in the Eurasian region, in the neighborhood of countries on the path of market reforms, forces the Georgian government to restore the infrastructure of the national economy to effectively use our territorial traditional advantages: mineral resources, free agricultural areas, a large coast, to create convenient port complexes. All this contributes to the development of modern marine transport, cargo, passenger, as well as mixed cargo-passenger complexes. Sea transport is used to transport goods between the country's ports, as well as to develop and ensure Georgia's foreign economic relations with foreign countries. As of 2015, maritime transport accounted for more than 86% of the country's export-import traffic. In 2021, sea vessels entered the ports of Georgia 370 times from 65 foreign countries, which provided more than 86% of the country's needs in foreign trade transportation. In recent years, major technical retooling of seaports has been carried out, tonnage has significantly increased, and the capacity of ships has increased. The capacity of the ships' power plants has increased, automation of several production processes on ships has been introduced, and new transport technologies have been introduced, which ensure safer and more trouble-free navigation of the fleet. The modern port system is a complex hierarchical structure that combines ship companies and fleets, navigation and information support systems, computer systems, and computer-related means of land transportation of goods. Keywords: Container management system, Batumi port, container platform, computer system.

Market Integration of Domestic and International Cotton Prices

Market integration is perceived as a precondition for effective market reform in developing countries. The current study on cointegration analysis was taken up to analyse how different spatially separated cotton markets are inter-connected and impact the price change in one market on other markets. Monthly prices for the period January 2010 to February 2024 from the markets viz., Cotlook-A Index, Chinese spot market, Rajkot in Gujarat, Hinganghat in Maharashtra, Adilabad and Warangal in Telangana were used for the analysis. Augmented Dickey-Fuller (ADF), Johansen's multivariate Cointegration approach, Granger causality test, and Vector Error Correction Model (VECM) were used to test the study the long-run spatial integration. The study confirmed the presence of market cointegration. The pair-wise Granger causality test identified the bidirectional and unidirectional relationship between markets chosen. Cotlook A- Index, China and Adilabad markets affected most of the markets unidirectionally and acted as lead markets. The VECM inferred that China, Rajkot and Hinganghat markets attained equilibrium rapidly in short run. Thus, the cotton markets were highly integrated in India. Thus, Stabilizing the prices in one market would influence the other markets improving competitiveness and market efficiency.

Supply Skepticism or Supply Realism?

While Been et al. makes a strong case that new market‑rate supply can affect rents and prices, what is missing from the piece is sufficient context on who benefits, to what extent and whether market reforms and high‑end rental housing can adequately move the housing affordability needle for low‑income renters. At best, current research suggests new market‑rate rental supply slightly lowers the rate of rent increases for all, at worst it may also increase rents in the short‑run in lower quality housing occupied by lower‑income renters. While the authors critique “supply skepticism,” I call for a middle path of supply realism. Supply realism acknowledges the racist history of exclusionary housing policies, embraces zoning reforms while also being clear eyed about the limitations of zoning and other market reforms alone to achieve universal housing affordability.

Do long-term institutional investors constrain managerial disclosure opportunism? Evidence from insurance ownership

ABSTRACT Focusing on the relationship between insurance ownership and firms’ incentives to report small positive earnings surprises, this study examines whether long-term institutional investors constrain short-term opportunistic disclosures. This study finds that firms display a salient bunching of small positive earnings surprises owing to adverse regulatory consequences for loss firms and insurance ownership significantly constrains such behaviours. The mechanisms are mainly through strengthening internal monitoring and attracting external attention. Meanwhile, this negative relation is more pronounced when other investors have a shorter investment horizon, or managers have stronger incentives to exaggerate earnings escorting their insider selling. By using Growth Enterprise Market reform as a quasi-natural experiment, the results remain consistent. This study more fully explains the economic consequence of investor horizon and provides a new perspective on the motivation of managerial disclosure opportunism. Furthermore, this study draws important implications for emerging markets for encouraging value investment and provides important guidelines for governments to better leverage the leading role of insurance institutions when setting policies to maintain the healthy and sustainable development of the capital market.

Determinants on the selection of rural households’ financial assets in China: marketization or financial literacy?

Financial literacy is an indispensable factor in household asset allocation, but market-oriented reforms are also an external factor that cannot be ignored. Using data from the 2013 and 2019 China Household Financial Survey (CHFS), this paper investigates whether the individual’s ability or the market system hinders rural households’ participation and asset investment in the financial market. Findings reveal that both marketization and financial literacy positively affect residents’ financial activities, but the roles of the two are not the same. Financial literacy is an essential factor in increasing participation in the financial market. Moreover, marketization and financial literacy significantly affect rural financial asset allocation decisions in four ways: changing risk preference, using the Internet, alleviating liquid constraints and increasing education expenditure on offspring. Besides, households’ financial behaviors exhibit a stronger correlation with improved network infrastructure, robust legal frameworks, favorable business credit environments, higher social media penetration, and enhanced human capital.

The impact of green credit on the green transformation of the manufacturing industry

Abstract Manufacturing's green transformation is essential for advancing high-quality development. Green credit, which functions as a market-driven tool, offers support for achieving this transformation. Using manufacturing data from 30 provinces in China from 2005 to 2020, this research establishes a theoretical framework to analyze how green credit and marketization levels influence manufacturing’s green transformation. This research also provides an empirical analysis of how green credit influences this transition. The results are as follows: first, the growth of green credit plays a significant role in driving the green transformation of the manufacturing sector, with this finding remaining valid after a series of robustness and endogeneity tests. Second, the mechanism analysis shows that green credit supports the environmentally friendly transformation of the manufacturing industry through an improvement in R&D intensity. Third, moderation testing reveals that the process of marketization significantly strengthens the positive effect of green credit on the promotion of manufacturing's green transformation Among them are the following, the relationship between the government and the market and the development of the product market inhibit the role of green credit in support of the green transformation of the manufacturing sector. The development of factor markets, the development of non-state-owned economies, and the development of market intermediary organizations and the legal system environment exert a facilitating function, which significantly enhances the positive effect of green credit in the promotion of the green transformation. The conclusions provide fresh insights and empirical evidence for advancing manufacturing's green transformation and hold practical significance for refining green credit policies and advancing market-oriented reforms.

Correction: Dismissal regulation and hiring and dismissal decisions: a decisive factor? the case of the French labor market reforms

Correction: Dismissal regulation and hiring and dismissal decisions: a decisive factor? the case of the French labor market reforms

Diversification and the Resource Curse: An Econometric Analysis of GCC Countries

This research explores the effects of significant global economic shocks, such as the 2008 Global Financial Crisis and the 2020 COVID-19 pandemic, on GDP growth in the Gulf Cooperation Council (GCC) nations. Employing a dynamic generalized method of moments (GMM) model, the analysis highlights the strong momentum effect of lagged GDP growth, where past performance plays a critical role in shaping current economic outcomes. The findings also reveal that natural resources continue to positively influence short-term growth, but with diminishing returns over time, supporting the resource curse hypothesis and underscoring the need for broader structural reforms to ensure long-term sustainability. In addition, the results show that external investments flowing into the country, trade balance, and inflation emerge as key drivers of economic growth. While moderate inflation is positively associated with economic expansion, unemployment exerts a significant negative effect on GDP growth, particularly in models that account for country-specific characteristics. This emphasizes the need for labor market reforms to improve employment rates and support sustainable development. The role of gross capital formation, particularly in both the dynamic GMM and random effects models, further underscores the importance of strategic domestic investment, especially during periods of global disruption. These findings emphasize the critical need for economic diversification in the GCC. Policymakers should focus on attracting foreign investment, managing inflation, enhancing human capital, and boosting domestic investment to mitigate the adverse effects of the resource curse and secure sustainability. While market capitalization and oil rents may stimulate short-term growth, their long-term sustainability remains uncertain without greater diversification. Both external and domestic investments emerge as critical drivers of long-term growth, while persistent challenges such as inflation and unemployment continue to pose risks to economic stability. The study highlights the need to reduce reliance on oil and leverage human capital to build more resilient economies capable of adapting to future challenges. By offering dynamic, empirical insights into the balance between resource reliance and sustainable growth, this research adds valuable insights to the policy discussion on economic diversification in the GCC. Policymakers are urged to prioritize FDI, inflation management, domestic capital formation, and human capital development to mitigate vulnerabilities and ensure sustainable economic growth in the face of ongoing global uncertainties.

Диалектика централизации и децентрализации управления в СССР и современной России

The examination of the evolution and modernization of the governance system of socialist industry and, in particular, the alternation of its centralized and decentralized forms within the command system will make it possible to understand the reasons for the rise and fall of the Soviet economic system, as well as the resulting difficulties of the modern stage of the country’s development. In this regard, the aim of this article is to investigate the causes and factors influencing the transition between centralized and decentralized governance in the USSR and transitional Russia. This study involved a review of literature detailing the most notable periods of centralization, such as the industrialization in the USSR (1928–1937) and the state reforms of the 2000s in the Russian Federation, as well as periods of decentralization, including the establishment of local People’s Commissariats of governance (1953–1964) and the market reforms of the 1990s. The research was based on the works of both domestic and international scholars. The analysis revealed a systemic need for alternating waves of centralized and decentralized governance. Using the examples of the Soviet Union and the Russian Federation, the article delineates the main phases of governance transition, economic indicators, and the factors influencing these processes.

Can't Contracting Be Relational? Comment on "Alignment in the Hospital-Physician Relationship: A Qualitative Multiple Case Study of Medical Specialist Enterprises in the Netherlands".

Ubels and van Raaij provide a valuable account of the operation of novel hospital/medical specialist enterprise (MSE) contracts in a Dutch healthcare system shaped by market reform. However, their analytical distinction between the separate domains of contractual and relational governance frames the contractual domain more narrowly than does the relational contract theory widely deployed in socio-legal studies. The authors' conclusion that contract plays little or no part in governing relations between hospitals and MSEs leads them to underplay a wider realm of contractual practices that develop in the shadow of the written contract. Apparent non-use of contracts in favour of shared planning, compromise and extra-legal solutions only takes the form it does because of the potential application of the available legal framework. Larger qualitative field studies involving a more extensive combination of interviews and observations may be needed to gain fuller insights into the relational dimensions of the contracting process.

Neoliberalism in question: The Philippines' nurse education and labour export as liberal neo‐statist development agenda

AbstractMany scholars have used neoliberalism as an analytical framework to examine the Philippines' labour export policy. While neoliberalism entails a retreat of the state in favour of market reforms, evidence shows that state intervention of the market becomes larger and stronger over time. This paper utilises liberal neo‐statism as an alternative framework to understand the Philippines' nurse labour export by explaining that the state's role is larger than and goes beyond labour brokerage. Following the historical institutionalism approach, we show the significant timing, sequence, and path dependence that affect the emergence of institutions that govern the Philippines' nurse labour export. Our paper reveals how specific policies and regulations in labour export are tucked within the disguise of market reforms, but which are manifest within a larger state's control. These policies serve as the state's apparatus for remittance generation and protection of migrant labour rights and welfare.

Impact of Servitization on Employee Satisfaction with Performance Evaluation Systems: A Case Study of China’s New Energy Sector Amid Power Market Reforms

This study investigates the mechanisms by which service-oriented transformation affects employee satisfaction with performance evaluation systems within the context of China’s electricity market reform. Using CGN New Energy’s Guangxi Branch as a case study and applying the grounded theory method, the research systematically analyzes employees’ perceptions of fairness, transparency, and career development during the transition from a product-oriented to a service-oriented model, based on in-depth interviews and surveys. The findings reveal that while servitization enhances employee skill development and career satisfaction, it also introduces challenges, such as increased work pressure and the demand for more transparent performance evaluation systems. This study provides valuable insights into optimizing management practices and performance evaluation systems in renewable energy companies, contributing both theoretically and practically to the literature on organizational transformation in the energy sector. These conclusions are not only significant for Chinese enterprises but also offer important reference points for global energy companies undergoing similar transitions.

Urbanization, relational space, and practicing Muslim ethnicity in Western China

ABSTRACT In recent decades, market reforms, inter-regional mobility, and urbanization have shaped Muslim groups’ social practices, simultaneously encouraging the development of Islamic places (and reinforcing Muslim identity), promoting intermingling with other ethnic groups (and promoting assimilation), and occasionally creating inter-ethnic class solidarity and mutual respect. By the mid-2010s, in western China’s Xining City, the resulting social fluidity stemming from these transformations was being constrained by both community social pressures and state security practices. Furthermore, Sinocentric urbanization discourse was influencing intra-group debates about what, and how, Muslim practices could belong in the city. This discourse affected mundane boundary-marking practices; its relative devaluation of ethnic urban spaces shaped what Muslims considered excessively ‘traditional’ or acceptably modern. Drawing from theories in urban geography, I argue that analyses of relational spaces that include mobility, urban redevelopment, and lived experiences are key to understanding how urban Muslims are adapting to contemporary PRC governance strategies.

Directions for Increasing Green Energy Capacity of Uzbekistan

General background: The global transition to renewable energy is essential for mitigating climate change and ensuring energy security, and Uzbekistan, with its abundant natural resources, holds significant potential. Specific background: Despite progress, Uzbekistan still relies heavily on fossil fuels, and challenges remain in integrating renewable energy into the national grid. Knowledge gap: Previous studies have focused on the technical and economic benefits of green energy, yet there is limited research on the interplay between market reforms and renewable energy adoption in developing nations like Uzbekistan. Aims: This research aims to assess the current renewable energy policies and propose strategies to enhance Uzbekistan’s capacity, particularly in solar and wind energy. Results: The findings reveal that while Uzbekistan has made strides, substantial reforms in market liberalization and increased investment are necessary to meet its 2030 green energy targets. Novelty: This study offers new insights by integrating a market-based approach to energy reforms with the need for targeted subsidies and international investment, filling a critical gap in the literature on green energy transitions in developing economies. Implications: The results suggest that further policy adjustments, enhanced international cooperation, and financial incentives are vital for accelerating Uzbekistan’s green energy transition, providing a model for similar economies. Highlights: Uzbekistan needs substantial market reforms to increase green energy capacity. Solar and wind energy are key to meeting the 2030 renewable energy goals. Targeted subsidies and international investment are essential for sustainable energy development. Keywords: Solar Energy, Wind Energy, Energy Subsidies, Energy Investments, Market Liberalization

Стабильность современной политической системы Вьетнама: эволюция, вызовы и перспективы

This article examines the stability of the modern Vietnamese political system through a comprehensive review and analysis of its historical evolution, governance structure, economic reforms, and the intricate interplay of socio-political factors. Since the implementation of Doi Moi economic reforms in 1986, Vietnam has experienced significant transformations, that have led to rapid economic growth and increasing political stability. This study delves into the pivotal role played by the Communist Party of Vietnam in maintaining a one-party system while simultaneously introducing market-oriented reforms. It evaluates the impacts of such reforms on the political landscape, discussing how economic success has contributed to the legitimacy of the state and sustained public confidence. Furthermore, the research identifies internal and external challenges faced by Vietnam, including corruption, human rights concerns, and the pressures of globalization, while examining the state's response through institutional reforms and policy adjustments. The findings of the study suggest that Vietnam's political stability is influenced by a complex set of factors, including economic achievements, institutional reforms, and the central role of the Communist Party.