Effect of total resource allocation effect and economic growth：Chinese experience of 1978-2004

The analytical method of total resource reallocation effect is an evolution of the analytical method of the factors of economic growth. Since the marketization reform in China in 1978, market mechanism has played a more and more important role in resource allocation, and Chinese economy has developed greatly, which is called ＂the Chinese Miracle＂. This paper analyzes the economic growth in China from 1978 to 2004 with the analytical method of total resource reallocation effect. The result shows that the annual growth rate of total resource reallocation effect was 0.2%, which was 5.1% of the comprehensive productivity and 0.21% of the gross output growth, i.e. the total resource allocation played a weak role in the economic growth in China. When analyzing it in Chenery＇s multinational model, we find that Chinese comprehensive productivity growth rate was higher than that in all the income phases of the model, but the total resource allocation effect was obviously lower than that in all the income phases of the model. It indicates that the total resource allocation in China has a great potential, and that to accelerate marketization reform is one of the important issues for Chinese economic development.     

Market Transition and Income Inequality in Urban China： Evidence from Shapley Value Decomposition

China＇s market-oriented reform is expected to strengthen the role of the market in allocating resources, which raises concerns over the impact of market transformation on income distribution and earnings inequality in the past decades. This paper decomposes the sources of inequality based on the newly developed Shapley value approach and examines the contributions of the market, along with other nonmarket factors, to total inequality. Using the China Health and Nutrition Survey data over the period 1989-2009, we find that the income gap between laborers with a higher level of education and those with a lower level has widened since the transformational reforms of the economy. Our results suggest that the largest contribution of changes in income inequality can be attributed to the increase in returns to education, while the relative contributions of the household registration （hukou） system, type of sector ownership, geographic location, and gender to inequality experienced a downward trend between 1989 and 2009. The authors argue that rising income inequality is the consequence of efficiency improvements and an imperfect economic system, and that the market is a decisive force in economic development as it releases competitive signals and creates incentive mechanisms for innovation. Creating a more efficient labor market and increasing investment in human capital, particularly equalizing educational opportunities and improving the quality of education in lagging rural and inland regions to disadvantaged groups, are significant for an equitable distribution of income and sustainable development in the long run.     

Impacts of birdwatching tourism on environment and economy

Birdwatching tourism can be a good model for nature conservation and economic development if it is managed with the well-being of local ecosystems and human communities. Birdwatchers can bring financial sources to local nature conservation. Many communities and local leaders consider birdwatching as a significant mean to develop local economics and publicize regional image, but only few research have tried to study the impacts of relevant activities on destinations. The purpose of the paper is to give a comprehensive review on impacts of birdwatching from conservation economics and biology perspective. Use a behavioral approach study impacts of birdwatching tourism on environment and economy. Specific objectives here are： （1） review the value and significance on environment and economy; （2） economic potential of non-residential birdwatching for community-based conservations; （3） using a behavioral approach, combine quantitative and qualitative methods study birdwatching impacts; （4） outline the economic and environmental benefits and problems associated with the activity; and （5） aid community leaders and tourism business related company in their efforts to improving the value of birdwatching; help the leaders of natural reserve areas develop birdwatching tourism.     

The effects of land market development on economic growth： an empirical analysis based on Chinese panel data, 1999-2005

Optimized land resources allocation is important for economic growth because land is one of the basic elements for economic development. And urban land resources allocation has had an increasingly important influence since the Chinese socialist market economy system was established. This paper estimates the production function of both the secondary and the tertiary industries of China＇s 31 provinces, autonomous regions and municipalities directly under the central government through an analysis of the panel data of the total output value of the secondary and the tertiary industries, invested capital, invested labor jorces and the land market-jeatured management of the above-mentioned regions during the period of 1999-2005. and examines the positive influence of the above- mentioned factors on regional economic output, This study concludes that urban economic output is positively related with the level of urban land resources market-featured management, since the rate of economic growth of those regions approximates 14. 7% under the condition of urban land market running during the period of 1999-2005.     

The obstacles of China＇s economic transformation

In the past 30 years, China has gone from the transformation from a planned economy to a market economy, from the extensive economic growth mode to intensive economic growth model, and from relying on investment and export-led economy to relying on domestic demand and stimulating economic. China＇s economic transformation includes three parts： The first is the reform of economic system, the second is the change in the pattern of economic growth and the third is the adjustment of economic structure. This article describes the historical evolution and the reality of China＇s economic transformation, analysis the obstacles to China＇s economic transformation, and on this basis, put forward some suggestions.     

The Impact of Chinese Economic Increase on Economy of Northeast Asia

Chinese economic total quantity has leaped to the sixth m the world because ot the tast development for nearly 30 years, and become the world economics powerful nation gradually. The Chinese economic growth has influenced tremendously on the world economic development. Being Chinese close neighbor, how has the Northeast Asia be influenced？ This paper will elaborate from the following three aspects： Chinese economic increase made China become important strength to promote the process of regional cooperation; Chinese economic increase made the pattern of Northeast Asian cooperation in economy and trade changed; competition and difference that Chinese economic increase brought to Northeast Asia. The increase of Chinese economic has positive influence on the economy of Northeast Asia, and is one of the powers causing the Northeast Asian economy to grow. At the same time, this kind of influence is mutual. In particular the economic cooperation with Japan is the key to establish the integration of the Northeast Asian economy.     

Opportunities of manufacture under global economic crisis： The case of Estonia

Because of the smallness of Estonia, its main source of economic growth is export, i.e. successful sales in the world market. It is necessary to shift from branches, activities and value chains where it is difficult to increase value added, to more profitable and promising ones. The present economic situation provides for this an exceptionally good chance. All kinds of development, international relocation of production and reallocation of economic power in the world are gathering speed. It is necessary to rapidly find an opportunity in the ＂declining＂ market, a profitable niche. Manufacturing entrepreneurs and executive managers have for several years already been complaining of shortage of workforce that hinders them carrying out new business plans, increasing production and exports. Increased supply of workforce dismissed from construction is an opportunity for the forced development of the manufacturing export sector and sharp increase in exports.     

The Way of the Social and Economic Development of China An Attempt of Historical and Synthetic Representation

The issue of social and economic development is an important part of theoretical and empirical research of the contemporary economy. China is an example of an economy which in a short period of time achieved success within this scope. Therefore it seems to be justified to draw the reader＇s attention to the factors and determinants which may be regarded as the key ones for the economy of China, both in the period of 1949-1978, namely, in the period of real socialism, and in the period after 1978, so-called ＂socialist market economy＂ to date. On the basis of an analysis of Polish and foreign reference sources and source materials, the author tried to trace both similarities and differences in China＇s economic development over those two periods, first of all paying attention to the Chinese authorities＇ pragmatism of governing in the other period, accompanied by limiting ideological influences. Maintaining the socialist system, in that period China worked out its own, specific principles, and rules of internal activities and activities in the international arena, which enabled to it the creation of a model, especially for developing countries, the system of economic planning and programming, its constant modernization during the implementation of economic tasks, with the consideration given to changing conditionings in the world economy. It was pointed out that with maintaining the laboriousness of the Chinese and their loyalty to authority, they make up China＇s economic power. The aim of the article is to pay special attention to the circumstances, phenomena, conditionings, and factors which occurred on the way to the social and economic development of China, which enabled it to achieve the economic success in a relatively short period of time. This success can be expressed by such indicators as for instance the poverty rate, the unemployment rate, gross domestic product, the value of export, and the value of foreign direct investment as well as other factors.     

A research of material input and environmental impact for Chinese economy： 1990-2005

The process of economic activities is on the basis of tremendous material inputs. China has been discharging an enormous amount of waste, giving rise to a wide range of environmental impacts. The method of economy-wide material flow analysis （EW-MFA） is one of the effective tools to examine the flow of materials entering physical economies, and recognize early environmental problems. Relevant researches are still at the early stage in China and most focus on material throughput but are rarely concerned about the utilization of recycling resource and environmental impact. Based on more than 3,000 items of data related, materials entering Chinese economy are classified into three types, and then the characteristics of material input and environmental impact are presented for the years 1990-2005 by using the indicators derived from EW-MFA. The Ratio of Recycled Material （RRM） is added as the new indicator in order to be in accordance with the need of circular economy being promoted in China. Results show that the great changes in the structure of material input cause the continuous increase of industrial solid waste emissions and the bogging down of material productivity. The RRM reveals that the utilization of recycling resources remains at a fairly low level in China. Finally, some weakness of EW-MFA is discussed according to the calculated results.     

The Scenario of Lean Product Development in Brazilian Auto-industry

The purpose of this paper is to evaluate the impact of lean product development （LPD） in the Brazilian automotive sector. A mailed-questionnaire survey was used to examine 23 questions about LPD principles and practices. The target population for the study was Brazil＇s largest product development and design companies. The study identified that although the automobile sector is seen as a reference in the adoption of lean practices, there is still potential for improvement by establishing partnership relations with suppliers, and with those on the other points of the chain by identifying what provides value to clients. Set-based concurrent engineering is also a practice that needs to be better developed, as well as the value stream mapping tool to identify waste and activities that add value to the product development process. There has been no previous study of this nature in Brazil that characterizes the sector and highlights its importance in relation to the global scene, providing incentives to international investors. The value of the work is in the results that allow diagnosing the lean development practices that are most used in the automotive sector. Moreover, the survey questions can be applied in other economic sectors and at companies of other sizes. The study contributed to providing a systematic view of the product development process from the perspective of people, processes, and technology, and assists companies and academics manage change.     

Transition in Importance of Service Sector in Indian Economy: 1968–69–1993℃94

The importance of service sector in terms of its share in national income/GDP has been growing progressively in Indian economy throughout the post independence period. The objective of this paper is to make an assessment of the importance of the service sector which accounts the value added originating from service sector in total value added produced, needed directly and indirectly to produce gross output in Indian economy during the period 1968–69 to 1993–94. For this purpose, an index of vertical integration has been constructed which provides a dimension-free measure of the multiplier of each industry on the value-added originating from the service sector to total value added. Empirical part of this study shows that Trade, Other services, Electricity, Railway Transport Services, Chemicals and Construction played a role of key sector in terms of importance of Service sector as input for their production throughout the study period of the Indian economy. They provided strong stimulus to the economy by inducing greater value addition to service sector. In general, services industries appear to be the highly growth- inducing sector in so far as it helps higher value addition to other industries.

     

International transatlantic trade liberalization: zooming in on regional impacts

The current study analyses the impact on a Portuguese small island regional economy of the Transatlantic Trade and Investment Partnership (T-TIP) between the EU and the USA. A dynamic Computational General Equilibrium (CGE) model detailing six household categories, 45 sectors, and four trading partners is used. Previous studies used aggregate variables and, largely, were based on the structure of the national economy. For a small, integrated economy, foreign trade statistics comprise an underestimation, given that most of the trade occurs through national logistics centres. Taking into account the national integration effects, gross domestic value was estimated to be higher than in other studies. Using equivalent variation, the estimated welfare impact is positive for all six household categories. Value-added suffers mixed impacts depending on the sector. It is negative for fisheries, ambiguous for agriculture and positive for tourism and transportation. The contribution of the current study is to highlight the importance of looking beneath the trade block and national conclusions particularly when regional economic policy is relevant as is the case in Europe. Better knowledge of welfare, regional and sector impacts allows for improved development and mitigation policies.     

The economic effects of health care systems on national economies: an input-output analysis of Slovenia

This paper estimates the size of the economic impact generated by the Slovenian health care sector on the national economy in the 2009–2014 period. The study separately calculates output, income, employment, value-added and import multipliers for the Slovenian health care sector based on input-output analysis covering 49 sectors. Initially, values of simple output multipliers for all years are estimated. When the re-circulation of final demand through households is added to the direct and indirect economic effects, the values of total output multipliers considerably exceeds 2. The results suggest that an additional million EUR of final demand in the health care sector will, based on different scenarios, increase the total employment by 20 to 30 units. Moreover, the type II employment multipliers imply that under the best-case scenario one employee in the health care sector creates an additional 0.7 unit of employment in remaining structures of the observed economy. Stability evaluation of the derived multipliers suggests that the domestic health care sector may reduce volatilities in production, income and employment and consequently act as an important shock absorber in the economy.     

General Equilibrium Impacts of Monetary and Fiscal Policies on Welfare of Households in South Asia

Impacts of fiscal and monetary policies are assessed in an open economy two sector multi‐household general equilibrium tax model with money for South Asia. Despite impressive growth rates there is evidence for alarming gaps in the distribution of income among households that require very careful design of economic policies. Generally the impacts of fiscal expansions are positive for all categories of households under the flexible price system but the gains are much higher for households in the upper income group than for those in the bottom. In theory the equilibrium relative prices guarantee the optimal allocation of resources in such economy. Simulation results show that demand, output and employment are sensitive to the preferences of consumers, confidence of producers and sector specific production technologies. Monetary policy is super‐neutral under flexible price regime but can complement fiscal policy well when aggregate prices are made sticky. Combination of monetary and fiscal policies in this manner can have extensive impacts in efficiency and redistribution. Higher taxes distort incentives to work and investment from richer households slowing down the economy. This reduces the welfare level of both rich and poor. Flexibility in prices enhances the market mechanism and makes the fiscal policy more effective and efficient.     

经济增长、物价变动对农村居民收入影响探析

基于1984-2013年全国农业生产总值、农村居民消费价格指数和农村居民家庭人均纯收入数据,研究农村经济、物价变动对农村居民收入的影响。研究表明:长期来看,三者之间存在长期均衡关系。这说明农村经济的增长会提高农村居民收入,物价的变化则会反向影响农村居民收入。而短期来看,物价的上涨会增加农村居民的人均纯收入,农村经济的增长则不会对农村居民收入有明显的影响作用。     

National Income Accounting and Public Policy

Modern national income accounting was designed in the early 20th century for the purpose of providing improved indicators about the performance of the economy so that government policy makers could better control the economy. The way that performance is measured affects the types of policies used to try to accomplish policy goals. Two attributes of national income accounting are analyzed for their effects on economic policy. First, government production is included in the national income accounts at cost, rather than at market value as private sector output is measured. This biases policy toward a larger public sector. Second, output is measured as a homogeneous dollar amount. This biases policy toward focusing on increasing quantities of inputs and outputs in the production process, rather than on innovation and entrepreneurship, which are the true engines of economic progress. Economic policy could be improved by focusing less on national income as an indicator of policy, and more on the underlying processes that foster economic progress.     

Limits to growth: Tourism and regional labor migration

The paper provides a methodology for considering the carrying capacity and limits to growth of a labor-constrained mature tourism destination. A computable general equilibrium model is used to examine the impacts of visitor expenditure growth and labor migration on Hawai‘i's economy. Impacts on regional income, welfare, prices, sector-level output, and gross state product are considered under alternative migration scenarios. Labor market constraints impose limits to growth in real visitor expenditures. Labor market growth with constrained visitor demand generates falling per capita household welfare.     

HOUSEHOLD AND ENTERPRISE SAVING AND CAPITAL FORMATION IN THE UNITED STATES: A MARKET TRANSACTIONS VIEW

Contrary to conventional macro theory, it is not the consumption function in terms of either the permanent income or the life-cycle theory of saving that has furnished the saving for enterprise capital formation in the United States. Household sector accounts indicate that household gross saving, correctly measured, did not exceed household gross capital formation in the United States over the period since 1947. Furthermore, historical data on enterprise saving and capital formation in the United States, and cross-section tax return data of U.S. corporations indicate that the gross saving for many enterprise sectors has been equal to or greater than their gross capital formation. There are exceptions, however: these same sources indicate that public utilities have borrowed substantially to finance their capital formation. Finally, it is argued that employer pension and insurance reserves held by financial institutions for future benefit payments represent retained income of a nature similar to undistributed profits, and that these constitute a source of saving in the economy.     

ESTIMATES OF INTANGIBLE INVESTMENT BY INDUSTRY AND PRODUCTIVITY GROWTH IN JAPAN

In estimating intangible investment in Japan at the industry level, we find a high intangible investment/gross value added ratio in the information technology (IT) sector and negative growth rates in intangible capital in 13 industries over the decade from 2000. When we examine the impacts of intangible investment on total factor productivity growth, we find a significant and positive effect on total factor productivity growth in the market economy. In a revised estimation that considers intertemporal knowledge spillovers, the estimated rate of return on intangibles in the IT sector is quite high after the IT revolution. The results imply that intangible assets have been underinvested in the IT sector.     

Nepal's civil war and the changing sources of income: The role of sectoral shifts and remittances in mitigation and recovery

Given the increased worldwide unrest and a large number of displaced individuals, understanding the economic impacts of civil war has been the subject of growing attention by academics and policymakers. The 10‐year civil war in Nepal from 1996 to 2006 provides an opportunity to assess the impact of civil unrest on income sources and remittance patterns. In this study, we examine the changes in household income generating processes over the period of the Nepali civilwar. Using survey data from the Nepal Living Standards Survey (NLSS) in 1995/1996 and 2010/2011, we observe household income and remittance patterns before and after the civil war. Specifically, we employ a difference‐in‐difference estimator that focuses on the heterogeneity in civil unrest within Nepal to examine how the civil war impacted the sources of household income. Within the context of a slower growth rate of income after the revolution for those in the hardest hit districts, we find that there was also a change in the composition of income sources. In particular, our results suggest that there was a shift from a reliance on wages in the nonagricultural sector to wages in the agricultural sector; that there was a shift from external remittances to internal remittances; and finally that home production—the market value of items produced and consumed within the household—may be taking the place of income in regions hit by unrest. “People living in zones of war are maimed, killed, and see their property destroyed. They may be displaced or prevented from attending school or earning a living. To the extent that these costs are borne unequally across groups, the conflict could intensify economic inequality as well as poverty. The destruction (and deferred accumulation) of both human and physical capital also hinder macroeconomic performance, combining with any effects of war on institutions and technology to impact national income growth. Understanding the economic legacies of conflict is important to the design of post‐conflict recovery” (Blattman & Miguel, 2010).