Supply-side Structural Reform Research Articles

Spatial–Temporal Evolution and Driving Factors of Industrial Land Marketization in Chengdu–Chongqing Economic Circle

Industrial land is essential for supply-side structural reforms, particularly in the Chengdu–Chongqing area, Western China’s most densely populated and industrially robust region. This area, a pivotal hub linking Southwest China with South Asia and Southeast Asia, is critical for the national strategic layout and regional economic restructuring. Despite its substantial industrial foundation as an old industrial base, internal developmental stagnation has led to an irrational industrial land use structure. This paper analyzed land transaction data from the China Land Market Network (2010–2021) using methods such as kernel density estimation, the standard deviation ellipse method, and Global Moran’s I index. The analysis focuses on the spatiotemporal evolution of industrial land marketization and its driving factors in 44 cities within the Chengdu–Chongqing economic circle. The findings aim to enhance the strategic implementation of national policies and regional economic optimization, suggesting intensified development efforts in key cities and promoting integrated growth in potential areas like Suining and Ziyang to foster a conducive environment for high-quality regional development.

The “Supply-Side Reform Policy” and the Share of Labor Income in Enterprises

This article takes the supply-side structural reform launched in 2016 as a quasi-natural experiment and uses the “DID” method to analyze the relationship between the policy effects of supply-side reform and the labor income share. Firstly, the basic conclusion is that the “supply-side reform policy” can reduce the labor income share of enterprises in the “six major industries”. The correctness of the benchmark regression results was verified through a series of robustness tests. The results of the main regression were validated based on three different heterogeneity analysis perspectives: firm ownership, firm region, and government intervention. Secondly, two mediation mechanisms were examined, and the results showed that increasing operating income can positively enhance the “supply-side structural reform” in reducing the labor share of income in all enterprises, while increasing R&D investment can negatively enhance the effect of the “supply-side structural reform” on the reduction of the labor share of income in all enterprises. The heterogeneity of the two intermediary effects indicates that state-owned enterprises and private enterprises have different performances. The research results of this article indicate that the “supply-side reform policy” can effectively reduce the labor income share of target enterprises, reduce the proportion of excess employees, and enhance the vitality of target enterprises. The policy suggestion is to continue promoting supply-side structural reform, a policy which is in line with the requirements of the high-quality and sustainable development of Chinese enterprises.

Research on Social Participation Willingness and Path Optimization of Characteristic Towns from the Perspective of Rural Revitalization

In the context of promoting new urbanization and supply-side structural reform in China, the establishment of characteristic towns has become an important starting point for local governments to implement the "rural revitalization strategy" and accelerate industrial agglomeration, so it is necessary to conduct systematic analysis and research on characteristic towns. As one of the 27 cities in the central area of the Yangtze River Delta, Wuhu has enjoyed the reputation of "Jiangdong Famous Town" and "Wuchu Resort" since ancient times. Based on the research of previous literature, this paper summarizes the development process of cultural and creative towns in China, focusing on the current situation of the public's cognition of Yingang Town, the willingness to participate in the construction of Yingang characteristic town, and the fit and satisfaction between the actual situation and expectations after participating in the characteristic town, which is of great significance for the construction of Yingang Yichuang characteristic town.

Study on the Motivation of Nonlinear Trajectory of Corporate Financialization and the Impact of Financial Performance

With the continuous changes in the global market environment and the intensification of trade friction between China and the United States, the downward pressure on China's real economy has increased. Entity enterprises have been involved in the financial and real estate and other virtual economy, in order to obtain high profits, the entity enterprise "de-realization to virtual" phenomenon is becoming more and more serious. In recent years, the state has introduced a series of policies to guide manufacturing enterprises to "return to the real", of which "deleveraging" in the supply-side structural reform has become an important means to regulate the disconnection between the real and the virtual economy. How to guide and promote the manufacturing enterprises to "return to reality" is the key to promote the high-quality development of China's economy, but how the impact needs to be studied in depth. Taking Huamao shares as a case study, this study selects 15 key financial indicators between 2010 and 2022, and applies the entropy method to quantitatively analyze the differential impact on financial performance of the company's financialization behavior between 2010 and 2019 and its de-financialization process from 2020 to the present. By deeply exploring the non-linear development trajectory of financialization and its specific impact on the financial performance of the company, this paper reveals that Huamao's financialization behavior, while promoting investment returns, has generated investment substitution effects and in turn has generated obvious crowding-out effects on the company's main business, thus weakening the profitability of the company. In view of this, it puts forward relevant policy suggestions for the financialization of manufacturing enterprises, which helps to guide industrial capital to return to the main business and accelerate the upgrading and transformation of manufacturing industry under the background of revitalization of the real economy vigorously advocated by the state and has certain guiding significance, and emphasizes the importance of returning to the manufacturing industry and the necessity of returning to the industry as the core engine for promoting the long-term and stable growth of China's economy in order to provide a reference path for the development of other financialized real enterprises. It emphasizes the importance and necessity of the return of the manufacturing industry as the core engine for promoting the long-term stable growth of China's economy, with a view to providing a reference path for the development of other financialized real enterprises.

Driving force of value reversal in Chinese overleveraged firms: The mechanism and path of private placement.

To stimulate economic growth, China has launched multiple economic stimulus plans in recent years, intensifying corporate debt financing and subsequently elevating the leverage levels. Addressing and effectively reducing the leverage levels of our country's enterprises has emerged as a pressing issue in the trajectory of our economic development. This paper primarily investigates the drivers, pathways, and mechanisms for reversing the over-leveraged values of enterprises. Key findings include: (1) Excessive indebtedness exerts a negative impact on corporate value, with the suppressing effect intensifying as the degree of over-leverage increases; (2) Over-leveraged enterprises can effectively decrease their debt levels and enhance their value through private placement. Further research suggests that this mechanism operates by amplifying the operational leverage of over-leveraged enterprises post private placement and alleviating financing constraints, thereby elevating corporate value. (3) Compared to non-state-owned enterprises, state-owned enterprises exhibit higher levels of indebtedness. Among over-leveraged firms, enhancements in corporate governance and increased investment efficiency can positively transform corporate value. This study offers valuable insights for the ongoing supply-side structural reforms and governance guidance from the regulatory bodies.

The Impact of New Infrastructure Construction Investment on High Quality Economic Development in the Yangtze River Delta Region

This article aims to explore in depth the impact mechanism of new infrastructure investment on high-quality economic development in the Yangtze River Delta region, providing useful references for policy makers. The Yangtze River Delta region has invested a large amount of funds in the field of new infrastructure, including 5G networks, data centers, intelligent transportation, new energy, and other fields. These investments not only promote the optimization and upgrading of regional industrial structure, but also lay a solid foundation for high-quality economic development. The impact of new infrastructure investment on high-quality economic development is reflected in the following aspects: promoting traditional infrastructure reform and promoting the transformation of old and new driving forces; Promote supply side structural reform and optimize resource allocation; Promote diversification of financing channels and stabilize capital structure; Generate spillover effects, increase employment opportunities, and improve people's well-being. Finally, we propose several policy recommendations.

The Transformation and Development of Green and Low-Carbon Consumption under the Dual Carbon Background

As the proportion of consumption in China's gross domestic product (GDP) increases and its role as a driving force for economic growth strengthens, the impact of consumption on the resource environment and carbon dioxide emissions is becoming increasingly evident. Production is for consumption, and consumption in turn promotes production; consumption determines production and guides the direction and development trend of production. Green and low-carbon consumption is not only the responsibility of consumers, but also puts forward higher requirements for producers: the whole process from the procurement of raw materials, product production and circulation, product use, recycling of end-of-life products and final treatment and disposal are all based on low-carbon standards, forcing the supply-side structural reform to promote green and low-carbon development. The government can guide green and low-carbon consumption by setting up incentives and constraints, increasing the supply of green products, organizing government procurement, and taking the lead in policy measures, but the fundamental measure is to raise the public's awareness of environmental protection and consciously practice green and low-carbon consumption.

The Exploration and Practice Path of Ecological Civilization Construction under the Background of "Carbon Peaking and Carbon Neutrality"

The concepts of carbon neutrality and peak carbon emissions have emerged as global concerns in the current decade. The proposition of the "carbon peaking and carbon neutrality" goal is an essential requirement for the comprehensive development of a modern socialist country and a crucial aspect of China’s strategic plan for ecological civilization. To promote green and low-carbon development and facilitate supply-side structural reform, it is of great significance to enhance ecological civilization education in colleges and universities within the context of the "carbon peaking and carbon neutrality" goal. Integrating the concept of ecological civilization into the evaluation system of teaching work in universities is a key part of building a green and low-carbon conceptual education system under the goal of "carbon peaking and carbon neutrality". However, there are challenges in the current state of ecological civilization education, such as inadequate participation and faculty development. Therefore, it is imperative to take practical actions to support the implementation of the "carbon peaking and carbon neutrality" goal and contribute to the overall advancement of building a beautiful China.

A study of the impact of de-capacity policies on industry capacity utilization paths: Evidence from the Chinese steel industry

The issue of overcapacity has become an unavoidable challenge in the rapid development of nations, constraining economic progress, particularly within industries like steel, coal, and cement. This study, using the example of the Chinese steel industry in the context of supply-side structural reform, employs data envelopment analysis (DEA) models to measure capacity utilization, and ordinary least squares (OLS) models to investigate the impact of capacity reduction policies on the steel industry’s capacity utilization pathways. The research findings indicate that capacity reduction policies have a significantly positive impact on the capacity utilization in the steel industry. They enhance capacity utilization through four pathways: “equipment optimization and upgrade”, “enterprise mergers and restructuring”, “technology innovation-driven”, and “environmental protection regulations”. Among these, “technology innovation-driven” and “environmental protection regulations” play predominant roles, while the effect of “international market expansion” on increasing capacity utilization in the steel industry is not significant. To ensure the sustained effectiveness of capacity reduction policies, the nation should continue to strengthen the “technology innovation-driven” and “environmental protection regulations” pathways. Additionally, it should activate the “national market expansion” pathway, fully exploring the potential for international cooperation to achieve improved capacity utilization in the steel industry.

Government GDP targets and corporate capacity expansion – Empirical evidence based on A-share listed companies

The phenomenon of Chinese-style capacity expansion is widespread and closely tied to the interventionist behavior of local governments. Using data from A-share listed companies between 2010 and 2021, we find a significant correlation between economic growth targets and corporate capacity expansion. The impact of growth targets on capacity expansion is more pronounced during the National Party Congress, when officials use stricter constraints and when the municipal party secretary is around 55 years old. Officials influence capacity decisions by allocating key resources such as land and finances. We provide valuable insights into Chinese-style capacity expansion, offering reference significance for promoting China's supply-side structural reform.

Analysis of Zombie Enterprises' Retention and Departure Based on Game Theory

Zombie enterprises, predominantly found in state-owned heavy industries and labor-intensive sectors, have emerged as a crucial challenge in recent years' supply-side structural reforms. To address this issue, this study constructs an evolutionary game model involving enterprises, banks, and the government. By employing replicated dynamic equations, the analysis examines the impact of factors such as the cost of enterprise exit, implicit benefits after bankruptcy, on the decision-making of enterprises to stay or exit. The research indicates that the cost of continuing operations for zombie enterprises, bankruptcy costs, corporate income tax rates, the magnitude of implicit benefits from continuing operations, bank loan interest rates, and the expected returns from diverting loan amounts to other purposes can influence the outcomes of the game. Ultimately, from a government perspective, relevant recommendations are proposed to provide insights into effectively addressing the problem of zombie enterprises.

Can the deregulation of market access reduce the cost of corporate debt financing: A quasinatural experiment based on the “negative list for market access” pilot project

Based on the quasinatural experiment of implementing the “negative list for market access” pilot project in batches in different provinces of China from 2016 to 2017, we use the difference-in-differences (DID) method to test the impact of the deregulation of market access on the cost of corporate debt financing. Our results show that (1) the deregulation of market access can significantly reduce the cost of corporate debt financing; (2) the mechanism test shows that the mechanism for reducing the cost of corporate debt financing is to reduce transaction costs; (3) the implementation of the pilot project has a significant effect on reducing the debt financing cost of companies in regions with low marketization degree of credit fund allocation or of non-SOE firms; (4) after implementing the pilot project, the proportion of corporate debt financing in total financing increased. Deregulating market access is an important part of supply-side structural reform (in short, supply-side reform), an economic policy reform in China starting in 2015. This research enriches the literature on the “cost reduction” of China's supply-side reform.

Construction of Economic Management Performance Model of Mining Enterprises under the Background of Supply-side Reform

The proposal of supply-side structural reform measures has ushered in new development opportunities for mining enterprises in the bottleneck period. As a result, a model for evaluating the economic management performance of mining firms at the new performance level must be established. This paper suggests an assessment model for the economic management of mining firms against the backdrop of supply-side reform in light of this. This study reasonably incorporated financial and non-financial performance indicators, constructed the Economic Management Performance (EMP) evaluation index system of mining enterprises, and created an economic management performance evaluation model of mining enterprises based on the BP neural network and analytic hierarchy process. The study selected the relevant data of five mining companies A, B, C, D, and E from 2017 to 2022 as the research object, verified the effectiveness of the model, and analyzed the performance evaluation results of the companies. The research results show that the model constructed in this study can evaluate the economic management performance level of enterprises within a reasonable range (the mean relative error is 1.98%). Since 2017, the comprehensive performance level of these five mining companies has gradually declined. But thanks to the supply-side reform, the comprehensive performance has gradually recovered after 2022 and among the five mining companies, company A has always been at the performance level way ahead. Overall, the model developed in this research has strong operability and practicability and can be utilized more effectively to forecast the mining industry’s potential for future growth.

Research on the Supply-side Structure Reform of China's Company Law

At present and in the future, China's economic development faces some problems about supply and demand, but the main contradiction lies in the supply side. Facts have proved that China's problem is that the supply cannot change with the changing demand, that is, the lack of effective supply capacity leads to a large number of "demand spillovers", leading to a serious outflow of consumption capacity. To solve these structural problems, people must make efforts from the supply side and find the right position in the world supply market. In other words, Chinese government must take improving the supply side structure as the main direction of attack, and realize the leap from the low level of supply and demand balance to the high level of supply and demand balance. Among them, the company system plays a vital role in the company's survival and supply-side structural reform. In 1993, after 30 years of double-digit growth, South Korea ranked among the "four Asian dragons" from the poorest country in the world, and its per capita income rose from 82 to 8449 dollars. In this process, all countries in the world clearly believe that the supply-side structural reform of the Jin Yongsan government is indispensable. At present, some problems faced by Chinese companies are also unprecedented. The reform of China's company law is not simply a change of departmental rules, but more importantly, it can improve the competitiveness of the country and social reform and development through the revision of the company law. In this case, this paper uses the methods of comparative study and case analysis to analyze the common problems of the company system, in order to deepen the supply-side reform of the system and promote the comprehensive modernization of the company law.

Clearing method of regional power spot market based on blockchain and distributed data security reading algorithm

Abstract With the progress of society, the supply of electricity has become an inevitable choice for the development of all walks of life. The stability, safety, and economic dispatch of the electric energy system directly impact the entire country’s economic development, from national defense, military, and even people’s daily life, all closely associated with the smooth running of the network. In the aspect of power grid planning and operation, the economic security dispatching problem of power system is a very typical optimization problem. The problem is how to maximize the operating cost of the system under the premise of satisfying the system’s load limit and safety and stability. Due to the rapid development of power technology, the research on power system security and economic planning is essential. As an important means to promote China’s energy structure adjustment and promote the supply side structural reform, the regional spot electricity market is playing an increasingly important role in building a resource optimization allocation mechanism, improving China’s energy resource allocation efficiency, and promoting social and economic development. However, the development of China’s regional spot power market is still in its infancy, and the transaction price of the regional spot power market is quite different from that of other countries. It was given these problems, this article discusses the use of particle swarm algorithms for secure and economic scheduling of power systems in the context of securely reading blockchains and distributed data. The research results showed that: The introduction of environmental pollution penalty programs improved the priority dispatch of wind and photovoltaic power when considering environmental penalty programs and backup penalties for wind and photovoltaic power. The setting of the coefficient of the environmental penalty term depended on the designer’s emphasis on the priority scheduling of wind power and photovoltaic (PV) power generation (PG), and the standby capacity penalty clause achieved reasonable dispatch and utilization of wind power and PV PG, which reduced the dramatic fluctuations and intermittent volume of the system, and facilitated safe and consistent operation of the network. The research of this paper shows the positive relationship between the blockchain and distributed data security reading algorithm and the clearing method of regional spot power market, and points out a new method for its development.

Research on the Development Trend of Artificial Intelligence Led by ChatGPT

The technological growth of artificial intelligence (AI) generally presents the characteristics from simple linearity to complex system. In the early days of AI, its basic idea was simple imperative programming. However, people soon found that it could not complete complex thinking work and could only be used in simple scenes such as data processing, video games and industrial automatic control. ChatGPT, which was born, opened the era of universal AI, which indicates that AI has extensive learning ability and reaches or exceeds the level of ordinary human beings in most fields. ChatGPT, as a new generation of AI technology, will profoundly affect human economic and social development. In the future, AI will almost bring changes and reconstruction to all walks of life. Under the background of deepening the supply-side structural reform, it is of great significance to promote the practical application of AI and continuously provide new kinetic energy for economic development. This paper analyzes the development opportunities and challenges of ChatGPT in AI industry, labor and employment, education, scientific research and other fields, and explores the development trend of AI led by ChatGPT.

How can digital finance boost enterprises' high-quality development?: evidence from China.

As a new industry derived from the traditional financial system and enhanced by emerging technologies, digital finance is significant in microenterprise development. Based on the 2011-2018 Digital Inclusive Finance Index of Peking University, we examine the mechanism-inventory optimization and incremental innovation. We use the data of small and medium-sized enterprises to reveal the effect of digital finance-mismatch correction and defect improvement. The study results show that digital financing significantly improves enterprises' high-quality development. Further research has revealed that digital finance can effectively correct scale, attribute, phase, and industry mismatches. Digital finance alleviates financing constraints, solves the expensive financing problem, and pushes enterprises to deleverage in the economic development process. However, digital finance is still limited for companies with high financing constraints and leverage. Moreover, financial regulation can significantly improve the economic performance of digital finance. The findings provide reliable empirical evidence and policy inspiration for promoting digital finance development, deepening the supply-side structural reform of finance, better serving the real economy, and achieving high-quality economic development.

Does Environmental Regulation of Cleaner Production Affect the Position of Enterprises in Global Value Chains? A Quasi-Natural Experiment Based on the Implementation of Cleaner Production

Present-day supply-side structural reform in China places an abundance of emphasis on environmental protection. In this paper, we re-measure the upstreamness of Chinese enterprises in global value chains as described by Ni Hongfu (2022). Subsequently, the impact of environmental regulations on the global value chain position of Chinese firms is studied in depth, using the cleaner production standards promulgated and implemented by the Chinese government in 2003 as a quasi-natural experiment, taking a time-varying difference-in-differences (DID) approach. The data sources employed include the Cleaner Production Standard Implementation Industry Directory, the World Input–Output Database (WIOD), the China Industrial Enterprise Database, and the China Customs Import and Export Database. This research discovered the following: First, adopting cleaner production standards significantly improves Chinese enterprises’ positions in the global value chain—a conclusion that holds up to a number of robustness tests. Second, in terms of firm size, capital intensity, ownership characteristics, and government subsidies, there exists a noticeable heterogeneity in the promotion of the adoption of cleaner production standards for the improvement of Chinese enterprises’ global value chain position. Third, the implementation of cleaner production standards stimulates the upgrading of Chinese enterprises’ global value chain position, primarily through the entry and exit impacts, product-switching effect, and innovation compensation effect. The following proposals for policy can be implemented in light of the findings of this paper: “upstream prevention” strategies in the development of future environmental protection and trade policies should be advocated; nuanced and stratified environmental policies should be meticulously constructed; a mix of policies should be employed to bolster the institutional support for green environmental regulations; the integration of environmental governance into the evaluation framework should be emphasized; the creation of an innovation-oriented environmental governance system should be expedited. In conclusion, the findings of this research provide empirical evidence on the role of environmental regulations in coordinating ecological development and strengthening the position of Chinese enterprises in global value chains, which may assist other developing nations in making the transition to a path of high-quality growth.

CAN INVESTOR ATTENTION DEFUSE THE RISK OF CORPORATE ZOMBIFICATION? – EMPIRICAL EVIDENCE FROM LISTED COMPANIES IN CHINA

Solving the risk of zombification of enterprises and relieving their business difficulties, as a key element of supply-side structural reform, is the pain point of the conversion of old and new dynamic energy and the difficulty of economic transformation and upgrading. In the Internet era, the impact on business operations is also expanding with the widening of investor attention channels. This paper selects Chinese listed companies from 2011–2020 as a research sample, and the empirical results show that, first, investor attention can effectively reduce the risk of transforming enterprises into zombie enterprises, i.e., the risk of corporate zombification decreases as the level of investor attention increases; second, there is heterogeneity in the role of investor attention in resolving the risk of corporate zombification; third, further mechanism tests find that along with Third, further mechanistic tests reveal that as the level of investor attention increases, the level of environmental uncertainty decreases and the annual market value of individual stocks increases, thereby reducing the risk of corporate zombification. The findings of this paper provide theoretical support and empirical evidence for further improving the risk mitigation of corporate zombification, promoting the “de-emphasis” of enterprises, and leading the high-quality and healthy development of enterprises.

Financial mismatch on corporate debt default risk: Evidence from China

The continuous spread of debt default has caused huge losses for investors and the capital markets. Using data from Chinese A-share listed companies from between 2014 and 2021 as a sample, we study the impact of financial mismatches on corporate default risk and its mechanisms. We find that financial mismatching is significantly positively associated with default risk. A mechanism test reveals that financial mismatching aggravates corporate default risk by increasing inefficient investments. Further analysis shows that the positive association is more prominent in non-state-owned entities (SOEs) and firms with fewer government subsidies, lower profitability, and more financial constraints. We provide a reference for deepening supply-side structural reforms and preventing and resolving a major risk faced by firms.