Abstract:This paper evaluates the roles of inputs,institutional changes,structural adjustment and external environment in Chinas economic growth in the past two decades,assesses their remaining capacity in sustaining rapid growth,thus forecasts economic growth in the coming 20 years.It is found that faster capital formation has made an important contribution to the growth,although the more important contribution has been made by resource reallocation that results from institutional changes.The economy is facing challenge in changing into a more technology-leading growth pattern.Subject to further institutional reform and policy adjustment in several areas,the average growth rate may be sustained at as high as 6.4% in the coming two decades.

Abstract:This article studies the impacts of changes in objective function of the State-Owned-EnterprisesSOEs on the market share of SOEs in economy,given the shapes of cost functions.Two-step Cournot-Nash mixed oligopoly model is offered by this paper where the SOE and private firm compete for quantity.At the first stage,the SOE decides the weight of social welfare maximization in the objective function,whereas on the second stage she determines the optimal quantity.We have found out that,under constant marginal cost and linear reversed demand function,ireform of objective function of the SOEs is the necessary condition for entry of private firms,and iithe equilibrium share of the SOEs would converge to a point which is certainly above zero.

Abstract:Scholarly explanations of the worsening financial performance of Chinese industry over the reform era,particularly the loss-making phenomenon,have coalesced around two rival stories-i.e., the “inefficient institutions causing poor financial performance” story and the “increased competition inducing profitability decline” story.This paper critically reviews the arguments and empirical substantiation of the two stories,and gives an alternative explanation that takes into account of demand conditions and industrial configurations in the analysis. On this basis,it is argued that the worsening financial performance is a macro as well as micro problem that points to the fundamental contradictions in contemporary Chinese political economy.

Abstract:Debt of enterprises not only works as tax shield and financial leverage,but also improves financial structure and promotes market value as well as enhances supervision over and constraint on managers.Debt-safeguarding mechanisms can be categorized to two classes:pre-nonperformance safeguarding mechanisms and post-nonperformance safeguarding mechanisms,including automatic debt performance mechanism,creditors prudence and credit-rationing mechanism,and the mechanism of liquidity and convertibility,puncturing corporations veil,etc.The weakness of the debt-safeguarding mechanisms in China stems from problems with the shift of controlling rights,with reputations function,with constrining on enterprises and their managers behavior,with creditors interfering in enterprises governance and liquidation.Moreover,the current debt-equity swap policy in China doesnt comply with the general rules of convertibility.