Supply-side Reform Research Articles

Research on the Effect of Executive Incentive Institutional Innovation on the Cost of Equity-Evidence From Chinese Listed Companies.

Executive incentive has long been a hot topic among academics and practitioners. With the continuous development of China's manager market, the spirit of innovation and entrepreneurship among executives has exerted a greater influence on corporate performance. Enterprise innovation is an important part of the entrepreneurial spirit. Moreover, China's supply-side reforms and compensation system of the state-owned enterprises (SOEs) have been advanced and innovative. Therefore, based on the manager human capital theory and the organizational innovation theory, and using 15,492 firm-year observations from China's Shanghai and Shenzhen A-share listed companies for the period 2005–2018, we constructed various models, including the Gorden model, the Growth Rate of Price–Earnings Ratio model (PEG), the Ohlson and Juettner-Nauroth model (OJ), and the Capital Asset Pricing model (CAPM), to measure the cost of equity. We investigated the effect of the institutional innovation of executive incentives on the cost of equity, and the heterogeneous influence of China's special property rights system on the relationship between the two. We found that the innovations of the executive incentive system have a positive governance effect on the cost of equity. In particular, executive compensation incentives significantly reduce a company's equity costs. We also find that the state-owned property rights may weaken the positive effect of institutional innovation of executive incentives. Furthermore, China's executive incentives system and corporate governance mechanism are imperfect; and therefore, institutional innovation is a matter of great urgency and more innovative ideas for the manager market need to be introduced. China's listed companies should give full play to the spirit of innovation and entrepreneurship, constantly innovating incentive-based compensation systems of companies, and establishing a scientific and innovative concept of the cost of equity. The findings are robust after controlling for potential endogeneity concerns.

Chinese-style Tax and Fee Reduction and Economic High-quality Development：A Study from the Perspective of Enterprise Financialization

In recent years, a large number of non-financial enterprises in China have been engaged in financial activities, and the national economy has obviously introduced the trend of “from reality to deficiency”. In China’s policy portfolio, tax and fee reduction policies, as an important part of supply-side reform, undertake the important historical mission of prudently coping with economic downturn risks, enhancing China’s economic resilience and ensuring high-quality development of the real economy. Therefore, scientific evaluation of the impact of tax and fee reduction policies on reversing the over-financialization of the economy is of great significance for further scientifically optimizing the design of fiscal policies to guide industrial capital flows and constructing a policy combination system supported by fiscal policies and monetary policies as well as synergistic and effective modern macro governance mechanism.This paper takes A-share non-financial listed companies from 2012 to 2018 as the research object, uses the tax data of prefecture-level cities to construct the measurement indicators of tax and fee reduction, and explores the policy performance and mechanism of tax and fee reduction policies at all levels in guiding the economy to “get rid of deficiency and return to reality” with the relevant local regulations of tax and fee reduction and the characteristics of administrative district endowment of prefecture-level cities. It is found that tax and fee reduction has a significant restraining effect on enterprise financialization, and the effect is more intense in enterprises with non-state-owned property rights, non-manufacturing industries, central and western regions, cities with relatively backward per capita income and small-scale enterprises. The mechanism research shows that tax and fee reduction can effectively weaken the motivation of “investment substitution” and “entity intermediary” of enterprise financialization, but it has no obvious influence on the motivation of “reservoir”. Further research shows that the restraining effect of tax and fee reduction on enterprise financialization is conducive to promoting enterprises’ physical capital investment, while the promoting effect on innovation investment is not obvious.The marginal contribution of this paper may be as follows: Firstly, it directly focuses on the impact of tax and fee reduction on enterprise financialization, which provides a new perspective for the study of economic financialization. Secondly, in terms of research tools, the instrumental variables designed in accordance with local regulations and administrative division endowments in this paper are a useful attempt for the research methods of such policies. Thirdly, in addition to verifying the effect and mechanism of tax and fee reduction on economic financialization, it also analyzes the heterogeneous effect of tax and fee reduction policies to restrain the economy “from reality to deficiency”, so as to provide a practical basis for the lean fiscal policy of “one industy, one region, one enterprise”.

Effect of Chinese industrial structure upgrading on household consumption structure: evidence from CHIP data

Based on the data of Chinese Household Income Project (CHIP) and 117 cities in 2007 and 2013, this paper analyzed the effect of industrial structure upgrading on household consumption structure by using the ordinary least square method and quantile regression method. The following conclusions were drawn. Firstly, the upgrading of industrial structure can significantly promote the upgrading of household consumption structure. Secondly, compared with the low-level consumption structure households, the industrial structure upgrading has a stronger impact on households with high-level consumption structure. With the increase of quantile level, the influence of industrial structure upgrading on the upgrading of residents' consumption structure can gradually increase. Therefore, the government should actively promote the supply-side reform and the upgrading of industrial structure, which would be conducive to the upgrading of consumption structure.

Ecological Benefit Evaluation of Grassland Agriculture in Ecological Fragile Areas—A Case Study in Dingxi, Gansu Province

Dingxi City of Gansu Province is a typical ecological fragile area and a famous poverty-stricken city in China. Because of its harsh natural environment and traditional farming ideas, economic development there has been slow. With the implementation of “Agricultural Supply-side Reform” in China, some regions have developed grassland agricultural production mode (GAPM) by introducing grass into fields, but there are still many regions that conform to traditional cultivated land agricultural production mode (CLAPM). In order to find out the suitable agricultural production mode for Dingxi City, two production modes, GAPM and CLAPM there were studied. This study used opportunity cost method and alternative engineering method to compare the ecological benefits of the two production modes. The results showed that the values of GAPM to provide products, conserve soil, regulate climate, sequestrate carbon and product oxygen were 479.31 yuan / mu,483.51 yuan / mu,1.94 yuan / mu,394.6 yuan / mu, and 393 yuan / mu respectively, better than CLAPM. Therefore, GAPM in Dingxi City has been effective, indicating a new suitable industrial mode for Dingxi city and other regions with the same requirement of agricultural industry updating.

The influence of economic institution on finance sector credit allocation in China

Since the supply-side reform, the credit allocation from the finance sector is more concentrated in state-owned enterprises (S.O.E.s). It results in a mismatch between the credit allocation and the economic contribution of private enterprises (P.E.s). In China, we find that government intervention in the finance sector to allocate credit to S.O.E.s helps to achieve sustainable growth. Because of the ownership relationship, the credit allocation to S.O.E.s will also produce social or political interests for the finance sector. Based on the stylised facts, this article builds the finance sector credit allocation dual objective mechanism in the framework of the neoclassical economic growth model. It also analyses the influence of government intervention and ownership relationship on economic growth in the mixed economy represented by the socialist market economy with Chinese characteristics. The empirical analysis found that government intervention and ownership relationship were the main factors affecting the efficiency of capital allocation. Further research into whether there is an optimal parameter of government intervention and optimal mixed proportion in the stated-owned enterprise mixed-ownership reform is needed.

The Realistic Dilemma and Promoting Path of Secondary Vocational Education Talent Training Model under the Background of Education Supply-side Reform

In today's world, the competition for high-end smart technology is becoming increasingly fierce, and the huge connotation hidden behind the fierce competition is the competition of high-quality skilled talents. The status of secondary vocational education in our country's education system has a solid foundational role. The close connection it exhibits with social and economic development is beyond the reach of other types of education. However, the current secondary vocational education talent training model shows a situation that is not in line with market demand, and problems such as "shortage of skilled personnel" and "unemployment structural imbalance" have appeared in related fields. The supply of talents in secondary vocational education lacks a balanced mechanism, lacks in quality of supply, and does not have a high effect. It is urgent to train high-quality skilled talents with matching socio-economic structure transformation and upgrading for the society through education supply-side reform measures. In view of this, according to the changes in market demand, we will vigorously promote the reform of the school-based curriculum of secondary vocational schools, strive to create a new integrated development model that combines textbooks and practice, promote in-depth exchanges and cooperation between schools and characteristic enterprises in the industry, and train people in practice. Cultivating people, creating a good atmosphere for cultivating technical talents, and combining with the new goal of practicing education to build an evaluation system suitable for the growth of secondary vocational talents, making the human resource structure more and more suitable for the transformation and upgrading of the current social industrial structure.

Intelligent Internet of Things Technology in Agricultural Environment Monitoring

The application of the Internet of Things to precision agriculture is conducive to the intelligent and controllable aspects of agricultural production and management, is conducive to the implementation of green agricultural production methods, is conducive to the sustainable development of agriculture, and promotes the structural reform of the agricultural supply side. An intelligent greenhouse environment monitoring system is designed based on the Internet of Things technology, and a wireless network is established using the JenNet protocol to realize real-time monitoring of environmental factors such as air temperature and humidity, soil temperature and humidity, light intensity, and CO2 concentration in the greenhouse. Finally, the paper uses the time automata modelling tool UPPAAL to verify the system logic correctness and system execution timing verification on the established formal model. The results verify that the agricultural temperature control environment system network based on the intelligent Internet of Things operates stably, with high acquisition accuracy, low node power consumption, accurate feedback control, and meets the intelligent demand for greenhouse data acquisition and control.

The Path Study of Supply-side Reform of Chinese Medicine Health Industry Based on Computer Technology

In recent years, with the advent of the era of an aging population and the increase in the general standard of health consciousness, health care expenditures in gradually shift from disease treatment to health care, health care social welfare promotion, disease prevention and early intervention into big trend under the background, has the unique advantages of traditional Chinese medicine “cure not ill” industries ushered in the great development opportunities. Especially in this year’s special circumstances [1], Chinese medicine has played an important role, but also provides a good opportunity for its industrialization development. In addition, China has been carrying out the transformation of economic structure, corresponding to people’s need for traditional Chinese medicine health care is to better promote the supply side reform of traditional Chinese medicine health care industry, give full play to its role in the medical system reform, and contribute to people’s health.

RETRACTED: Teaching innovation and practice of tourism planning education

The development and promotion of tourism planning education is the basis and premise of tourism management education.Based on the teaching objectives and career direction of Tourism Management Major in higher vocational colleges, the teaching innovation of tourism planning course is studied. To interpret and evaluate the planning as the goal, based on a large number of complete case texts, explore practical teaching and training methods. Through the industry research and analysis of the students' learning situation, this paper finds out the demand and ability requirements of the current tourism management major for the course learning; combined with the professional and professional needs, the teaching innovation is carried out with the analysis and planning as the course objective. Through the teaching design, curriculum practice and analysis, based on the actual combat exercises, this paper studies the appropriate teaching and training methods, innovates and improves the education and teaching of this course. The three major elements of tourism management activities are tourism subject, tourism object and tourism attraction. While emphasizing the demand side, paying attention to the reform of supply side is the focus of current tourism management. With the development of tourism industry, the requirement of tourism management personnel training is to have strategic vision and overall awareness. Tourism planning has become the main course of Tourism Management Major in higher vocational colleges. Its teaching effect has a long-term impact on students' career, and will certainly play a decisive role in improving professional accomplishment and overall situation awareness of tourism industry practitioners.

Two-Phase Optimization Models for Liner Shipping Network Based on Hub Ports Cooperation: From the Perspective of Supply-Side Reform in China

From the perspective of supply-side reform in China, it is hard for COSCO Shipping, a merged company with a strong shipping capacity, to abandon the container shipping market. Meanwhile, the new company could cooperate with new strategic ports along the Maritime Silk Road in liner service. Against this backdrop, this paper aims to optimize the liner shipping network (LSN) from strategic, tactical, and operational levels and help the merged shipping company adjust its operational measures according to market changes. The optimization towards different levels of decision-making process is a new research of highly practical values. Specifically, this paper created two-phase optimization models for LSN based on the selection of hub ports. In Network Assessment (NA) phase, the LSNs of two types of hub ports selected are designed and assessed on strategic and tactical levels, and the primary and secondary routes are identified; in Network Operation (NO) phase, the “path-based flow” formulations are proposed from the operational level, considering operational measures including demand rejection and flow integration. The models in both phases are mixed-integer linear programming (MILP), but are solved by different tools: CPLEX for the NA phase models and the Genetic Algorithm (GA) for the NO phase models due to the computational complexity of the latter problem. Then, a computational experiment is performed on the LSN of COSCO Shipping on the Persian Gulf trade lane. The results have proved the effectiveness of the methodology and inspired important countermeasures for the merged shipping company.

Research on nonlinear forecast and influencing factors of foreign trade export based on support vector neural network

As a kind of time series, the export volume of foreign trade has the characteristics of randomness, complexity, strong nonlinearity and noise, so it is difficult to describe it by using the traditional time series model algorithm. Support vector neural network (SVNN) has many unique advantages in solving small sample, nonlinear and high-dimensional pattern recognition problems. This paper uses the method of support vector neural network to predict and analyze China's foreign trade export and uses principal component analysis and regression analysis to analyze the contribution rate of different influencing factors to foreign trade export. The results show that:(1) the contribution rate of domestic economic factors to China's foreign trade export is the largest, reaching 59.65%, which also reflects the necessity and correctness of China's insistence on supply-side reform. (2) The nonlinear prediction results of the support vector neural network have a good fitting with the actual value of China's foreign trade export, and the prediction error of the support vector neural network is controlled within 10%, showing a good prediction effect; (3) neural network method has good modeling and generalization ability for nonstationary small sample import and export time series data and can achieve high prediction accuracy and decision judgment accuracy, especially for the prediction of its development trend, and the model has a high degree of fitting.

Research on the Balance of University Education Reform from the Perspective of Supply-side Reform

In order to maximize the benefits of the national economy's macro-distribution and redistribution of educational resources, it is necessary to solve the problem of the optimal and reasonable allocation in the education system. Whether it takes the form of urban and rural education regional community, compulsory education school district system, teacher community, and so on, it must be based on the distribution of high-quality resources. Educational resources are limited, and new resources cannot be wasted due to reintegration. Therefore, the government must implement macro-control, seriously conduct investigations and feasibility studies, and adopt relatively reasonable allocations to achieve a relatively balanced target for limited educational resources. The balance of educational resources is not only the core of China's higher education development, but also the key to the good development of each university in China. This article analyzes and studies the balance of higher educational resources in China from the perspective of supply side, from the extension of supply side reform in higher education, the analysis of the balance of higher educational resources, and the optimization of balance of higher education resources. Making in-depth research, this paper points out the problems in the balance reform of higher education resources in China from the supply side, and reasonably put forward the relevant approaches of equity in Education.

SUPPLY-SIDE REFORM MEASURES OF PUBLIC SPORTS SERVICE FROM THE PERSPECTIVE OF PUBLIC HEALTH PROMOTION

ABSTRACT With the rapid development of public health construction, the supply of public sports services and the demand of residents at this stage are gradually divergent. In order to solve the contradiction between the supply and demand of public sports services, this study, from the perspective of public health, combined with the current situation of demand for public sports services, used the fuzzy analytic hierarchy process to build the supply-side optimization model of public sports services, and to verify it. The results show that the weight of the model optimization index from high to low is service level > resource conditions > public degree > service content > location and type of facilities; the fuzzy comprehensive evaluation result of the model is 85 points, which shows that the index of the optimization model has good applicability. The supply-side optimization model constructed in this study is evaluated by community residents and experts in related fields, so the evaluation results are closer to the residents' demand and have high practical value. The results of this study have reference significance for the supply-side reform of public sports services, and fundamentally ensure the close relationship between the supply-side reform measures and the actual demand of residents.

Health services utilization and out-of-pocket (OOP) expenditures in public and private facilities in Pakistan: an empirical analysis of the 2013\u201314 OOP health expenditure survey

BackgroundAs low- and middle-income countries progress toward Universal Health Coverage, there is an increasing focus on measuring out-of-pocket (OOP) expenditure and health services utilization within countries. While there have been several reforms to improve health services coverage and financial protection in Pakistan, there is limited empirical research comparing OOP expenditure and health services utilization between public and private facilities and exploring their determinants, a knowledge gap addressed in this study.MethodsWe used data from 2013-14 OOP Health Expenditure Survey, a population-based household survey carried out for Pakistan’s National Health Accounts. The analysis included 7969 encounters from 4293 households. We conducted bivariate analyses to describe patterns of care utilization, estimated annualized expenditures by type and sector of care, and assessed expenditure composition. We used multivariable logistic regression modeling to identify factors associated with sector of care and generalized linear model (GLM) with log link and gamma distribution to identify determinants of OOP expenditures stratified by type of care (inpatient and outpatient).ResultsMost encounters (82.5%) were in the private sector and were for outpatient visits (85%). Several public-private differences were observed in annualized expenditures and expenditure components. Logistic regression results indicate males, wealthier individuals, Punjab and Sindh residents, and those in smaller households were more likely to access private outpatient care. In the inpatient model, rural residents were more likely to use a private provider, while Khyber Pakhtunkhwa residents were less likely to use private care. GLM results indicate private sector inpatient expenditures were approximately PKR 6660 (USD 61.8) higher than public sector expenditures, but no public-private differences were observed for outpatient expenditures. Several demographic factors were significantly associated with outpatient and inpatient expenditures. Of note, expenditures increased with increasing wealth, decreased with increasing household size, and differed by province and region.ConclusionsThis is the first study comprehensively investigating how healthcare utilization and OOP expenditures vary by sector, type of care, and socio-economic characteristics in Pakistan. The findings are expected to be particularly useful for the next phase of social health protection programs and supply side reforms, as they highlight sub-populations with higher OOP and private sector utilization.

Does overcapacity prompt controlling shareholders to play a propping role for listed companies?

A major risk currently facing the Chinese economy is overcapacity, which affects the efficiency of social resource allocation (Xi et al., 2017; Huang et al., 2019). When a company is in crisis, the internal capital market often plays a propping role. This study approached this issue from the perspective of the controlling shareholder and examined whether controlling shareholders provide financial support to enterprises in industries with excess capacity. According to the data for China’s A-share listed companies from 2007 to 2019, companies in industries with excess capacity received more financial support from controlling shareholders compared with those in non-overcapacity industries. Analysis of the mechanism revealed that state-owned enterprises and companies with relatively poor financial status received more financial support from controlling shareholders. This study also examined the economic consequences of such support and found that it is conducive to enhancing enterprise value. This study enriches the literature on overcapacity and internal capital markets by demonstrating that internal capital markets play a propping role for companies facing industry-level crises. This finding has both theoretical value and practical implications related to supply-side reform and capacity reduction.

Managing the “Post Miracle” Economy in China: Crisis of Growth Model and Policy Responses

ABSTRACT Combining some theoretical perspectives of economic development stages, a capital accumulation regime with Chinese characteristics and a techno-economic paradigm, this paper tries to explain how the Chinese growth miracle reached the edge of crisis after 2008. It argues that for 30 years, the ‘visible hand’ managing the Chinese economy has progressively shifted from local governments’ initiatives and experiments to central government’s macro policy supplemented with industrial economics tools. This brought China’s growth from the factor-driven to the investment-driven stage, and progressively decoupled the financial system from China’s local, dominant, accumulation regime, directing finance into a technological accumulation regime. The Chinese central government attempts three macroeconomic approaches with which to readdress the growth pattern: rebalancing; supply-side reform; and innovation-driven development. The Belt and Road Initiative is an attempt to domestically recouple backward to coastal provinces, trade and investment to economic diversification, and to upgrade provinces. The current Chinese growth model is composed of different capital accumulation regimes: export, domestic infrastructure investment, financial market liberalisation, e-commerce platform economy, all based on the manufacturing economy built up over the last 40 years. China needs upgrading its manufacturing economy to an innovation level and build a new capital accumulation regime based upon it.

Research on the Evaluation and Influence Mechanism of Public Housing Service Quality: A Case Study of Shanghai

Government provision of public housing services eases the disorderly spread of urban space, avoids the social risks caused by high density, and maintains a safe social life. The role of public housing services in realizing urban sustainable development has become increasingly prominent, yet the provision of adequate public housing of a decent quality in a desirable location is a major challenge. Therefore, this study proposes a holistic conceptual model of public housing service quality (PHSQ) and establishes corresponding evaluation indicators to objectively evaluate the current status of housing services. The results show that the overall PHSQ is low- to medium-quality; the city center has become a high-quality gathering area, and the suburbs are generally low-quality. The spatial pattern shows that a single high-quality center coexists with multiple low-quality centers, forming an approximate M-shaped distribution pattern. The geodetector results show that foundation supporting capacity, government control capacity, resource agglomeration capacity, market driving capacity, and social promotion capacity significantly affect the PHSQ. The influence produced by the interaction between different factors shows an enhanced relationship, especially between public discourse expression and other factors, implying the need to remove the overemphasis on “supply-side reform” and focus on the effectiveness of demand-side factors.

Rethinking the Role of Grain Banks in China’s Agriculture

Grain banks are an organizational innovation and unique phenomenon in China that help reduce food losses and food security costs. It collects scattered food from the farming community into centralized storage and circulates it, thereby realizing asset mobilization and appreciation. This article first elaborates on the definition, function, and evolution of China’s grain banks through a literature review. Then, we used survey data of face-to-face interviews and field visits to a grain bank company in Hubei Province to analyze the economic rationale of grain bank development, including micro and macro conditions of grain bank development and its operating mechanisms. In addition, from the perspective of key stakeholders such as farmers, grain bank companies, and the government, we also studied the challenges of grain banks. We found that, in addition to providing many economic and social benefits in the form of food security and improved farmer income, grain banks still face many challenges in the new era. These include the ambiguity of property rights, lack of institutional structure, low efficiency of state-owned grain banks, and exploitation of loopholes by grain dealers. We propose to implement the supply-side reforms, clarify property rights, improve the supervision and management of grain banks, promote the privatization of grain banks, and take advantage of rural finance to realize the industrialization of the whole sector.

Supply-Side Structural Reform in the Service Industry and Escaping the Middle Income Trap

The internal consumption and production structure of the service industry that now dominates the Chinese economy needs to be optimized. Introducing supply-side structural reform to improve the in-depth integration of advanced manufacturing and the modern service industry and promoting a strong domestic market is the key to escaping the middle income trap. We use 1950-2010 data from 45 non-oil-exporting economies representing the structural evolution of the service industry worldwide to compare Asian economies that have passed through the middle income trap with Latin American counterparts that remain stuck in the trap, and thence proceed to construct a matched model that covers the consumption and production service industries and their supply of human capital, with the aim of identifying the formative mechanisms and conditions for escaping the middle income trap through upgrading the structure of the service industry. Substantially developing the production service sector, raising the supply of public services so as to cultivate the quantity and quality of human capital, and matching senior-level human capital with knowledge-intensive service industries will propel the upgrading and transformation of China’s economic structure toward high-quality development.

The Implementation of Supply-side Structural Reform: Next Chapter for High-Tech Development Zones

Promoting supply-side structural reform is the key to China’s economic transformation and upgrading. As disruptive innovation is affecting different sectors and areas of society, numerous high-tech development zones should fully release their vitality and realize unprecedented development while contributing to this reform. This study attempted to further analyze the Research and Development (R&D) efficiency of high-tech zones in the past mode, and shed light on a more advanced and effective development pattern in the near future. This paper used Data Envelopment Analysis (DEA) model, which is a linear programming method to measure the efficiency between multiple decision-making units, and categorized three decisive factors to reach solid conclusions [1]. Our statistical results indicated that the low R&D efficiency is ubiquity among high-tech industries, and there is not yet a strong platform for advanced R&D activities. Lastly, this paper suggested strategies to maintain the sustainable development of the high-tech industry under the supply-side reform.