Abstract:It is well known that China has experienced tremendous changes in its economic systems since 1950s when it began to establish a Soviet-type centrally planned economy, and later to modify, reform and transform to a market economy in late 1970s. Economics, and economists here have gone through the big ups and downs history with the country. This article is a comprehensive review of how the Chinese economists grew with Chinas reforms since 1950s. It told the stories of a lot of eminent economists who did hard theoretical studies and explorations in an attempt to find ways of establishing a modern market economy in the country. At the same time, a number of examples are given to indicate the significant and important roles that the economists have played in critical events, moments and stages of the reforms through their deepening understanding of the contemporary economics.With Chinas reforms moving further towards a healthy market economy, demand and request on economics studies are increasing. More and more new issues are emerging. The paper is therefore to propose some suggestions for economics studies to promptly respond to the challenges, get enhanced and well developed.

Abstract:We present a model of policy burden and soft budget constraint SBC that explains many stylized facts in socialist and transition economies. We find that under information asymmetry, policy burdens will lead to the moral hazards of the SOE managers and hence the low efficiency of SOEs; and when competition increases to certain degree, policy burdens will definitely result in the SBC problems. Privatization will not necessarily eradicate the SBCs of firms; on the contrary, a privatized firm with policy burdens will be more likely to bring the SBCs and ask for more subsidies from the state than a SOE under the same condition. We also show that in socialist and transition economies, when SOEs bear policy burdens, a restriction of the control power of SOE managers may improve the efficiency of SOEs and the social welfare.

Abstract:Recently, about the exchange rate of RMB is discussed popular, but this discussion lacks the theory or empire analysis. This article embarked from a stochastic opening economical model to analysis the mechanism of exchange rate. Our basic conclusion is that China as a developing open country, its currency is an expectation of depreciation in quite long time, only after its economic growth risk had fall to a certain level then its currency can be the expectation of appreciation, but China had not achieve this level at present. Therefore, the pressure of appreciation to RMB is certainly not long-terms, the pressure comes from some benefit groups short-term behaviors.

Abstract:The exchange rate will influence the price of exported commodities, and then change the enterprises investment decision, which will in turn lead to the change of their labor demands. If exportation plays an important role in the economy, the adjustment of exchange rate will influence the employment rate. This paper will analyze the influence of the exchange rate of Renminbi on the employment through theoretical and empirical methods. The result shows that the revaluation of Renminbi will deteriorate the employment. So, now Renminbi should not be revaluated, but it is necessary to reform the exchange regime and foreign trade system.

Abstract:The link between human resource development HRD and foreign direct investmentFDI is a recent area of study. This paper focuses on effects of HRD on FDI in China. With the quality of human resource improving and the R&D ability enhancing in China, technology- intensive FDIs have begun to enter China. The implication of this study for policies is that it is necessary for China to improve the education system, especially both to increase the years of education to favor the acceptance of FDI and to emphasize the cooperation with multinational corporations.

Abstract:A standard model is used to show that when incomes are unequal and the product of the rates of growth of wages and of the population are in excess of the rate of interest, a PAYG system is in the interests of the society as a whole. A formula is derived for the optimal share of the two pillars. It is argued that the problems of the Chinese pension system are not caused by the use of PAYG but by the particular parameter values, notably incomplete contributions coverage, low pension ages, and a high replacement rate. It is these factors, and the rate of growth of output, which determine the viability of the Chinese pension system.

Abstract:Using the data of China Nutrition Survey 1993,this paper explores the role of health on off-farm employment and wage decision in Chinese rural areas and tends to give evidence of the linkage between health and income at a micro level.The main finding of the paper is that health status impacts labor participation and off-farm employment opportunities significantly,but it is not a significant determinant in traditional cultivation participation.In addition,we do not find its significant impacts on labor performance of those off-farm employees.Still we believe the importance of health on off-farm employment as well as household income,in consideration of the important role of the off-farm employment opportunities on household income.

Abstract:City and merchandise circulation are two concepts that have close connection. City comes from goods exchange and reflects the objective demand of improved efficiency of exchange. The efficiency of exchange from density economy is a criteria to measure the reasonable size of a city, and the development of a city promotes the merchandise circulation from simple stage to advanced. The difference of merchandise circulation results in the difference of level of urbanization among cities. So, the “circulation first" strategy is the essential way of sound urbanization in China.

Abstract:This paper investigates spatial concentration of Chinese manufacturing using the data collected in both the second and third national industrial censuses. It was found that many of Chinas manufacturing industries were highly geographically concentrated in several coastal regions in 1995. A historical comparison of the concentration levels between 1980, 1985 and 1995, suggests that manufacturing industries have become more geographically concentrated following the economic reform. An econometric analysis further supports new economic geography theory and reveals that China appeared to be on the upside of the upside down U curve.

Abstract:To explore the empirical relationship between liquidity and expected returns on Chinese stock markets, we test the trading frequency null hypothesis against the transaction cost alternative. We find that liquidity premiums exist in Chinese stock markets - assets with lower turnover ratios, higher transaction costs and hence lower liquidity have higher expected returns. In addition, the trading frequency null can be overwhelmingly rejected in favor of the transaction cost alternative, suggesting that cross-sectional variation in transaction costs is the root cause for liquidity premiums. Finally, we find similar evidence to the U.S. stock markets and elsewhere that small firms and value stocks consistently earn higher liquidity risk-adjusted returns than large firms and growth stocks.

Abstract:Asymmetrical information is admitted by the empirical study in almost all markets around the world, our paper is considering the asset pricing when the investor who get the information will change their expectation about the future payoff of the asset, and we assume the investor will change the expectation according the Bayesian Law. Some conclusion are as following: iThe excessive return of the asset is correlated not only with the market return but also with the factors which will affect the expectation of the asset payoff. iiIf the new arrival information can affect the investors expectation ,the information will change the asset return accordingly. iiiIn a market with asymmetrical information, the more asymmetric degree of the market will be, the larger the risk premium is.

Abstract:This paper explores the function of integration of the internal and external control systems in mitigating the conflicts of interest among shareholders under the framework of entrepreneur controlling investors subject to moral hazard. We show that the existence of external control system would enhance the monitoring function of the internal control system, and as a result restrain the moral hazard behaviors of the entrepreneur. The relationship between the internal and external control system is not the simple monotonic one, which is different from the traditional viewpoints of corporate governance literature. The transfer from one relationship to another one depends on whether the entrepreneurs incentive compatibility constraints are satisfied by the contracts between the entrepreneur and the dispersed shareholders.