No.12,2013
Published on 17,
December
The Asymmetric Influence of the RMB Appreciation on China's Regional Industries: An
Empirical Analysis Based on MS-VAR Model
PAN Min， TANG Jin-rong
(Center for Economic Development Research, Wuhan University, Wuhan 430072 China
Economics and Management School, Wuhan University, Wuhan 430072 China)
Abstract: Using regional industrial production data with seasonal data of three main industries from 31
provinces during the period of 2004-2012, this paper examines the asymmetric effects exerted by the RMB
appreciation to different industries in three regions of China based on the MS-VAR model. The results show that
the RMB appreciation has significant regime-switching impacts on the 1th and the 2nd industries in all three regions,
and with no different effect to the 3rd industry. The impacts can be divided into fast appreciation regime and slow
appreciation regime. The impulse responses show that the shock caused by the fast appreciation of the RMB has
greater influences. By comparing the effects of all three regions, it demonstrates that the fast appreciation of the
RMB will impose greater negative effects to the 1th industry of east, the 2nd industry of the middle and the 1th and
the 2nd industries of the west region. Therefore, the reform of the RMB exchange rate should fully consider its
negative effects to different industries in different regions, especially to the leading industries of the middle and
west regions.
Key Words: the RMB appreciation; industrial output fluctuation; MS-VAR model
JEL Classification: C32
F31
R11
The Embodied Pollution in Foreign Trade between China and USA
—An Empirical Assessment Based on the Matrix of Input-Output
DANG Yu-ting
(International College of Business and Technology of Tianjin University of Technology, Tianjin
300384, China)
Abstract：In this paper, by using the input-output table of China and the United States, we measure the
embodied pollution in the bilateral trade between China and the United States and its structure in 18 manufacturing
industries during the period of 2001-2010, compute the BEET and PTT, to estimate the position of China in the
bilateral trade from the standpoint of pollution, in which the United States is on behalf of the developed countries,
try to clarify whether the export of China is more “dirty” than the import from the United States, examine the
industrial structure and the effect of trade on environment of the embodied pollution in trade. Results shows that,
by measuring the BEET we find that China is an environmental deficit country in its trade with U.S., but the gap
between the embodied pollution in china’s export and import is narrowing, the embodied pollution in China’s
export to the United States increases at first and decreases later, but the embodied pollution in China’s import do
not show obvious downward trend; By effect analysis, we find that the technical effect induced by the sharply
decline of pollution coefficient plays a significant role in narrowing the gap, the scale effect induced by the
enlargement of trade volume has a significant effect to increase environmental deficit, and the structure effect
induced by the change of import and export structure is not obvious; By measuring PTT value we find that China’s
exports are more polluting than imports, the composition of the United States’ export to China is much more
cleaner than the composition of China’s export to the United States, China's composition of trade remains to be
further optimized.
Key Words：Sino-US trade; embodied pollution; BEET; PTT; the environmental effect of trade
JEL Classification: F18
F14
Q56
Reform of China’s State-Owned Enterprises：Direction and
Path——Minutes of Deepening Reform of State Owned Enterprises Forum
QI Yu-dong, LIU Jian
(Capital University of Economics and Business, Beijing 100070, China)
Abstract：This paper overviews the main viewpoints of the experts attending the Forum of
deepening the reform of state-owned enterprises. During this forum, experts express their views
about problems of the reform at the present stage and the direction and path of reform, etc. The
consensus of this forum is that, to realize the decisive role of the market in resource allocation,
classification reform should be implemented based on the de administration of state-owned
enterprises. According to their different functions, different reform objectives and classification of
regulatory measures to state-owned enterprises should be established. The State-owned Assets
Supervision and Administration Commission should change their functions from "administration
of enterprise" to "administration of capital". The reform should be designed overall and
implemented gradually and the business efficiency should be achieved by means of fair
competition.
Key Words： state-owned enterprises; deepening reform; direction; path
Misallocations and TFP of Chinese Industrial Enterprises:
A Recalculation Based on Chinese Industrial Enterprises Database
SHAO Yi-hang,BU Xiao-ning,ZHANG Tian-hua
(School of Economics of Xiamen University , Xiamen 361005, China)
Abstract: Explaining TFP from the perspective of inter-sectoral resources allocation has become one of the main
topics of growth and development research. Following the idea of Hsieh and Klenow (2009), this paper
recalculates the extent of misallocation in China from 1998 to 2007 based on Chinese Industrial Enterprises
Database. We show that the efficiency of resource allocation in Chinese industrial enterprises improved at first, but
then deteriorated in this period. Firm scale had the most significant impact on misallocation. Specifically, the
efficiency of resource allocation across large enterprises improved and that across SMEs deteriorated gradually,
which made the overall level of distortions of resource allocation in China worse from 2005 to 2007. In addition,
we also find that the loss caused by the soft environment such as financial market distortions was probably two to
three times of the loss caused by the transportation facilities and other hard environment. But after 2005, for the
large and medium-scale enterprises, transportation and other facilities distorting effects were roughly equal to the
financial impacts.
Finally, we also discuss the policy implications.
Key Words：resource misallocations; TFP; industrial economy ; firm scale
JEL Classification: O14, O47, D24
Measuring and Upgrading the Domestic Technological Sophistication of China’s
Manufactured Exports based on The Perspective of Vertical Specialization
DU Chuan-zhong1，ZHANG Li2
（ 1. Institute of Economic and Social Development in Nankai University, Tianjin 300071, China;
2. School of Economics in Nankai University,
Tianjin 300071, China ）
Abstract: Based on the perspective of international vertical specialization, this paper establishes a new
method for measuring the domestic technological sophistication (DTS) of China’s exports, in order to
comprehensively eliminate the values of imported intermediate inputs that are included in China’s exports, and then
measuring and analyzing the domestic technological sophistication of the Chinese manufactured exports during the
period of 2002-2011 from the national, industrial and regional level respectively. We find that: Firstly, the DTS
generally shows a steady growth trend, but its gap with the whole technological sophistication is becoming bigger
and bigger. Secondly, the DTS shows obvious heterogeneity among the different industries, such as all of the
resource-based industries, low-tech industries, middle-tech industries, and the transportation equipment
manufacturing industry which is included in the high-tech industries generally show a steady growth trend; however,
the electronic and communications equipment manufacturing industry which is also included in the high-tech
industries is showing a obviously download trend. Lastly, the higher mean provinces of the DTS are mainly located
in the eastern region, but its larger increase provinces are mainly located in the middle and west regions, and the
DTS of the three regions shows a gradually convergence trend.
Key Words: vertical specialization; manufactured exports; domestic technological sophistication; whole
technological sophistication
JEL Classification: F43; L60; O32
Recent Development in Internet Economics and Antitrust Policy——An
overview of the Symposium on Internet Economics and Antitrust Policy
YU Zuo，GAO Jian-kai，ZHOU Hong
（Center for Industrial and Business Organization, DUFE, Dalian 116025, China）
Abstract： This paper summarized main academic opinions of the Symposium on Internet Economics and
Antitrust Policy. The opinions related to the internet business model and competitive situation of internet
enterprises, the definition of the relevant market and abuse the market dominant position in the Internet antitrust
cases. It focused on the issues of the technology and economic characteristics and business models of the internet,
the applicability of the hypothetical monopolist test, the identification of the market dominant position and the
antitrust policy about the abuse of dominant market position.
Key Words：antitrust; internet; definition of relevant market; market dominant position
JEL Classification:L16 L44 L86
Trends of Increasing Block Pricing in Electricity——Summary of the
Conference on Theory and Policy of China’s Increasing Block Pricing in
Electricity
CHEN Jian, WANG Zi-li
(Center for Regulation & Competition, JUFE, Nanchang 330013, China)
Abstract: This paper reviews the major academic viewpoints of “Conference on Theory and Policy of China’s
Increasing Block Pricing in Electricity”, involving the following issues: the reform and policy design of pricing for
household electricity, demand analysis to policy of Increasing Block Pricing in Electricity, effect assessment of
Increasing Block Pricing. The experts on the symposium presented their opinions from different perspectives such
as international experience, effect of China’s marketization, problems and prospects of policy, theoretical study of
policy design, policy assessment, and others hot topics on Increasing Block Pricing. The conference reflects the
latest developments in the researches of Increasing Block Pricing in China.
Key Words: increasing block pricing; nonlinear pricing; energy-saving and emission-reduction; regulatory policy
JEL Classification: L51 L94 Q48
Path Evolution and Path Selection of Corporate Governance
LIU Han-min1，KANG Li-qun1
(1. School of Management of Jinan University,
Guangzhou 510632, China)
Abstract: Path evolution of Corporate governance is a complex process codetermined by action agent，
action object and external environments. Path dependence and path creation are two kinds of path selection when
corporate governance evolves at a certain stage. This paper, from the perspectives of diversity of action agent,
dynamics of path evolution and variability of external environments, analyzes the evolution process of corporate
governance, explores the main factors influencing path evolution and path selection at different stages of corporate
governance development, and builds a model of evolutionary game of corporate governance. The research shows
that transfer costs, expected benefits, risk preference and cognitive capacity of agents, power of interest groups,
and external environments are important factors that affect path selection of corporate governance. Moreover, at
different stage of path development, the degree of path dependence and the efficiency of corporate governance are
different. The degree of path dependence is increasing with the path development, while the efficiency of corporate
governance appears as a parabolic curve. Based on above, from the aspects of action agent, action object and
external environments, we provides some approaches and suggestions with regard to the status quo of Chinese
corporate governance practice, involving enhancing agents’ expected benefit and cognitive ability, splitting or
disintegrating vested interest group, designing and selecting evolutionary path, improving governance
environments, and the like.
Key Words: corporate governance; evolutionary game; path dependence; path creation; institutional
change
Edge Catching-up Strategy of Late-comer Enterprises
LUO Min1, MA Ke-hang1,2
(1. Business School of Southwest University of Economics and Finance,
China;
2. Business School of Shanxi University of Economics and Finance,
China)
Chengdu
610074,
Taiyuan
030031,
Abstract： Along with the changes of competitive basis, the traditional pattern that market leaders
dominate the market in the long run does not work in today’s constantly changing environment. The different
market competitive power no matter strength or weakness is only contemporary situation that can be changed all
the time. This paper indicates the late-comer enterprises’ specific edge catching-up strategy based on the definition
of late-comer enterprises’ intension and extension. More precisely, complementary asset is the key element of
late-comer enterprises’ edge catching-up strategy. And then, there are the accelerating industry clockspeed, the
shifting key competitive elements, the lengthening roundabout production chains, the interaction effect of technical
skills of the supply side and the market ability of the demand side that provide strong economic fundamentals for
late-comer enterprises. Furthermore, late-comer enterprises should seize the time and opportunity created by
government protection mechanism, break through industry entry barriers effectively, make good use of external
resources, conduct the innovation of industrial organization and business model as soon as possible to obtain
competitiveness. Finally, this paper emphasizes that if late-movers want to maintain long term competitive
advantages, they should not only consider the exclusiveness of value, but also should pay attention to the creation
of value.
Key Words：innovation; first-mover advantage; late-comer advantage; complementary assets ;
edge catching-up strategy
JEL Classification: L16 L20 M10
Ownership Structure, Monetary Compensations and Perks of Top Management
——From the Perspective of Managerial Power
FU Qi , WANG Xiang-yao
( School of Accounting, Zhejiang University of Finance and Economics, Hangzhou 310018,
China)
Abstract: With the development of the market liberalization, income-tax reform and compensation
evaluation mechanism, the compensation structure of listed companies will change gradually. Based on the
emerging and transition economy, this paper investigates the substitution and changes between the cash
compensations contract and perks contract
of the listed non-financial companies under different ownership
structure. The results offer new and important empirical
evidence to the researches of the relation among
different pay contracts. First we find when the level of marketization increases and compensation regulation
relaxes, the cash compensations contract maybe used more than perks contract and becomes an effective
motivation mechanism. It shows that the substitution effect of SOEs is more than that of non-SOEs, especially for
the central SOEs. Second we also research the influence which the managerial power exerts on the compensation
contract choice. The results indicate that the managerial power will restrain and weaken the effectiveness of the
compensation contract. In other words, the perks and cash compensations are both more, but the performance is
not good. At that time, the perks have become the rent seeking channel and risk vulnerabilities of executives. This
paper also provides the empirical evidence and theoretical supplement for government to deepen income
distribution system. At the same time, the results put forward the significance for the issue of corporate
compensation contract effectiveness.
Key Word: ownership; monetary compensation; perks; managerial power
JEL Classification: G34 M41 M52
How to Promote the Consumer Credit of the Chinese Credit Card Holders
——The Research Perspective Based on Housing
1
，SHEN Hong-bo2，SU Zhi3
( 1. PBC School of Finance of Tsinghua University,
Beijing
100084,China；
2. Financial Research Institute of Fudan University,
Shangshai 200433,China；
3. School of Statistics of Central University of Finance and Economics, Beijing 100081,China)
Abstract: The credit card is not only a convenient payment and settlement tool, but also has become the
most popular consumer credit tool. The development of consumer credit services is an important
measure to promote the credit consumption. Distinguished from the previous studies, this paper pays
attention to the impact of resident housing characteristics on consumer credit. The micro-data from a
commercial bank credit card center are applied in this paper to illustrate the impacts of Chinese
residents housing characteristics on the credit card consumer credit for the first time. The study shows
that, residents who own houses show low degree of consumer credit and frequency, which indicates
there exists no housing wealth effect in China.Compared with renting, residents using installment plans
indicate a relatively lower consumer credit line and frequency, which implies that the high house prices
restrain the consumer credit of middle class, housing has the crowding-out effect on consumption. In
order to further promote China’s credit consumption and economic growth, Market regulation should be
based, supplemented by government intervention measures. Policy should start from stable the prices
expectation of the house, implement the reform of income distribution, personal income tax reform and
consumer protection measures.When the economic achievements favor the low-income groups, the
whole Chinese consumer credit ability will increase.
Key Words： credit card; housing characteristics; geographical differences; life cycle
JEL Classification: G11,G21,G23
Study on Brand core Competence Influencing Factors and Evaluation Model
——An Empirical Analysis Based on the local Manufacturing Sector
1
QIAO JUN
JISHENG PENG
2
（ 1.Marketing & Logistics Management Institute, Nanjing University of Finance &
Economics
Nanjing, 210023,
2.School of Business Nanjing University, Nanjing, 210023 )
Abstract Comparative advantages are disappearing from endowments resource,
manufacturing transformation and upgrading of processing manufacturing to technology
innovation face brand stages over competitive pressures in China. From the perspective of theory
of pilot, theory of enterprise's core competitiveness and brand value is the dominant theory of two
values. Due to the two theories defects itself and emphasize elements of distinct, in the theory of
guidance in developing business strategies in China has revealed limits.Based on brand theory and
the construction of the core competence theory and demonstrate a new integrated framework, and
proceed from the local household appliances industry status, derive 6 dimensions of evaluation
model of the brand core competence. By constructing a hierarchical fuzzy subset evaluation based
on fuzzy quantifying the indicators reflect, use fuzzy transformation on the comprehensive
calculation of various indicators. Through the analysis 4 brands of three enterprises, exhaust
dimensions consumers care most about indicators and integrated brand competitiveness score.
BCCI model outstanding advantages are emphasized in both the core competitiveness of
traditional financial indicators of enterprise scale, enterprise technology and enterprise, while
reasonably absorb modern theory of brand value emphasis on consumer attitudes, the model for
evaluation of enterprises brand core competitiveness development more scientific and
comprehensive. For the transformation and upgrading of China's enterprises, the implementation
of brand strategy provides effective theoretical Guide and practical tools for evaluation.
Key Words： brand ;core competitiveness ;assessment model; manufactureindustry