Abstrat:The paper reviews evidence on the ways in which recent economic growth has been uneven in China and India and what this has meant for inequality and poverty. Drawing on analyses based on household survey data and aggregate data from official sources, we show that growth has indeed been uneven-geographically, sectorally and at the household-level and that this has meant uneven progress against poverty, less poverty reduction than might have been achieved had growth been more balanced, and an increase in income inequality. The paper then examines why growth was uneven and why this should be of concern. The discussion is structured around the idea that there are both "good" and "bad" inequalities-drivers and dimensions of inequality and uneven growth that are good or bad in terms of what they imply for both equity and long-term growth and development. We argue that policies are needed that preserve the good inequalities-continued incentives for innovation and investment but reduce the scope for bad ones, notably through investments in human capital and rural infrastructure that help the poor connect to markets.

Abstrat:Although the number of rural to urban migrate workers has kept growing, Chinas urbanization still lags behind her industrialization. Meanwhile, wage gap between migrant and urban workers has kept enlarging other than narrowing. To understand these puzzles contrary to the traditional theories, we study the endogenous formation of urban-rural segmentation policy. We find that change of the urban-rural segmentation policy results from urban governments optimal decision based on the welfare of urban residents. The urban-biased policies have retarded the real wage growth of migrant workers, decelerated urbanization, and enlarged the wage gap between urban workers and migrant workers. Only if the social conflicts between urban residents and migrants could be lessened, or the policymaking is no longer biased unilaterally for urban residents, the transition from urban-rural segmentation to integration could come true. This transition will be beneficial for both economic growth and urban-rural equality and social harmony.

Abstrat:The study on the asymmetric money-output causality has been widely taken interest in the microeconomics field recently. This paper uses a smooth transition vector error-correction model STVECM to study whether there is an asymmetric money-output causality in China over 1989—2007. By including lagged yearly growth rates in output, lagged yearly growth rates in money, and lagged yearly changes in the annual inflation rate as transition variables, linearity test results show the evidence of nonlinearity in the output, money and price system. By model estimation, the economy and/or policy state-dependence of the Chinas money-output causality is identified. And the asymmetry is approved by nonlinear Granger causality test. Broadly speaking, the money-output causality of China has strong asymmetries which depend on the high and low growth stages of business cycle, the high and low growth stages of money supply, and the accelerating and decreasing stages of inflation rate.

Abstrat:This paper differentiates the output market equilibrium exchange rate,misalignment and volatility from asset market, and gets short-term or long-term value of RMB equilibrium exchange rate. The findings indicate that the RMB is not seriously overvalued or undervalued, and real exchange rateRERis undervalued in the output market, which has an enlarging trend, but overvalued in the asset market. The long-run volatility in the output market mostly stems from relative supply impact, but mechanism for its adjustment and relative monetary supply impact account for most of the short-run variations in the asset market. Policy implication indicates that at least controlled capital account decreases risk premium, and allows decision maker to adjust short-term volatility of the RER, then enlarge the volatility range in order to ease appreciation expectation, which can eliminate short-term misalignment in the asset market; Decision makers can only regard long-run equilibrium exchange rate as target exchange rate of appreciation given the determinant factors of the long-term volatility, which can realize the equilibrium between internal and external economy by force of supply management policy on condition that demand management policy is invalid.

Abstrat:In this paper, the authors use quantile regression estimator to study Chinas urban economic convergence. The existing literature usually adopts conditional mean regression, a method that could hardly model regional heterogeneity as well as different types of convergence. Using cross-sectional data on city level, covering the period from 1988 to 2005, we examine the stylized facts of urban economic convergence in China. OLS estimator and quantile regression estimator extended by Koenker and Hallock 2001 are compared. Evidence strongly supports partial parameter heterogeneity, which is at odds with the OLS results. The results from the quantile regression do not confirm the neoclassical prediction of conditional convergence. We find that convergence is not a common phenomenon across the conditional growth distribution. The regions with growth distribution which in lower quantiles are characterized with conditional convergence, but regions with growth distribution which in higher quantiles are otherwise. These findings are helpful for policy makers to balance Chinas regional development.

Abstrat:This paper employs the input-output approach and the I-O table dataset, to conduct an empirical study of the growth and structural changes in Chinas producer services as well as the relevant impacts through an international comparison with 13 OECD countries. We find the higher level of physical inputs whereas the lower level of service inputs in Chinese national economy. Chinas producer services can not exert a relatively strong pull power on national economy nor react vigorously to the demand from other sectors. The resons for this are the inadequacy of social credit and various distortions. Therefore, breaking market monopoly and putting market mechanism in order, regularizing market and government behaviors will become the priority in policy-making.

Abstrat:This paper conducts a theoretical and empirical investigation of the effects of FDI on indigenous technological effort. It develops a simple model that demonstrates the complementary effect and substitution effect of FDI on domestic R&D for a developing country. The theoretical analysis yields several hypotheses, which are tested based on a firm-level survey data in China. Our empirical study explores several empirical methodologies that tackle the potential endogeneity problem, and generates two main findings. First, a firms expenditure on research and development R&D decreases with the amount of FDI it receives. Second, sector-level FDI has a greater positive impact on the R&D effort for the firms with more foreign presence. Combining these two effects together, we find that the net effect of FDI on indigenous R&D effort is negative.

Abstrat:we use input-output tables to measure outsourcing on industry level and estimate the effects of international outsourcing on productivity, manufacturing employment and output in the China between 1997 and 2002. The results show that outsourcing is positively associated with productivity because of capital-saving technical progress, and it has no negative effect on employment because of scale effect counteracting substitute effect. The effect on output can arrive in two points :1it moves the production frontier to the outer so it is a shifter of production frontier;2it leads product structure transfer from labor-insensitive to capital-insensitive product so it is a thruster of product structure upgrading.

Abstrat:This paper uses the first national economic census data to systematically investigate the issue of productivity performance of Chinas private enterprises and their investment efficiency. Evidences indicate that the private enterprises in the material and machinery industries in the eastern area have a leading advantage of both labor and capital productivity over their counterparts in the other areas, much of which, however, is due to the outstanding performance of the large firms. An estimation of the production function leads to a robust estimates of capital elasticity between 0.2 and 0.3 in most sectors. Based on this, we decompose the variances of productivity and find that nearly 90% of the within-region and industry productivity variation stems from total factor productivity TFP, while the contribution from capital per capita accounts for only 13%. Although the primary source of inter-industry productivity variation is still TFP, capital per capita plays an essential role in explaining the differences in productivity across regions. The marginal product of capital is found to be unequal across regions and industries, which implies that there exist some degrees of inefficiency in the allocation of private capital across sectors. Then we infer from an experimental simulation that the potential improvement is more significant if the capital is reallocated across provinces than if across industries, which implies that the inter-region barriers are more serious than inter-industry barriers for the mobility of private manufacturing capital.

Abstrat:In this paper, there are two kinds of patents, one skill-intensive industrial patent, which is skill-complementary; another labor-intensive industrial patent, which is unskill-complementary. It is showed that optimal breadth of these two kinds of patents is finite and affected by labor endowment. If the number of unskilled labor is greater than that of skilled labor, then optimal breadth of unskilled-complementary patent is broader than that of skill-complementary patent. In addition, we show that labor endowment will affect direction of technological change via its impact upon optimal patent protection, thus influencing on skill premium.

Abstrat:What affects peoples social trust Utilizing a unique urban household survey data in Guangdong Province in 2004, we find personal, community, and social factors all contribute to the social trust. Firstly, people with higher ages, no marriage, other income sources except job, religion beliefs, less job turnovers, more optimism, higher life or job satisfaction, or on an administration position have more social trust. Secondly, people whose daily spoken language is not the dominant one in the city, who got help from neighbors or the community resident committee in case of financial difficulty, or who started to live in the current city before 18, and people with a longer living time in the current city, or the birth place within the sample province have more social trust. Third, people with better evaluation of governments, media, and consumer associations, or worse evaluation of trade unions have more social trust. Moreover, the paper also supports the "the pattern of difference sequence" of the distribution of various trust measures. Current study provides a systematic social trust development view for the formation of a harmonious society in China. To improve peoples social trust, it is not only their own effort needed, but also stable and harmonious communities, better government quality, media monitoring, and development of intermediate organizations such as consumer associations are also required.