Abstrat:As a new form of global industrial organization, services outsourcing has important value to study. After explaining outsourcing with contractual theory, analyzing the particularity of human capital in services and its impacts on services contracts, we argue that services outsourcing contract is a combination of two forms of contracts, which is respectively market contract and firm contract, and whats more, it has acquired the advantages of both forms. The combination form increases the degree of specialization, improves the economy of scale, promotes the accumulation of human capital, and affords more employment for developing countries. Services outsourcing will accelerate services innovation, increase labor productivity. It is a revolution of industrial organization and a new driver of growth. China should participate in the global division of labor system more positively to promote services development.

Abstrat:In recent years, Chinas energy demand and Greenhouse gases GHG emissions have grown very fast, in which quite an amount of was exported as energy embodied in goods of international trade rather than consumed domestically. In this paper, starting from the concept of embodied energy, energy embodied in goods of international trade in China during 2001—2006 is calculated quantitatively based on Input-Output energy analysis approach. The results show that China is a net exporter of embodied energy through international goods trade although China has become a net importer of oil since 1993. In 2002, the total amount of energy embodied in export was about 410 million tce tons of coal equivalent. Reducing that in import about 170 million tce, net export of embodied energy was about 240 million tce, which occupied about 16% of primary energy consumption in same year increasing about 150 million tce in China. With rapid growth of international trade, the net export of embodied energy went up to about 630 million tce, 162% higher than that of 2002, assuming no constructive changes of Input-Output relations among sectors. In addition, possible sources of errors in calculation and the policy implications of embodied energy are discussed based on the results.

Abstrat:This paper analyzes the impacts of Chinese economic transition on productivity spillovers of foreign direct investment FDI. It argues that the flawed domestic institutions tend to diminish FDI spillovers, because the institutions make new technologies being under-priced, and domestic firms being crippled, and therefore the domestic firms have little incentive and deficient ability to learn from foreign MNEs or make innovations. Our empirical evidences support the theoretic arguments well: the growth of Chinese domestic firms productivity is mainly a result of the underlying institutional changes, rather than the presence of FDI. An improved institutional environment tends to be helpful for the local firms to benefit from the technology diffusion of FDI.

Abstrat:China is undergoing a transition process from a planned economy to a market economy and from a big agrarian country to a powerful industrial country. In this process, different regions may show "short-run temporary divergence with final long-run convergence". Traditional methods employed in studying economic convergence may wrongly treat it as evidence against convergence. To deal with this case correctly, we should consider heterogeneity and allow them to have their own time path. So we need nonlinear time-varying factor model. This paper employs this model to test economic convergence in China. After rejecting the hypothesis of nation-wide convergence, we further use a clustering method and find three convergence clubs in China. Our findings also show that Shanghai and Guizhou do not belong to any convergence club, which is new to the extant study. In the end, we give some explanation to how these convergence clubs are formed.

Abstrat:The paper studies the pass-through of RMB exchange rate to various domestic prices during the period of 1994—2007. The main findings are as follows: 1 One percent exchange rate appreciation results in 0.52 percent decline in import price after seven quarters and 0.38 and 0.20 percent decline in producer price and consumer price respectively after twelve quarters. 2 The contribution of exchange rate shocks is modest in explaining domestic price variance, but exchange rate shocks have disinflation impact on domestic price after RMB exchange rate regime reform in July 2005. 3 The pass-through of RMB exchange rate to different classified consumer price index is significantly different. The pass-through of RMB exchange rate to food, cloth and household facilities is higher than that to the others.

Abstrat:In recent years, PBC has carried out monetary policy by means of reserve requirements policy frequently in an effort to drain the excess liquidity in the banking system. But just like other government taxes, reserve requirements maybe have an optimal required reserve ratiosRRRs. When the RRRs have been over-raised to the optimal level, the effect of reserve requirements policy in money control and liquidity sterilization should also be withered due to the loss of the "tax base". Thus, we establish a theoretical model and analysis framework and make the corresponding econometric test and empirical analysis. The main conclusions are as follows: The optimal RRRs in China at present is about 23 percent. If the RRRs need be further raised above 23 percent, the monetary authority should adjust the deposit and loan interest rates, the bank spreads or the reserve requirements interest rate to expand the use space of the reserve requirements policy.

Abstrat:In economic transition the different preference between the central government and local government deeply affects fiscal decentralization and the incentive structure. This paper analyses the course of the difference based on Besleys model and designs an incomplete contract model of central and local government. It explains the decision of decentralization in China. This paper proves that in the early development of economy because of under-decentralization the local government asks central government to increase the degree of decentralization. But with the development of economy, it will be over-decentralization and the local government will ask centre government to decreases the degree. However, if the economy goes a step further, the decentralization will achieve a equilibrium. The paper also discusses that with more people and worse economy, the degree of decentralization will increase; while with less people and better economy the degree will decrease.

Abstrat:This paper analyzes the effects of group size, marginal per capita return, endowment and social relationship to public goods contribution in a classical public goods environment, and verifies different theories explaining it and then illuminates that the social preferences of agents have some fixed stability by comparing the results to those of experimental studies in other countries. This conclusion is very important to our understanding of various behaviors in economic activities, especially the voluntary contribution mechanism of public goods.

Abstrat:Employing a Multinomial Logit model, we empirically examine how an individual makes the choice of medical treatment among self-care, community health center, county hospital, metropolitan hospital and private hospital, in urban and rural China respectively. We use the data from a randomized household survey combined with an area health resource file in 2005. The results indicate significant urban-rural difference in demand for medical care. The paper suggests that policy makers, aimed at improving health care access as well as reducing health care costs, should take account of the heterogeneous health care demand behavior.

Abstrat:This paper conducts a dynamic panel analysis of the impacts of population age structuremeasured by the youth dependency ratio and the old dependency ratioon household consumption using panel data from Chinese provinces during the peried 1989—2004. The results suggest that the youth dependency ratio has a negative but small impact on the household consumption, while the old dependency ratio does not have a significant impact on household consumption. Hence the change of population age structure can not explain the lack of household consumption in China. In addition, we find that a strong habit persistency in consumer preference is the key reason for increased saving rates during the period of rapid economic growth.

Abstrat:This study purposes to examine the link between political connection and market valuation in Chinas listed firms. Using 1,046 samples of individual-controlled firms during 1999—2004, we find that firms having local government political connections have a higher market valuation than those having central government political connections, while there is no significant relationship between political connection and market valuation. Moreover, our result shows that in provinces with higher governmental intervention on the economics sectors, local government political connections have positive effect on the market value. The more severe the local governments intervention, the more positive effect of the local government connection on the firm value. We also show evidences that this local government political connection is helpful to get short-term loans from banks.

Abstrat:By the research on individual rationality, the paper considers that rationality is neither complete constructivist nor complete ecological, but has cognitive meanings. Considerable theories such as behavioral economics, cultural evolution theory and neuroscience all disclose the cognitive feature of rationality. We conclude that cognitive rationality is more general concept of rationality, which represents the new theoretic trend of the combination between economics and cognitive sciences, and also can provide a more general and empirical hypothesis for economics. This article also discuss the meaning of cognitive rationality and the features of individual preference, knowledge, constraint and behavior, finally we discuss the development of methodological individualism in the light of cognitive rationality and its enlightenment for Chinese economics research.