Does financial structure matter for economic growth in China

Based on an extended neoclassical growth model, this paper explores the endogenous mechanism between financial structure and economic growth. Our theoretical analysis shows that there exists an optimal financial structure evolving to meet different demands of the real economy in the process of economic development. We then investigate whether financial structure matters for economic growth using a panel data of 29 provinces across the eastern, central, and western regions in China from 1996 to 2013. The empirical results show that financial structure has a significant impact on economic growth. However, the effect of financial structure on regional economic growth varies and presents an inverse U-shape. These results confirm the evolving effect of financial structure on economic growth at different stages of economic development.     

Health,education, and economic growth in China: Empirical findings and implications

This empirical analysis examines the augmented Mankiw, Romer and Weil's model which considers both health and education in human capital in the framework of Chinese economy. We consider the relationship between per capita real GDP growth and the physical capital, human capital, and health investment in the production function. Panel data models are used in the estimation based on the provincial data from 1978–2005. The empirical evidence shows that both health and education have positive significant effects on economic growth. The results also show that the interaction of health and education stock will not reduce their impact on growth and there is perhaps a trade-off between two forms of human capital investment.     

The influence of tax and expenditure policies on economic growth in The Netherlands: An empirical analysis

Summary This paper explores the influence of government policies in explaining output, emploment and investment in The Netherlands during the period 1966–1989. The paper develops an empirical macroeconomic model estimated with annual data relating to the period 1958–1989. It finds that restrictive fiscal policies in the eighties have had adverse short-term effects on output and employment. Furthermore, the drop in the rate of increase in tax and social security contribution rates in this period has boosted output, employment and investment. However, the shift in public expenditure from investment to consumption has exerted a negative impact on these variables, largely offsetting the positive impact of the tax policies.At the moment of writing, Ed W.M.T. Westerhout was a staff member of the Directorate for Economic Policy, Ministry of Economic Affairs. Currently the is affiliated to the Central Planning Bureau, P.O. Box. 80510, 2508 GM The Hague.We thank Peter van Bergeijk, Lans Bovenberg, Rob Mulder, Pieter Waasdorp and two anonymous referees for uselfut suggestions and comments.     

Government recurrent expenditure and economic growth in less developed countries

There is not much support in less developed countries for the hypothesis that recurrent government expenditure is seen as consumption and hence more dispensable than capital expenditure. There is little evidence of a secular decline in recurrent expenditure for a group of 54 less developed countries over the period 1965–1973, nor is there strong evidence of greater instability in recurrent expenditure.     

浅谈转变经济增长方式和绿色广东战略

改革开放以来,广东经济持续高速增长,取得了卓越的经济社会成就。但多年的持续高速增长也累积了不少深层次的矛盾和问题,特别是“高投入、高消耗、高污染、低产出”的粗放型经济增长方式一直没有得到根本性转变,导致社会发展滞后于经济发展,带来了严峻的生态平衡和环境保护问题     

金融体系结构与经济增长:对东亚国家的启示

金融体系结构对经济增长的作用是一个具有理论和现实意义的问题，直接影响到国家的政策选择。本文从此问题入手，比较了市场导向型金融体系与银行导向型金融体系在促进经济增长方面的作用机制的不同，对广大东亚国家来说，应该根据自身情况大力发展银行体系。     

The growth of China and India: implications and policy reform options for Malaysia

This study explores the trade‐related impacts of rapid growth of China and India on the Malaysian economy and evaluates policy options to better position Malaysia to take advantage of these changes. Higher growth in China and India is likely to raise Malaysia's national income and to expand Malaysia's natural resource and agricultural exports, while putting downward pressure on exports from some manufacturing and service sectors. Increases in the quality and variety of exports from China and India are likely to increase substantially the overall gains to Malaysia. The expansion of the natural resource sectors and the contraction of manufacturing and services reflect a Dutch‐disease effect that will raise the importance of policies to facilitate adaptation to the changing world economy and improve competitiveness. Most‐favoured‐nation (MFN) liberalisation would increase welfare, and, by increasing competitiveness, raise output and exports of key industries. Preferential liberalisation with India and completely free trade with China would provide greater market access gains than MFN reform, but neither would be as effective in increasing income as MFN liberalisation, and free trade agreements would lead to greater competitive pressure on many of Malaysia's industries than MFN liberalisation. Increased investments in education and infrastructure could boost manufacturing and services sectors in Malaysia, while improving trade logistics would benefit sectors with high transport costs, including the agricultural and resource‐based industries.     

保育均：三十年关口 经济增长方式该转变了

过去三十年，让一部分人先富起来，我们已经做到了。下一个三十年，该让那些没富起来的人也富起来.     

Japan's economic slowdown and its global implications: a review of the economic modelling

Despite its role as a driver of global economic growth through the 1970s, in recent decades the rise of China has seen the international importance of Japan's economic performance recede from the public discourse. This is notwithstanding its continuing key role as economic partner to both industrial and developing countries and changes in its economic performance that would otherwise be a matter for global concern. In particular, the tendency for the Japanese economy and its external trade to stagnate not only has immediate consequences for global performance but also foreshadows a path to industrial transition for other key Asian economies. This paper reviews quantitative studies of Japan's performance. It identifies a paucity of results addressing global implications and suggests new research in this direction.     

Industrial structure change and economic growth: A China-Russia comparison

This paper examines the sources of economic growth and the nature of industrial structure change in China over the past decade, with a comparison to those in Russia. It shows that over the observation period between 1995 and 2008, the Chinese economy was concentrated relatively more in the manufacturing sector and relatively less in the service sector than the Russian economy. In addition, this paper finds that the higher economic growth rate in real GDP and aggregate labour productivity growth between 1996 and 2008 in China than in Russia was broadly based, with most industries contributing to China's better performance. Furthermore, it reveals that the acceleration in economic growth in China in 2003–2008 over 1996–2002 was mainly traced to an increased contribution from the manufacturing sector and to a lesser degree the service sector, while in Russia, it was the service sector, followed by the primary sector driven by the mining and oil and gas extraction industry. These results suggest that the Chinese and Russian economies complement each other, which bodes well for further economic cooperation and trade between the two countries.     

Financial development and economic growth: Evidence from China

This paper investigates the relationship between financial development and economic growth for the case of China over the period 1952–2001. After considering the time series characteristics of the dataset, a multivariate vector autoregressive (VAR) framework is used as an appropriate specification and the long-run relationship among financial development, growth and other key growth factors is analyzed in a theoretically based high dimensional system by identification of co-integrating vectors through tests of over-identifying restrictions. The empirical results suggest that there exists a unidirectional causality from economic growth to financial development, conclusions departing distinctively from those in the previous studies.     

The delicate balance for jointly pursuing economic growth in Latin America and China

This paper examines the sources of economic growth for a group of Latin American countries in relation to their export performance in China. The analytical framework is based on an extended normalized quadratic profit function. The ensuing econometric results confirm that a favorable export record with China represents a positive source of growth for Latin America. However, it also creates long-run dependability conditions in terms of reduced prices and thinner profits that weaken its growth capacity. Latin American countries must seek product diversification away from their current commodity base and aggressively climb up the value chain to remain competitive worldwide.

Managerial Relevance: identify the sources of economic growth for a group of Latin American countries in relation to their export performance in China; the weakness of this economic growth model; how to seek product diversification away from their current commodity base with emphasis on value chain.     

Fiscal policy and economic growth: some evidence from China

Review of World Economics - China has experienced profound economic and social changes in recent decades. During this period, China’s fiscal policy framework has been substantially reformed....     

Unionization,market structure,and economic growth

This article investigates the macroeconomic effects of unionization in a Schumpeterian growth model with an endogenous product market structure and a unionized labor market. The endogeneity of the market structure and the trade unionism of the labor market interact and jointly determine the equilibrium unemployment, firm size, number of firms, economic growth, and distribution of income between workers and firms. We show that unionization governs the distribution of income between workers and firms and the unemployment rate, but it does not give rise to any growth effect on the economy. In addition, unionization discourages potential entrants and hence decreases the equilibrium number of firms. These results echo the empirical observation in the sense that unionization raises unemployment and alters the distribution of income between workers and firms, but it does not give rise to a significant, real impact on the firms’ investment and the economy‐wide growth.     

Population dynamics and economic growth in China

This paper focuses on two major elements of China's population dynamics—the rising proportion of workers in the population and the shift of rural workers from agriculture into industry and services—in a provincial-level analysis of per capita income and productivity growth during the last three decades. We measure the ‘mechanical’ contributions of these dynamics to per capita income as revealed by growth decompositions, before assessing the determinants of per capita income and productivity growth in a series of regressions that include the growth of the working-age to total population (WAP) ratio and a measure of sectoral employment change. Our results indicate that sectoral change has made a significant positive contribution to both per capita income growth and aggregate productivity growth, stemming from its positive impact on agricultural productivity growth—as predicted by the Lewisian dual economy model. However, the negative impact of sectoral change on productivity growth in the industrial and service sectors, combined with the negative impact of growth of the WAP ratio on both per capita income and aggregate productivity growth, suggests that the benefits of China's population dynamics during the last three decades have been overstated.     

Resource abundance and economic growth in China

This paper revisits the resource curse phenomenon in China and differs from the previous studies in four respects: (i) City-level data is used; (ii) A spatial variable is constructed to estimate the diffusion effect of natural resources among cities in the same province; (iii) The impact of resource abundance on economic development is investigated not only at the city level but also at the prefectural level in China; (iv) We use a functional coefficient regression model to deal with city-specific heterogeneity and, at the same time, analyze the transmission mechanism of the resource curse phenomenon. Our empirical results show that there is no significant evidence to support the existence of a resource curse phenomenon in China. On the other hand, we find that the degree of natural resource abundance in a city has a positive diffusion effect on the economic growth of neighboring cities within the same province at the city level, but not at prefectural levels. We attribute this to the urban bias policy.     

Regional disparity and economic growth in China: The impact of labor market distortions

The paper tries to analyze China's regional disparity in a framework of convergence in neoclassical theory of growth. We employ comparative productivity of agricultural labor as an index of labor market distortion to see the impact of difference of labor market maturity among regions on regional growth performance, controlling for a set of variables determining growth rate. The finding is that (1) there is an evidence of conditional convergence in China's growth, namely, per capita GDP in the initiative year is negatively related to growth rates in following years, (2) labor market distortion negatively impacts regional growth rates, and (3) many other variables used at previous studies impact growth performance, as is expected by neoclassical theory of growth.     

The relationship between human capital and the economic growth in China

Human capital is one of the most important factors to promote economic growth. It is critical both on theory and practice to study how human capital investment and accumulation promote the economic growth in China. The thesis takes Lucas＇s Human Capital Spillover Model as the analysis tool. Through SPSS 14.0 software, it uses the serial data from 1992 to 2006 to analyze the human capital＇s correlation and contribution to the economic growth, so as to find out why the human capital contribution to economic growth is low. And then, in order to increase the human capital accumulation, it puts forward the relative strategies which include paying more attention to the importance of human capital, greatly developing education, improving the quality of human capital and investing more on the human capital of enterprises.     

Multi-agent modeling of economic innovation dynamics and its implications for analyzing emission impacts

In this elaboration we focus on the role of multi-agent systems as a tool for modeling economic dynamics. Hence, at the beginning the specific features of this tool are considered. Taking the example of explaining the relationship between innovations and economic growth it will be shown after that how the tool of multi-agent modeling can be used for the following purposes: (1) for explaining the occurrence of innovations, (2) for specifying the effects these innovations have on economic growth, (3) for linking emission impacts to this growth and finally (4) for exemplarily assessing political options to reduce these impacts.