Abstract:After joining the WTO in December 2001, China was given 5 years to completely open its banking market for international competition. Chinese banks have been renown for their mounting non performing loans and low efficiency. Despite gradual reforms, the banking system is still dominated by state ownership and encapsulated monopolistic control. How to raise efficiency is key to the survival and success of domestic banks, especially the state owned commercial banks. Two important factors may be responsible for raising efficiency: ownership reform and hard budget constraints. This paper uses a panel data of 22 banks over the period 1995—2001, and employs a stochastic production frontier function to investigate the effects of ownership structure and hard budget constraint on efficiency. Empirical results suggest that non state banks were 11%—18% more efficient than state banks, and that banks facing a harder budget tend to perform better than those heavily capitalized by the state or regional governments. The results shed important light on banking sector reform in China to face the tough challenges after WTO accession.

Abstract:This paper has studied the newest development of privatization in China, including how much proportion of Gaizhi firms and their effects on performance, based on the whole industrial data from the Second State Census Data 2001. According to state classification for ownership registration, we could separate the most Gaizhi firms from general state firms or private firms,. Therefore, based on the production function model, we can identify the different effects on industrial efficiency by ownership types of the firms, especially by different Gaizhi patterns. The main findings are as following: 1 The State enterprises have the significant negative effects on efficiency, and private firms, share holding companies or foreign investment enterprises all have the significant positive effects on efficiency, in which private enterprises are most efficient, FIE enterprise are second ones, and limited liabilities or share\|holding companies are following. 2 For different share of Gaizhi enterprises, including Cooperative Share holding Company, Limited Liability or Share\|holding Company, the individual capital share have most significant active roles on efficiency, and state share show the significant negative impacts on performance. As for legal person share, it shown the unstable positive effects. And the collective capital is irrelevant to efficiency. 3 The analysis for three types of share holding enterprises shown, the scale efficiency of Share\|holding Company are clearly less than that of Cooperative Share holding Company. It is because the negative roles of state ownership offset the positive roles of scale. Compared to share\|holding Company, other two share holding enterprises productivity from labor contributions are much more than that from capital contributions. It shown such enterprises after Gaizhi mainly depended on “labor push” or “human capital resources” to promote efficiency.

Abstract:By analyzing the correlation among the indicators reflecting the economic climate in China and its provinces in the periods of 1953—2002 and 1978—2002, such as GDP growth index, capital assets nominal growth rate, CPI, RPI, the author makes the following conclusions: 1 Since 1978, China and its provinces realized fast economic growth, while the average growth rates in under developing area are lower than that of China, and much lower than that of the developed areas, and the ratio of GDP in other provinces to that of Guangdong province in that year decreases. 2 The economic climate in China and its provinces differ in standard deviation, generally the developed provinces swing greatly with high standard deviation, and the under developed provinces swing slightly with low standard deviation. 3 Most provinces have close correlation of economic climate with China and they are almost synchronized. Among which, the price changes have the highest correlation following by the nominal growth of the investment in capital asset and value added in industry, with the GDP growth behind. Concerning the industries, the growth indices in the secondary industry correlate closest followed by the tertiary and the primary industry. The correlation in the indicators of developed provinces and China are higher than those of under developed provinces. In the end, the paper analyses the possible influence from the unified macro regulatory policy and proposes corresponding countermeasures on how the macro regulation harmonize unification and differentiation.

Abstract:Real estate is one of the key industries intervened by governments during the inflation or deflation phases In this paper, the author adopted Input output model to analyez the forward and backward quantity correlation between real estate and other industries for China and four member countries of OECD, by International and regional Comparative analysis,as to find the inner structure and mutual affections between Real Estate and other Industries, to provide quantity criterions for the harmonized development of real estate and national economy.

Abstract:Social security tax is pay roll tax ear marked to social security. This paper analyses the tax incidence and the influence of the labor supply elasticity on it. Small labor supply elasticity is supposed to put much tax burden on labor while to increase the pressure on employment, and pay roll tax is supposed to engender a better income redistribution effect as labor market is much homogenous. This paper summarizes the theoretical process of optimization of social security. The optimization implies that Pay As You Go plans mix with mandatory saving schemes in the optimal way basing on the inter generation Pareto improvement following the Golden Rule. For intra generation redistribution to mitigate its negative effect, an income redistribution scheme should be aimed to enhancing beneficiaries education instead of offering free social welfare directly.

Abstract:In financial distress,the beneficiaries of the company,such as managers,banks,suppliers and so on,will induce huge loss because they have not taken proper action as early as possible.The main purpose of this study is to find who have taken proper action based on the latest possible financial data for China state owned industrial firms.It concludes that managers can predict the financial distress and begin to reduce salary three years prior to distress events,the banks urge to take back loan two years prior to the financial distress,and until one year prior to distress can suppliers reduce the trade credit.The result also shows that only part of the beneficiaries have taken proper action in distress events.

Abstract:This paper argues that corporate financial distress and financial bankruptcy are two different financial situations,and they should be forecasted,diagnosed and cured with different methods.Current literatures take financial distress and financial bankruptcy as same concept,this will go against discriminate and analyze corporate financial situation,and will influence corporate financial policy.Base on redefining the concepts of financial distress and financial bankruptcy,this paper takes 3 years listed companies as sample,to study corporate financial distress and financial bankruptcy empirically,our result indicates that there is exist financial distress and financial bankruptcy two different situations in listed companies.Profitability,leverage and firm size can influence simultaneously financial distress and financial bankruptcy significant,they are the main reasons for firm get into distress and bankrupt.However,different with foreign studies,cash flow information has not explaining power both to financial distress and financial bankruptcy.

Abstract:Based on the adjustment of Fama and French1999methodology on characteristics of China Stock Market,we estimate return on value and return on cost of A share listed nonfinancial companies for 1991—2001.We find that the IRR on value is not matching for the economy growth,which is related to overpricing on secondary market and over financing activities of listed companies.A by product of estimation is information about the financing decisions of A share company from 1991—2001.

Abstract:Abstract:This paper models event risk the sudden announcement of circulation of state own shares and investment decision in a simple setting and derives a Liquidity based Asset Pricing Model. The paper shows that the presence of illiquid shares deters some investors from entering the market, with the result of an endogenously thin market. It further shows that any rational investors will ask for compensation for this thinness.Thus,this model provides a theoretical explanation of the long drawn stock market downturn since June,2001.

Abstract:Based on Chinas Agricultural Regional Market Equilibrium Model CARMEM, the paper projects the production and consumption of rice, wheat and corn in China toward 2010 at both national and regional level under two different scenarios. It showed that the trend of Chinese grain production and consumption would remain stable in general until 2010. A recovery growth of grain production could be achieved in the near future by possible increase of price on both domestic and world market. The total production of rice, wheat and corn will be increased to over 400 million tons. However, the rate of grain self sufficiency will be 92% due to higher demand. A domestic deficit of round 35 million tons would remain, in which wheat accounts for three fifth. China will become a net importer of corn. Moreover, some regional characteristics of the development of grain sector can be also observed obviously. An increasing grain deficit in East and South China would emerge. Northeast and North China will achieve a higher grain growth mainly due to a rapid increase in corn production. South middle China will be able to change its current insufficient situation. The Southwest and Northwest will keep their present quantity of grain deficit continued. Finally, some policy implications for future Chinese grain security are concluded.

Abstract:The return to education is composed of, at least, two parts: wage return and job opportunity return. Using Heckman two step model, the return rate of education for those wage earners are not significant, with the point estimate ranging from 0% to 5%. One more year of education, however, increased the probability of being employed by no farm sector, with the return rate amounting to 5~7%. Education also increased the opportunity of being employed by high wage sector within the non farm sector.

Abstract:This paper proposes a framework for inequality decomposition in which inequality of the target variable,e.g.,income,can be decomposed into components associated with any number of determinants or proxy variables in a regression equation.The proposed framework is general enough to be applied to any inequality measure and it imposes few restriction on the specification of the regression model.This generality is illustrated by quantifying root sources of regional income inequality in rural China using a combined Box\|Cox and Box\|Tidwell income\|generating function.