Real Economy Research Articles

Comparative Analysis Between Japan's Real Estate Economy and China's Real Estate Status

Japan's real estate bubble economy in the 1990s caused a major blow to the Japanese economy, Japan entered the "disappearing 30 years". The causes of Japan's real estate bubble economy and the reasons why the bubble burst are worthy of the world's countries to learn from. 21st century since the rapid development of China's real estate economy, housing prices are growing rapidly. The real estate economy has been overheated in some areas, although the Chinese government has taken relevant measures to cool down, still can't relax the vigilance, people should always pay attention to the overheated areas of real estate prices, land prices. Through the comparison between China and Japan, although the economic structure and development trend are similar when the property overheating phenomenon occurs, the economic development background and international background between the two countries are different, and the governments of the two countries have adopted different strategies to deal with the property overheating phenomenon. So in conclusion, although there are some areas in China where real estate is overheating, China's real estate market will not burst the bubble. In order to prevent China's real estate bubble from bursting and its impact on economic development, China should pay attention to the reasons behind it and make targeted policy adjustments, while also drawing on the lessons learned from other countries to promote the healthy and stable development of the real estate economy.

Linking regional investments and revenues at the provincial level to investment loan decisions by local government banks in Indonesia

This study aims to analyze how two different types of investments (local domestic and foreign direct investments at the provincial level) and revenues (booked by the provincial governments, general allocation funds, special allocation funds, local taxes, and retribution) affect investment loan decisions by local government banks in Indonesia. The study uses panel data applying ordinary least squares and multiple linear regression. Thus, 144 data were sampled from 2013 to 2021 from 16 local government banks out of Java Island in 21 provinces in Indonesia. The study found that local domestic investment at the provincial level affects investment loan decisions by local government banks. In contrast, foreign direct investment did not affect lending decisions, indicating that local domestic investment contributes to the real local economy at the provincial level. Different results were found in provincial revenues in the form of general and special allocation funds, which negatively affected loan investment decisions, possibly due to provincial revenues utilized to cover the financial deficit and capital expenditure spent chiefly on imported goods. Additionally, local taxes at the provincial level also negatively affect investment loan decisions, possibly due to fluctuations in local tax collection during COVID-19. However, the study found that local retribution contributes to predicting loan investment decisions, suggesting revenue collection by the governments considering local economic conditions. The study findings suggest that provincial governments should direct investments that can impact the local economy and spend their revenues on goods and services that can drive local economic growth. AcknowledgmentThe investment loan made by local government banks, which is associated with local investment and revenue, is part of a research grant project from the Economics and Business Faculty of Hasanuddin University. This project is a result of collaboration with national and international researchers. In carrying out this research, some inputs from people working in local government banks, financial service authorities, and provincial and regency governments are addressed.Thanks to Ahmadi Usman for secondary data and Syahidah Ulhaq for some application programs enabling mapping literature, as well as Israa Natiq Jabar for supervising the result and applied some inputs in the section of research method.

Effect of financial contagion between real and financial sectors on asset bubbles: A two‐layer network game approach

AbstractUnderstanding the mechanism of asset bubble formation is important for maintaining financial stability and healthy functioning of the economic system. With gradual emphasis on the complex characteristics of financial markets, a new perspective for analyzing the emergence of asset bubbles is emerging: how to integrate the real economy with financial markets composed of heterogeneous individuals. In this study, we propose a two‐layer network game to investigate the impact of financial contagion between the real and financial sectors on asset bubbles. Among their interactions, shadow banking activities in both sectors increase the contagion risk across financial markets and construct a broader financial system. Both credit interactions and peer learning effects are captured in the network framework. Simulating relevant regulation policies, our experiments indicate that regulators should closely monitor returns on assets by setting an upper threshold. Financialization in the real sector significantly exacerbates the formation of asset bubbles, with medium‐level borrowing constraints minimizing bubble dynamics most effectively. The financialization practices of mature industries should be strictly regulated, while innovative industries should be allowed moderately flexible financing practices. The degree of friction within the financial market should be flexibly calibrated for financial institutions and genuine enterprises, aiming to mitigate systemic risks in the financial market while fostering robust growth in the real economy.

Analysis of Innovative Ideas for Reform of Accounting Teaching Mode in Applied Universities under the Perspective of Industry-Teaching Integration

The rational development of accounting professional practice teaching in the context of industry-teaching integration has a very important role in promoting the teaching of applied accounting specialties, which can improve the efficiency of accounting professional training to a certain extent. The concept of industry-teaching integration puts forward new ideas and methods for the training of university accounting professional teaching talents, and the use of advanced technology accelerates the integration of modern information technology and the development of the real economy. Strengthen the cooperation between schools and enterprises, fully clarify the relationship between production and education, and establish a university accounting professional teaching mode to realize the self-transformation of university teaching. This paper takes the integration of industry and education as the background, from the current situation of talent cultivation and characteristics, points out the deficiencies of accounting teaching in applied universities, puts forward the feasible path of teaching mode reform, and strives to realize the mode change.

Research on the Influencing Factors of Private Equity IPO Exit Returns

After more than three decades of rapid development of the private equity investment industry, China has now grown into an important pillar force indispensable to supporting the real economy. Among them, the exit link, as one of the three indispensable links in the operation of private equity funds, determines whether the private equity funds can realize value-added and exit smoothly, which is the ultimate goal of the whole investment activities. This paper compiles the relevant researches on the exit returns of listed companies in recent years, summarizes the factors and characteristics affecting the exit returns of China's IPOs, and the research results show that the realization of maximizing the exit returns of IPOs requires the joint efforts of investee companies, private equity investment institutions and macro policies.

Research on the Impact of Digital Inclusive Finance on Rural Economic Development

Digital technology significantly enhances the efficiency, user experience, coverage, and accessibility of financial services. It effectively addresses the issue of imbalanced and inadequate financial services, provides strong support for the advancement of inclusive finance, and facilitates high-quality development of the real economy. Currently, rural rejuvenation and digital inclusive finance are two prominent topics in China. The objective of this article is to identify and address issues by examining the correlation between digital inclusive finance credit and the rural economy. This paper employs a fixed effects model to examine the correlation between digital inclusive financial credit business and the additional value generated by the primary industry. The results indicate a strong negative association between the digital inclusive financial lending business and the added value of the primary industry. The government should prioritize the simultaneous progress of digitalization and finance in rural areas in order to establish a more comprehensive rural economic and financial system.

Analysis of the Mechanisms Behind the "China Money Mystery"

The growth rate of China's broad money supply (M2) significantly exceeds the combined rates of economic growth and inflation, leading to a continuous rise in the ratio of M2 to GDP. This phenomenon is referred to as the "China Money Mystery." The explanation for this phenomenon involves several factors. Firstly, interest rate and exchange rate controls in the financial market lead to excessive increases in money demand. Secondly, financial repression results in excessive use of indirect financing and a lack of investment channels, further distorting money supply. Thirdly, the financial hoarding theory suggests that a large amount of money flows in the virtual economy rather than being invested in the real economy, thus failing to induce noticeable inflation. Finally, the applicability of traditional quantity theory of money in the modern credit money system is gradually diminishing, failing to explain the relationship between money supply and prices. By integrating these factors, a better understanding of the abnormal monetary supply phenomenon in China and its implications can be achieved.

Problems and Strategies of Financial Services Supporting the Real Economy

With the rapid development of China's economy, the status and role of the financial industry in the national economy have become increasingly prominent. The healthy development of the financial industry is of great significance for promoting the development of the real economy, adjusting the economic structure, and upgrading the economy. However, there are still some problems with financial services supporting the real economy in China, such as the misallocation of financial resources, high financing costs, and rising financial risks. These issues limit the support financial services can provide to the real economy. This paper analyzes the main problems currently existing in financial services supporting the real economy and proposes countermeasures from optimizing the allocation of financial resources, reducing financing costs for the real economy, preventing and resolving financial risks, and deepening the structural reform of the financial supply side. The aim is to provide references for relevant personnel.

Allocation of Financial Resources and Green Economic Development: Evidence from China

Green development has recently become the theme of global economic development. Focusing on green development, this paper uses China’s interprovincial panel data from 2003–2022 to construct a spatial Durbin model to study the impact of the allocation of financial resources between the virtual economy and the real economy on green development. The findings are as follows: (1) The “virtual and real” allocation of financial resources has a significant effect on the green development of the economy; on the whole, the increase in financial resources in the virtual economy reduces the quality of green economic development. (2) The “virtual and real” allocation of financial resources has an obvious spatial spillover effect on green economic development; the increase in financial resources flowing into the virtual economy in one province (city) reduces the proportion of financial resources flowing into the virtual economy in neighboring provinces, which is conducive to the green economic development of the neighboring provinces. (3) Due to the differences in economic structure, industrial structure, and financial development level among provinces and regions, the “virtual and real” allocation of financial resources has a significant effect on the green economic development of central, eastern, and western China.

A Case Study on the Innovative Development of Digital Supply Chain Finance Based on MYbank in China

Small and medium-sized enterprises (SMEs) play a critical role in promoting the development of China’s real economy and improving national productivity, but their financing still faces challenges. In recent years, supply chain finance (SCF) has become one of the most important solutions to SMEs’ financing difficulties. Promoting the digital and innovative development of SCF can better meet the financing needs of SMEs. This study is based on a case study of Zhejiang MYbank Co., Ltd. (MYbank) in Hangzhou, China, which is a representative institution of digital supply chain finance development in China and committed to realizing the digital innovation development of SCF. Based on MYbank’s financial index data from 2018 to 2022, the implementation effect of MYbank’s digital supply chain finance is quantitatively analyzed from the perspectives of SMEs and MYbank. The main findings are as follows.(1) In the practice of digital supply chain finance, MYbank implements the new concepts of SCF decentralization and full coverage of supply chain links while enhancing the sustainability of SCF. (2) For SMEs, MYbank’s digital supply chain finance development has led to an increase in the financing scale and financing availability of SMEs. (3) The analysis of MYbank’s comprehensive benefits shows that the digital innovation development of SCF effectively increased the overall economic value of the enterprise during the period of 2018–2022. Based on these findings, this study provides implications for commercial banks and other financial institutions to develop digital supply chain finance.

Regional digitalization and corporate ESG performance

Against the backdrop of rapid digitalization growth and deep integration with the real economy, companies are faced with more extensive and complex social responsibilities. Based on the data of 1178 A-share listed companies in China's Shanghai and Shenzhen markets from 2014 to 2021, this study empirically analyses the impact of regional digitalization on corporate ESG performance by constructing a double-difference model using the establishment of China's National Pilot Zone for the Innovative Development of the Digital Economy. This paper found that regional digital construction can improve corporate ESG performance by enhancing corporate environmental information disclosure, improving the scale of social donations, and enhancing risk resilience. In addition, the higher the level of public environmental concern in the region, the more obvious the enhancement of digital construction on corporate ESG performance. The contribution of regional digital construction to corporate ESG is also stronger in firms with high executive environmental awareness than in those with low. At the same time, this paper also responds to some scholars' questioning of corporate ESG by verifying that corporate ESG report disclosure is motivated by corporate sustainability rather than self-impression management from the dimensions of corporate management's manipulation of information and the corporate's actual environmental behavior. This paper enriches the research on the impact of the external digital environment on corporate ESG performance. It is of great significance for developing countries to promote the active participation of enterprises in ESG practices through the opportunity of digital development.

Digital finance and capital mobility: Evidence from cross-regional investment of listed companies in China

This study examines the role of digital finance in dismantling regional barriers to capital flow and in fostering the creation of a unified market. Using the provincial-level digital finance index and data on subsidiaries by listed companies, we demonstrate how digital finance index effectively enhances cross-regional investment. Our findings are robustly supported by extensive tests. We propose two potential mechanisms through which digital finance may influence the level of cross-regional investment by listed companies: first, by reducing the degree of segmentation in capital markets between regions and second, by lowering firms' capital costs and financial constraint. Our results indicate that the impact of digital finance on cross-regional investment is particularly pronounced in environments with higher competition, and among companies without political connections. Additionally, our research indicates that in regions with higher financial regulation, digital finance can better facilitate capital flow. This study provides new research perspectives and evidence on the influence of digital finance on the development of the real economy and the promotion of capital mobility.

How does the digital economy affect the green transition: The role of industrial intelligence and E-commerce

As a new economic form, the digital economy (DE) significantly impacts green development. However, the impact of the DE on green total factor productivity (GTFP) remains controversial. A two-way fixed effect model is constructed to explore the impact of DE on green development. It is found that (1) there is a U-shaped relationship rather than a positive relationship between DE and GTFP. (2) Industrial intelligence and e-commerce are essential for DE to affect GTFP. (3) The DE affects GTFP mainly by promoting efficiency progress rather than technological progress. In addition, in regions where government attention to the DE is higher than others, the DE substantially contributes to GTFP. The potential of integrating the DE and the real economy needs to be further tapped. This paper presents pertinent policy suggestions and provides new empirical evidence and valuable reference for promoting green development.

Choice intention for the national volume-based procurement drug and its associated factors: a cross-sectional study on patients with late-life depression in China

BackgroundThe national volume-based procurement (NVBP) policy has significantly decreased prices and increased the accessibility of NVBP drugs. Nevertheless, issues such as heightened adverse reactions and suboptimal efficacy have arisen. Concerns regarding the quality of low-cost medications and the absence of long-term research have been widely recognized. This has led to caution among patients with late-life depression (LLD) due to their delicate health and the severity of their condition. This study evaluated the choice intention for NVBP drugs and associated factors in older patients with LLD.MethodsA weighted sample of 408 participants between December 2022 and March 2023 were included. Data were collected via face-to-face interviews and questionnaires. To identify significant associated factors of choice intention, a multilevel logistic regression model was employed.ResultsOver half (53.68%) of older patients with LLD intended to choose NVBP drugs. Associated factors included self-assessed poor economy, higher out-of-pocket expenses, monthly household income exceeding CNY 6000, absence of other non-communicable chronic diseases, ordinary registration, urban employee medical insurance, no requirements for brand-name drugs, adverse reactions after using NVBP drugs, and rejection of physicians’ recommendation for NVBP drugs. The interaction effect between the real economic condition and patients self-assessed economy significantly influences choice intention for NVBP drugs. Among 124 patients with self-assessed poor economy, 75 showed a higher intention to use NVBP drugs. In these patients, age, medical insurance reimbursement, and brand awareness were significantly associated with choice intention.ConclusionEconomic factors, physical conditions, medical needs, and physician recommendations significantly influenced the choice intention for NVBP drugs. The choice intention can be improved by strengthening physician-patient communication, increasing the scope and proportion of medical insurance reimbursement, improving substitution studies, and conducting post-marketing re-evaluations of NVBP drugs.

To Push Forward the Integrated Reform in An All-Round Way and Focus on Building A Strong Province in The Digital Economy

This paper, taking Dalian as a case study, delves into the strategic pathways and practical strategies for comprehensively advancing integrated reform and jointly striving to build a digital economy powerhouse province. It first analyzes the significance of the digital economy as a new engine for global economic growth, along with Dalian's foundational advantages and potential challenges in its digital transformation journey. Subsequently, from various dimensions such as policy guidance, technological innovation, industrial upgrading, and business environment optimization, the paper elaborates on how Dalian is leveraging integrated reform measures, including enhancing cross-departmental collaboration, promoting open sharing of data resources, and constructing a digital economy ecosystem, to accelerate the deep integration of digital technologies with the real economy, thereby promoting industrial structural optimization and upgrading, and enhancing regional competitiveness. The paper also emphasizes Dalian's key initiatives in nurturing and attracting talents, strengthening infrastructure support, and advancing smart city and digital government construction during its pursuit of becoming a digital economy powerhouse, and how these initiatives provide strong momentum for the high-quality development of Dalian's, and by extension, its province's, digital economy. Through case studies and practical summaries, this paper offers a series of replicable and scalable experiences and models, providing valuable insights for other regions to advance their own digital economy integration reforms.

Understanding Money Using Historical Evidence

Debates about the nature and economic role of money are mostly informed by evidence from the twentieth century, but money has existed for millennia. We argue that there are many lessons to be learned from monetary history that are relevant for current topics of policy relevance. The past is a source of evidence on how money works across different situations, helping to tease out features of money that do not depend on one time and place. A close reading of history also offers testing grounds for models of economic behavior and can thereby guide theories on how money is transmitted to the real economy.

The Impact of Digital Transformation on Corporate Financial Performance: A Case Study of Luzhou Laojiao

With the development of the Internet and big data, the global economy is tending to the deep integration of digital economy and real economy. The state attaches great importance to the digital development strategy and has issued a number of policies to support the digital transformation of enterprises. Therefore, digital transformation has become a necessary means for enterprises to cope with internal and external adverse environmental changes and improve their survival and development. This paper selects Luzhou Laojiao, which has great development potential in the liquor industry, as the research object to sort out the background and path of its digital transformation, and then selects relevant indicators from four aspects of profitability, debt paying ability, operating ability and growth ability for analysis. This paper analyzes the impact of Luzhou Laojiao's digital transformation on its financial performance, and provides reference for other enterprises in the same industry undergoing digital transformation.

Analysis of the Path to Promote the Integrated Development of the Digital Economy and The Real Economy in the New Era

With the continuous development of economy and society, China's digital economy, as a separate concept, has become a driving force to promote the development of the real economy. Promoting the integration of the digital economy and the real economy is not only the main trend of realizing the scientific and technological revolution and industrial transformation, but also a necessary way to ensure the effective development of China's overall economy. This paper will explain the path analysis of promoting the integration and development of the digital economy and the real economy in the new era, expound the positive significance of the integration of the two, and put forward the relevant paths of the integration of the two.

Real Estate Economy in the Post-epidemic Era

The COVID-19 outbreak has had a significant impact on China's real estate market, with the sector's recovery lagging behind the overall economy. This study evaluates the pandemic's influence on consumer behavior, housing demand, and preferences, highlighting substantial declines in real estate development investment and commercial housing sales. Key factors contributing to reduced demand include a shift towards remote working models, heightened health and safety concerns, and evolving perceptions of urban living. To stimulate the market, government incentives such as tax breaks and housing subsidies are recommended. Additionally, developers are encouraged to embrace smart city technologies for optimizing energy consumption and providing convenient community services. Emphasizing health-conscious design is crucial for improving air quality and increasing green space while investors should diversify their portfolios to mitigate market volatility risks and enhance resilience. The objective of this study is to devise an appropriate real estate economic recovery plan that aligns with the changing urban to sustain economic growth.

Anlysis of Green Finance and High-quality Development of the Real Economy

Anlysis of Green Finance and High-quality Development of the Real Economy